Assembly Bill A8777

2009-2010 Legislative Session

Requires contractor bids on school district projects to include information on subcontractors and the commissioner of education to create surveys on the new bidding process

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to education
Nov 19, 2009	print number 8777b
Nov 19, 2009	amend (t) and recommit to education
Jul 08, 2009	print number 8777a
Jul 08, 2009	amend (t) and recommit to education
Jun 08, 2009	referred to education

Bill Amendments

Original

B (Active)

2009-A8777 - Details

Current Committee:: Assembly Education
Law Section:: Education Law
Laws Affected:: Amd §305, Ed L; amd §101, Gen Muni L

2009-A8777 - Summary

Requires contractors bidding on projects for school districts to provide information regarding proposed subcontractors, the commissioner to provide surveys regarding the new bidding process.

2009-A8777 - Sponsor Memo

                                BILL NUMBER:A8777

TITLE OF BILL:  An act to amend the education law and the general munic-
ipal law, in relation to assignment of contracts by school districts; to
amend  chapter 738 of the laws of 1988, amending the administrative code
of the city of New York and other laws relating to establishing the  New
York  city  school  construction  authority,  in  relation  to extending
certain provisions of such chapter relating to certain contracts of  the
authority; and providing for the repeal of certain provisions upon expi-
ration thereof

PURPOSE OR GENERAL IDEA OF BILL: This bill would require contractor bids
on school district projects to include information on subcontractors and
the  commissioner  to create surveys on the new bidding process; extends
New York City school construction authority.

SUMMARY OF SPECIFIC PROVISIONS: Section 1  amends  Section  305  of  the
education  law  requiring the Commissioner of Education to survey school
districts 4 years after the enactment of this legislation to examine the
effect of this exemption on the cost and duration of school construction
projects.

Section 2 amends section 101 of the general municipal law  by  adding  a
new  subdivision 6 allowing school districts to hire a single contractor
for work on school district  facilities.  School  districts  electing  a
single  contractor  may  require  the apparent low bidder and second low

bidder to submit the names of the bidder's proposed subcontractors.  The
proposed subcontractors may be rejected by a school district on the same
basis an apparent low bidders' bid may be refused. Proposed and approved
subcontractors may not be changed without written approval of the school
district.  Payment of subcontractors shall be in accordance with Section
106-b of the General Municipal Law (prompt payment).  The  bidder  shall
specify  the  value  to be paid to each subcontractor. A school district
may reject any bid if the business  organization,  resources,  financial
standing, or experience of the bidder justifies such rejection.

Section 2 amends Section 19 of Chapter 738 of the Laws of 1988 to extend
the  exemption from Section 101 of the General Municipal Law to June 30,
2014.

Section 3 sets the effective date and  establishes  the  length  of  the
terms of the aforementioned provisions to be five years.

JUSTIFICATION:  This  bill  will authorize districts to utilize a single
guaranteed maximum price  general  contractor  or  a  full  construction
management  contract  rather  than  the  multiple  contractors currently
required under the provisions of the Wicks law.

As a part of the 2008 enacted budget the  Legislature  established  new,
higher  Wick's thresholds. Public works projects were deemed exempt from
the compliance with the provision of Wicks for jobs valued at $3 million

in New York City, $1.5 million in Westchester, Nassau and Suffolk  coun-
ties, and $500,000 in all other parts of the state.

The  practical reality is that this change in law had very little effect
on school districts. New York City's school  construction  authority  is
exempt  under  current law from compliance with the Wicks law. For those
districts outside of New York City, the spending thresholds are too  low
to capture most construction projects.

This  bill  would extend to the rest of the state's school districts the
same level of exemption currently offered to New York City. In addition,
this bill would  also  extend  the  exemption  for  the  New  York  City
Construction Authority which has had an exemption from Wicks since 1988.
Individual  exemptions  have  been made for specific school projects for
the Ithaca City School District, Niagara Falls School District  and  the
Buffalo School District.

In  addition  to  improving  the  coordination  of  the work involved in
construction projects, it is also anticipated that school districts will
realize  substantial  savings  between  10  and  30   percent   of   the
construction  cost.  The  state  could also realize savings through this
bill because construction projects will not require as  much  reimburse-
ment in building aid.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS:  None to the State.

EFFECTIVE DATE:  Immediately.

2009-A8777 - Bill Text download pdf

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

                                  8777

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 8, 2009
                               ___________

Introduced  by M. of A. DESTITO -- read once and referred to the Commit-
  tee on Education

AN ACT to amend the education law and  the  general  municipal  law,  in
  relation  to  assignment  of  contracts  by school districts; to amend
  chapter 738 of the laws of 1988, amending the administrative  code  of
  the  city  of New York and other laws relating to establishing the New
  York city school construction  authority,  in  relation  to  extending
  certain  provisions  of  such chapter relating to certain contracts of
  the authority; and providing for the repeal of certain provisions upon
  expiration thereof

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

  Section 1. Section 305 of the education law is amended by adding a new
subdivision 42 to read as follows:
  42.  THE  COMMISSIONER  SHALL  COMMISSION  A  SURVEY  ON THE IMPACT OF
EXEMPTING SCHOOL DISTRICTS FROM THE SEPARATE BIDDING REQUIREMENTS OF THE
GENERAL MUNICIPAL LAW PURSUANT TO THE PROVISIONS OF SUBDIVISION  SIX  OF
SECTION  ONE  HUNDRED ONE OF THE GENERAL MUNICIPAL LAW. SUCH STUDY SHALL
INCLUDE  THE  IMPACT  ON  TIMEFRAMES  FOR  COMPLETING  CONSTRUCTION  AND
IMPROVEMENT  PROJECTS, THE OVERALL COSTS OF SUCH PROJECTS AND THE INTEG-
RITY OF THE BIDDING PROCESS. THE COMMISSIONER SHALL ISSUE THE RESULTS OF
SUCH SURVEY TO THE GOVERNOR, THE STATE COMPTROLLER, THE TEMPORARY PRESI-
DENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY IN  THE  FOURTH  YEAR
FOLLOWING THE EFFECTIVE DATE OF THIS SUBDIVISION.
  S  2.  Section 101 of the general municipal law is amended by adding a
new subdivision 6 to read as follows:
  6. A. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION  AND  ANY  OTHER
LAW  TO  THE  CONTRARY,  ANY  CONTRACT, SUBCONTRACT, LEASE, GRANT, BOND,
COVENANT, OR OTHER AGREEMENT FOR PROJECTS UNDERTAKEN BY SCHOOL DISTRICTS
SHALL NOT BE SUBJECT TO  THE  REQUIREMENTS  OF  SEPARATE  SPECIFICATIONS
(REFERRED TO AS THE WICKS LAW).

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11887-02-9

A. 8777                             2

  B.  WHERE  A SCHOOL DISTRICT ELECTS TO PROVIDE FOR THE ASSIGNMENT OF A
CONTRACT TO A SINGLE PERSON, FIRM OR CORPORATION PURSUANT TO PARAGRAPH A
OF THIS SUBDIVISION, SUCH SCHOOL DISTRICT MAY REQUIRE THE  APPARENT  LOW
BIDDER  AND, AT THE DISCRETION OF THE SCHOOL DISTRICT, THE NEXT APPARENT
LOW BIDDER, TO SUBMIT TO THE DISTRICT THE NAMES OF THE BIDDER'S PROPOSED
SUBCONTRACTORS  FOR  THE  ELECTRICAL  WORK, HEATING, VENTILATING AND AIR
CONDITIONING WORK, AND THE PLUMBING WORK. ONLY ONE PROPOSED  SUBCONTRAC-
TOR  SHALL  BE NAMED FOR EACH SUCH TRADE. SUCH PROPOSED SUBCONTRACTOR OR
SUBCONTRACTORS MAY BE REJECTED BY THE SCHOOL DISTRICT ON THE  BASIS  SET
FORTH  IN  PARAGRAPH E OF THIS SUBDIVISION. UPON REJECTION OF A PROPOSED
SUBCONTRACTOR OR SUBCONTRACTORS, THE SCHOOL  DISTRICT  MAY  REQUIRE  THE
APPARENT  LOW  BIDDER  TO  SUBMIT AN ALTERNATE PROPOSED SUBCONTRACTOR OR
SUBCONTRACTORS WITHIN FORTY-EIGHT HOURS. SHOULD THE APPARENT LOW  BIDDER
FAIL  TO  PROPOSE  ALTERNATE  SUBCONTRACTORS  SUBJECT TO APPROVAL BY THE
SCHOOL DISTRICT, THE SCHOOL DISTRICT MAY CONSIDER THE NEXT APPARENT  LOW
BIDDER  AND SHALL FOLLOW THE SAME PROCEDURE SET FORTH IN THIS PARAGRAPH.
SUCH PROPOSED SUBCONTRACTORS OF  THE  BIDDER,  APPROVED  BY  THE  SCHOOL
DISTRICT  SHALL  BE  USED  ON  THE WORK FOR WHICH THEY WERE PROPOSED AND
APPROVED, AND THEY SHALL NOT BE CHANGED EXCEPT WITH THE SPECIFIC WRITTEN
APPROVAL OF THE DISTRICT.
  C. PAYMENT TO THE SUBCONTRACTORS APPROVED PURSUANT TO PARAGRAPH  B  OF
THIS  SUBDIVISION  SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF SECTION
ONE HUNDRED SIX-B OF THIS ARTICLE. IN THE EVENT ANY  SUCH  SUBCONTRACTOR
IS NOT PAID BY THE CONTRACTOR, THE SUBCONTRACTOR SHALL IMMEDIATELY NOTI-
FY THE SCHOOL DISTRICT OF SUCH FACT.
  D.  WITH THE SUBMISSION OF THE NAMES OF THE PROPOSED SUBCONTRACTORS AS
PROVIDED IN PARAGRAPH B OF THIS SUBDIVISION, THE  BIDDER  SHALL  SPECIFY
THE AMOUNT TO BE PAID TO EACH SUBCONTRACTOR FOR THE WORK TO BE PERFORMED
BY SUCH SUBCONTRACTOR.
  E. A SCHOOL DISTRICT MAY REJECT ANY OR ALL BIDS OR WAIVE ANY INFORMAL-
ITY  IN A BID IF THE SCHOOL DISTRICT REASONABLY BELIEVES THAT THE PUBLIC
INTEREST WILL BE PROMOTED THEREBY. A SCHOOL DISTRICT MAY REJECT ANY  BID
IF,  IN  THE JUDGMENT OF THE SCHOOL DISTRICT, THE BUSINESS ORGANIZATION,
RESOURCES, FINANCIAL STANDING, OR EXPERIENCE  OF  THE  BIDDER  JUSTIFIES
SUCH REJECTION IN VIEW OF THE WORK TO BE PERFORMED.
  F.  THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE NEW YORK
CITY SCHOOL CONSTRUCTION AUTHORITY ESTABLISHED PURSUANT TO TITLE SIX  OF
ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW.
  S  3.  Section  19  of  chapter  738 of the laws of 1988, amending the
administrative code of the city of New York and other laws  relating  to
establishing the New York city school construction authority, as amended
by chapter 134 of the laws of 2004, is  amended to read as follows:
  S  19. This act shall take effect immediately, provided, however, that
the provisions of subdivision 6 of section 209 of the civil service law,
as added by section four  of  this  act,  shall  expire  and  be  deemed
repealed  on  and  after  June  30,  1995, and further provided that the
provisions of section 1735 of the public authorities law,  as  added  by
section  fourteen  of  this  act, shall expire and be deemed repealed on
June 30, [2009] 2014.
  S 4. This act shall take effect immediately;  provided  that  sections
one  and  two of this act shall take effect on the one hundred eightieth
day after they shall have become law, and shall apply to  all  contracts
advertised  or  solicited  for  bid  on  or  after  such effective date;
provided that the provisions of sections one and two of this  act  shall
expire and be deemed repealed 5 years after such effective date.

2009-A8777A - Details

Current Committee:: Assembly Education
Law Section:: Education Law
Laws Affected:: Amd §305, Ed L; amd §101, Gen Muni L

2009-A8777A - Summary

Requires contractors bidding on projects for school districts to provide information regarding proposed subcontractors, the commissioner to provide surveys regarding the new bidding process.

2009-A8777A - Sponsor Memo

                                BILL NUMBER:A8777A

TITLE OF BILL:  An act to amend the education law and the general munic-
ipal law, in relation to assignment of contracts by school districts; to
amend chapter 738 of the laws of 1988, amending the administrative code
of the city of New York and other laws relating to establishing the New
York city school construction authority, in relation to extending
certain provisions of such chapter relating to certain contracts of the
authority; to amend the public authorities law, in relation to extending
certain provisions regarding the award of construction contracts by the
New York city school construction authority and providing for the repeal
of certain provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF BILL: This bill would require contractor bids
on school district projects to include information on subcontractors and
the commissioner to create surveys on the new bidding process; extends
New York City school construction authority.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends Section 305 of the
education law requiring the Commissioner of Education to survey school
districts 4 years after the enactment of this legislation to examine the
effect of this exemption on the cost and duration of school construction
projects.

Section 2 amends section 101 of the general municipal law by adding a
new subdivision 6 allowing school districts to hire a single contractor

for work on school district facilities. School districts electing a
single contractor may require the apparent low bidder and second low
bidder to submit the names of the bidder's proposed subcontractors. The
proposed subcontractors may be rejected by a school district on the same
basis an apparent low bidders' bid may be refused. Proposed and approved
subcontractors may not be changed without written approval of the school
district. Payment of subcontractors shall be in accordance with Section
106-b of the General Municipal Law (prompt payment). The bidder shall
specify the value to be paid to each subcontractor. A school district
may reject any bid if the business organization, resources, financial
standing, or experience of the bidder justifies such rejection.

Section 2 amends Section 19 of Chapter 738 of the Laws of 1988 and
subdivision 1 of section 1735 of the public authorities law, to extend
the exemption from Section 101 of the General Municipal Law to June 30,
2014.

Section 3 sets the effective date and establishes the length of the
terms of the aforementioned provisions to be five years.

JUSTIFICATION: This bill will authorize districts to utilize a single
guaranteed maximum price general contractor or a full construction
management contract rather than the multiple contractors currently
required under the provisions of the Wicks law.

As a part of the 2008 enacted budget the Legislature established new,
higher Wick's thresholds. Public works projects were deemed exempt from
the compliance with the provision of Wicks for jobs valued at $3 million
in New York City, $1.5 million in Westchester, Nassau and Suffolk coun-
ties, and $500,000 in all other parts of the state.

The practical reality is that this change in law had very little effect
on school districts. New York City's school construction authority is
exempt under current law from compliance with the Wicks law. For those
districts outside of New York City, the spending thresholds are too low
to capture most construction projects.  This bill would extend to the
rest of the state's school districts the same level of exemption
currently offered to New York City. In addition, this bill would also
extend the exemption for the New York City Construction Authority which
has had an exemption from Wicks since 1988. Individual exemptions have
been made for specific school projects for the Ithaca City School
District, Niagara Falls School District and the Buffalo School District.

2009-A8777A - Bill Text download pdf

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

                                 8777--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 8, 2009
                               ___________

Introduced  by M. of A. DESTITO -- read once and referred to the Commit-
  tee on  Education  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  education law and the general municipal law, in
  relation to assignment of contracts  by  school  districts;  to  amend
  chapter  738  of the laws of 1988, amending the administrative code of
  the city of New York and other laws relating to establishing  the  New
  York  city  school  construction  authority,  in relation to extending
  certain provisions of such chapter relating to  certain  contracts  of
  the  authority;  to  amend  the public authorities law, in relation to
  extending certain  provisions  regarding  the  award  of  construction
  contracts  by  the  New  York  city  school construction authority and
  providing for the repeal of certain provisions upon expiration thereof

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

  Section 1. Section 305 of the education law is amended by adding a new
subdivision 42 to read as follows:
  42.  THE  COMMISSIONER  SHALL  COMMISSION  A  SURVEY  ON THE IMPACT OF
EXEMPTING SCHOOL DISTRICTS FROM THE SEPARATE BIDDING REQUIREMENTS OF THE
GENERAL MUNICIPAL LAW PURSUANT TO THE PROVISIONS OF SUBDIVISION  SIX  OF
SECTION  ONE  HUNDRED ONE OF THE GENERAL MUNICIPAL LAW. SUCH STUDY SHALL
INCLUDE  THE  IMPACT  ON  TIMEFRAMES  FOR  COMPLETING  CONSTRUCTION  AND
IMPROVEMENT  PROJECTS, THE OVERALL COSTS OF SUCH PROJECTS AND THE INTEG-
RITY OF THE BIDDING PROCESS. THE COMMISSIONER SHALL ISSUE THE RESULTS OF
SUCH SURVEY TO THE GOVERNOR, THE STATE COMPTROLLER, THE TEMPORARY PRESI-
DENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY IN  THE  FOURTH  YEAR
FOLLOWING THE EFFECTIVE DATE OF THIS SUBDIVISION.
  S  2.  Section 101 of the general municipal law is amended by adding a
new subdivision 6 to read as follows:
  6. A. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION  AND  ANY  OTHER
LAW  TO  THE  CONTRARY,  ANY  CONTRACT, SUBCONTRACT, LEASE, GRANT, BOND,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11887-04-9

A. 8777--A                          2

COVENANT, OR OTHER AGREEMENT FOR PROJECTS UNDERTAKEN BY SCHOOL DISTRICTS
SHALL NOT BE SUBJECT TO  THE  REQUIREMENTS  OF  SEPARATE  SPECIFICATIONS
(REFERRED TO AS THE WICKS LAW).
  B.  WHERE  A SCHOOL DISTRICT ELECTS TO PROVIDE FOR THE ASSIGNMENT OF A
CONTRACT TO A SINGLE PERSON, FIRM OR CORPORATION PURSUANT TO PARAGRAPH A
OF THIS SUBDIVISION, SUCH SCHOOL DISTRICT MAY REQUIRE THE  APPARENT  LOW
BIDDER  AND, AT THE DISCRETION OF THE SCHOOL DISTRICT, THE NEXT APPARENT
LOW BIDDER, TO SUBMIT TO THE DISTRICT THE NAMES OF THE BIDDER'S PROPOSED
SUBCONTRACTORS FOR THE ELECTRICAL WORK,  HEATING,  VENTILATING  AND  AIR
CONDITIONING  WORK, AND THE PLUMBING WORK. ONLY ONE PROPOSED SUBCONTRAC-
TOR SHALL BE NAMED FOR EACH SUCH TRADE. SUCH PROPOSED  SUBCONTRACTOR  OR
SUBCONTRACTORS  MAY  BE REJECTED BY THE SCHOOL DISTRICT ON THE BASIS SET
FORTH IN PARAGRAPH E OF THIS SUBDIVISION. UPON REJECTION OF  A  PROPOSED
SUBCONTRACTOR  OR  SUBCONTRACTORS,  THE  SCHOOL DISTRICT MAY REQUIRE THE
APPARENT LOW BIDDER TO SUBMIT AN  ALTERNATE  PROPOSED  SUBCONTRACTOR  OR
SUBCONTRACTORS  WITHIN FORTY-EIGHT HOURS. SHOULD THE APPARENT LOW BIDDER
FAIL TO PROPOSE ALTERNATE SUBCONTRACTORS  SUBJECT  TO  APPROVAL  BY  THE
SCHOOL  DISTRICT, THE SCHOOL DISTRICT MAY CONSIDER THE NEXT APPARENT LOW
BIDDER AND SHALL FOLLOW THE SAME PROCEDURE SET FORTH IN THIS  PARAGRAPH.
SUCH  PROPOSED  SUBCONTRACTORS  OF  THE  BIDDER,  APPROVED BY THE SCHOOL
DISTRICT SHALL BE USED ON THE WORK FOR  WHICH  THEY  WERE  PROPOSED  AND
APPROVED, AND THEY SHALL NOT BE CHANGED EXCEPT WITH THE SPECIFIC WRITTEN
APPROVAL OF THE DISTRICT.
  C.  PAYMENT  TO THE SUBCONTRACTORS APPROVED PURSUANT TO PARAGRAPH B OF
THIS SUBDIVISION SHALL BE IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION
ONE  HUNDRED  SIX-B OF THIS ARTICLE. IN THE EVENT ANY SUCH SUBCONTRACTOR
IS NOT PAID BY THE CONTRACTOR, THE SUBCONTRACTOR SHALL IMMEDIATELY NOTI-
FY THE SCHOOL DISTRICT OF SUCH FACT.
  D. WITH THE SUBMISSION OF THE NAMES OF THE PROPOSED SUBCONTRACTORS  AS
PROVIDED  IN  PARAGRAPH  B OF THIS SUBDIVISION, THE BIDDER SHALL SPECIFY
THE AMOUNT TO BE PAID TO EACH SUBCONTRACTOR FOR THE WORK TO BE PERFORMED
BY SUCH SUBCONTRACTOR.
  E. A SCHOOL DISTRICT MAY REJECT ANY OR ALL BIDS OR WAIVE ANY INFORMAL-
ITY IN A BID IF THE SCHOOL DISTRICT REASONABLY BELIEVES THAT THE  PUBLIC
INTEREST  WILL BE PROMOTED THEREBY. A SCHOOL DISTRICT MAY REJECT ANY BID
IF, IN THE JUDGMENT OF THE SCHOOL DISTRICT, THE  BUSINESS  ORGANIZATION,
RESOURCES,  FINANCIAL  STANDING,  OR  EXPERIENCE OF THE BIDDER JUSTIFIES
SUCH REJECTION IN VIEW OF THE WORK TO BE PERFORMED.
  F. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE NEW  YORK
CITY  SCHOOL CONSTRUCTION AUTHORITY ESTABLISHED PURSUANT TO TITLE SIX OF
ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW.
  S 3. Section 19 of chapter 738 of  the  laws  of  1988,  amending  the
administrative  code  of the city of New York and other laws relating to
establishing the New York city school construction authority, as amended
by chapter 134 of the laws of 2004, is  amended to read as follows:
  S 19. This act shall take effect immediately, provided, however,  that
the provisions of subdivision 6 of section 209 of the civil service law,
as  added  by  section  four  of  this  act,  shall expire and be deemed
repealed on and after June 30,  1995,  and  further  provided  that  the
provisions  of  section  1735 of the public authorities law, as added by
section fourteen of this act, shall expire and  be  deemed  repealed  on
June 30, [2009] 2014.
  S  4.  Subdivision 1 of section 1735 of the public authorities law, as
amended by chapter 410 of the laws  of  1999,  is  amended  to  read  as
follows:

A. 8777--A                          3

  1. Notwithstanding the provisions of paragraph b of subdivision one of
section  seventeen  hundred  thirty-four  of  this  title,  the award of
construction contracts by the authority  between  July  first,  nineteen
hundred  eighty-nine  and  June  thirtieth, two thousand [two] FOURTEEN,
shall not be subject to the provisions of section one hundred one of the
general municipal law.
  S  5.  This  act shall take effect immediately; provided that sections
one and two of this act shall take effect on the one  hundred  eightieth
day  after  they shall have become law, and shall apply to all contracts
advertised or solicited  for  bid  on  or  after  such  effective  date;
provided  that  the provisions of sections one and two of this act shall
expire and be  deemed  repealed  5  years  after  such  effective  date;
provided further that the amendments to subdivision 1 of section 1735 of
the  public  authorities  law made by section four of this act shall not
affect the expiration of such section and shall be deemed repealed ther-
ewith.

2009-A8777B (ACTIVE) - Details

Current Committee:: Assembly Education
Law Section:: Education Law
Laws Affected:: Amd §305, Ed L; amd §101, Gen Muni L

2009-A8777B (ACTIVE) - Summary

Requires contractors bidding on projects for school districts to provide information regarding proposed subcontractors, the commissioner to provide surveys regarding the new bidding process.

2009-A8777B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8777B

TITLE OF BILL:  An act to amend the education law and the general munic-
ipal law, in relation to assignment of contracts by school districts and
providing for the repeal of such provisions upon expiration thereof

SUMMARY  OF  SPECIFIC  PROVISIONS:  Section  1 amends Section 305 of the
education law requiring the Commissioner of Education to  survey  school
districts 4 years after the enactment of this legislation to examine the
effect of this exemption on the cost and duration of school construction
projects.

Section  2  amends  section 101 of the general municipal law by adding a
new subdivision 6 allowing school districts to hire a single  contractor
for  work  on  school  district  facilities. School districts electing a
single contractor may require the apparent low  bidder  and  second  low
bidder  to submit the names of the bidder's proposed subcontractors. The
proposed subcontractors may be rejected by a school district on the same
basis an apparent low bidders' bid may be refused. Proposed and approved
subcontractors may not be changed without written approval of the school
district. Payment of subcontractors shall be in accordance with  Section
106-b  of  the  General Municipal Law (prompt payment). The bidder shall
specify the value to be paid to each subcontractor.  A  school  district
may  reject  any  bid if the business organization, resources, financial
standing, or experience of the bidder justifies such rejection.

Section 3 sets the effective date and  establishes  the  length  of  the
terms of the aforementioned provisions to be five years.

JUSTIFICATION:  This  bill  will authorize districts to utilize a single
guaranteed maximum price  general  contractor  or  a  full  construction
management  contract  rather  than  the  multiple  contractors currently
required under the provisions of the Wicks law.

As a part of the 2008 enacted budget the  Legislature  established  new,
higher  Wick's thresholds. Public works projects were deemed exempt from
the compliance with the provision of Wicks for jobs valued at $3 million
in New York City, $1.5 million in Westchester, Nassau and Suffolk  coun-
ties, and $500,000 in all other parts of the state. The practical reali-
ty  is  that  this  change  in  law  had  very  little  effect on school
districts. New York City's school construction authority is exempt under
current law from compliance with the  Wicks  law.  For  those  districts
outside of New York City, the spending thresholds are too low to capture
most construction projects.

This  bill  would extend to the rest of the state's school districts the
same level of exemption currently offered to New York City. In  addition
to  improving  the  coordination  of  the  work involved in construction
projects, it is also anticipated  that  school  districts  will  realize
substantial  savings between 10 and 30 percent of the construction cost.
The  state  could  also  realize  savings  through  this  bill   because

construction projects will not require as much reimbursement in building
aid.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS:  None to the State.

EFFECTIVE  DATE:    This act shall take effect on the 180th day after it
shall have become a law, and has a sunset date  of  5  years  after  its
enactment.

2009-A8777B (ACTIVE) - Bill Text download pdf

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

                                 8777--B

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 8, 2009
                               ___________

Introduced  by M. of A. DESTITO -- read once and referred to the Commit-
  tee on  Education  --  committee  discharged,  bill  amended,  ordered
  reprinted  as  amended  and  recommitted  to  said  committee -- again
  reported from said committee with  amendments,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT  to  amend  the  education law and the general municipal law, in
  relation to assignment of contracts by school districts and  providing
  for the repeal of such provisions upon expiration thereof

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

  Section 1. Section 305 of the education law is amended by adding a new
subdivision 42 to read as follows:
  42. THE COMMISSIONER SHALL  COMMISSION  A  SURVEY  ON  THE  IMPACT  OF
EXEMPTING SCHOOL DISTRICTS FROM THE SEPARATE BIDDING REQUIREMENTS OF THE
GENERAL  MUNICIPAL  LAW PURSUANT TO THE PROVISIONS OF SUBDIVISION SIX OF
SECTION ONE HUNDRED ONE OF THE GENERAL MUNICIPAL LAW. SUCH  STUDY  SHALL
INCLUDE  THE  IMPACT  ON  TIMEFRAMES  FOR  COMPLETING  CONSTRUCTION  AND
IMPROVEMENT PROJECTS, THE OVERALL COSTS OF SUCH PROJECTS AND THE  INTEG-
RITY OF THE BIDDING PROCESS. THE COMMISSIONER SHALL ISSUE THE RESULTS OF
SUCH SURVEY TO THE GOVERNOR, THE STATE COMPTROLLER, THE TEMPORARY PRESI-
DENT  OF  THE  SENATE AND THE SPEAKER OF THE ASSEMBLY IN THE FOURTH YEAR
FOLLOWING THE EFFECTIVE DATE OF THIS SUBDIVISION.
  S 2. Section 101 of the general municipal law is amended by  adding  a
new subdivision 6 to read as follows:
  6.  A.  NOTWITHSTANDING  SUBDIVISION ONE OF THIS SECTION AND ANY OTHER
LAW TO THE CONTRARY, ANY  CONTRACT,  SUBCONTRACT,  LEASE,  GRANT,  BOND,
COVENANT, OR OTHER AGREEMENT FOR PROJECTS UNDERTAKEN BY SCHOOL DISTRICTS
SHALL  NOT  BE  SUBJECT  TO  THE REQUIREMENTS OF SEPARATE SPECIFICATIONS
(REFERRED TO AS THE WICKS LAW).
  B. WHERE A SCHOOL DISTRICT ELECTS TO PROVIDE FOR THE ASSIGNMENT  OF  A
CONTRACT TO A SINGLE PERSON, FIRM OR CORPORATION PURSUANT TO PARAGRAPH A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11887-06-9

A. 8777--B                          2

OF  THIS  SUBDIVISION, SUCH SCHOOL DISTRICT MAY REQUIRE THE APPARENT LOW
BIDDER AND, AT THE DISCRETION OF THE SCHOOL DISTRICT, THE NEXT  APPARENT
LOW BIDDER, TO SUBMIT TO THE DISTRICT THE NAMES OF THE BIDDER'S PROPOSED
SUBCONTRACTORS  FOR  THE  ELECTRICAL  WORK, HEATING, VENTILATING AND AIR
CONDITIONING WORK, AND THE PLUMBING WORK. ONLY ONE PROPOSED  SUBCONTRAC-
TOR  SHALL  BE NAMED FOR EACH SUCH TRADE. SUCH PROPOSED SUBCONTRACTOR OR
SUBCONTRACTORS MAY BE REJECTED BY THE SCHOOL DISTRICT ON THE  BASIS  SET
FORTH  IN  PARAGRAPH E OF THIS SUBDIVISION. UPON REJECTION OF A PROPOSED
SUBCONTRACTOR OR SUBCONTRACTORS, THE SCHOOL  DISTRICT  MAY  REQUIRE  THE
APPARENT  LOW  BIDDER  TO  SUBMIT AN ALTERNATE PROPOSED SUBCONTRACTOR OR
SUBCONTRACTORS WITHIN FORTY-EIGHT HOURS. SHOULD THE APPARENT LOW  BIDDER
FAIL  TO  PROPOSE  ALTERNATE  SUBCONTRACTORS  SUBJECT TO APPROVAL BY THE
SCHOOL DISTRICT, THE SCHOOL DISTRICT MAY CONSIDER THE NEXT APPARENT  LOW
BIDDER  AND SHALL FOLLOW THE SAME PROCEDURE SET FORTH IN THIS PARAGRAPH.
SUCH PROPOSED SUBCONTRACTORS OF  THE  BIDDER,  APPROVED  BY  THE  SCHOOL
DISTRICT  SHALL  BE  USED  ON  THE WORK FOR WHICH THEY WERE PROPOSED AND
APPROVED, AND THEY SHALL NOT BE CHANGED EXCEPT WITH THE SPECIFIC WRITTEN
APPROVAL OF THE DISTRICT.
  C. PAYMENT TO THE SUBCONTRACTORS APPROVED PURSUANT TO PARAGRAPH  B  OF
THIS  SUBDIVISION  SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF SECTION
ONE HUNDRED SIX-B OF THIS ARTICLE. IN THE EVENT ANY  SUCH  SUBCONTRACTOR
IS NOT PAID BY THE CONTRACTOR, THE SUBCONTRACTOR SHALL IMMEDIATELY NOTI-
FY THE SCHOOL DISTRICT OF SUCH FACT.
  D.  WITH THE SUBMISSION OF THE NAMES OF THE PROPOSED SUBCONTRACTORS AS
PROVIDED IN PARAGRAPH B OF THIS SUBDIVISION, THE  BIDDER  SHALL  SPECIFY
THE AMOUNT TO BE PAID TO EACH SUBCONTRACTOR FOR THE WORK TO BE PERFORMED
BY SUCH SUBCONTRACTOR.
  E. A SCHOOL DISTRICT MAY REJECT ANY OR ALL BIDS OR WAIVE ANY INFORMAL-
ITY  IN A BID IF THE SCHOOL DISTRICT REASONABLY BELIEVES THAT THE PUBLIC
INTEREST WILL BE PROMOTED THEREBY. A SCHOOL DISTRICT MAY REJECT ANY  BID
IF,  IN  THE JUDGMENT OF THE SCHOOL DISTRICT, THE BUSINESS ORGANIZATION,
RESOURCES, FINANCIAL STANDING, OR EXPERIENCE  OF  THE  BIDDER  JUSTIFIES
SUCH REJECTION IN VIEW OF THE WORK TO BE PERFORMED.
  F.  THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE NEW YORK
CITY SCHOOL CONSTRUCTION AUTHORITY ESTABLISHED PURSUANT TO TITLE SIX  OF
ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW.
  S 3. This act shall take effect on the one hundred eightieth day after
it  shall have become a law, and shall apply to all contracts advertised
or solicited for bid on or after such effective date; provided that this
act shall expire and be deemed repealed 5  years  after  such  effective
date.

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