BILL NUMBER:A10215
TITLE OF BILL: An act to amend the education law, in relation to claims
against schools and school districts; and to repeal certain provisions
of such law relating thereto
PURPOSE: To clarify when a contract claim against a school district
accrues.
SUMMARY: This bill would amend Section 3613 of the Education Law to
clarify the method by which a denial of a contract claim against a
school district must be made for purposes of determining when a contract
claim against a school district accrues. Specifically, this bill would
provide that a denial shall have been deemed to have occurred when the
claimant receives written notice of the denial from the school board or
other governing body of a school or school district.
JUSTIFICATION: Under current law, there is a great deal of confusion
and litigation regarding whether contractors on school construction
projects have filed claims in a timely manner. Caselaw surrounding the
current law demonstrates inconsistency in the interpretation of the law
and has led judges to call for the clarification of the law in recent
cases. This lack of clarity has often resulted in otherwise legitimate
contractor and subcontractor claims being inequitably dismissed for lack
of timeliness.
S T A T E O F N E W Y O R K
________________________________________________________________________
10215
I N A S S E M B L Y
March 11, 2010
___________
Introduced by M. of A. REILLY -- read once and referred to the Committee
on Education
AN ACT to amend the education law, in relation to claims against schools
and school districts; and to repeal certain provisions of such law
relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 3813 of the education law is
REPEALED and a new subdivision 1 is added to read as follows:
1. NO ACTION OR SPECIAL PROCEEDING, FOR ANY CAUSE WHATEVER, EXCEPT AS
HEREINAFTER PROVIDED, RELATING TO DISTRICT PROPERTY OR PROPERTY OF
SCHOOLS PROVIDED FOR IN ARTICLE EIGHTY-FIVE OF THIS CHAPTER OR CHAPTER
ONE THOUSAND SIXTY OF THE LAWS OF NINETEEN HUNDRED SEVENTY-FOUR OR CLAIM
AGAINST THE DISTRICT OR ANY SUCH SCHOOL, OR INVOLVING THE RIGHTS OR
INTERESTS OF ANY DISTRICT OR ANY SUCH SCHOOL SHALL BE PROSECUTED OR
MAINTAINED AGAINST ANY SCHOOL DISTRICT, BOARD OF EDUCATION, BOARD OF
COOPERATIVE EDUCATIONAL SERVICES, OR SCHOOL PROVIDED FOR IN ARTICLE
EIGHTY-FIVE OF THIS CHAPTER OR CHAPTER ONE THOUSAND SIXTY OF THE LAWS OF
NINETEEN HUNDRED SEVENTY-FOUR OR ANY OFFICER OF A SCHOOL DISTRICT, BOARD
OF EDUCATION, BOARD OF COOPERATIVE EDUCATIONAL SERVICES, OR SCHOOL
PROVIDED FOR IN ARTICLE EIGHTY-FIVE OF THIS CHAPTER OR CHAPTER ONE THOU-
SAND SIXTY OF THE LAWS OF NINETEEN HUNDRED SEVENTY-FOUR UNLESS IT SHALL
APPEAR BY AND AS AN ALLEGATION IN THE COMPLAINT OR NECESSARY MOVING
PAPERS THAT A WRITTEN VERIFIED CLAIM UPON WHICH SUCH ACTION OR SPECIAL
PROCEEDING IS FOUNDED WAS PRESENTED TO THE GOVERNING BODY OF SAID
DISTRICT OR SCHOOL WITHIN THREE MONTHS AFTER THE ACCRUAL OF SUCH CLAIM,
AND THAT THE OFFICER OR BODY HAVING THE POWER TO ADJUST OR PAY SAID
CLAIM HAS NEGLECTED OR REFUSED TO MAKE AN ADJUSTMENT OR PAYMENT THEREOF
FOR THIRTY DAYS AFTER SUCH PRESENTMENT. 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 DATE PAYMENT FOR
THE AMOUNT CLAIMED WAS DENIED. ANY SUCH DENIAL SHALL BE DEEMED TO HAVE
OCCURRED ON THE DATE ON WHICH A CLAIMANT SEEKING MONIES ARISING OUT OF A
CONTRACT RECEIVES WRITTEN NOTICE OF SUCH DENIAL BY THE BOARD OR OTHER
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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