Senate Bill S5943

2009-2010 Legislative Session

Relates to claims against certain schools and the governing body of school districts; repealer

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Archive: Last Bill Status - In Senate Committee Education 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
Jun 19, 2009	referred to rules

co-Sponsors

2009-S5943 (ACTIVE) - Details

See Assembly Version of this Bill:: A10215
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Rpld & add §3813 sub 1, Ed L
Versions Introduced in 2011-2012 Legislative Session:: A2270

2009-S5943 (ACTIVE) - Summary

Relates to claims against certain schools and the governing body of school districts.

2009-S5943 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5943

 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 3813 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.

Current law states that a contract claim against a school district
accrues as of the date when payment for the amount claimed was denied.
The law is currently silent as to how such a denial must be made,
resulting in confusion and often necessitating litigation. Many times,
contractors have made continued attempts to resolve an issue in an
amicable fashion directly with the school district which can make
determining the date for denial of the claim unclear. This bill would
clarify that the denial of the claim shall be deemed to occur on the
date when the claimant receives written notice of the denial from the
school board or other governing body of the school or school district,
thereby providing certainty relative to when the claim accrues. By
providing certainty as to the application of the accrual of claim
provisions of Section 3813 of the Education Law, this bill will
eliminate the need to repeatedly litigate this issue and will help to
ensure the equitable resolution of contract claims involving school
districts.

 PRIOR LEGISLATIVE HISTORY :
New Bill.

 FISCAL IMPLICATIONS :
None Noted.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S5943 (ACTIVE) - Bill Text download pdf

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

                                  5943

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 19, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14215-02-9

S. 5943                             2

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
GOVERNING  BODY  OF  SUCH A SCHOOL, SCHOOL DISTRICT, BOARD OF EDUCATION,
BOARD OF COOPERATIVE EDUCATIONAL SERVICES, OR OTHER  ENTITY  SUBJECT  TO
THIS CHAPTER.
  S 2. This act shall take effect immediately.

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Senate Bill S5943

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Archive: Last Bill Status - In Senate Committee Education Committee

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co-Sponsors

2009-S5943 (ACTIVE) - Details

2009-S5943 (ACTIVE) - Summary

2009-S5943 (ACTIVE) - Sponsor Memo

2009-S5943 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jeffrey D. Klein

Archive: Last Bill Status - In Senate Committee Education Committee

Actions

co-Sponsors

Daniel L. Squadron

2009-S5943 (ACTIVE) - Details

2009-S5943 (ACTIVE) - Summary

2009-S5943 (ACTIVE) - Sponsor Memo

2009-S5943 (ACTIVE) - Bill Text download pdf

Comments