Senate Bill S7493

2009-2010 Legislative Session

Relates to constructing buildings for certain public corporations; repealer

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 15, 2010	referred to corporations, authorities and commissions

2009-S7493 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Facilities Development Corporation Act
Laws Affected:: Amd §§3, 8-b, 14-a & 14-b, rpld §10, Fac Dev Corp Act

2009-S7493 (ACTIVE) - Summary

Relates to constructing buildings for certain public corporations; repeals certain provisions relating to custody of funds for municipal projects.

2009-S7493 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7493

 TITLE OF BILL :

An act to amend the facilities development corporation act, in
relation to constructing buildings for certain public corporations;
and to repeal section 10 of such act relating to the custody of funds
for municipal projects


 PURPOSE OF THE BILL :

The purpose of this bill is to expand the types of buildings that the
Dormitory Authority of the State of New York ("DASNY") may construct
for certain public corporations under the Facilities Development
Corporation Act ("FDCA").

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend §§ 3(13) and 3(13-a) of chapter 359
of the laws of 1968, constituting the FDCA, to broaden the definition
of "municipality" (from a county, town, city or village) to include
all municipal corporations as well as public benefit corporations, and
to broaden the definition of "municipal building" to include all
buildings used principally by such a corporation in furtherance of any
of its corporate purposes.

Sections 2, 4 and 5 of the bill would amend FDCA §§ 8-b(1), 14-a(1)
and (3), and 14-b(1), respectively, to (1) eliminate the requirement
that any agreement between DASNY and a municipality be determined
reasonable by the Director of the Budget ("Director"), with respect to
DASNY's charge for its services for a municipal project, in order to
become effective; and (2) eliminate the requirement that DASNY
regulations regarding municipal projects be submitted to the Director
for approval.

Section 3 of the bill would repeal FDCA § 10, which requires the
deposit with the Commissioner of Taxation and Finance of monies
related to municipal projects undertaken by DASNY.

Section 4 of the bill would amend FDCA § 14-a(1), which requires that
DASNY enter into an agreement with a municipality for the design,
construction, reconstruction, rehabilitation and improvement for such
municipality of a municipal building or buildings at the sole cost and
expense of such municipality, by adding a requirement that such an
agreement provide for DASNY to (i) procure "such architects,
engineers, construction managers and contractors necessary to design,
manage and construct the project (including the performance of
services relating to planning, design review, budgeting, construction
scheduling, construct ability reviews, coordination of prime
contractors, cost control and processing of change orders); and (ii)
monitor, supervise, review and coordinate the services of all
architects, engineers, construction managers and contractors engaged
pursuant to clause (i) hereof to the extent that the corporation deems
it necessary to fulfill its responsibilities as agent or
representative of the municipality under such agreement.

Section 6 of the bill would make it effective immediately.

 EXISTING LAW :

Under the FDCA, DASNY may construct health facilities, correctional
facilities, highway garages and administrative buildings for counties,
towns, cities, and villages.  Moneys received from such municipalities
for such projects must be deposited with the Commissioner of Taxation
and Finance, who serves as the agent of, and makes payments as
requested by DASNY. The Director must determine that charges for
DASNY's services under agreements with municipalities are reasonable.
The law requires the promulgation of procedural regulations, subject
to the approval of the Director.

 PRIOR LEGISLATIVE HISTORY :

Similar legislation (S.8293) was introduced during the 2006
legislative session.

 STATEMENT IN SUPPORT :

Municipalities often undertake building construction projects without
having the staff or expertise to effectively oversee construction
managers, architects, engineers and contractors or to ensure they are
pursuing the most economical alternative. Buildings are increasingly
complex, requiring more financial, technical, and management expertise
than many municipalities have available, especially those that are
small. This legislation would allow municipalities, in tbeir
discretion, to utilize DASNY's expertise in the construction of all
buildings, without limitation. Municipalities would thereby have
access to increased managerial and technical assistance. This bill
does not authorize DASNY to finance buildings for municipalities.

This bill would repeal FDCA § 10, which requires the deposit with the
Commissioner of Taxation and Finance of monies related to municipal
projects undertaken by DASNY, because DASNY has adequate resources to
receive, hold, invest, disburse and account for money received from a
municipality for a building project.  DASNY now performs identical
functions for all of its other clients, and there is no reason why it
cannot do the same for municipal building projects.

The current requirement that the Director approve charges for DASNY's
services and regulations for municipal building projects, are not
necessary. DASNY currently negotiates the charges for its services
with its other clients and determines the need for regulations for its
other programs Without the approval of the Director.

 BUDGET IMPLICATIONS :

This bill has no budget implications for the State, inasmuch as the
cost of DASNY's services would be paid by the municipalities receiving
them.

 EFFECTIVE DATE :
This bill takes effect immediately.

2009-S7493 (ACTIVE) - Bill Text download pdf

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

                                  7493

                            I N  S E N A T E

                             April 15, 2010
                               ___________

Introduced  by Sen. PERKINS -- (at request of the Dormitory Authority of
  the State of New York) -- read twice and  ordered  printed,  and  when
  printed  to be committed to the Committee on Corporations, Authorities
  and Commissions

AN ACT to amend the facilities development corporation act, in  relation
  to  constructing  buildings  for  certain  public corporations; and to
  repeal section 10 of such act relating to the  custody  of  funds  for
  municipal projects

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

  Section 1. Subdivisions 13 and 13-a of section 3 of section 1 of chap-
ter 359 of the laws of 1968,  constituting  the  facilities  development
corporation act, subdivision 13 as amended by chapter 344 of the laws of
1969  and  subdivision 13-a as added by chapter 968 of the laws of 1981,
are amended to read as follows:
  13. "Municipality" means a [county, city, town or village,]  MUNICIPAL
CORPORATION  OR  A  PUBLIC  BENEFIT  CORPORATION  except that, where the
corporation is undertaking a health facilities improvement program, such
term shall mean a [county, city or town] MUNICIPAL  CORPORATION  consti-
tuting  a  social  services  district  as defined in sections two[,] AND
sixty-one[, seventy-five and seventy-five-a] of the social services  law
OR  A  PUBLIC  BENEFIT  CORPORATION, or any two or more of the foregoing
which are acting jointly to provide a health facility or health  facili-
ties.
  13-a. "Municipal building" shall mean a building, including grading or
improvement  of the site, furnishings, equipment and utility services in
conjunction with such a building, to be principally used [for the admin-
istrative offices of] BY a municipality [or for the storage or repair of
maintenance equipment] IN FURTHERANCE OF ANY OF ITS CORPORATE  PURPOSES.
Nothing herein shall be construed to prevent the corporation from enter-
ing into an agreement for the design and construction of a local correc-
tional facility in combination with a municipal building.
  S  2.  Subdivision 1 of section 8-b of section 1 of chapter 359 of the
laws of 1968, constituting the facilities development  corporation  act,

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

                                                           LBD15981-01-0

S. 7493                             2

as  amended  by  chapter  866 of the laws of 1984, is amended to read as
follows:
  1.  The  corporation  is  authorized to enter into an agreement with a
municipality providing for the design by the  corporation  of  a  health
facility or health facilities for such municipality at the sole cost and
expense  of  the  municipality.  Such agreement may also provide for the
construction, reconstruction, rehabilitation  and  improvement  of  such
health facility or health facilities by the corporation at the sole cost
and  expense  of  the  municipality  or of any agency or instrumentality
thereof. A municipality is hereby authorized to enter into  such  agree-
ments  with the corporation and to provide for the payment to the corpo-
ration of all expenses incurred at such times and  in  such  amounts  as
shall  be  set forth in the agreement, notwithstanding the provisions of
any general, special or local law or of any charter. The agreement shall
contain such other terms and conditions as may be  agreed  upon  by  the
corporation  and  the  municipality. The corporation shall enter into an
agreement with a municipality prior to the commencement  of  any  corpo-
ration services. No agreement entered into between the facilities devel-
opment  corporation and a municipality pursuant to this section shall be
effective until the [director of the budget] CORPORATION has  determined
that  the total estimated charge to be collected by the corporation from
the municipality is fair and reasonable in relationship to the estimated
total project cost and also that sufficient provisions exist  to  insure
the  collection of such charge by the corporation from the municipality.
The corporation [shall] MAY  by  regulation  prescribe  a  procedure  or
procedures  for the application by a municipality to the corporation for
its assistance and the corporation's procedure  or  procedures  for  the
design,  construction, reconstruction, rehabilitation and improvement of
a health facility or health facilities. [Any such  regulation  shall  be
submitted  to  the  director of the budget for his approval prior to its
effectiveness.]
  S 3. Section 10 of section 1 of chapter  359  of  the  laws  of  1968,
constituting the facilities development corporation act, is REPEALED.
  S  4. Subdivision 1 of section 14-a of section 1 of chapter 359 of the
laws of 1968, constituting the facilities development  corporation  act,
as  added  by  chapter  968  of  the laws of 1981, is amended to read as
follows:
  1. The corporation is authorized to enter into  an  agreement  with  a
municipality  for  the  design,  construction, reconstruction, rehabili-
tation and improvement for such municipality of a municipal building  or
buildings at the sole cost and expense of such municipality.
  A.  SUCH  AGREEMENT SHALL PROVIDE FOR THE CORPORATION TO:  (I) PROCURE
SUCH ARCHITECTS, ENGINEERS, CONSTRUCTION MANAGERS AND CONTRACTORS NECES-
SARY TO DESIGN, MANAGE AND CONSTRUCT THE PROJECT (INCLUDING THE PERFORM-
ANCE  OF  SERVICES  RELATING  TO  PLANNING,  DESIGN  REVIEW,  BUDGETING,
CONSTRUCTION SCHEDULING, CONSTRUCTABILITY REVIEWS, COORDINATION OF PRIME
CONTRACTORS,  COST  CONTROL  AND  PROCESSING OF CHANGE ORDERS); AND (II)
MONITOR, SUPERVISE, REVIEW AND COORDINATE THE  SERVICES  OF  ALL  ARCHI-
TECTS, ENGINEERS, CONSTRUCTION MANAGERS AND CONTRACTORS ENGAGED PURSUANT
TO SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE EXTENT THAT THE CORPORATION
DEEMS IT NECESSARY TO FULFILL ITS RESPONSIBILITIES AS AGENT OR REPRESEN-
TATIVE OF THE MUNICIPALITY UNDER SUCH AGREEMENT.
  The  corporation  shall  enter  into  an agreement with a municipality
prior to the commencement of  any  corporation  services.  No  agreement
entered  into between the facilities development corporation and a muni-
cipality pursuant to this section shall be effective until the [director

S. 7493                             3

of the budget] CORPORATION  has  determined  that  the  total  estimated
charge  to be collected by the corporation from the municipality is fair
and reasonable in relationship to the estimated total project  cost  and
also  that  sufficient provisions exist to insure the collection of such
charge by the corporation from  the  municipality.  A  municipality,  by
resolution  of its governing body, is hereby authorized to enter into an
agreement with the corporation and to provide for  the  payment  to  the
corporation of all expenses incurred at such time and in such amounts as
shall  be  set forth in the agreement, notwithstanding the provisions of
any general, special or local law or of any charter. The agreement shall
contain such other terms and conditions as may be  agreed  upon  by  the
corporation and the municipality.
  B.    SUCH AGREEMENT SHALL PROVIDE FOR THE CORPORATION TO: (I) PROCURE
SUCH ARCHITECTS, ENGINEERS, CONSTRUCTION MANAGERS AND CONTRACTORS NECES-
SARY TO DESIGN, MANAGE AND CONSTRUCT THE PROJECT (INCLUDING THE PERFORM-
ANCE  OF  SERVICES  RELATING  TO  PLANNING,  DESIGN  REVIEW,  BUDGETING,
CONSTRUCTION SCHEDULING, CONSTRUCTABILITY REVIEWS, COORDINATION OF PRIME
CONTRACTORS,  COST  CONTROL  AND  PROCESSING OF CHANGE ORDERS); AND (II)
MONITOR, SUPERVISE, REVIEW AND COORDINATE THE  SERVICES  OF  ALL  ARCHI-
TECTS, ENGINEERS, CONSTRUCTION MANAGERS AND CONTRACTORS ENGAGED PURSUANT
TO SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE EXTENT THAT THE CORPORATION
DEEMS IT NECESSARY TO FULFILL ITS RESPONSIBILITIES AS AGENT OR REPRESEN-
TATIVE OF THE MUNICIPALITY UNDER SUCH AGREEMENT.
  S  5. Subdivision 3 of section 14-a of section 1 of chapter 359 of the
laws of 1968, constituting the facilities development  corporation  act,
as  added  by  chapter  968  of  the laws of 1981, is amended to read as
follows:
  3. The corporation [shall] MAY, by regulation, prescribe  a  procedure
or  procedures  for the application by a municipality to the corporation
for its assistance, and the corporation's procedure  or  procedures  for
the design, construction, reconstruction, rehabilitation and improvement
of  a  municipal  building  or  buildings. [Any such regulation shall be
submitted to the director of the budget for his approval  prior  to  its
effectiveness.]
  S  6. Subdivision 1 of section 14-b of section 1 of chapter 359 of the
laws of 1968, constituting the facilities development  corporation  act,
as  amended  by  chapter  866 of the laws of 1984, is amended to read as
follows:
  1.  The corporation is authorized to enter into an  agreement  with  a
municipality  providing  for  the  design, construction, reconstruction,
rehabilitation and improvement for such municipality of a local  correc-
tional  facility,  as  such  term  is  defined  in  section forty of the
correction law, including any place  used  by  a  municipality  for  the
detention  of  persons charged with or convicted of a crime, at the sole
cost and expense of such municipality. A municipality, by resolution  of
its governing body, is hereby authorized to enter into such an agreement
with  the  corporation and to provide for the payment to the corporation
of all expenses incurred at such times and in such amounts as  shall  be
set forth in the agreement, notwithstanding the provisions of any gener-
al,  special or local law or of any charter. The agreement shall contain
such other terms and conditions as may be agreed upon by the corporation
and the municipality. The corporation shall enter into an agreement with
a municipality prior to the commencement of any corporation services. No
agreement entered into between the  facilities  development  corporation
and a municipality pursuant to this section shall be effective until the
[director of the budget] CORPORATION has determined that the total esti-

S. 7493                             4

mated charge to be collected by the corporation from the municipality is
fair  and reasonable in relationship to the estimated total project cost
and also that sufficient provisions exist to insure  the  collection  of
such  charge  by the corporation from the municipality.  The corporation
[shall] MAY by regulation prescribe a procedure or  procedures  for  the
application  by a municipality to the corporation for its assistance and
the corporation's procedure or procedures for the design,  construction,
reconstruction,  rehabilitation  and improvement of a local correctional
facility. [Any such regulation shall be submitted to the director of the
budget for his approval prior to its effectiveness.]
  S 7. This act shall take effect immediately.

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Senate Bill S7493

Sponsored By

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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2009-S7493 (ACTIVE) - Details

2009-S7493 (ACTIVE) - Summary

2009-S7493 (ACTIVE) - Sponsor Memo

2009-S7493 (ACTIVE) - Bill Text download pdf

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Sponsored By

Bill Perkins

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Actions

2009-S7493 (ACTIVE) - Details

2009-S7493 (ACTIVE) - Summary

2009-S7493 (ACTIVE) - Sponsor Memo

2009-S7493 (ACTIVE) - Bill Text download pdf

Comments