Senate Bill S3035A

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

    S. 3035--A                                            A. 4735--A

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            February 7, 2011
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and when printed to be committed to the Committee on Education --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

IN  ASSEMBLY  -- Introduced by M. of A. CANESTRARI -- Multi-Sponsored by
  -- M. of A. LATIMER -- read once and  referred  to  the  Committee  on
  Higher  Education  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the education law, the state finance law, the  transpor-
  tation  law, the public authorities law, the general municipal law and
  the business corporation law, in relation to authorizing the use of an
  alternative  project  delivery  method,  including  design-build   and
  construction  management-at-risk  as  methods  for  the  construction,
  reconstruction, alteration, repair or improvement of a state building

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

  Section  1. Section 2513 of the education law, as added by chapter 861
of the laws of 1953, is amended to read as follows:
  S 2513. Contracts; advertisement for bids.   The  board  of  education
shall  let  all  contracts for public work and all purchase contracts to
the lowest responsible bidder after  advertisement  for  bids  where  so
required  by  section  one  hundred  three of the general municipal law,
PROVIDED, HOWEVER THAT NOTWITHSTANDING ANY OTHER PROVISION  OF  THE  LAW
THAT  REQUIRES  THE BOARD OF EDUCATION TO AWARD PUBLIC WORK CONTRACTS TO
THE LOWEST RESPONSIBLE BIDDER AFTER ADVERTISING  FOR  SEALED  BIDS,  THE
BOARD  OF  EDUCATION  SHALL  HAVE THE POWER TO AWARD A CONTRACT USING AN
ALTERNATIVE PROJECT DELIVERY METHOD, INCLUDING THE POWER TO SOLICIT  AND
AWARD  A  CONSTRUCTION  MANAGEMENT-AT-RISK  CONTRACT  OR  A DESIGN-BUILD
CONTRACT AS SET FORTH IN SECTION ONE HUNDRED THIRTY-FIVE-B OF THE  STATE
FINANCE LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05786-02-1
              

S. 3035--A                          2                         A. 4735--A

  S  2. Subdivision 10 of section 2556 of the education law, as added by
chapter 861 of the laws of 1953, is amended to read as follows:
  10. The board of education shall let all contracts for public work and
all purchase contracts to the lowest responsible bidder after advertise-
ment  for  bids  where  so  required by section one hundred three of the
general municipal law, PROVIDED, HOWEVER THAT NOTWITHSTANDING ANY  OTHER
PROVISION  OF  THE  LAW  THAT  REQUIRES  THE BOARD OF EDUCATION TO AWARD
PUBLIC WORK CONTRACTS TO THE LOWEST RESPONSIBLE BIDDER AFTER ADVERTISING
FOR SEALED BIDS, THE BOARD OF EDUCATION SHALL HAVE THE POWER TO AWARD  A
CONTRACT  USING  AN  ALTERNATIVE  PROJECT DELIVERY METHOD, INCLUDING THE
POWER TO SOLICIT AND AWARD A CONSTRUCTION MANAGEMENT-AT-RISK CONTRACT OR
A  DESIGN-BUILD  CONTRACT  AS  SET  FORTH   IN   SECTION   ONE   HUNDRED
THIRTY-FIVE-B OF THE STATE FINANCE LAW.
  S  3.  Subdivisions  8  and 12 of section 373 of the education law, as
added by chapter 251 of the  laws  of  1962,  are  amended  to  read  as
follows:
  8.  To  design,  construct,  acquire,  reconstruct,  rehabilitate  and
improve academic buildings, dormitories and  other  facilities  for  the
state university [in accordance with sections three hundred seventy-five
and  three  hundred  seventy-six  of  this chapter] USING AN ALTERNATIVE
PROJECT DELIVERY METHOD,  INCLUDING  BUT  NOT  LIMITED  TO  CONSTRUCTION
MANAGEMENT-AT-RISK OR DESIGN-BUILD THAT WILL ASSIST THE FUND IN FULFILL-
ING  ITS  PURPOSES  UNDER  SECTION  THREE  HUNDRED  SEVENTY-TWO  OF THIS
ARTICLE;
  12. To [make] PROCURE and execute contracts, lease agreements, and all
other instruments necessary or convenient for the exercise of its corpo-
rate powers and the fulfillment of its  corporate  purposes  under  this
article;
  S  4.  Section  6275  of  the education law is amended by adding a new
subdivision 16 to read as follows:
  (16) NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW THAT REQUIRES  THE
FUND  TO  AWARD  PUBLIC  WORK CONTRACTS TO THE LOWEST RESPONSIBLE BIDDER
AFTER ADVERTISING FOR SEALED BIDS, THE FUND  SHALL  HAVE  THE  POWER  TO
AWARD A CONTRACT USING AN ALTERNATIVE PROJECT DELIVERY METHOD, INCLUDING
THE  POWER  TO  SOLICIT  AND  AWARD  A  CONSTRUCTION  MANAGEMENT-AT-RISK
CONTRACT OR DESIGN-BUILD CONTRACT, AS SET FORTH IN SECTION  ONE  HUNDRED
THIRTY-FIVE-B OF THE STATE FINANCE LAW.
  S  5.  Section  454  of  the  education law is amended by adding a new
subdivision 24 to read as follows:
  24. NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW THAT  REQUIRES  THE
FUND  TO  AWARD  PUBLIC  WORK CONTRACTS TO THE LOWEST RESPONSIBLE BIDDER
AFTER ADVERTISING FOR SEALED BIDS, THE FUND  SHALL  HAVE  THE  POWER  TO
AWARD A CONTRACT USING AN ALTERNATIVE PROJECT DELIVERY METHOD, INCLUDING
THE  POWER  TO  SOLICIT  AND  AWARD  A  CONSTRUCTION  MANAGEMENT-AT-RISK
CONTRACT OR DESIGN-BUILD CONTRACT, AS SET FORTH IN SECTION  ONE  HUNDRED
THIRTY-FIVE-B OF THE STATE FINANCE LAW.
  S  6. Subdivision 1 of section 7306 of the education law is amended by
adding a new paragraph h to read as follows:
  H. DESIGN-BUILD SERVICES PROVIDED BY  A  DESIGN-BUILD  FIRM  WHERE  AN
ARCHITECT  WHO  MEETS  THE REQUIREMENTS OF SECTION SEVENTY-THREE HUNDRED
FOUR OF THIS ARTICLE COMPLETES ALL DESIGN ELEMENTS.
  S 7. Section 7208 of the education law is  amended  by  adding  a  new
subdivision q to read as follows:
  Q.  DESIGN-BUILD  SERVICES  PROVIDED  BY  A DESIGN-BUILD FIRM WHERE AN
ENGINEER WHO MEETS THE REQUIREMENTS OF SECTION SEVENTY-TWO  HUNDRED  SIX

S. 3035--A                          3                         A. 4735--A

OF  THIS  ARTICLE  IS  RESPONSIBLE  FOR  COMPLIANCE WITH ALL ENGINEERING
DESIGN REQUIREMENTS.
  S 8. The state finance law is amended by adding a new section 135-b to
read as follows:
  S  135-B.  ALTERNATIVE  PROJECT  DELIVERY.  NOTWITHSTANDING  ANY OTHER
PROVISION OF THE LAW THAT REQUIRES A STATE AGENCY TO AWARD CONTRACTS  TO
THE  LOWEST  RESPONSIBLE  BIDDER  AFTER ADVERTISING FOR SEALED BIDS, ANY
STATE AGENCY SHALL HAVE THE POWER TO AWARD A CONTRACT USING AN  ALTERNA-
TIVE PROJECT DELIVERY METHOD, INCLUDING THE POWER TO SOLICIT AND AWARD A
DESIGN-BUILD CONTRACT OR A CONSTRUCTION MANAGEMENT-AT-RISK CONTRACT.
  1.  (A)  ANY  STATE  AGENCY  MAY  USE  THE DESIGN-BUILD METHOD FOR THE
CONSTRUCTION, RECONSTRUCTION, ALTERATION, REPAIR  OR  IMPROVEMENT  OF  A
STATE BUILDING. IN USING THAT METHOD AND IN ENTERING INTO A CONTRACT FOR
THE   SERVICES  OF  A  DESIGN-BUILD  FIRM,  THE  STATE  AGENCY  AND  THE
DESIGN-BUILD FIRM SHALL FOLLOW THE PROCEDURES PROVIDED BY THIS SECTION.
  (B) THE STATE AGENCY SHALL SELECT OR DESIGNATE AN ENGINEER  OR  ARCHI-
TECT  INDEPENDENT  OF THE DESIGN-BUILD FIRM TO ACT AS ITS REPRESENTATIVE
FOR THE DURATION OF THE WORK ON THE  FACILITY.  IF  THE  STATE  AGENCY'S
ARCHITECT  OR  ENGINEER  IS  NOT  A FULL-TIME EMPLOYEE OF THE STATE, THE
GOVERNMENTAL ENTITY SHALL SELECT THE ARCHITECT OR ENGINEER ON THE  BASIS
OF DEMONSTRATED COMPETENCE AND QUALIFICATIONS AS PROVIDED BY SECTION ONE
HUNDRED THIRTY-SIX-A OF THIS ARTICLE.
  (C)  THE  STATE AGENCY SHALL PREPARE A REQUEST FOR QUALIFICATIONS THAT
INCLUDES GENERAL INFORMATION ON THE PROJECT SITE, PROJECT SCOPE, BUDGET,
SPECIAL SYSTEMS, SELECTION CRITERIA,  AND  OTHER  INFORMATION  THAT  MAY
ASSIST  A  POTENTIAL  DESIGN-BUILD  FIRM IN SUBMITTING PROPOSALS FOR THE
PROJECT. THE STATE AGENCY SHALL ALSO PREPARE A DESIGN  CRITERIA  PACKAGE
THAT INCLUDES MORE DETAILED INFORMATION ON THE PROJECT.  IF THE PREPARA-
TION  OF  THE  DESIGN CRITERIA PACKAGE REQUIRES ENGINEERING OR ARCHITEC-
TURAL SERVICES THAT  CONSTITUTE THE PRACTICE OF ENGINEERING  WITHIN  THE
MEANING  OF  ARTICLE ONE HUNDRED FORTY-FIVE OF THE EDUCATION LAW, OR THE
PRACTICE OF ARCHITECTURE WITHIN  THE  MEANING  OF  ARTICLE  ONE  HUNDRED
FORTY-SEVEN  OF  THE  EDUCATION LAW, THOSE SERVICES SHALL BE PROVIDED IN
ACCORDANCE WITH SECTION ONE HUNDRED THIRTY-SIX-A OF THIS ARTICLE.
  (D) THE STATE AGENCY SHALL EVALUATE STATEMENTS OF  QUALIFICATIONS  AND
SELECT  A  DESIGN-BUILD  FIRM IN TWO PHASES. (I) IN PHASE ONE, THE STATE
AGENCY SHALL PREPARE A REQUEST  FOR  QUALIFICATIONS  AND  EVALUATE  EACH
OFFERER'S  EXPERIENCE,  QUALIFICATIONS,  PROJECT APPROACH, ORGANIZATION,
RECORD OF  PERFORMANCE,  FINANCIAL  CAPACITY,  DEMONSTRATED  ABILITY  TO
COMPLY   WITH   APPLICABLE   REQUIREMENTS,  STATUS  AS  A  MINORITY  AND
WOMEN-OWNED BUSINESS ENTERPRISE CERTIFIED UNDER ARTICLE FIFTEEN-A OF THE
EXECUTIVE LAW OR ITS RECORD OF UTILIZATION OF SUCH CERTIFIED ENTERPRISES
IN OTHER PROJECTS COMPLETED BY THE  ENTITY,  RECORD  OF  UTILIZATION  OF
SMALL  AND  OTHER  NEW YORK STATE BUSINESS ENTERPRISES IN OTHER PROJECTS
COMPLETED BY THE ENTITY, AND SUCH OTHER CRITERIA AS THE AUTHORITY  DEEMS
APPROPRIATE,   EXCEPT  THAT  COST-RELATED  OR  PRICE-RELATED  EVALUATION
FACTORS ARE NOT PERMITTED. EACH OFFEROR MUST CERTIFY TO THE STATE AGENCY
THAT EACH ENGINEER OR ARCHITECT  THAT  IS  A  MEMBER  OF  ITS  TEAM  WAS
SELECTED BASED ON DEMONSTRATED COMPETENCE AND QUALIFICATIONS.  THE STATE
AGENCY  SHALL  QUALIFY  A  MAXIMUM OF FIVE OFFERORS TO SUBMIT ADDITIONAL
INFORMATION AND, IF THE STATE AGENCY CHOOSES,  TO  INTERVIEW  FOR  FINAL
SELECTION.
  (II)  IN  PHASE  TWO,  THE STATE AGENCY SHALL EVALUATE THE INFORMATION
SUBMITTED BY THE OFFERORS ON THE BASIS OF THE SELECTION CRITERIA  STATED
IN  THE  REQUEST FOR QUALIFICATIONS AND THE RESULTS OF AN INTERVIEW. THE
STATE AGENCY MAY REQUEST ADDITIONAL INFORMATION  REGARDING  DEMONSTRATED

S. 3035--A                          4                         A. 4735--A

COMPETENCE   AND   QUALIFICATIONS,  CONSIDERATIONS  OF  THE  SAFETY  AND
LONG-TERM DURABILITY OF THE PROJECT, THE FEASIBILITY OF IMPLEMENTING THE
PROJECT AS PROPOSED, THE ABILITY OF THE OFFEROR TO MEET SCHEDULES, COST-
ING  METHODOLOGY,  OR OTHER FACTORS AS APPROPRIATE. THE STATE AGENCY MAY
NOT REQUIRE OFFERORS TO SUBMIT  DETAILED  ENGINEERING  OR  ARCHITECTURAL
DESIGNS  AS  PART  OF  THE  PROPOSAL.  THE  STATE AGENCY SHALL RANK EACH
PROPOSAL SUBMITTED ON THE BASIS OF THE CRITERIA SET FORTH IN THE REQUEST
FOR QUALIFICATIONS. THE STATE AGENCY SHALL SELECT THE DESIGN-BUILD  FIRM
THAT  SUBMITS  THE PROPOSAL OFFERING THE BEST VALUE FOR THE STATE AGENCY
ON THE BASIS OF THE PUBLISHED SELECTION  CRITERIA  AND  ON  ITS  RANKING
EVALUATIONS.  THE  STATE  AGENCY  SHALL  FIRST  ATTEMPT  TO  NEGOTIATE A
CONTRACT WITH THE SELECTED OFFEROR. IF THE STATE  AGENCY  IS  UNABLE  TO
NEGOTIATE  A  SATISFACTORY CONTRACT WITH THE SELECTED OFFEROR, THE STATE
AGENCY SHALL, FORMALLY AND IN WRITING, END NEGOTIATIONS WITH THAT  OFFE-
ROR  AND  PROCEED TO NEGOTIATE WITH THE NEXT OFFEROR IN THE ORDER OF THE
SELECTION RANKING UNTIL A CONTRACT IS REACHED OR NEGOTIATIONS  WITH  ALL
RANKED OFFERORS END.
  (E)  FOLLOWING SELECTION OF A DESIGN-BUILD FIRM UNDER PARAGRAPH (D) OF
THIS SUBDIVISION, THAT DESIGN-BUILD FIRM'S ARCHITECTS OR ENGINEERS SHALL
COMPLETE THE DESIGN, SUBMITTING  ALL  DESIGN  ELEMENTS  FOR  REVIEW  AND
DETERMINATION OF SCOPE COMPLIANCE TO THE STATE AGENCY OR THE STATE AGEN-
CY'S ARCHITECT OR ENGINEER BEFORE OR CONCURRENTLY WITH CONSTRUCTION.
  (F)  AN  ENGINEER  SHALL  HAVE  RESPONSIBILITY FOR COMPLIANCE WITH THE
ENGINEERING DESIGN REQUIREMENTS AND ALL OTHER APPLICABLE REQUIREMENTS OF
ARTICLE ONE HUNDRED FORTY-FIVE OF THE EDUCATION LAW. AN ARCHITECT  SHALL
HAVE  RESPONSIBILITY FOR COMPLIANCE WITH THE REQUIREMENTS OF ARTICLE ONE
HUNDRED FORTY-SEVEN OF THE EDUCATION LAW.
  (G) THE STATE AGENCY SHALL PROVIDE OR CONTRACT FOR,  INDEPENDENTLY  OF
THE   DESIGN-BUILD   FIRM,  THE  INSPECTION  SERVICES,  THE  TESTING  OF
CONSTRUCTION  MATERIALS  ENGINEERING,  AND  THE   VERIFICATION   TESTING
SERVICES  NECESSARY  FOR ACCEPTANCE OF THE BUILDING BY THE STATE AGENCY.
THE STATE AGENCY SHALL SELECT THOSE SERVICES FOR WHICH IT  CONTRACTS  IN
ACCORDANCE WITH SECTION ONE HUNDRED THIRTY-SIX-A OF THIS ARTICLE.
  (H)  THE  STATE  AGENCY  MAY  DEVELOP WRITTEN PROCEDURES GOVERNING THE
SELECTION, EVALUATION, AND AWARD OF DESIGN-BUILD CONTRACTS. SUCH  PROCE-
DURES  SHALL  BE CONSISTENT WITH THOSE DESCRIBED IN THIS SECTION AND MAY
BE REVISED FROM TIME TO TIME AS DEEMED NECESSARY.
  (I) THIS SECTION SHALL NOT  BE  CONSTRUED  TO  SUPERSEDE  SECTION  TWO
HUNDRED  TWENTY  OF  THE  LABOR  LAW REQUIRING THE PAYMENT OF PREVAILING
WAGES FOR PUBLIC WORKS.
  2. (A) ANY STATE AGENCY MAY USE  THE  CONSTRUCTION  MANAGEMENT-AT-RISK
METHOD  FOR  THE  CONSTRUCTION,  RECONSTRUCTION,  ALTERATION,  REPAIR OR
IMPROVEMENT OF A STATE BUILDING. IN USING THAT METHOD  AND  IN  ENTERING
INTO  A  CONTRACT  WITH A CONSTRUCTION MANAGER-AT-RISK, THE STATE AGENCY
AND  THE  CONSTRUCTION  MANAGER-AT-RISK  SHALL  FOLLOW  THE   PROCEDURES
PROVIDED BY THIS SECTION.
  (B)   BEFORE   OR   CONCURRENTLY   WITH   SELECTING   A   CONSTRUCTION
MANAGER-AT-RISK, THE STATE AGENCY SHALL SELECT OR DESIGNATE AN  ENGINEER
QUALIFIED  UNDER  ARTICLE ONE HUNDRED FORTY-FIVE OF THE EDUCATION LAW OR
ARCHITECT QUALIFIED UNDER ARTICLE ONE HUNDRED FORTY-SEVEN OF THE  EDUCA-
TION  LAW  WHO SHALL PREPARE THE CONSTRUCTION DOCUMENTS FOR THE PROJECT.
IF THE ENGINEER OR ARCHITECT IS NOT A FULL-TIME EMPLOYEE OF  THE  STATE,
THE  STATE AGENCY SHALL SELECT THE ENGINEER OR ARCHITECT ON THE BASIS OF
DEMONSTRATED COMPETENCE AND QUALIFICATIONS AS PROVIDED  BY  SECTION  ONE
HUNDRED THIRTY-SIX-A OF THIS ARTICLE. THE AGENCY'S ENGINEER OR ARCHITECT
FOR  A  PROJECT  MAY NOT SERVE, ALONE OR IN COMBINATION WITH ANOTHER, AS

S. 3035--A                          5                         A. 4735--A

THE CONSTRUCTION MANAGER-AT-RISK. THIS SUBDIVISION DOES NOT  PROHIBIT  A
STATE AGENCY ENGINEER OR ARCHITECT FROM PROVIDING CUSTOMARY CONSTRUCTION
PHASE SERVICES UNDER THE ENGINEER'S OR ARCHITECT'S ORIGINAL PROFESSIONAL
SERVICE AGREEMENT IN ACCORDANCE WITH APPLICABLE LICENSING LAWS.
  (C)  THE  STATE AGENCY SHALL PROVIDE OR CONTRACT FOR, INDEPENDENTLY OF
THE CONSTRUCTION MANAGER-AT-RISK, THE INSPECTION SERVICES,  THE  TESTING
OF  CONSTRUCTION  MATERIALS  ENGINEERING,  AND  THE VERIFICATION TESTING
SERVICES NECESSARY FOR ACCEPTANCE OF THE BUILDING BY THE  STATE  AGENCY.
THE  STATE  AGENCY SHALL SELECT THOSE SERVICES FOR WHICH IT CONTRACTS IN
ACCORDANCE WITH SECTION ONE HUNDRED THIRTY-SIX-A OF THIS ARTICLE.
  (D) THE STATE AGENCY SHALL SELECT THE CONSTRUCTION MANAGER-AT-RISK  IN
EITHER  A ONE-STEP OR TWO-STEP PROCESS. THE STATE AGENCY SHALL PREPARE A
REQUEST FOR PROPOSALS, IN THE CASE OF A ONE-STEP PROCESS, OR  A  REQUEST
FOR  QUALIFICATIONS,  IN  THE  CASE OF A TWO-STEP PROCESS, THAT INCLUDES
GENERAL INFORMATION  ON  THE  PROJECT  SITE,  PROJECT  SCOPE,  SCHEDULE,
SELECTION  CRITERIA,  AND THE TIME AND PLACE FOR RECEIPT OF PROPOSALS OR
QUALIFICATIONS, AS APPLICABLE; A STATEMENT AS TO WHETHER  THE  SELECTION
PROCESS  IS  A  ONE-STEP OR TWO-STEP PROCESS; AND OTHER INFORMATION THAT
MAY ASSIST THE STATE AGENCY IN ITS SELECTION OF A CONSTRUCTION  MANAGER-
AT-RISK.  THE  STATE  AGENCY  SHALL  STATE THE SELECTION CRITERIA IN THE
REQUEST FOR PROPOSALS OR QUALIFICATIONS, AS  APPLICABLE.  THE  SELECTION
CRITERIA  MAY INCLUDE THE OFFEROR'S EXPERIENCE, PAST PERFORMANCE, SAFETY
RECORD,  PROPOSED  PERSONNEL  AND  METHODOLOGY,  AND  OTHER  APPROPRIATE
FACTORS  THAT DEMONSTRATE THE CAPABILITY OF THE CONSTRUCTION MANAGER-AT-
RISK. IF A ONE-STEP PROCESS IS USED, THE STATE AGENCY  MAY  REQUEST,  AS
PART  OF THE OFFEROR'S PROPOSAL, PROPOSED FEES AND PRICES FOR FULFILLING
THE GENERAL CONDITIONS. IF A TWO-STEP PROCESS IS USED, THE STATE  AGENCY
MAY NOT REQUEST FEES OR PRICES IN STEP ONE. IN STEP TWO, THE STATE AGEN-
CY MAY REQUEST THAT FIVE OR FEWER OFFERORS, SELECTED SOLELY ON THE BASIS
OF   QUALIFICATIONS,   PROVIDE  ADDITIONAL  INFORMATION,  INCLUDING  THE
CONSTRUCTION MANAGER-AT-RISK'S PROPOSED FEE AND ITS PRICE FOR FULFILLING
THE GENERAL CONDITIONS.
  (E) THE STATE AGENCY SHALL PUBLISH THE REQUEST FOR QUALIFICATIONS IN A
MANNER PRESCRIBED BY THE STATE AGENCY.
  (F) AT EACH STEP, THE STATE AGENCY SHALL RECEIVE, PUBLICLY  OPEN,  AND
READ ALOUD THE  NAMES OF THE OFFERORS. THE STATE AGENCY OR ITS REPRESEN-
TATIVE  SHALL  EVALUATE  AND RANK EACH PROPOSAL SUBMITTED IN RELATION TO
THE CRITERIA SET FORTH IN THE REQUEST FOR PROPOSALS.
  (G) THE STATE AGENCY OR ITS REPRESENTATIVE SHALL  SELECT  THE  OFFEROR
THAT SUBMITS THE PROPOSAL THAT OFFERS THE BEST VALUE FOR THE STATE AGEN-
CY  BASED  ON THE PUBLISHED SELECTION CRITERIA AND ON ITS RANKING EVALU-
ATION.  THE STATE AGENCY OR ITS REPRESENTATIVE SHALL  FIRST  ATTEMPT  TO
NEGOTIATE  A  CONTRACT WITH THE SELECTED OFFEROR. IF THE STATE AGENCY OR
ITS REPRESENTATIVE IS UNABLE TO NEGOTIATE A SATISFACTORY  CONTRACT  WITH
THE  SELECTED  OFFEROR, THE AGENCY OR ITS REPRESENTATIVE SHALL, FORMALLY
AND IN WRITING, END NEGOTIATIONS WITH THAT OFFEROR AND PROCEED TO  NEGO-
TIATE  WITH THE NEXT OFFEROR IN THE ORDER OF THE SELECTION RANKING UNTIL
A CONTRACT IS REACHED OR NEGOTIATIONS WITH ALL RANKED OFFERORS END.
  (H) A CONSTRUCTION MANAGER-AT-RISK SHALL PUBLICLY  ADVERTISE,  IN  THE
MANNER  PRESCRIBED  BY  THE  AGENCY,  AND RECEIVE BIDS OR PROPOSALS FROM
TRADE CONTRACTORS OR SUBCONTRACTORS FOR THE  PERFORMANCE  OF  ALL  MAJOR
ELEMENTS  OF  THE WORK OTHER THAN THE MINOR WORK THAT MAY BE INCLUDED IN
THE GENERAL CONDITIONS.  A  CONSTRUCTION  MANAGER-AT-RISK  MAY  SEEK  TO
PERFORM  PORTIONS OF THE WORK ITSELF IF THE CONSTRUCTION MANAGER-AT-RISK
SUBMITS ITS BID OR PROPOSAL FOR THOSE PORTIONS OF THE WORK IN  THE  SAME
MANNER AS ALL OTHER TRADE CONTRACTORS OR SUBCONTRACTORS AND IF THE AGEN-

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CY  DETERMINES  THAT  THE CONSTRUCTION MANAGER-AT-RISK'S BID OR PROPOSAL
PROVIDES THE BEST VALUE FOR THE STATE AGENCY.
  (I)  THE  CONSTRUCTION  MANAGER-AT-RISK  AND  THE  STATE AGENCY OR ITS
REPRESENTATIVE SHALL REVIEW ALL TRADE CONTRACTOR OR  SUBCONTRACTOR  BIDS
OR  PROPOSALS IN A MANNER THAT DOES NOT DISCLOSE THE CONTENTS OF THE BID
OR PROPOSAL DURING THE SELECTION PROCESS TO A PERSON NOT EMPLOYED BY THE
CONSTRUCTION MANAGER-AT-RISK, ENGINEER, ARCHITECT, OR STATE AGENCY.  ALL
BIDS  OR  PROPOSALS SHALL BE MADE PUBLIC AFTER THE AWARD OF THE CONTRACT
OR WITHIN SEVEN DAYS AFTER THE DATE  OF  FINAL  SELECTION  OF  BIDS  AND
PROPOSALS, WHICHEVER IS LATER.
  (J) IF THE CONSTRUCTION MANAGER-AT-RISK REVIEWS, EVALUATES, AND RECOM-
MENDS  TO  THE STATE AGENCY A BID OR PROPOSAL FROM A TRADE CONTRACTOR OR
SUBCONTRACTOR BUT THE STATE AGENCY REQUIRES ANOTHER BID OR  PROPOSAL  TO
BE  ACCEPTED,  THE STATE AGENCY SHALL COMPENSATE THE CONSTRUCTION MANAG-
ER-AT-RISK BY A CHANGE IN PRICE, TIME, OR GUARANTEED  MAXIMUM  COST  FOR
ANY  ADDITIONAL  COST AND RISK THAT THE CONSTRUCTION MANAGER-AT-RISK MAY
INCUR BECAUSE OF THE STATE AGENCY'S  REQUIREMENT  THAT  ANOTHER  BID  OR
PROPOSAL BE ACCEPTED.
  (K)  IF  A  SELECTED TRADE CONTRACTOR OR SUBCONTRACTOR DEFAULTS IN THE
PERFORMANCE OF ITS WORK OR FAILS TO EXECUTE A  SUBCONTRACT  AFTER  BEING
SELECTED   IN   ACCORDANCE   WITH   THIS   SECTION,   THE   CONSTRUCTION
MANAGER-AT-RISK MAY, WITHOUT ADVERTISING, ITSELF  FULFILL  THE  CONTRACT
REQUIREMENTS  OR  SELECT A REPLACEMENT TRADE CONTRACTOR OR SUBCONTRACTOR
TO FULFILL THE CONTRACT REQUIREMENTS.
  (L) IF A FIXED CONTRACT AMOUNT OR GUARANTEED  MAXIMUM  PRICE  HAS  NOT
BEEN  DETERMINED  AT THE TIME THE CONTRACT IS AWARDED, THE PENAL SUMS OF
THE PERFORMANCE AND PAYMENT BONDS DELIVERED TO  THE  STATE  AGENCY  MUST
EACH  BE  IN  AN AMOUNT EQUAL TO THE PROJECT BUDGET, AS SET FORTH IN THE
REQUEST  FOR  QUALIFICATIONS.  THE  CONSTRUCTION  MANAGER-AT-RISK  SHALL
DELIVER  THE  BONDS  NOT  LATER  THAN  THE  TENTH DAY AFTER THE DATE THE
CONSTRUCTION  MANAGER-AT-RISK   EXECUTES   THE   CONTRACT   UNLESS   THE
CONSTRUCTION  MANAGER-AT-RISK  FURNISHES  A  BID BOND OR OTHER FINANCIAL
SECURITY ACCEPTABLE TO THE STATE AGENCY TO ENSURE THAT THE  CONSTRUCTION
MANAGER-AT-RISK  WILL FURNISH THE REQUIRED PERFORMANCE AND PAYMENT BONDS
WHEN A GUARANTEED MAXIMUM PRICE IS ESTABLISHED.
  (M) THIS SECTION SHALL NOT  BE  CONSTRUED  TO  SUPERSEDE  SECTION  TWO
HUNDRED  TWENTY  OF  THE  LABOR  LAW REQUIRING THE PAYMENT OF PREVAILING
WAGES FOR PUBLIC WORKS.
  S 9. Section 135-a of the state finance law, as added by  chapter  840
of the laws of 1980, is amended to read as follows:
  S  135-a. Definitions. As used in this chapter, unless otherwise indi-
cated, the [term "small business concern" shall  mean]  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "SMALL BUSINESS CONCERN" MEANS a business which is resident in this
state,  independently  owned and operated, not dominant in its field and
employs one hundred or less persons.
  2. "ARCHITECT" MEANS AN INDIVIDUAL  LICENSED  AS  AN  ARCHITECT  UNDER
ARTICLE ONE HUNDRED FORTY-SEVEN OF THE EDUCATION LAW.
  3.  "CONTRACTOR"  IN  THE  CONTEXT OF A CONTRACT FOR THE CONSTRUCTION,
RECONSTRUCTION, ALTERATION, REPAIR OR IMPROVEMENT OF  A  STATE  BUILDING
MEANS  A  SOLE  PROPRIETORSHIP, PARTNERSHIP, CORPORATION, OR OTHER LEGAL
ENTITY THAT ASSUMES THE RISK FOR CONSTRUCTING, REHABILITATING, ALTERING,
OR REPAIRING ALL OR PART OF THE STATE BUILDING AT THE CONTRACTED PRICE.
  4. "CONSTRUCTION MANAGER-AT-RISK" MEANS A SOLE  PROPRIETORSHIP,  PART-
NERSHIP,  CORPORATION,  OR  OTHER LEGAL ENTITY THAT ASSUMES THE RISK FOR
CONSTRUCTION, REHABILITATION, ALTERATION, OR REPAIR OF A FACILITY  AT  A

S. 3035--A                          7                         A. 4735--A

GUARANTEED  MAXIMUM PRICE AS A GENERAL CONTRACTOR AND PROVIDES CONSULTA-
TION TO THE AGENCY REGARDING CONSTRUCTION DURING AND AFTER THE DESIGN OF
THE FACILITY.
  5. "DESIGN-BUILD CONTRACT" MEANS A SINGLE CONTRACT WITH A DESIGN-BUILD
FIRM FOR THE DESIGN AND CONSTRUCTION OF A FACILITY.
  6.  "DESIGN-BUILD  FIRM"  MEANS  A CORPORATION ORGANIZED UNDER ARTICLE
FIFTEEN OF THE BUSINESS CORPORATION LAW THAT INCLUDES  AN  ARCHITECT  OR
ENGINEER  AND  CONTRACTOR  QUALIFIED  TO  ENGAGE  IN BUILDING DESIGN AND
CONSTRUCTION IN NEW YORK.
  7. "DESIGN CRITERIA PACKAGE" MEANS A SET OF  DOCUMENTS  THAT  PROVIDES
SUFFICIENT  INFORMATION  TO  PERMIT  A  DESIGN-BUILD  FIRM  TO PREPARE A
RESPONSE TO THE STATE AGENCY'S REQUEST FOR QUALIFICATIONS AND ANY  ADDI-
TIONAL  INFORMATION  REQUESTED,  INCLUDING  CRITERIA  FOR SELECTION. THE
DESIGN CRITERIA PACKAGE MUST SPECIFY CRITERIA THE STATE AGENCY CONSIDERS
NECESSARY TO DESCRIBE THE PROJECT AND MAY INCLUDE, AS  APPROPRIATE,  THE
LEGAL  DESCRIPTION  OF THE SITE, SURVEY INFORMATION CONCERNING THE SITE,
INTERIOR SPACE REQUIREMENTS,  SPECIAL  MATERIAL  REQUIREMENTS,  MATERIAL
QUALITY  STANDARDS,  CONCEPTUAL CRITERIA FOR THE PROJECT, SPECIAL EQUIP-
MENT REQUIREMENTS, COST OR BUDGET  ESTIMATES,  TIME  SCHEDULES,  QUALITY
ASSURANCE  AND  QUALITY  CONTROL REQUIREMENTS, SITE DEVELOPMENT REQUIRE-
MENTS, APPLICABLE CODES AND ORDINANCES, PROVISIONS FOR UTILITIES,  PARK-
ING REQUIREMENTS, OR ANY OTHER REQUIREMENT, AS APPLICABLE.
  8.  "ENGINEER" MEANS AN INDIVIDUAL LICENSED AS AN ENGINEER UNDER ARTI-
CLE ONE HUNDRED FORTY-FIVE OF THE EDUCATION LAW.
  9.  "GUARANTEED MAXIMUM PRICE" MEANS THE AGREED  TOTAL  DOLLAR  AMOUNT
FOR  THE CONSTRUCTION MANAGEMENT-AT-RISK SERVICES, INCLUDING THE COST OF
THE  WORK,  THE  GENERAL  CONDITIONS  AND  THE  FEES  CHARGED   BY   THE
CONSTRUCTION MANAGEMENT-AT-RISK FIRM.
  10.  "STATE  AGENCY" MEANS ANY OFFICER, DEPARTMENT, BOARD, COMMISSION,
BUREAU, DIVISION, PUBLIC BENEFIT CORPORATION, AGENCY OR  INSTRUMENTALITY
OF THE STATE.
  S 10. Subdivision 4 of section 163 of the state finance law is amended
by adding a new paragraph h to read as follows:
  H.  NOTHING  IN  THIS SECTION SHALL PROHIBIT THE USE OF AN ALTERNATIVE
PROJECT DELIVERY METHOD, INCLUDING  CONSTRUCTION  MANAGEMENT-AT-RISK  OR
DESIGN-BUILD,  AS  DEFINED  IN SECTION ONE HUNDRED THIRTY-FIVE-B OF THIS
CHAPTER, AS METHODS FOR THE  CONSTRUCTION,  RECONSTRUCTION,  ALTERATION,
REPAIR OR IMPROVEMENT OF A STATE BUILDING.
  S  11.  Subdivision  15  of  section  14 of the transportation law, as
amended by chapter 1065 of the laws of  1969,  is  amended  to  read  as
follows:
  15.  To prepare the plans, specifications, designs and estimates, and,
by the procedures and methods provided by  the  laws  relating  thereto,
NOTWITHSTANDING  ANY  OTHER  PROVISION  OF THE LAW THAT REQUIRES A STATE
AGENCY TO AWARD CONTRACTS TO THE LOWEST RESPONSIBLE BIDDER AFTER  ADVER-
TISING  FOR  SEALED BIDS, to construct and reconstruct USING AN ALTERNA-
TIVE PROJECT DELIVERY METHOD, INCLUDING CONSTRUCTION  MANAGEMENT-AT-RISK
OR DESIGN-BUILD:
  (a) The highways and other public ways that are now or shall hereafter
be  under  the jurisdiction of the department for such purposes, whether
generally or specially;
  (b) The canals, waterways of the state and structures that are now  or
shall  hereafter  be  under  the jurisdiction of the department for such
purposes;
  (c) The bridges and grade separation structures that are now or  shall
hereafter be under the jurisdiction of the department for such purposes;

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  (d) Parking facilities and appurtenances at or adjacent to transporta-
tion interfaces and connections to such facilities.
  S  12. Subdivision 10 of section 354 of the public authorities law, as
amended by chapter 766 of the laws  of  1992,  is  amended  to  read  as
follows:
  10.  To  construct,  reconstruct  or  improve  on or along the thruway
system in the  manner  herein  provided,  suitable  facilities  for  gas
stations,  restaurants, and other facilities for the public, or to lease
the right to construct, reconstruct or improve and operate such  facili-
ties;  such  facilities shall be publicly offered for leasing for opera-
tion, or the right to construct, reconstruct or improve and operate such
facilities shall be publicly offered under rules and regulations  to  be
established  by the authority, provided, however, that lessees operating
such facilities at the time [this act  becomes]  CHAPTER  THREE  HUNDRED
FORTY-ONE  OF  THE LAWS OF NINETEEN HUNDRED SIXTY-FIVE BECAME effective,
may reconstruct or improve them or may construct additional like facili-
ties, in the manner and upon such terms  and  conditions  as  the  board
shall  determine;  and  provided  further, however, that such facilities
constructed, reconstructed or improved on  or  along  the  canal  system
shall  be consistent with the canal recreationway plan approved pursuant
to section one hundred thirty-eight-c of the canal law and section three
hundred eighty-two of this title; AND  PROVIDED  FURTHER  THAT  NOTWITH-
STANDING  ANY OTHER PROVISION OF THE LAW THAT REQUIRES A STATE AGENCY TO
AWARD CONTRACTS TO THE LOWEST RESPONSIBLE BIDDER AFTER  ADVERTISING  FOR
SEALED BIDS, THE AUTHORITY MAY USE AN ALTERNATIVE PROJECT DELIVERY METH-
OD,   INCLUDING   CONSTRUCTION  MANAGEMENT-AT-RISK  OR  DESIGN-BUILD  TO
CONSTRUCT, RECONSTRUCT OR IMPROVE ON OR ALONG THE THRUWAY SYSTEM IN  THE
MANNER  HEREIN  PROVIDED,  SUITABLE FACILITIES FOR GAS STATIONS, RESTAU-
RANTS, AND OTHER FACILITIES FOR THE PUBLIC;
  S 13. Section 1680 of the public authorities law is amended by  adding
a new subdivision 41 to read as follows:
  41.  THE  AUTHORITY  SHALL, NOTWITHSTANDING ANY OTHER PROVISION OF THE
LAW THAT REQUIRES THE AUTHORITY TO AWARD CONTRACTS TO THE LOWEST RESPON-
SIBLE BIDDER AFTER ADVERTISING FOR SEALED BIDS, HAVE THE POWER TO  AWARD
A  CONTRACT  USING AN ALTERNATIVE PROJECT DELIVERY METHOD, INCLUDING THE
POWER TO SOLICIT AND AWARD A CONSTRUCTION MANAGEMENT-AT-RISK CONTRACT OR
DESIGN-BUILD CONTRACT, AS SET FORTH IN SECTION ONE HUNDRED THIRTY-FIVE-B
OF THE STATE FINANCE LAW, FOR ANY PROJECT THAT WOULD  BENEFIT  FROM  THE
UTILIZATION OF AN ALTERNATIVE PROJECT DELIVERY METHOD OF PROCUREMENT.
  S  14. Subdivision 9 of section 1204 of the public authorities law, as
amended by chapter 732 of the laws  of  1959,  is  amended  to  read  as
follows:
  9. To construct, reconstruct, improve, maintain and operate buildings,
structures and facilities as may be necessary or convenient and to main-
tain  and  operate,  directly  or enter into contracts or leases for the
acquisition, maintenance, and operation of  areas  for  the  parking  of
motor  vehicles  in  the  vicinity of its transit facilities, and in its
discretion to fix and charge for such parking a  combination  fee  which
shall include the established rate of fare for use of its transit facil-
ities.  NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW THAT REQUIRES THE
AUTHORITY TO AWARD CONTRACTS TO  THE  LOWEST  RESPONSIBLE  BIDDER  AFTER
ADVERTISING  FOR  SEALED  BIDS,  THE  AUTHORITY  MAY  USE AN ALTERNATIVE
PROJECT DELIVERY METHOD,  INCLUDING  BUT  NOT  LIMITED  TO  CONSTRUCTION
MANAGEMENT-AT-RISK  OR DESIGN-BUILD, TO CONSTRUCT, RECONSTRUCT, IMPROVE,
MAINTAIN AND OPERATE BUILDINGS, STRUCTURES  AND  FACILITIES  AS  MAY  BE
NECESSARY OR CONVENIENT AND TO MAINTAIN AND OPERATE.

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  S  15.  Paragraph (a) of subdivision 2 of section 1265-a of the public
authorities law, as amended by chapter 334  of  the  laws  of  2001,  is
amended to read as follows:
  (a)  Except  as  otherwise  provided  in  this  section,  all purchase
contracts for supplies, materials or equipment  involving  an  estimated
expenditure  in excess of fifteen thousand dollars and all contracts for
public work involving an estimated expenditure in excess of  twenty-five
thousand dollars shall be awarded by the authority to the lowest respon-
sible  bidder  after obtaining sealed bids in the manner hereinafter set
forth. For purposes hereof, contracts  for  public  work  shall  exclude
contracts  for  personal, engineering and architectural, or professional
services. NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW  THAT  REQUIRES
THE  AUTHORITY  TO AWARD PUBLIC WORK CONTRACTS TO THE LOWEST RESPONSIBLE
BIDDER AFTER ADVERTISING FOR SEALED BIDS, THE AUTHORITY SHALL  HAVE  THE
POWER  TO AWARD A CONTRACT USING AN ALTERNATIVE PROJECT DELIVERY METHOD,
INCLUDING   THE   POWER   TO   SOLICIT   AND   AWARD   A    CONSTRUCTION
MANAGEMENT-AT-RISK  CONTRACT  OR  DESIGN-BUILD CONTRACT, AS SET FORTH IN
SECTION ONE HUNDRED THIRTY-FIVE-B OF THE STATE FINANCE LAW. The authori-
ty may reject all bids and obtain new bids in  the  manner  provided  by
this  section  when  it is deemed in the public interest to do so or, in
cases where two or more responsible bidders submit identical bids  which
are the lowest bids, award the contract to any of such bidders or obtain
new  bids from such bidders. Nothing herein shall obligate the authority
to seek new bids after the rejection of bids or after cancellation of an
invitation to bid. Nothing in this section shall prohibit the evaluation
of bids on the basis of costs or savings including life cycle  costs  of
the  item to be purchased, discounts, and inspection services so long as
the invitation to bid reasonably sets forth the criteria to be  used  in
evaluating such costs or savings. Life cycle costs may include but shall
not  be limited to costs or savings associated with installation, energy
use, maintenance, operation and salvage or disposal.
  S 16. Section 559 of the public authorities law, as amended by chapter
6 of the laws of 1940, is amended to read as follows:
  S 559. Construction contracts. The authority shall do all construction
pursuant to a contract or contracts in the manner, so far  as  practica-
ble,  provided  in  the  charter  of the city for contracts of such city
except that where the estimated expense of a contract  does  not  exceed
ten  thousand  dollars  such contract may be entered into without public
letting, but failure to comply with this section  shall  not  invalidate
such  contracts.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF THE LAW THAT
REQUIRES THE AUTHORITY TO AWARD PUBLIC  WORK  CONTRACTS  TO  THE  LOWEST
RESPONSIBLE  BIDDER  AFTER  ADVERTISING  FOR  SEALED BIDS, THE AUTHORITY
SHALL HAVE THE POWER TO AWARD A CONTRACT USING  AN  ALTERNATIVE  PROJECT
DELIVERY METHOD, INCLUDING THE POWER TO SOLICIT AND AWARD A CONSTRUCTION
MANAGEMENT-AT-RISK  CONTRACT OR A DESIGN-BUILD CONTRACT, AS SET FORTH IN
SECTION ONE HUNDRED THIRTY-FIVE-B OF THE STATE FINANCE LAW.
  S 17. Paragraph a of subdivision 2  of  section  1734  of  the  public
authorities law, as added by chapter 738 of the laws of 1988, is amended
to read as follows:
  a.  Except  as  otherwise  provided  in  this  section,  all  purchase
contracts for supplies, materials or equipment  involving  an  estimated
expenditure  in  excess  of  ten  thousand dollars and all contracts for
public work involving an estimated expenditure in excess of fifty  thou-
sand dollars shall be awarded by the authority to the lowest responsible
bidder  after obtaining sealed bids in the manner hereinafter set forth.
For purposes hereof, contracts for public work shall  exclude  contracts

S. 3035--A                         10                         A. 4735--A

for  personal,  engineering and architectural, or professional services.
NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW THAT REQUIRES THE AUTHOR-
ITY TO AWARD PUBLIC WORK CONTRACTS  TO  THE  LOWEST  RESPONSIBLE  BIDDER
AFTER ADVERTISING FOR SEALED BIDS, THE AUTHORITY SHALL HAVE THE POWER TO
AWARD A CONTRACT USING AN ALTERNATIVE PROJECT DELIVERY METHOD, INCLUDING
THE  POWER  TO  SOLICIT  AND  AWARD  A  CONSTRUCTION  MANAGEMENT-AT-RISK
CONTRACT OR A DESIGN-BUILD CONTRACT, AS SET FORTH IN SECTION ONE HUNDRED
THIRTY-FIVE-B OF THE STATE FINANCE LAW.
  S 18. Section 103 of the general municipal law is amended by adding  a
new subdivision 16 to read as follows:
  16.  NOTWITHSTANDING  ANY OTHER PROVISION OF THE LAW THAT REQUIRES THE
APPROPRIATE OFFICER, BOARD OR AGENCY OF A POLITICAL  SUBDIVISION  OR  OF
ANY  DISTRICT  THEREIN  TO  AWARD  PUBLIC  WORK  CONTRACTS TO THE LOWEST
RESPONSIBLE BIDDER AFTER ADVERTISING FOR SEALED  BIDS,  THE  APPROPRIATE
OFFICER,  BOARD  OR AGENCY OF A POLITICAL SUBDIVISION OR OF ANY DISTRICT
THEREIN SHALL HAVE THE POWER TO AWARD A CONTRACT  USING  AN  ALTERNATIVE
PROJECT  DELIVERY  METHOD,  INCLUDING  THE  POWER TO SOLICIT AND AWARD A
CONSTRUCTION MANAGEMENT-AT-RISK CONTRACT OR  DESIGN-BUILD  CONTRACT,  AS
SET FORTH IN SECTION ONE HUNDRED THIRTY-FIVE-B OF THE STATE FINANCE LAW.
  S  19. Section 1501 of the business corporation law, as added by chap-
ter 974 of the laws of 1970, is amended to read as follows:
S 1501. Definitions.
  As used in this article, unless the context  otherwise  requires,  the
term:  (a)  "licensing authority" means the regents of the university of
the state of New York or the state education department, as the case may
be, in the case of all professions licensed under  title  eight  of  the
education  law,  and  the  appropriate appellate division of the supreme
court in the case of the profession of law.
  (b) "Profession" includes any practice as an attorney  and  counselor-
at-law,  or as a licensed physician, and those occupations designated in
title eight of the education law.
  (c) "Professional service" means any type of  service  to  the  public
which  may  be  lawfully rendered by a member of a profession within the
purview of his profession.
  (d) "Professional service corporation" means a  corporation  organized
under this article, INCLUDING A DESIGN-BUILD FIRM.
  (e) "Officer" does not include the secretary or an assistant secretary
of a corporation having only one shareholder.
  (F) "DESIGN-BUILD FIRM" MEANS A CORPORATION ORGANIZED UNDER THIS ARTI-
CLE  TO  ENGAGE  IN  THE DESIGN-BUILD METHOD AS SET FORTH IN SECTION ONE
HUNDRED THIRTY-FIVE-B OF THE STATE FINANCE LAW THAT INCLUDES  AN  ARCHI-
TECT  OR  ENGINEER AND CONTRACTOR QUALIFIED TO ENGAGE IN BUILDING DESIGN
AND CONSTRUCTION IN NEW YORK.
  S 20. Paragraph (a) of section 1503 of the business  corporation  law,
as  added  by  chapter  974  of  the laws of 1970, is amended to read as
follows:
  (a) Notwithstanding any other provision of law, one or  more  individ-
uals  duly  authorized  by  law  to render the same professional service
within the state may organize, or cause to be organized, a  professional
service  corporation  for  pecuniary  profit  under this article for the
purpose of rendering the same professional service, except that  one  or
more  individuals  duly authorized by law to practice professional engi-
neering, architecture, landscape architecture or land  surveying  within
the state may organize, or cause to be organized, a professional service
corporation  for  pecuniary profit under this article for the purpose of
rendering such professional services as such individuals are  authorized

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to practice.  ONE OR MORE INDIVIDUALS DULY AUTHORIZED BY LAW TO PRACTICE
PROFESSIONAL  ARCHITECTURE OR ENGINEERING WITHIN THE STATE, ALONG WITH A
CONTRACTOR, MAY ALSO ORGANIZE, OR CAUSE TO BE ORGANIZED, A  PROFESSIONAL
SERVICE  CORPORATION  FOR  PECUNIARY  PROFIT  UNDER THIS ARTICLE FOR THE
PURPOSE OF ENGAGING IN THE DESIGN-BUILD METHOD AS SET FORTH  IN  SECTION
ONE HUNDRED THIRTY-FIVE-B OF THE STATE FINANCE LAW.
  S  21.  This act shall take effect on the ninetieth day after it shall
have become a law; provided that the  amendment  to  subdivision  12  of
section 373 of the education law made by section three of this act shall
take  effect  on  the  same date as the reversion of such subdivision as
provided in section 4 of subpart A of part D of chapter 58 of  the  laws
of 2011, as amended; and further provided that the amendment to subdivi-
sion  4  of  section 163 of the state finance law made by section ten of
this act shall not affect the repeal of such section and shall be deemed
repealed therewith.