NY State Senate Bill 2011-S5202

Senate Bill S5202

2011-2012 Legislative Session

Relates to claims and actions against the New York city school construction authority arising out of contracts

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 21, 2012	committed to rules
Jun 13, 2012	amended on third reading 5202b
May 21, 2012	advanced to third reading
May 16, 2012	2nd report cal.
May 15, 2012	1st report cal.800
May 03, 2012	print number 5202a
May 03, 2012	amend and recommit to finance
Mar 19, 2012	reported and committed to finance
Jan 04, 2012	referred to corporations, authorities and commissions
May 18, 2011	reported and committed to finance
May 03, 2011	referred to corporations, authorities and commissions

Votes

- May 15, 2012 - Finance Committee Vote
  S5202
  
  28
  
  Aye
  
  2
  
  Nay
  
  4
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Finance Committee Vote: May 15, 2012
      
      aye (28)
      
      Alesi
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Johnson
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Montgomery
      
      Nozzolio
      
      Oppenheimer
      
      Perkins
      
      Rivera
      
      Robach
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Young
      
      nay (2)
      
      Golden
      
      Parker
      
      aye wr (4)
      
      Little
      
      Peralta
      
      Saland
      
      Squadron
      
      excused (1)
      
      Marcellino
  Mar 19, 2012 - Corporations, Authorities And Commissions Committee Vote
  S5202
  
  5
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Corporations, Authorities And Commissions Committee Vote: Mar 19, 2012
      
      aye (5)
      
      Flanagan
      
      Larkin
      
      Martins
      
      Perkins
      
      Ranzenhofer
      
      aye wr (1)
      
      Squadron
  May 18, 2011 - Corporations, Authorities And Commissions Committee Vote
  S5202
  
  5
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Corporations, Authorities And Commissions Committee Vote: May 18, 2011
      
      aye (5)
      
      Flanagan
      
      Larkin
      
      Martins
      
      Perkins
      
      Ranzenhofer
      
      aye wr (1)
      
      Squadron

Bill Amendments

Original

B (Active)

2011-S5202 - Details

Current Committee:: Senate Rules
Law Section:: Public Authorities Law
Laws Affected:: Amd §1744, Pub Auth L
Versions Introduced in 2013-2014 Legislative Session:: S3551

2011-S5202 - Summary

Relates to claims and actions against the New York city school construction authority arising out of contracts; provides accrual of claims shall be deemed to have occurred as of the date payment for the amount claimed was denied.

2011-S5202 - Sponsor Memo

                                BILL NUMBER:S5202

TITLE OF BILL:
An act
to amend the public authorities law, in relation to claims and actions
against the New York city school construction authority arising out of
contracts

PURPOSE OR GENERAL IDEA OF BILL:
To bring section 1744 of the Public
Authorities Law into conformance with Education Law with regard
to claims for contracts.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - amends subdivision two of
section 1744 of the Public Authorities Law to add an additional
sentence that provides 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 day payment for the amount
claimed was denied.

Section 2 - provides that this act shall take effect immediately and
shall apply to any contract entered into or amended on or after
January 1, 2006.

JUSTIFICATION:

Because of the volume of work being done by the New
York City School Construction Authority, and the numerous change
orders that have occurred and continue to occur, review of changes is
often delayed beyond the ninety days within which a claim must be
e presented. Under present law, a notice of claim to preserve
contractors' rights to pursue an action (if the claim is eventually
denied) must be served before a contractor even knows if there will be a
dispute. The limited, technical amendment implemented by this b
ill would not only avoid the burden of unnecessary notices of claims,
but will allow for a much clearer, understandable trigger as to
when the ninety days to file a notice of claim, or the one year to
commence an action on the claim, begins to run. The denial-of-a-claim
starting point, utilized in the amended Education Law .3813, is
much clearer than the vague, accrual-of-claim starting point currently
in the Public Authorities Law. This change will bring the time
of accrual into conformance with the Education Law provisions applicable
to all other school districts statewide, will prevent the
unintentional and unfair waiver of claims, and will reduce paperwork
for both the Authority and its contractors.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply
to any contract entered into or amended on or after January 1,
2006.

2011-S5202 - Bill Text download pdf

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

                                  5202

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions

AN ACT to amend the public authorities law, in relation  to  claims  and
  actions  against the New York city school construction authority aris-
  ing out of contracts

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

  Section  1.  Subdivision  2  of section 1744 of the public authorities
law, as added by chapter 738 of the laws of 1988, is amended to read  as
follows:
  2.  No action or proceeding for any cause whatever, other than the one
for personal injury, death, property damage  or  tort,  which  shall  be
governed  by  subdivision  one  of this section, relating to the design,
construction,  reconstruction,  improvement,   rehabilitation,   repair,
furnishing  or  equipping of educational facilities, shall be prosecuted
or maintained against the authority or any member,  officer,  agent,  or
employee  thereof, unless (i) it shall appear by and as an allegation in
the complaint or moving  papers,  that  a  detailed,  written,  verified
notice of each claim upon which any part of such action or proceeding is
founded was presented to the board within three months after the accrual
of  such claim, that at least thirty days have elapsed since such notice
was so presented and that the authority or the officer  or  body  having
the  power  to adjust or pay said claim has neglected or refused to make
an adjustment or payment thereof, and  (ii)  the  action  or  proceeding
shall  have  been  commenced  within one year after the happening of the
event upon which the claim is based;  provided,  however,  that  nothing
contained in this subdivision shall be deemed to modify or supersede any
provision  of  law  or  contract  specifying a shorter period of time in
which to commence such action or proceeding,  or  to  excuse  compliance
with  any other conditions required by contract to be satisfied prior to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10326-01-1

S. 5202                             2

the commencement of such action or proceeding.  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  DAY  PAYMENT  FOR
THE AMOUNT CLAIMED WAS DENIED.
  S  2.  This  act  shall take effect immediately and shall apply to any
contracts entered into or amended on and after January 1, 2006.

2011-S5202A - Details

Current Committee:: Senate Rules
Law Section:: Public Authorities Law
Laws Affected:: Amd §1744, Pub Auth L
Versions Introduced in 2013-2014 Legislative Session:: S3551

2011-S5202A - Summary

2011-S5202A - Sponsor Memo

                                BILL NUMBER:S5202A

TITLE OF BILL:
An act
to amend the public authorities law, in relation to claims and actions
against the New York city school construction authority arising out of
contracts

PURPOSE OR GENERAL IDEA OF BILL:
To bring section 1744 of the Public
Authorities Law into conformance with Education Law with regard to
claims for contracts

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - amends
subdivision two of
section 1744 of the Public Authorities Law to add an additional
sentence that provides 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 day payment for the amount
claimed was denied.

Section 2 - provides that this act shall take effect immediately and
shall apply to any contract entered into or amended on or after
January 1, 2006.

JUSTIFICATION:
Because of the volume of work being done by the New
York City School Construction Authority, and the numerous change
orders that have occurred and continue to occur, review of changes is
often delayed beyond the ninety days within which a claim must be
presented. Under present law, a notice of claim to preserve
contractors' rights to pursue an action (if the claim is eventually
denied) must be served before a contractor even knows if there will be
a dispute. The limited, technical amendment implemented by this bill
would not only avoid the burden of unnecessary notices of claims, but
will allow for a much clearer, understandable trigger as to when the
ninety days to file a notice of claim, or the one year to commence an
action on the claim, begins to run. The denial-of-a-claim starting
point, utilized in the amended Education Law §3813, is much clearer
than the vague, accrual-of-claim starting point currently in the
Public Authorities Law. This change will bring the time of accrual
into conformance with the Education Law provisions applicable to all
other school districts statewide, will prevent the unintentional and
unfair waiver of claims, and will reduce paperwork for both the
Authority and its contractors.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:


This act shall take effect immediately and shall apply
to any contract entered into or amended on or after January
1, 2006.

2011-S5202A - Bill Text download pdf

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

                                 5202--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions -- recommitted to the Committee on Corporations,
  Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
  -- reported favorably from said committee and committed to the Commit-
  tee   on  Finance  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the public authorities law, in relation  to  claims  and
  actions  against the New York city school construction authority aris-
  ing out of contracts

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

  Section  1.  Subdivision  2  of section 1744 of the public authorities
law, as added by chapter 738 of the laws of 1988, is amended to read  as
follows:
  2.  No action or proceeding for any cause whatever, other than the one
for personal injury, death, property damage  or  tort,  which  shall  be
governed  by  subdivision  one  of this section, relating to the design,
construction,  reconstruction,  improvement,   rehabilitation,   repair,
furnishing  or  equipping of educational facilities, shall be prosecuted
or maintained against the authority or any member,  officer,  agent,  or
employee  thereof, unless (i) it shall appear by and as an allegation in
the complaint or moving  papers,  that  a  detailed,  written,  verified
notice of each claim upon which any part of such action or proceeding is
founded was presented to the board within three months after the accrual
of  such claim, that at least thirty days have elapsed since such notice
was so presented and that the authority or the officer  or  body  having
the  power  to adjust or pay said claim has neglected or refused to make
an adjustment or payment thereof, and  (ii)  the  action  or  proceeding
shall  have  been  commenced  within one year after the happening of the
event upon which the claim is based;  provided,  however,  that  nothing

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10326-02-2

S. 5202--A                          2

contained in this subdivision shall be deemed to modify or supersede any
provision  of  law  or  contract  specifying a shorter period of time in
which to commence such action or proceeding,  or  to  excuse  compliance
with  any other conditions required by contract to be satisfied prior to
the commencement of such action or proceeding.  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  DAY  PAYMENT  FOR
THE  AMOUNT  CLAIMED  WAS DENIED BY WRITTEN NOTICE DELIVERED BY PERSONAL
SERVICE, CERTIFIED MAIL OR AS OTHERWISE PROVIDED BY CONTRACT.
  S 2. This act shall take effect immediately and  shall  apply  to  any
contracts entered into or amended on and after January 1, 2006.

2011-S5202B (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Public Authorities Law
Laws Affected:: Amd §1744, Pub Auth L
Versions Introduced in 2013-2014 Legislative Session:: S3551

2011-S5202B (ACTIVE) - Summary

2011-S5202B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5202B

TITLE OF BILL:
An act
to amend the public authorities law, in relation to claims and actions
against the New York city school construction authority arising out of
contracts

PURPOSE OR GENERAL IDEA OF BILL:
To bring section 1744 of the Public
Authorities Law into conformance with Education Law with regard to
claims for contracts.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1- amends subdivision two of
section 1744 of the Public Authorities Law to add an additional
sentence that provides 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 day payment for the amount
claimed was denied by written notice.

Section 2 - provides that this act shall take effect immediately. The
"b" amendment provides that this is prospective only.

JUSTIFICATION:
Because of the volume of work being done by the New

York City School Construction Authority, and the numerous change
orders that have occurred and continue to occur, review of changes is
often delayed beyond the ninety days within which a claim must be
presented. Under present law, a notice of claim to preserve
contractors' rights to pursue an action (if the claim is eventually
denied) must be served before a contractor even knows if there will
be a dispute. The limited technical amendment implemented by this
bill would not only avoid the burden of unnecessary notices of
claims, but will allow for a much clearer, understandable trigger as
to when the ninety days to file a notice of claim, or the one year to
commence an action on the claim, begins to run. The denial
-of-a-claim starting point, utilized in the amended Education Law
§3813, is much clearer than the vague accrual-of-c1aim starting point
currently in the Public Authorities Law. This change will bring the
time of accrual into conformance with the Education Law provisions
applicable to all other school districts statewide, will prevent the
unintentional and unfair waiver of claims, and will reduce paperwork
for both the Authority and its contractors.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

2011-S5202B (ACTIVE) - Bill Text download pdf

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

                                 5202--B
    Cal. No. 800

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions -- recommitted to the Committee on Corporations,
  Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
  -- reported favorably from said committee and committed to the Commit-
  tee   on  Finance  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to  said  committee  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, amended and ordered  reprinted,  retaining
  its place in the order of third reading

AN  ACT  to  amend the public authorities law, in relation to claims and
  actions against the New York city school construction authority  aris-
  ing out of contracts

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

  Section 1. Subdivision 2 of section 1744  of  the  public  authorities
law,  as added by chapter 738 of the laws of 1988, is amended to read as
follows:
  2. No action or proceeding for any cause whatever, other than the  one
for  personal  injury,  death,  property  damage or tort, which shall be
governed by subdivision one of this section,  relating  to  the  design,
construction,   reconstruction,   improvement,  rehabilitation,  repair,
furnishing or equipping of educational facilities, shall  be  prosecuted
or  maintained  against  the authority or any member, officer, agent, or
employee thereof, unless (i) it shall appear by and as an allegation  in
the  complaint  or  moving  papers,  that  a detailed, written, verified
notice of each claim upon which any part of such action or proceeding is
founded was presented to the board within three months after the accrual
of such claim, that at least thirty days have elapsed since such  notice
was  so  presented  and that the authority or the officer or body having
the power to adjust or pay said claim has neglected or refused  to  make

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

                                                           LBD10326-05-2

S. 5202--B                          2

an  adjustment  or  payment  thereof,  and (ii) the action or proceeding
shall have been commenced within one year after  the  happening  of  the
event  upon  which  the  claim is based; provided, however, that nothing
contained in this subdivision shall be deemed to modify or supersede any
provision  of  law  or  contract  specifying a shorter period of time in
which to commence such action or proceeding,  or  to  excuse  compliance
with  any other conditions required by contract to be satisfied prior to
the commencement of such action or proceeding.  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  DAY  PAYMENT  FOR
THE  AMOUNT  CLAIMED  WAS DENIED BY WRITTEN NOTICE DELIVERED BY PERSONAL
SERVICE, CERTIFIED MAIL OR AS OTHERWISE PROVIDED BY CONTRACT.
  S 2. This act shall take effect immediately.

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