senate Bill S6577

Signed By Governor
2013-2014 Legislative Session

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

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Archive: Last Bill Status - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 17, 2014 signed chap.519
Dec 05, 2014 delivered to governor
Jun 16, 2014 returned to senate
passed assembly
ordered to third reading rules cal.281
substituted for a8805
Jun 09, 2014 referred to ways and means
delivered to assembly
passed senate
May 14, 2014 advanced to third reading
May 13, 2014 2nd report cal.
May 12, 2014 1st report cal.606
Feb 07, 2014 referred to corporations, authorities and commissions

Votes

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May 12, 2014 - Corporations, Authorities and Commissions committee Vote

S6577
5
0
committee
5
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Corporations, Authorities and Commissions Committee Vote: May 12, 2014

aye wr (1)

S6577 - Bill Details

See Assembly Version of this Bill:
A8805
Law Section:
Public Authorities Law
Laws Affected:
Amd §1744, Pub Auth L

S6577 - Bill Texts

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

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BILL NUMBER:S6577

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 all other school districts in
the state 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 that 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.

Section 2 - provides that this act shall take effect immediately and
shall apply to contracts executed on or after such date.

JUSTIFICATION: This bill will bring the time of accrual for
contractual work done for the New York City School Construction
Authority 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.

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 completed projects and
changes is often delayed beyond the ninety days within which a claim
must be presented.

Under present School Construction Authority Law, a notice of claim to
preserve contractors' rights to pursue an action (if the claim is
eventually denied) must often be served before a contractor even knows
that there is a dispute to preserve the contractors rights to be paid
for work that has been properly completed. The routine filing of a
notice of claim for work completed and under review by the School
Construction Authority is a costly and burdensome expense to the
Authority. The limited, technical amendment implemented by this bill
will avoid the cost of handling of what would often be the unnecessary
filing of a notice of claim, and 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 Education
Law § 3813, has been a success for over twenty years for all other
school districts across the state and is much clearer than the vague,
accrual-of-claim starting point currently in the Public Authorities
Law.

PRIOR LEGISLATIVE HISTORY: New bill. Reference can be made to Chapter
387 of the Laws of 1992 amending the Education Law.

FISCAL IMPLICATIONS: None.


EFFECTIVE DATE: This act shall take effect immediately and shall apply
to contracts executed on or after such date.

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

                                  6577

                            I N  S E N A T E

                            February 7, 2014
                               ___________

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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13568-01-4

S. 6577                             2

SUCH CLAIM SHALL BE DEEMED TO HAVE OCCURRED AS OF THE DATE  PAYMENT  FOR
THE AMOUNT CLAIMED WAS DENIED.
  S  2.  This  act  shall  take  effect  immediately  and shall apply to
contracts executed on or after such date.

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