S T A T E O F N E W Y O R K
________________________________________________________________________
10136
I N A S S E M B L Y
May 12, 2016
___________
Introduced by M. of A. CUSICK, COOK, QUART, SEPULVEDA -- Multi-Sponsored
by -- M. of A. BLAKE, MAGEE -- read once and referred to the Committee
on Governmental Operations
AN ACT to amend the public authorities law, the general municipal law,
the public service law and the state finance law, in relation to
notice provisions in public works contracts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public authorities law is amended by adding a new
section 2882 to read as follows:
S 2882. NOTICE PROVISIONS IN PUBLIC WORKS CONTRACTS. 1. FOR PURPOSES
OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "PUBLIC OWNER" SHALL MEAN ANY STATE OR LOCAL AUTHORITY, AS DEFINED
BY SECTION TWO OF THIS CHAPTER.
(B) "CONTRACT" SHALL MEAN ANY CONTRACT MADE AND AWARDED BY A PUBLIC
OWNER FOR CONSTRUCTION, RECONSTRUCTION, DEMOLITION, ALTERATION, REPAIR
OR MAINTENANCE OF ANY PUBLIC WORK PROJECT.
(C) "CONTRACTOR" SHALL MEAN ANY PERSON, FIRM, PARTNERSHIP, CORPO-
RATION, ASSOCIATION, COMPANY, SUB-CONTRACTOR, MATERIALMAN SECURED BY A
CONTRACTOR OR A SUBCONTRACTOR, OR OTHER ENTITY OR COMBINATION THEREOF,
WHICH ENTERS INTO A CONTRACT TO PROVIDE SERVICES TO A PUBLIC OWNER.
(D) "MATERIALLY PREJUDICE" SHALL MEAN TO SUBSTANTIALLY IMPAIR THE
ABILITY OF THE PUBLIC OWNER TO INVESTIGATE OR DEFEND THE CLAIM, PROVIDED
THAT THE PUBLIC OWNER'S ACTUAL KNOWLEDGE OF THE EVENTS IN QUESTION SHALL
PRECLUDE A CLAIM OF MATERIAL PREJUDICE DUE TO LACK OF ANY REQUIRED
NOTICE.
2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, ANY CONTRACT MADE
AND AWARDED BY A PUBLIC OWNER FOR ANY PUBLIC WORK PROJECT SHALL CONTAIN,
OR BE PRESUMED TO CONTAIN, THE FOLLOWING PROVISION OR A PROVISION THAT
IS EQUALLY FAVORABLE TO THE CONTRACTOR:
THE FAILURE TO GIVE ANY NOTICE REQUIRED TO BE GIVEN BY SUCH CONTRACT
WITHIN THE TIME PRESCRIBED THEREIN SHALL NOT INVALIDATE ANY CLAIM MADE
BY THE CONTRACTOR OR ANY OTHER CLAIMANT, UNLESS THE FAILURE TO PROVIDE
TIMELY NOTICE HAS MATERIALLY PREJUDICED THE PUBLIC OWNER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14070-02-6
A. 10136 2
3. IN ANY ACTION IN WHICH A PUBLIC OWNER ALLEGES THAT IT WAS MATE-
RIALLY PREJUDICED AS A RESULT OF A FAILURE TO PROVIDE TIMELY NOTICE, THE
BURDEN OF PROOF SHALL BE ON:
(A) THE PUBLIC OWNER TO PROVE THAT IT HAS BEEN PREJUDICED, IF THE
NOTICE WAS PROVIDED WITHIN ONE HUNDRED EIGHTY DAYS OF THE TIME REQUIRED
UNDER THE CONTRACT; OR
(B) THE CONTRACTOR OR ANY OTHER CLAIMANT, TO PROVE THAT THE PUBLIC
OWNER HAS NOT BEEN PREJUDICED, IF THE NOTICE WAS PROVIDED MORE THAN ONE
HUNDRED EIGHTY DAYS AFTER THE TIME REQUIRED UNDER THE CONTRACT.
S 2. The general municipal law is amended by adding a new section
109-c to read as follows:
S 109-C. NOTICE PROVISIONS IN PUBLIC WORKS CONTRACTS. 1. FOR PURPOSES
OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "PUBLIC OWNER" SHALL MEAN ANY POLITICAL SUBDIVISION, MUNICIPAL
CORPORATION, SCHOOL DISTRICT, DISTRICT CORPORATION OR BOARD OF COOPER-
ATIVE EDUCATIONAL SERVICES.
(B) "CONTRACT" SHALL MEAN ANY CONTRACT MADE AND AWARDED BY A PUBLIC
OWNER FOR CONSTRUCTION, RECONSTRUCTION, DEMOLITION, ALTERATION, REPAIR
OR MAINTENANCE OF ANY PUBLIC WORK PROJECT.
(C) "CONTRACTOR" SHALL MEAN ANY PERSON, FIRM, PARTNERSHIP, CORPO-
RATION, ASSOCIATION, COMPANY, SUB-CONTRACTOR, MATERIALMAN SECURED BY A
CONTRACTOR OR A SUBCONTRACTOR, OR OTHER ENTITY OR COMBINATION THEREOF,
WHICH ENTERS INTO A CONTRACT TO PROVIDE SERVICES TO A PUBLIC OWNER.
(D) "MATERIALLY PREJUDICE" SHALL MEAN TO SUBSTANTIALLY IMPAIR THE
ABILITY OF THE PUBLIC OWNER TO INVESTIGATE OR DEFEND THE CLAIM, PROVIDED
THAT THE PUBLIC OWNER'S ACTUAL KNOWLEDGE OF THE EVENTS IN QUESTION SHALL
PRECLUDE A CLAIM OF MATERIAL PREJUDICE DUE TO LACK OF ANY REQUIRED
NOTICE.
2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, ANY CONTRACT MADE
AND AWARDED BY A PUBLIC OWNER FOR ANY PUBLIC WORK PROJECT SHALL CONTAIN,
OR BE PRESUMED TO CONTAIN, THE FOLLOWING PROVISION OR A PROVISION THAT
IS EQUALLY FAVORABLE TO THE CONTRACTOR:
THE FAILURE TO GIVE ANY NOTICE REQUIRED TO BE GIVEN BY SUCH CONTRACT
WITHIN THE TIME PRESCRIBED THEREIN SHALL NOT INVALIDATE ANY CLAIM MADE
BY THE CONTRACTOR OR ANY OTHER CLAIMANT, UNLESS THE FAILURE TO PROVIDE
TIMELY NOTICE HAS MATERIALLY PREJUDICED THE PUBLIC OWNER.
3. IN ANY ACTION IN WHICH A PUBLIC OWNER ALLEGES THAT IT WAS MATE-
RIALLY PREJUDICED AS A RESULT OF A FAILURE TO PROVIDE TIMELY NOTICE, THE
BURDEN OF PROOF SHALL BE ON:
(A) THE PUBLIC OWNER TO PROVE THAT IT HAS BEEN PREJUDICED, IF THE
NOTICE WAS PROVIDED WITHIN ONE HUNDRED EIGHTY DAYS OF THE TIME REQUIRED
UNDER THE CONTRACT; OR
(B) THE CONTRACTOR OR ANY OTHER CLAIMANT, TO PROVE THAT THE PUBLIC
OWNER HAS NOT BEEN PREJUDICED, IF THE NOTICE WAS PROVIDED MORE THAN ONE
HUNDRED EIGHTY DAYS AFTER THE TIME REQUIRED UNDER THE CONTRACT.
S 3. The public service law is amended by adding a new section 28 to
read as follows:
S 28. NOTICE PROVISIONS IN PUBLIC WORKS CONTRACTS. 1. FOR PURPOSES OF
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "PUBLIC OWNER" SHALL MEAN THE STATE, OR ANY STATE AGENCY, PUBLIC
DEPARTMENT, PUBLIC CORPORATION, BOARD, BUREAU, OR SUBDIVISION THEREOF,
ANY PUBLIC BENEFIT CORPORATION, OR A COMMISSION APPOINTED PURSUANT TO
LAW.
(B) "CONTRACT" SHALL MEAN ANY CONTRACT MADE AND AWARDED BY A PUBLIC
OWNER FOR CONSTRUCTION, RECONSTRUCTION, DEMOLITION, ALTERATION, REPAIR
OR MAINTENANCE OF ANY PUBLIC WORK PROJECT.
A. 10136 3
(C) "CONTRACTOR" SHALL MEAN ANY PERSON, FIRM, PARTNERSHIP, CORPO-
RATION, ASSOCIATION, COMPANY, SUB-CONTRACTOR, MATERIALMAN SECURED BY A
CONTRACTOR OR A SUBCONTRACTOR, OR OTHER ENTITY OR COMBINATION THEREOF,
WHICH ENTERS INTO A CONTRACT TO PROVIDE SERVICES TO A PUBLIC OWNER.
(D) "MATERIALLY PREJUDICE" SHALL MEAN TO SUBSTANTIALLY IMPAIR THE
ABILITY OF THE PUBLIC OWNER TO INVESTIGATE OR DEFEND THE CLAIM, PROVIDED
THAT THE PUBLIC OWNER'S ACTUAL KNOWLEDGE OF THE EVENTS IN QUESTION SHALL
PRECLUDE A CLAIM OF MATERIAL PREJUDICE DUE TO LACK OF ANY REQUIRED
NOTICE.
2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, ANY CONTRACT MADE
AND AWARDED BY A PUBLIC OWNER FOR ANY PUBLIC WORK PROJECT SHALL CONTAIN,
OR BE PRESUMED TO CONTAIN, THE FOLLOWING PROVISION OR A PROVISION THAT
IS EQUALLY FAVORABLE TO THE CONTRACTOR:
THE FAILURE TO GIVE ANY NOTICE REQUIRED TO BE GIVEN BY SUCH CONTRACT
WITHIN THE TIME PRESCRIBED THEREIN SHALL NOT INVALIDATE ANY CLAIM MADE
BY THE CONTRACTOR OR ANY OTHER CLAIMANT, UNLESS THE FAILURE TO PROVIDE
TIMELY NOTICE HAS MATERIALLY PREJUDICED THE PUBLIC OWNER.
3. IN ANY ACTION IN WHICH A PUBLIC OWNER ALLEGES THAT IT WAS MATE-
RIALLY PREJUDICED AS A RESULT OF A FAILURE TO PROVIDE TIMELY NOTICE, THE
BURDEN OF PROOF SHALL BE ON:
(A) THE PUBLIC OWNER TO PROVE THAT IT HAS BEEN PREJUDICED, IF THE
NOTICE WAS PROVIDED WITHIN ONE HUNDRED EIGHTY DAYS OF THE TIME REQUIRED
UNDER THE CONTRACT; OR
(B) THE CONTRACTOR OR ANY OTHER CLAIMANT, TO PROVE THAT THE PUBLIC
OWNER HAS NOT BEEN PREJUDICED, IF THE NOTICE WAS PROVIDED MORE THAN ONE
HUNDRED EIGHTY DAYS AFTER THE TIME REQUIRED UNDER THE CONTRACT.
S 4. The state finance law is amended by adding a new section 179-ff
to read as follows:
S 179-FF. NOTICE PROVISIONS IN PUBLIC WORKS CONTRACTS. 1. FOR PURPOSES
OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "PUBLIC OWNER" SHALL MEAN THE STATE, OR ANY STATE AGENCY, PUBLIC
DEPARTMENT, PUBLIC CORPORATION, BOARD, BUREAU, OR SUBDIVISION THEREOF OR
ANY POLITICAL SUBDIVISION, MUNICIPAL CORPORATION, PUBLIC BENEFIT CORPO-
RATION, PUBLIC AUTHORITY, SCHOOL DISTRICT OR A COMMISSION APPOINTED
PURSUANT TO LAW.
(B) "CONTRACT" SHALL MEAN ANY CONTRACT MADE AND AWARDED BY A PUBLIC
OWNER FOR CONSTRUCTION, RECONSTRUCTION, DEMOLITION, ALTERATION, REPAIR
OR MAINTENANCE OF ANY PUBLIC WORK PROJECT.
(C) "CONTRACTOR" SHALL MEAN ANY PERSON, FIRM, PARTNERSHIP, CORPO-
RATION, ASSOCIATION, COMPANY, SUB-CONTRACTOR, MATERIALMAN SECURED BY A
CONTRACTOR OR A SUBCONTRACTOR, OR OTHER ENTITY OR COMBINATION THEREOF,
WHICH ENTERS INTO A CONTRACT TO PROVIDE SERVICES TO A PUBLIC OWNER.
(D) "MATERIALLY PREJUDICE" SHALL MEAN TO SUBSTANTIALLY IMPAIR THE
ABILITY OF THE PUBLIC OWNER TO INVESTIGATE OR DEFEND THE CLAIM, PROVIDED
THAT THE PUBLIC OWNER'S ACTUAL KNOWLEDGE OF THE EVENTS IN QUESTION SHALL
PRECLUDE A CLAIM OF MATERIAL PREJUDICE DUE TO LACK OF ANY REQUIRED
NOTICE.
2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, ANY CONTRACT MADE
AND AWARDED BY A PUBLIC OWNER FOR ANY PUBLIC WORK PROJECT SHALL CONTAIN,
OR BE PRESUMED TO CONTAIN, THE FOLLOWING PROVISION OR A PROVISION THAT
IS EQUALLY FAVORABLE TO THE CONTRACTOR:
THE FAILURE TO GIVE ANY NOTICE REQUIRED TO BE GIVEN BY SUCH CONTRACT
WITHIN THE TIME PRESCRIBED THEREIN SHALL NOT INVALIDATE ANY CLAIM MADE
BY THE CONTRACTOR OR ANY OTHER CLAIMANT, UNLESS THE FAILURE TO PROVIDE
TIMELY NOTICE HAS MATERIALLY PREJUDICED THE PUBLIC OWNER.
A. 10136 4
3. IN ANY ACTION IN WHICH A PUBLIC OWNER ALLEGES THAT IT WAS MATE-
RIALLY PREJUDICED AS A RESULT OF A FAILURE TO PROVIDE TIMELY NOTICE, THE
BURDEN OF PROOF SHALL BE ON:
(A) THE PUBLIC OWNER TO PROVE THAT IT HAS BEEN PREJUDICED, IF THE
NOTICE WAS PROVIDED WITHIN ONE HUNDRED EIGHTY DAYS OF THE TIME REQUIRED
UNDER THE CONTRACT; OR
(B) THE CONTRACTOR OR ANY OTHER CLAIMANT, TO PROVE THAT THE PUBLIC
OWNER HAS NOT BEEN PREJUDICED, IF THE NOTICE WAS PROVIDED MORE THAN ONE
HUNDRED EIGHTY DAYS AFTER THE TIME REQUIRED UNDER THE CONTRACT.
S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law, and shall apply to all contracts entered
into on and after such date.