S T A T E O F N E W Y O R K
________________________________________________________________________
8094
I N S E N A T E
June 12, 2016
___________
Introduced by Sen. MARTINS -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the public authorities law, in relation to the New York
state design and construction corporation act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1678-a of the public authorities law, as added by
section 1 of part RR of chapter 54 of the laws of 2016, is amended to
read as follows:
S 1678-a. New York state design and construction corporation act. 1.
Purposes of act. The purposes of the New York state design and
construction corporation act are to establish the New York state design
and construction corporation to provide (a) additional project manage-
ment expertise, monitoring and oversight on INDIVIDUAL public works
projects each having a total or aggregate construction value in excess
of fifty million dollars undertaken by state agencies, state departments
subject to the provisions of this section, and state authorities includ-
ing one created by chapter one hundred fifty-four of the laws of nine-
teen hundred twenty-one and one created by chapter eight hundred twen-
ty-four of the laws of nineteen hundred thirty-three herein after
referred to as "state entity"; and (b) a means to implement and recom-
mend improvements and other project changes on such proposed INDIVIDUAL
public works projects in excess of fifty million dollars in total or
aggregate value, in a more timely fashion, to ensure that such projects
can be accomplished, to the extent practicable, on time, within budget
and at an acceptable overall quality and cost to the state of New York.
2. New York state design and construction corporation. (a) There is
hereby established the New York state design and construction corpo-
ration as a subsidiary corporation of the dormitory authority.
(b) The dormitory authority may provide or lease to such subsidiary
corporation any real, personal or mixed property as shall be required in
order to carry out the purposes of this act. THE DORMITORY AUTHORITY
MAY NOT LEASE EMPLOYEES OF THE DORMITORY AUTHORITY TO SUCH SUBSIDIARY
CORPORATION FOR PURPOSES OF THIS SECTION. The authority may assign any
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15830-02-6
S. 8094 2
such employees to work for the corporation as shall be required in order
to carry out the purposes of this section and all such employees shall
retain their respective civil service classifications, seniority,
status, and rights pursuant to their collective bargaining units and/or
collective bargaining agreements, as applicable. ANY EMPLOYEE ASSIGNED
PURSUANT TO THIS SECTION SHALL REMAIN IN HIS OR HER COLLECTIVE BARGAIN-
ING UNIT, AND NO EMPLOYEE SHALL RECEIVE A REDUCTION IN SALARY OR BENE-
FITS DUE TO SUCH ASSIGNMENT. Notwithstanding any provision of law to the
contrary, the term "employee" as set forth in this section shall mean a
dormitory authority employee assigned, in whole, or in part, to work for
the corporation.
(c) Such corporation shall be a body corporate and politic constitut-
ing a public benefit corporation, and shall have all of the privileges,
immunities, tax exemptions and other exemptions of the dormitory author-
ity to the extent the same are not inconsistent with this section.
(d) The board of the corporation shall consist of three members as
designated by the governor, and the governor shall designate the chair
from among the members of the corporation's board. The members of the
corporation's board shall serve until such time as his or her successor
is appointed by the governor.
(e) A quorum shall consist of a majority of the members of the board.
A quorum shall be required for the board to conduct business, and
approval of any matter properly before the board shall require the
affirmative vote of the majority of the board. Meetings of the corpo-
ration shall be called by the chair, or by a majority of the members
appointed. Meetings shall be held at least bi-annually.
(f) Nothing in this subdivision shall be construed to impose any
liabilities, obligations or responsibilities of such corporation upon
the dormitory authority, and the authority shall have no liability or
responsibility therefor unless the authority expressly agrees by resol-
ution of the authority board to assume the same.
(g) The provisions of section sixteen hundred ninety-one of this title
shall in all respects apply to members of the corporation and any offi-
cer, employee or agent of the dormitory authority [transferred or]
assigned to the corporation, while acting within the scope of his, her
or its authority.
(h) All of the provisions of sections seventeen and nineteen of the
public officers law shall apply to the members, directors, officers and
employees of the corporation.
(i) The corporation created pursuant to this section shall be subject
to any other provisions of this chapter pertaining to subsidiaries of
public authorities to the extent that such provisions are not inconsist-
ent with the provisions of this section.
3. Corporation review and oversight of certain public works contracts.
For INDIVIDUAL public works projects having a total or aggregate
construction value in excess of fifty million dollars, hereinafter
referred to as "covered projects", and for any and all contracts relat-
ing to such covered projects which are advertised for bid or proposal or
otherwise procured and/or entered into on or after January first, two
thousand sixteen:
(a) Any state entity proposing a covered project shall provide written
notice to the corporation of such proposal, to include without limita-
tion, the estimated value of the covered project and a summary of the
scope and duration of such covered project. Projects shall not be
divided or segmented for the purposes of avoiding compliance with the
provisions of this act. For purposes of this section, "covered project"
S. 8094 3
shall not include capital projects of the office of state comptroller,
office of the attorney general or education department of the state of
New York.
(b) The corporation shall have the authority to, and may, in its sole
discretion, review, monitor, and oversee, in whole or in part, such
covered project, and make recommendations regarding necessary corrective
or other action to any state entity in connection with such covered
project provided that the corporation, in its sole discretion, deems
such covered project to be at risk of being delayed, not being completed
within budget, or not completed at an acceptable level of quality.
(c) For the purposes of this section, the term "project" shall mean
any work associated with the planning, acquisition, design, engineering,
environmental analysis, construction, reconstruction, restoration, reha-
bilitation, establishment, improvement, renovation, extension, repair,
revitalization, management and development of a capital asset as defined
in section two of the state finance law.
(d) The state entity undertaking such covered project shall cooperate
in good faith with the corporation, and provide reasonable access to all
personnel, books, records, plans, specifications, data and other infor-
mation as may be necessary for the corporation to perform its duties.
The corporation shall limit its request for access to such information
that is reasonably necessary, as determined by the corporation to
perform its duties.
(e) In the event the corporation determines that corrective or other
action is necessary for such covered project, then the corporation shall
provide the state entity with written notice of what corrective or other
actions the corporation recommends as necessary to accomplish the
project, to the extent practicable, on time, within budget and at an
acceptable overall cost to the state of New York. Such corrective or
other action may include, but not be limited to:
(i) Modification of such plans, schedules, specifications, designs and
estimates of costs for the construction of the project and equipment of
facilities;
(ii) Detailed analysis of the project schedule so as to cure delays
that may have occurred or prevent future delay;
(iii) Detailed analysis of project budget;
(iv) Detailed analysis of change orders and/or payments to prime
contractors, subcontractors and other parties;
(v) Detailed analysis of records of construction observations,
inspections and deficiencies;
(vi) Exercise of applicable rights and/or remedies with respect to
contracts, contractors, subcontractors or other consultants;
(vii) Procurement of independent auditors, project managers, legal
counsel, or other professionals for the benefit of the project;
(viii) Regular reporting of project status and milestones to the
corporation;
(ix) Active project management review and oversight utilizing addi-
tional resources provided by the corporation; and
(x) Periodic project review and audit by the corporation on a suitable
time interval determined by the corporation.
The state entity undertaking the project shall have a period of thirty
days, or shorter if the corporation determines that a shorter period is
required by the circumstances or longer if the corporation consents,
from receipt of written notice of recommended corrective action from the
corporation, to notify the corporation in writing of its acceptance or
rejection of the corrective or other action. In the event that the state
S. 8094 4
entity rejects any corrective or other action, in whole or in part, it
shall provide simultaneous written notice to the corporation accompanied
by a reasoned explanation in support of its rejection. Such rejection
shall be reported to the secretary to the governor and the director of
the division of budget within fifteen days of its receipt by the corpo-
ration.
(f) Any state entity proposing a covered project shall include a
summary of the provisions of this section in all such proposal and/or
bid documents for such projects.
4. General powers and duties of the corporation. (a) The corporation
shall have the power to:
(i) Sue and be sued;
(ii) Have a seal and alter the same at pleasure;
(iii) Make and alter by-laws for its organization and internal manage-
ment and make rules and regulations governing same;
(iv) [Appoint] ASSIGN such officers and employees from the officers
and employees of the authority, as it may require for the performance of
its duties [and fix and determine their qualifications, duties, and
compensation, and retain or employ counsel, auditors, private financial
consultants, professional engineers or other technical consultants and
other services on a contract basis or otherwise, for the rendering of
professional, business or technical services and advice];
(v) Make and execute contracts and all other instruments necessary or
convenient for the exercise of its powers and functions under this
section;
(vi) Engage the services of private consultants on a contract basis
for rendering professional and technical assistance advice relating to
covered projects IF SUCH SERVICES AND ASSISTANCE ARE NOT CURRENTLY
AVAILABLE AT THE DORMITORY AUTHORITY;
(vii) Procure insurance against any loss in connection with its activ-
ities, properties and other assets, in such amount and from such insur-
ance as it deems desirable; and
(viii) Invest any funds of the corporation, or any other monies under
its custody and control not required for immediate use or disbursement,
at the discretion of the corporation, in obligations of the state or the
United States government or obligations the principal and interest of
which are obligations in which the comptroller of the state is author-
ized to invest pursuant to section ninety-eight of the state finance
law.
(b) The corporation may do any and all things necessary [or conven-
ient] to carry out and exercise the powers given and granted by this
section.
(c) Notwithstanding any other provision of law, to the contrary, all
state entities and their officers shall cooperate with the corporation
in good faith and may implement the recommendations of the corporation.
S 2. This act shall take effect immediately, provided, however, that
the amendments to section 1678-a of the public authorities law made by
section one of this act shall not affect the repeal of such section and
shall be deemed repealed therewith.
