Bill S3551-2013

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

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.

Details

Actions

  • Jun 21, 2013: SUBSTITUTED BY A5443
  • May 8, 2013: ADVANCED TO THIRD READING
  • May 7, 2013: 2ND REPORT CAL.
  • May 6, 2013: 1ST REPORT CAL.557
  • Feb 27, 2013: REPORTED AND COMMITTED TO FINANCE
  • Feb 5, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Corporations, Authorities and Commissions - Feb 27, 2013
Ayes (5): Ranzenhofer, Flanagan, Larkin, Martins, Perkins
Nays (1): Squadron
VOTE: COMMITTEE VOTE: - Finance - May 6, 2013
Ayes (18): DeFrancisco, Bonacic, Farley, Flanagan, Fuschillo, Griffo, Grisanti, Hannon, LaValle, Little, Marcellino, Nozzolio, O'Mara, Ranzenhofer, Robach, Savino, Seward, Diaz
Ayes W/R (8): Golden, Lanza, Gianaris, Breslin, Peralta, Stavisky, Kennedy, Espaillat
Nays (6): Krueger, Dilan, Rivera, Parker, Perkins, Squadron
Absent (1): Sampson
Excused (3): Larkin, Young, Montgomery

Memo

BILL NUMBER:S3551

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.

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: 2011-2012 - S.5202-B/A.7768-B - RULES/Passed Assembly

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3551 2013-2014 Regular Sessions IN SENATE February 5, 2013 ___________
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 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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