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.
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.
STATE OF NEW YORK ________________________________________________________________________ 5202--B Cal. No. 800 2011-2012 Regular Sessions IN SENATE 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 makeEXPLANATION--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.