Requires contractors bidding on projects for school districts to provide information regarding proposed subcontractors, the commissioner to provide surveys regarding the new bidding process.
BILL NUMBER: S5559B
TITLE OF BILL : An act to amend the education law and the general municipal law, in relation to assignment of contracts by school districts and providing for the repeal of such provisions upon expiration thereof
SUMMARY OF PROVISIONS : Section 1 amends Section 305 of the education law requiring the Commissioner of Education to survey school districts 4 years after then enactment of this legislation to examine the effect of this exemption on the cost and duration of school construction projects.
Section 2 amends section 101 of the general municipal law by adding a new subdivision 6 allowing school districts to hire a single contractor for work on school district facilities. School districts electing a single contractor may require the apparent low bidder and second low bidder to submit the names of the bidder's proposed subcontractors. The proposed subcontractors may be rejected by a school district on the same basis an apparent low bidders' bid may be refused. Proposed and approved subcontractors may not be changed without written approval of the school district. Payment of subcontractors shall be in accordance with Section l06-b of the General Municipal Law (prompt payment). The bidder shall specify the value to be paid to each subcontractor. A school district may reject any bid if the business organization, resources, financial standing, or experience of the bidder justifies such rejection.
Section 3 sets the effective date and establishes the length of the terms of the aforementioned provisions to be five years.
JUSTIFICATION : This bill will authorize districts to utilize a single guaranteed maximum price general contractor or a full construction management contract rather than the multiple contractors currently required under the provisions of the Wicks law. As a part of the 2008 enacted budget the Legislature established new, higher Wick's thresholds. Public works projects were deemed exempt from the compliance with the provision of Wicks for jobs valued at $3 million in New York City, $1.5 million in Westchester, Nassau and Suffolk counties, and $500,000 in all other parts of the state.
The practical reality is that this change in law had very little effect on school districts. New York City's school construction authority is exempt under current law from compliance with the Wicks law. For those districts outside of New York City, the spending thresholds are too low to capture most construction projects.This bill would extend to the rest of the state's school districts the same level of exemption currently offered to New York City.
In addition to improving the coordination of the work involved in construction projects, it is also anticipated that school districts will realize substantial savings between 10 and 30 percent of the construction cost. The state could also realize savings through this bill because construction projects will not require as much reimbursement in building aid.
LEGISLATIVE HISTORY : New Bill.
FISCAL IMPLICATIONS : None to the State.
EFFECTIVE DATE : This act shall take effect on the 180th day after it shall have become law, and has a sunset date of 5 years after its enactment.
STATE OF NEW YORK ________________________________________________________________________ 5559--B 2009-2010 Regular Sessions IN SENATE May 15, 2009 ___________Introduced by Sens. OPPENHEIMER, KLEIN, THOMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Education -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the education law and the general municipal law, in relation to assignment of contracts by school districts and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 305 of the education law is amended by adding a new subdivision 42 to read as follows: 42. THE COMMISSIONER SHALL COMMISSION A SURVEY ON THE IMPACT OF EXEMPTING SCHOOL DISTRICTS FROM THE SEPARATE BIDDING REQUIREMENTS OF THE GENERAL MUNICIPAL LAW PURSUANT TO THE PROVISIONS OF SUBDIVISION SIX OF SECTION ONE HUNDRED ONE OF THE GENERAL MUNICIPAL LAW. SUCH STUDY SHALL INCLUDE THE IMPACT ON TIMEFRAMES FOR COMPLETING CONSTRUCTION AND IMPROVEMENT PROJECTS, THE OVERALL COSTS OF SUCH PROJECTS AND THE INTEG- RITY OF THE BIDDING PROCESS. THE COMMISSIONER SHALL ISSUE THE RESULTS OF SUCH SURVEY TO THE GOVERNOR, THE STATE COMPTROLLER, THE TEMPORARY PRESI- DENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY IN THE FOURTH YEAR FOLLOWING THE EFFECTIVE DATE OF THIS SUBDIVISION. S 2. Section 101 of the general municipal law is amended by adding a new subdivision 6 to read as follows: 6. A. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION AND ANY OTHER LAW TO THE CONTRARY, ANY CONTRACT, SUBCONTRACT, LEASE, GRANT, BOND, COVENANT, OR OTHER AGREEMENT FOR PROJECTS UNDERTAKEN BY SCHOOL DISTRICTS SHALL NOT BE SUBJECT TO THE REQUIREMENTS OF SEPARATE SPECIFICATIONS (REFERRED TO AS THE WICKS LAW).EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11887-05-9 S. 5559--B 2
B. WHERE A SCHOOL DISTRICT ELECTS TO PROVIDE FOR THE ASSIGNMENT OF A CONTRACT TO A SINGLE PERSON, FIRM OR CORPORATION PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION, SUCH SCHOOL DISTRICT MAY REQUIRE THE APPARENT LOW BIDDER AND, AT THE DISCRETION OF THE SCHOOL DISTRICT, THE NEXT APPARENT LOW BIDDER, TO SUBMIT TO THE DISTRICT THE NAMES OF THE BIDDER'S PROPOSED SUBCONTRACTORS FOR THE ELECTRICAL WORK, HEATING, VENTILATING AND AIR CONDITIONING WORK, AND THE PLUMBING WORK. ONLY ONE PROPOSED SUBCONTRAC- TOR SHALL BE NAMED FOR EACH SUCH TRADE. SUCH PROPOSED SUBCONTRACTOR OR SUBCONTRACTORS MAY BE REJECTED BY THE SCHOOL DISTRICT ON THE BASIS SET FORTH IN PARAGRAPH E OF THIS SUBDIVISION. UPON REJECTION OF A PROPOSED SUBCONTRACTOR OR SUBCONTRACTORS, THE SCHOOL DISTRICT MAY REQUIRE THE APPARENT LOW BIDDER TO SUBMIT AN ALTERNATE PROPOSED SUBCONTRACTOR OR SUBCONTRACTORS WITHIN FORTY-EIGHT HOURS. SHOULD THE APPARENT LOW BIDDER FAIL TO PROPOSE ALTERNATE SUBCONTRACTORS SUBJECT TO APPROVAL BY THE SCHOOL DISTRICT, THE SCHOOL DISTRICT MAY CONSIDER THE NEXT APPARENT LOW BIDDER AND SHALL FOLLOW THE SAME PROCEDURE SET FORTH IN THIS PARAGRAPH. SUCH PROPOSED SUBCONTRACTORS OF THE BIDDER, APPROVED BY THE SCHOOL DISTRICT SHALL BE USED ON THE WORK FOR WHICH THEY WERE PROPOSED AND APPROVED, AND THEY SHALL NOT BE CHANGED EXCEPT WITH THE SPECIFIC WRITTEN APPROVAL OF THE DISTRICT. C. PAYMENT TO THE SUBCONTRACTORS APPROVED PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE HUNDRED SIX-B OF THIS ARTICLE. IN THE EVENT ANY SUCH SUBCONTRACTOR IS NOT PAID BY THE CONTRACTOR, THE SUBCONTRACTOR SHALL IMMEDIATELY NOTI- FY THE SCHOOL DISTRICT OF SUCH FACT. D. WITH THE SUBMISSION OF THE NAMES OF THE PROPOSED SUBCONTRACTORS AS PROVIDED IN PARAGRAPH B OF THIS SUBDIVISION, THE BIDDER SHALL SPECIFY THE AMOUNT TO BE PAID TO EACH SUBCONTRACTOR FOR THE WORK TO BE PERFORMED BY SUCH SUBCONTRACTOR. E. A SCHOOL DISTRICT MAY REJECT ANY OR ALL BIDS OR WAIVE ANY INFORMAL- ITY IN A BID IF THE SCHOOL DISTRICT REASONABLY BELIEVES THAT THE PUBLIC INTEREST WILL BE PROMOTED THEREBY. A SCHOOL DISTRICT MAY REJECT ANY BID IF, IN THE JUDGMENT OF THE SCHOOL DISTRICT, THE BUSINESS ORGANIZATION, RESOURCES, FINANCIAL STANDING, OR EXPERIENCE OF THE BIDDER JUSTIFIES SUCH REJECTION IN VIEW OF THE WORK TO BE PERFORMED. F. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE NEW YORK CITY SCHOOL CONSTRUCTION AUTHORITY ESTABLISHED PURSUANT TO TITLE SIX OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW. S 3. This act shall take effect on the one hundred eightieth day after it shall have become a law, and shall apply to all contracts advertised or solicited for bid on or after such effective date; provided that this act shall expire and be deemed repealed 5 years after such effective date.