Relates to claims and actions against the New York city school construction authority arising out of contracts.
Ayes (47): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Gallivan, Gipson, Golden, Griffo, Grisanti, Hannon, Kennedy, Klein, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Nozzolio, O'Brien, O'Mara, Peralta, Ranzenhofer, Ritchie, Robach, Sampson, Savino, Seward, Skelos, Tkaczyk, Valesky, Young, Zeldin
Nays (12): Gianaris, Hoylman, Krueger, Montgomery, Parker, Perkins, Rivera, Sanders, Serrano, Squadron, Stavisky, Stewart-Cousins
Excused (2): Hassell-Thomps, Smith
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 all other school districts in the state 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 that 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 date payment for the amount claimed was denied.
Section 2 - provides that this act shall take effect immediately and shall apply to contracts executed on or after such date.
JUSTIFICATION: This bill will bring the time of accrual for contractual work done for the New York City School Construction Authority 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.
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 completed projects and changes is often delayed beyond the ninety days within which a claim must be presented.
Under present School Construction Authority Law, a notice of claim to preserve contractors' rights to pursue an action (if the claim is eventually denied) must often be served before a contractor even knows that there is a dispute to preserve the contractors rights to be paid for work that has been properly completed. The routine filing of a notice of claim for work completed and under review by the School Construction Authority is a costly and burdensome expense to the Authority. The limited, technical amendment implemented by this bill will avoid the cost of handling of what would often be the unnecessary filing of a notice of claim, and 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 Education Law § 3813, has been a success for over twenty years for all other school districts across the state and is much clearer than the vague, accrual-of-claim starting point currently in the Public Authorities Law.
PRIOR LEGISLATIVE HISTORY: New bill. Reference can be made to Chapter 387 of the Laws of 1992 amending the Education Law.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to contracts executed on or after such date.
STATE OF NEW YORK ________________________________________________________________________ 6577 IN SENATE February 7, 2014 ___________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 OFEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13568-01-4 S. 6577 2
SUCH CLAIM SHALL BE DEEMED TO HAVE OCCURRED AS OF THE DATE PAYMENT FOR THE AMOUNT CLAIMED WAS DENIED. S 2. This act shall take effect immediately and shall apply to contracts executed on or after such date.