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Sponsors
1 Co-sponsor
History
- Referred to education
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to claims against certain schools and the governing body of school districts; repealer
In Assembly Committee · Education · Sponsor Robert Reilly
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to claims against schools and school districts; and to repeal certain provisions of such law relating thereto
Purpose
To clarify when a contract claim against a school district accrues.
Summary
This bill would amend Section 3813 of the Education Law to clarify the method by which a denial of a contract claim against a school district must be made for purposes of determining when a contract claim against a school district accrues. Specifically, this bill would provide that a denial shall have been deemed to have occurred when the claimant receives written notice of the denial from the school board or other governing body of a school or school district.
Justification
Under current law, there is a great deal of confusion and litigation regarding whether contractors on school construction projects have filed claims in a timely manner. Caselaw surrounding the current law demonstrates inconsistency in the interpretation of the law and has led judges to call for the clarification of the law in recent cases. This lack of clarity has often resulted in otherwise legitimate contractor and subcontractor claims being inequitably dismissed for lack of timeliness.
Current law states that a contract claim against a school district accrues as of the date when payment for the amount claimed was denied. The law is currently silent as to how such a denial must be made, resulting in confusion and often necessitating litigation. Many times, contractors have made continued attempts to resolve an issue in an amicable fashion directly with the school district which can make determining the date for denial of the claim unclear. This bill would clarify that the denial of the claim shall be deemed to occur on the date when the claimant receives written notice of the denial from the school board or other governing body of the school or school district, thereby providing certainty relative to when the claim accrues. By providing certainty as to the application of the accrual of claim provisions of Section 3813 of the Education Law, this bill will eliminate the need to repeatedly litigate this issue and will help to ensure the equitable resolution of contract claims involving school districts.
Prior legislative history
New Bill.
Fiscal implications
None Noted.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.