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History
- Signed chap.523
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.762
- Substituted for A10147A
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 58–0
- Amended on third reading 7365a
- Vote reconsidered - restored to third reading
- Substitution reconsidered
Show 5 earlier actions
- Substituted by A10147
- Advanced to third reading
- 2nd report cal.
- 1st report cal.506
- Referred to corporations, authorities and commissions
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 the payment protection afforded certain subcontractors on New York city school construction projects
Assembly Floor Calendar · Sponsor Richard Brodsky
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7365A
Title of bill
An act to amend the public authorities law, in relation to providing that subcontractors on New York city school construction projects who file mechanics' liens shall not be entitled to payment protection through the authority
Purpose
To eliminate double withholding of payments to contractors on New York City School Construction Authority construction contracts.
Summary of provisions
Amends subparagraph 6 of Section 1735 of Public Authorities Law to clarify situations relative to contractors failure to pay certain subcontractors on New York City School Construction Authority Work in that the special payment protections are intended to be used in lieu of a lien filing and not in addition to such filing.
Justification
When the New York City School Construction Authority was created, special payment protections were granted to the mechanical and electrical subcontractors in order that the SCA would be free of the requirements of the Wicks Law. One of those protections was to allow those subcontractors to seek help from the SCA where, it was alleged that the general contractor had failed to pay the subcontractor timely. That help would include the withholding of money due and owing the general contractor in order that the subcontractor may be paid directly or for the money to be placed in escrow pending resolution of a dispute. In practice, however, some subcontractors have sought such assistance from the SCA in addition to the filing to mechanic's liens. Those liens carry with them the obligation on the part of the owner to withhold 1 1/2 times the amount of lien from payment to the contractor in addition to the special withholding called for in Section 1735. This double withholding places a tremendous financial burden on the contractor, partially where the matter is in dispute, and would, in fact, cause cash flow problems to other subcontractors on the project. This legislation would correct his matter and require the subcontractor to choose between the lien and the special protections granted in 1735. As these protections are superior to the filing of a lien, it is likely that the choice will be for the protections granted herein.
Legislative history
S.2725 (2008)
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.