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History
- Referred to corporations, authorities and commissions
Full text
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Sponsor's memo
Title of bill
An act to amend the facilities development corporation act, in relation to constructing buildings for certain public corporations; and to repeal section 10 of such act relating to the custody of funds for municipal projects
Purpose of the bill
The purpose of this bill is to expand the types of buildings that the Dormitory Authority of the State of New York ("DASNY") may construct for certain public corporations under the Facilities Development Corporation Act ("FDCA").
Summary of provisions
Section 1 of the bill would amend §§ 3(13) and 3(13-a) of chapter 359 of the laws of 1968, constituting the FDCA, to broaden the definition of "municipality" (from a county, town, city or village) to include all municipal corporations as well as public benefit corporations, and to broaden the definition of "municipal building" to include all buildings used principally by such a corporation in furtherance of any of its corporate purposes.
Read the full memo (780 words)
Sections 2, 4 and 5 of the bill would amend FDCA §§ 8-b(1), 14-a(1) and (3), and 14-b(1), respectively, to (1) eliminate the requirement that any agreement between DASNY and a municipality be determined reasonable by the Director of the Budget ("Director"), with respect to DASNY's charge for its services for a municipal project, in order to become effective; and (2) eliminate the requirement that DASNY regulations regarding municipal projects be submitted to the Director for approval.
Section 3 of the bill would repeal FDCA § 10, which requires the deposit with the Commissioner of Taxation and Finance of monies related to municipal projects undertaken by DASNY.
Section 4 of the bill would amend FDCA § 14-a(1), which requires that DASNY enter into an agreement with a municipality for the design, construction, reconstruction, rehabilitation and improvement for such municipality of a municipal building or buildings at the sole cost and expense of such municipality, by adding a requirement that such an agreement provide for DASNY to (i) procure "such architects, engineers, construction managers and contractors necessary to design, manage and construct the project (including the performance of services relating to planning, design review, budgeting, construction scheduling, construct ability reviews, coordination of prime contractors, cost control and processing of change orders); and (ii) monitor, supervise, review and coordinate the services of all architects, engineers, construction managers and contractors engaged pursuant to clause (i) hereof to the extent that the corporation deems it necessary to fulfill its responsibilities as agent or representative of the municipality under such agreement.
Section 6 of the bill would make it effective immediately.
Existing law
Under the FDCA, DASNY may construct health facilities, correctional facilities, highway garages and administrative buildings for counties, towns, cities, and villages. Moneys received from such municipalities for such projects must be deposited with the Commissioner of Taxation and Finance, who serves as the agent of, and makes payments as requested by DASNY. The Director must determine that charges for DASNY's services under agreements with municipalities are reasonable. The law requires the promulgation of procedural regulations, subject to the approval of the Director.
Prior legislative history
Similar legislation (S.8293) was introduced during the 2006 legislative session.
Statement in support
Municipalities often undertake building construction projects without having the staff or expertise to effectively oversee construction managers, architects, engineers and contractors or to ensure they are pursuing the most economical alternative. Buildings are increasingly complex, requiring more financial, technical, and management expertise than many municipalities have available, especially those that are small. This legislation would allow municipalities, in tbeir discretion, to utilize DASNY's expertise in the construction of all buildings, without limitation. Municipalities would thereby have access to increased managerial and technical assistance. This bill does not authorize DASNY to finance buildings for municipalities.
This bill would repeal FDCA § 10, which requires the deposit with the Commissioner of Taxation and Finance of monies related to municipal projects undertaken by DASNY, because DASNY has adequate resources to receive, hold, invest, disburse and account for money received from a municipality for a building project. DASNY now performs identical functions for all of its other clients, and there is no reason why it cannot do the same for municipal building projects.
The current requirement that the Director approve charges for DASNY's services and regulations for municipal building projects, are not necessary. DASNY currently negotiates the charges for its services with its other clients and determines the need for regulations for its other programs Without the approval of the Director.
Budget implications
This bill has no budget implications for the State, inasmuch as the cost of DASNY's services would be paid by the municipalities receiving them.
Effective date
This bill takes effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.