* § 1678-a. New York state design and construction corporation act. 1.
Purposes of act. The purposes of the New York state design and
construction corporation act are to establish the New York state design
and construction corporation to provide (a) additional project
management expertise, monitoring and oversight on individual public
works projects each having a total or aggregate construction value in
excess of fifty million dollars undertaken by state agencies, state
departments subject to the provisions of this section, and state
authorities including one created by chapter one hundred fifty-four of
the laws of nineteen hundred twenty-one and one created by chapter eight
hundred twenty-four of the laws of nineteen hundred thirty-three herein
after referred to as "state entity"; and (b) a means to implement and
recommend improvements and other project changes on such proposed
individual public works projects in excess of fifty million dollars in
total or aggregate value, in a more timely fashion, to ensure that such
projects can be accomplished, to the extent practicable, on time, within
budget and at an acceptable overall quality and cost to the state of New
York.

2. New York state design and construction corporation. (a) There is
hereby established the New York state design and construction
corporation as a subsidiary corporation of the dormitory authority.

(b) The dormitory authority may provide or lease to such subsidiary
corporation any real, personal or mixed property as shall be required in
order to carry out the purposes of this act. The authority may assign
any such employees to work for the corporation as shall be required in
order to carry out the purposes of this section and all such employees
shall retain their respective civil service classifications, seniority,
status, and rights pursuant to their collective bargaining units and/or
collective bargaining agreements, as applicable. Any employee assigned
pursuant to this section shall remain in his or her collective
bargaining unit, and no employee shall receive a reduction in salary or
benefits due to such assignment. Notwithstanding any provision of law to
the contrary, the term "employee" as set forth in this section shall
mean a dormitory authority employee assigned, in whole, or in part, to
work for the corporation.

(c) Such corporation shall be a body corporate and politic
constituting a public benefit corporation, and shall have all of the
privileges, immunities, tax exemptions and other exemptions of the
dormitory authority to the extent the same are not inconsistent with
this section.

(d) The board of the corporation shall consist of three members as
designated by the governor, and the governor shall designate the chair
from among the members of the corporation's board. The members of the
corporation's board shall serve until such time as his or her successor
is appointed by the governor.

(e) A quorum shall consist of a majority of the members of the board.
A quorum shall be required for the board to conduct business, and
approval of any matter properly before the board shall require the
affirmative vote of the majority of the board. Meetings of the
corporation shall be called by the chair, or by a majority of the
members appointed. Meetings shall be held at least bi-annually.

(f) Nothing in this subdivision shall be construed to impose any
liabilities, obligations or responsibilities of such corporation upon
the dormitory authority, and the authority shall have no liability or
responsibility therefor unless the authority expressly agrees by
resolution of the authority board to assume the same.

(g) The provisions of section sixteen hundred ninety-one of this title
shall in all respects apply to members of the corporation and any
officer, employee or agent of the dormitory authority assigned to the
corporation, while acting within the scope of his, her or its authority.

(h) All of the provisions of sections seventeen and nineteen of the
public officers law shall apply to the members, directors, officers and
employees of the corporation.

(i) The corporation created pursuant to this section shall be subject
to any other provisions of this chapter pertaining to subsidiaries of
public authorities to the extent that such provisions are not
inconsistent with the provisions of this section.

3. Corporation review and oversight of certain public works contracts.
For individual public works projects having a total or aggregate
construction value in excess of fifty million dollars, hereinafter
referred to as "covered projects", and for any and all contracts
relating to such covered projects which are advertised for bid or
proposal or otherwise procured and/or entered into on or after January
first, two thousand sixteen:

(a) Any state entity proposing a covered project shall provide written
notice to the corporation of such proposal, to include without
limitation, the estimated value of the covered project and a summary of
the scope and duration of such covered project. Projects shall not be
divided or segmented for the purposes of avoiding compliance with the
provisions of this act. For purposes of this section, "covered project"
shall not include capital projects of the office of state comptroller,
office of the attorney general or education department of the state of
New York.

(b) The corporation shall have the authority to, and may, in its sole
discretion, review, monitor, and oversee, in whole or in part, such
covered project, and make recommendations regarding necessary corrective
or other action to any state entity in connection with such covered
project provided that the corporation, in its sole discretion, deems
such covered project to be at risk of being delayed, not being completed
within budget, or not completed at an acceptable level of quality.

(c) For the purposes of this section, the term "project" shall mean
any work associated with the planning, acquisition, design, engineering,
environmental analysis, construction, reconstruction, restoration,
rehabilitation, establishment, improvement, renovation, extension,
repair, revitalization, management and development of a capital asset as
defined in section two of the state finance law.

(d) The state entity undertaking such covered project shall cooperate
in good faith with the corporation, and provide reasonable access to all
personnel, books, records, plans, specifications, data and other
information as may be necessary for the corporation to perform its
duties. The corporation shall limit its request for access to such
information that is reasonably necessary, as determined by the
corporation to perform its duties.

(e) In the event the corporation determines that corrective or other
action is necessary for such covered project, then the corporation shall
provide the state entity with written notice of what corrective or other
actions the corporation recommends as necessary to accomplish the
project, to the extent practicable, on time, within budget and at an
acceptable overall cost to the state of New York. Such corrective or
other action may include, but not be limited to:

(i) Modification of such plans, schedules, specifications, designs and
estimates of costs for the construction of the project and equipment of
facilities;

(ii) Detailed analysis of the project schedule so as to cure delays
that may have occurred or prevent future delay;

(iii) Detailed analysis of project budget;

(iv) Detailed analysis of change orders and/or payments to prime
contractors, subcontractors and other parties;

(v) Detailed analysis of records of construction observations,
inspections and deficiencies;

(vi) Exercise of applicable rights and/or remedies with respect to
contracts, contractors, subcontractors or other consultants;

(vii) Procurement of independent auditors, project managers, legal
counsel, or other professionals for the benefit of the project;

(viii) Regular reporting of project status and milestones to the
corporation;

(ix) Active project management review and oversight utilizing
additional resources provided by the corporation; and

(x) Periodic project review and audit by the corporation on a suitable
time interval determined by the corporation.

The state entity undertaking the project shall have a period of thirty
days, or shorter if the corporation determines that a shorter period is
required by the circumstances or longer if the corporation consents,
from receipt of written notice of recommended corrective action from the
corporation, to notify the corporation in writing of its acceptance or
rejection of the corrective or other action. In the event that the state
entity rejects any corrective or other action, in whole or in part, it
shall provide simultaneous written notice to the corporation accompanied
by a reasoned explanation in support of its rejection. Such rejection
shall be reported to the secretary to the governor and the director of
the division of budget within fifteen days of its receipt by the
corporation.

(f) Any state entity proposing a covered project shall include a
summary of the provisions of this section in all such proposal and/or
bid documents for such projects.

4. General powers and duties of the corporation. (a) The corporation
shall have the power to:

(i) Sue and be sued;

(ii) Have a seal and alter the same at pleasure;

(iii) Make and alter by-laws for its organization and internal
management and make rules and regulations governing same;

(iv) Assign such officers and employees from the officers and
employees of the authority, as it may require for the performance of its
duties and, for those officers and employees who are not represented by
a recognized employee organization, fix and determine their
qualifications, duties, and compensation;

(v) Retain or employ counsel, auditors, private financial consultants,
professional engineers or other technical consultants and other services
on a contract basis or otherwise, for the rendering of professional,
business or technical services and advice;

(vi) Make and execute contracts and all other instruments necessary or
convenient for the exercise of its powers and functions under this
section;

(vii) Engage the services of private consultants on a contract basis
for rendering professional and technical assistance advice relating to
covered projects;

(viii) Procure insurance against any loss in connection with its
activities, properties and other assets, in such amount and from such
insurance as it deems desirable; and

(ix) Invest any funds of the corporation, or any other monies under
its custody and control not required for immediate use or disbursement,
at the discretion of the corporation, in obligations of the state or the
United States government or obligations the principal and interest of
which are obligations in which the comptroller of the state is
authorized to invest pursuant to section ninety-eight of the state
finance law.

(b) The corporation may do any and all things necessary to carry out
and exercise the powers given and granted by this section.

(c) Notwithstanding any other provision of law, to the contrary, all
state entities and their officers shall cooperate with the corporation
in good faith and may implement the recommendations of the corporation.

* NB Repealed July 1, 2022