S. 1044 2
the health sciences centers have ably pursued the health education,
research and care-giving missions of the university within current
constraints. The legislature recognizes, however, that the state univer-
sity hospitals, clinics, ancillary facilities and health services, which
are integral components of the health sciences centers and essential to
fulfilling their education and research missions, must function in an
increasingly competitive and rapidly changing health care environment.
The legislature also recognizes that the many health care reform
efforts, including growing emphasis on managed care, will create new
challenges for the university and necessitate major changes in how SUNY
and its management and public employees conduct its health care efforts.
These changes are required to allow the health sciences centers to
contribute to their regions by participating in coordinated care efforts
and providing the resources to work cooperatively with other health care
providers and institutions to develop long-range health care plans.
The legislature, therefore, declares that the following measures are
necessary and appropriate to strengthen the ability of the trustees and
university officers and public employees, to administer, manage and
operate the hospitals, clinics and ancillary facilities at SUNY health
sciences campuses. The legislature intends that the following measures
shall retain the essential public character and mission of these facili-
ties as integral parts of the state university health sciences centers
and build on authority vested in the state university trustees, should
strengthen the ability and define more sharply the powers of the trus-
tees and university officers and public employees to allow the health
sciences centers the flexibility to offer high quality services through
contracts and networks with other health care providers and to continue
to deliver health care services in ways that support SUNY's educational
and research missions and promote high quality care, optimum access and
reasonable costs in the emerging health care environment. Further, the
intent of this legislation is to continue to use public employees to the
greatest extent practicable in providing health care services.
S 2. Subdivision 6 of section 350 of the education law, as added by
chapter 363 of the laws of 1998, is amended to read as follows:
6. "Clinic" shall mean a facility, LICENSED UNDER ARTICLE TWENTY-EIGHT
OF THE PUBLIC HEALTH LAW AS A DIAGNOSTIC AND TREATMENT CENTER, WHICH IS
located either within or outside of a state university health care
facility providing services related to the medical education mission of
the university, but shall not include state university student health
services.
S 3. Subdivision 16 of section 355 of the education law, as added by
chapter 363 of the laws of 1998, is amended and a new subdivision 20 is
added to read as follows:
16. Subject to laws and regulations applicable to the state university
as a health care provider the state university trustees may:
a. Notwithstanding SUBDIVISION SIX OF THIS SECTION, SUBDIVISIONS TWO
AND THREE OF SECTION ONE HUNDRED TWELVE, section one hundred sixty-three
of the state finance law AND SECTION SIXTY-THREE OF THE EXECUTIVE LAW,
authorize [contracts for] a state university health care facility [for
participation] TO PARTICIPATE in managed care networks and other joint
and cooperative arrangements with public, non-profit or business enti-
ties [including entering into a maximum of twenty network arrangements
per year,] as partners, JOINT VENTURERS, members of non-profit corpo-
rations and shareholders of business corporations, and FOR the provision
of management and administrative services by or for A state university
HEALTH CARE FACILITY. Any contract for the provision of management
S. 1044 3
services shall be subject to any provision of the public health law and
health regulations applicable to the state university as a health care
provider, including any review by the commissioner of health pursuant to
10 NYCRR section 405.3(f). In addition, the commissioner of health shall
provide for public comment within thirty days of a submission of any
management contract required to be reviewed pursuant to regulation. The
trustees may also authorize contracts, including [capitation] RISK-SHAR-
ING contracts, for a state university health care facility for the
provision of general comprehensive and specialty health care services,
directly or through contract with other service providers or entities,
including state university employees or entities comprised thereof.
Contracts authorized hereunder shall be:
(1) consistent with trustee guidelines respecting all terms and condi-
tions necessary and appropriate for managed care NETWORKS and other
[network,] joint or cooperative arrangements, including GUIDELINES
GOVERNING THE AWARDING OF SUCH CONTRACTS, guidelines for comparative
review where appropriate, AND GUIDELINES ESTABLISHING CONFLICT-OF-INTER-
EST POLICIES;
(2) subject to laws and regulations applicable to the state university
as a health care provider, including with respect to rates and certif-
icates of need; and
(3) subject to article fourteen of the civil service law and the
applicable provisions of agreements between the state and employee
organizations pursuant to article fourteen of the civil service law,
PROVIDED, FURTHER, THAT ANY CORPORATION OR OTHER ENTITY CREATED FOR OR
BY THE STATE UNIVERSITY OF NEW YORK AND/OR CONTROLLED BY THE STATE
UNIVERSITY OF NEW YORK SHALL BE DEFINED AS A CAMPUS FOUNDATION FOR THE
PURPOSE OF APPLICABLE PROVISIONS OF SUCH AGREEMENTS.
b. (1) Notwithstanding the provisions of PARAGRAPH A OF subdivision
[two] FIVE OF THIS SECTION, SUBDIVISIONS TWO AND THREE of section one
hundred twelve of the state finance law relating to the dollar threshold
requiring the comptroller's approval of contracts [and], subdivision six
of section one hundred sixty-three of the state finance law, AND SECTION
SIXTY-THREE OF THE EXECUTIVE LAW, authorize contracts for the purchase
of goods and services for state university health care facilities WITH-
OUT PRIOR APPROVAL BY ANY OTHER STATE OFFICER OR AGENCY:
[(1)] (A) for any contract which does not exceed [seventy-five] (I)
FIVE HUNDRED thousand dollars IN THE CASE OF SERVICE CONTRACTS LIMITED
TO LEGAL, OPERATION REVIEW, PROGRAM REVIEW, STRATEGIC PLANNING, PLANT
AND ENGINEERING, ARCHITECTURAL AND TECHNOLOGY ASSESSMENT; AND (II) TWO
MILLION FIVE HUNDRED THOUSAND DOLLARS IN THE CASE OF A CONTRACT FOR
GOODS; or
[(2)] (B) for joint or group purchasing arrangements FOR GOODS which
do not exceed [seventy-five] TWO MILLION FIVE HUNDRED thousand dollars
[without prior approval by any other state, officer or agency in accord-
ance with procedures and requirements found in paragraph a of subdivi-
sion five of this section].
[(3) contracts] (2) CONTRACTS authorized hereunder shall be subject to
article fourteen of the civil service law and the applicable provisions
of agreements between the state and employee organizations pursuant to
article fourteen of the civil service law, PROVIDED, FURTHER, THAT ANY
CORPORATION OR OTHER ENTITY CREATED FOR OR BY THE STATE UNIVERSITY OF
NEW YORK AND/OR CONTROLLED BY THE STATE UNIVERSITY OF NEW YORK SHALL BE
DEFINED AS A CAMPUS FOUNDATION FOR THE PURPOSE OF APPLICABLE PROVISIONS
OF SUCH AGREEMENTS, AND SHALL BE CONSISTENT WITH TRUSTEE GUIDELINES
S. 1044 4
GOVERNING THE AWARDING OF SUCH CONTRACTS, COMPARATIVE REVIEW WHERE
APPROPRIATE, AND CONFLICT-OF-INTEREST POLICIES.
The trustees are authorized to negotiate annually with the state comp-
troller increases in the aforementioned dollar limits.
NOTWITHSTANDING ANY INCONSISTENT PROVISIONS OF ARTICLE FOUR-C OF THE
ECONOMIC DEVELOPMENT LAW, PROCUREMENT CONTRACTS FOR THE PURCHASE OF
GOODS AND SERVICES AND FOR JOINT OR GROUP PURCHASING ARRANGEMENTS FOR
STATE UNIVERSITY HEALTH CARE FACILITIES IN AN AMOUNT NOT EXCEEDING THE
AMOUNTS SET FORTH IN CLAUSES (A) AND (B) OF SUBPARAGRAPH ONE OF THIS
PARAGRAPH, OR THE DOLLAR LIMIT INCREASES NEGOTIATED ANNUALLY BY THE
TRUSTEES AND THE STATE COMPTROLLER, SHALL NOT BE SUBJECT TO THE
PROVISIONS OF SUCH ARTICLE.
NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED SIXTY-TWO OF THE
STATE FINANCE LAW, STATE UNIVERSITY HEALTH CARE FACILITIES SHALL NOT BE
REQUIRED TO PURCHASE GOODS OR SERVICES FROM PREFERRED SOURCES.
c. [Authorize] NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION SIX OF
THIS SECTION, SUBDIVISIONS TWO AND THREE OF SECTION ONE HUNDRED TWELVE
OF THE STATE FINANCE LAW, SUBDIVISION SIX OF SECTION ONE HUNDRED SIXTY-
THREE OF THE STATE FINANCE LAW, AND SECTION SIXTY-THREE OF THE EXECUTIVE
LAW, AUTHORIZE contracts for the acquisition BY STATE UNIVERSITY HEALTH
CARE FACILITIES OF FACILITIES SUITABLE FOR THE DELIVERY OF HEALTH CARE
SERVICES, by purchase, lease, sublease, transfer of jurisdiction or
otherwise[, of facilities suitable for the delivery of health care
services] and for the construction, repair, maintenance, equipping,
rehabilitation or improvement thereof. SUCH FACILITIES MAY BE ACQUIRED
IN WHOLE OR IN PART BY STATE UNIVERSITY HEALTH CARE FACILITIES, EITHER
DIRECTLY OR THROUGH OWNERSHIP IN A JOINT OR COOPERATIVE ARRANGEMENT
AUTHORIZED BY PARAGRAPH A OF THIS SUBDIVISION. Such contracts FOR FACIL-
ITIES shall be [subject to approval by the attorney general as to form
and by the director of the budget and the state comptroller] EXECUTED
UTILIZING STANDARD FORMS APPROVED IN ADVANCE BY THE ATTORNEY GENERAL,
AND SHALL BE SUBJECT TO APPROVAL BY THE DIRECTOR OF THE BUDGET AND THE
STATE COMPTROLLER WHEN THE AMOUNTS OF SUCH CONTRACTS EXCEED THE DOLLAR
THRESHOLDS SET FORTH IN OR ESTABLISHED PURSUANT TO PARAGRAPH B OF THIS
SUBDIVISION, AND SHALL BE CONSISTENT WITH TRUSTEE GUIDELINES GOVERNING
THE AWARDING OF SUCH CONTRACTS, INCLUDING GUIDELINES REQUIRING COMPAR-
ATIVE REVIEW WHERE APPROPRIATE AND ESTABLISHING CONFLICT OF INTEREST
POLICIES. Contracts under this paragraph shall be funded from any
moneys lawfully available for the expenses of the STATE UNIVERSITY
health care facilities.
D. CONTRACTS UNDER THIS SUBDIVISION, INCLUDING LEASES, SHALL NOT BE
SUBJECT TO THE DOLLAR THRESHOLD OR PUBLIC NOTICE AND COMPETITIVE BIDDING
PROVISIONS OF SUBDIVISION FOUR OF SECTION SEVENTY-THREE OF THE PUBLIC
OFFICERS LAW, OR TO THE PROVISIONS OF SECTION SEVENTY-FOUR OF SUCH LAW.
E. AT LEAST TWO WEEKS PRIOR TO THE EXECUTION OF A CONTRACT OR THE
ISSUANCE OF A REQUEST FOR PROPOSALS FOR THE AWARD OF A CONTRACT, AS THE
CASE MAY BE, PURSUANT TO ITEM (I) OF CLAUSE (A) OF SUBPARAGRAPH ONE OF
PARAGRAPH B OF THIS SUBDIVISION, OR OF A CONTRACT FOR SERVICES PURSUANT
TO ITEM (I) OF CLAUSE (A) OF SUBPARAGRAPH ONE OF PARAGRAPH B OF THIS
SUBDIVISION, THE CHIEF EXECUTIVE OFFICER OF A HEALTH CARE FACILITY SHALL
PROVIDE TO ANY EMPLOYEE ORGANIZATION THAT REPRESENTS HEALTH CARE FACILI-
TIES EMPLOYEES NOTICE OF THE PROPOSED CONTRACT, TOGETHER WITH A
DESCRIPTION OF THE NATURE AND TERMS AND CONDITIONS OF THE PROPOSED
CONTRACT, AND ITS ANTICIPATED IMPACT, IF ANY, ON EMPLOYEES REPRESENTED
BY SUCH EMPLOYEE ORGANIZATION. NOTICE PURSUANT TO THIS SUBDIVISION MAY,
WHERE APPROPRIATE, BE CONDITIONED UPON EXECUTION OF A CONFIDENTIALITY
S. 1044 5
AGREEMENT BY THE EMPLOYEE ORGANIZATION. UPON WRITTEN CERTIFICATION FROM
THE EMPLOYEE ORGANIZATION TO THE CHIEF EXECUTIVE OF A HEALTH CARE FACIL-
ITY THAT THE PROPOSED CONTRACT MAY TRIGGER THE PROVISIONS OF SECTION TEN
OF CHAPTER THREE HUNDRED SIXTY-THREE OF THE LAWS OF NINETEEN HUNDRED
NINETY-EIGHT, OR OF A COLLECTIVE BARGAINING AGREEMENT REFERENCED THERE-
UNDER, EXECUTION OF THE CONTRACT, OR ISSUANCE OF A REQUEST FOR
PROPOSALS, SHALL BE DEFERRED FOR A PERIOD OF TWO ADDITIONAL WEEKS IN
ORDER TO ALLOW THE EMPLOYEE ORGANIZATION TO INVOKE ANY RIGHTS OR REME-
DIES IT MAY HAVE PURSUANT TO SECTION TEN OF CHAPTER THREE HUNDRED
SIXTY-THREE OF THE LAWS OF NINETEEN HUNDRED NINETY-EIGHT, OR PURSUANT TO
A COLLECTIVE BARGAINING AGREEMENT REFERENCED THEREUNDER. THE PROVISIONS
OF THIS PARAGRAPH SHALL BE SUBJECT TO ARTICLE FOURTEEN OF THE CIVIL
SERVICE LAW AND THE APPLICABLE PROVISIONS OF ANY AGREEMENT BETWEEN THE
STATE AND ANY EMPLOYEE ORGANIZATION PURSUANT TO ARTICLE FOURTEEN OF THE
CIVIL SERVICE LAW.
20. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTION EIGHT OF THE
COURT OF CLAIMS ACT, SUBDIVISION TEN OF THIS SECTION OR ANY OTHER
PROVISION OF LAW, A STATE UNIVERSITY HEALTH CARE FACILITY MAY INCLUDE IN
A CONTRACT AUTHORIZED BY PARAGRAPH A OF SUBDIVISION SIXTEEN OF THIS
SECTION, OTHER THAN A CONTRACT WITH STATE EMPLOYEES RELATING TO TERMS
AND CONDITIONS OF THEIR EMPLOYMENT, A PROVISION THAT SOME OR ALL
DISPUTES ARISING UNDER OR RELATED TO SUCH CONTRACT SHALL BE RESOLVED BY
BINDING ARBITRATION IN ACCORDANCE WITH THE RULES OF A NATIONALLY-RECOG-
NIZED ARBITRATION ASSOCIATION.
S 4. Section 8 of chapter 363 of the laws of 1998, amending the educa-
tion law relating to state university health care services and facili-
ties, is amended to read as follows:
S 8. 1. Nothing contained in the public officers law or in any other
law, rule or regulation, shall be construed or applied to: (A) prohibit
state university officers and employees from [(i)] engaging in activ-
ities for which no compensation is paid as designees of the state
university of New York in managed care networks or other joint and coop-
erative programs and arrangements including serving as designees of the
state university as directors on boards or other governing bodies of
corporations or other entities which may be under contract with state
university pursuant to subdivision 16 of section 355 of the education
law; or [(ii)] (B) PROHIBIT STATE UNIVERSITY OFFICERS AND EMPLOYEES
FROM, OR PRESCRIBE THE REQUIREMENTS FOR, entering into contracts INCLUD-
ING, BUT NOT LIMITED TO, LEASES, agreements or other arrangements with
state university directly, or through professional corporations or other
entities organized or operated by such officers and employees for the
delivery of health care services for compensation in furtherance of
subdivision 16 of section 355 of the education law; provided, however,
that any such contracts, agreements or other arrangements, including any
compensation to such officers and employees, shall be subject to article
14 of the civil service law and the applicable provisions of any agree-
ment between the state and any employee organization pursuant to article
14 of the civil service law, PROVIDED, FURTHER, THAT ANY CORPORATION OR
OTHER ENTITY CREATED FOR OR BY THE STATE UNIVERSITY OF NEW YORK AND/OR
CONTROLLED BY THE STATE UNIVERSITY OF NEW YORK SHALL BE DEFINED AS A
CAMPUS FOUNDATION FOR THE PURPOSE OF APPLICABLE PROVISIONS OF SUCH
AGREEMENTS and policies and guidelines of the state university board of
trustees and provided, further, that such state university officers and
employees shall continue to be subject to all appropriate financial
disclosure and reporting requirements as defined in section 73-a of the
public officers law.
S. 1044 6
2. NOTHING IN PARAGRAPH B OR C OF SUBDIVISION 3 OF SECTION 74 OF THE
PUBLIC OFFICERS LAW SHALL PROHIBIT STATE UNIVERSITY OFFICERS AND EMPLOY-
EES WHO SERVE AS DESIGNEES OF THE STATE UNIVERSITY ON BOARDS OR OTHER
GOVERNING BODIES OF CORPORATIONS OR OTHER ENTITIES WHICH MAY BE UNDER
CONTRACT WITH THE STATE UNIVERSITY OR OF WHICH THE STATE UNIVERSITY MAY
BE A MEMBER, PARTNER, JOINT VENTURER OR SHAREHOLDER PURSUANT TO SUBDIVI-
SION 16 OF SECTION 355 OF THE EDUCATION LAW FROM DISCLOSING CONFIDENTIAL
INFORMATION GAINED IN THE COURSE OF THEIR DUTIES INSOFAR AS SUCH INFOR-
MATION RELATES DIRECTLY TO THE STATE UNIVERSITY'S PARTICIPATION IN
CONTRACTS OR IN NETWORKS AND OTHER JOINT AND COOPERATIVE ARRANGEMENTS
AUTHORIZED BY SUCH SUBDIVISION.
3. NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN SECTIONS 353, 354
AND 355 OF THE EDUCATION LAW, OR THE PROVISIONS OF ANY OTHER LAW, THE
STATE UNIVERSITY TRUSTEES MAY DELEGATE TO THE PRESIDENTS OF THE HEALTH
SCIENCES CENTERS AT BUFFALO AND STONY BROOK, TO THE PRESIDENTS OF THE
HEALTH SCIENCES CENTERS AT BROOKLYN AND SYRACUSE, AND TO THE PRESIDENT
OF THE COLLEGE OF OPTOMETRY, OR TO THE CHIEF EXECUTIVE OFFICER OF THE
STATE UNIVERSITY HEALTH CARE FACILITIES AT EACH SUCH LOCALE, AUTHORITY
TO APPOINT AS DIRECTORS ON A BOARD OF A CORPORATION OR AS MEMBERS OF A
GOVERNING BODY OF ANOTHER ENTITY WHICH GOVERNS A NETWORK OR OTHER JOINT
OR COOPERATIVE ARRANGEMENT AUTHORIZED UNDER SUBDIVISION 16 OF SECTION
355 OF THE EDUCATION LAW INDIVIDUALS WHO WILL SERVE AS DESIGNEES OF SUCH
STATE UNIVERSITY HEALTH CARE FACILITY. SUCH DESIGNEES SHALL NOT INCLUDE
ANY ELECTED OFFICIALS OR TRUSTEES OF THE STATE UNIVERSITY.
S 5. Confidential information gained by state university officers and
employees while serving as designees of the state university on boards
or other governing bodies of corporations or other entities which may be
under contract with the state university or of which the state universi-
ty may be a member, partner, joint venturer or shareholder pursuant to
subdivision 16 of section 355 of the education law shall not be consid-
ered a "record" as defined in subdivision 4 of section 86 of the public
officers law.
S 6. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included therein.
S 7. This act shall take effect immediately and shall expire and be
deemed repealed April 1, 2012, provided that any contracts entered into
prior to the expiration and repeal of this act shall continue in full
force and effect and continue to be subject to the provisions of this
act.