S T A T E   O F   N E W   Y O R K
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                                 278--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sens.  LAVALLE, BOYLE, FLANAGAN, MARCHIONE, RANZENHOFER,
  RITCHIE -- read twice and ordered printed,  and  when  printed  to  be
  committed  to the Committee on Finance -- recommitted to the Committee
  on Finance in accordance with Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to amend the state finance law, in relation to establishing the
  state university  of  New  York  upstate  medical  hospital  operating
  account,  the  state university of New York downstate medical hospital
  operating account and the state university of  New  York  Stony  Brook
  medical  hospital operating account and to amend the education law, in
  relation to apportionment to  the  state  university;  and  to  repeal
  subdivision 8-a of section 355 of the education law relating thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The state finance  law  is  amended  by  adding  three  new
sections 99-y, 99-z and 99-aa to read as follows:
  S  99-Y. STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL HOSPITAL OPERAT-
ING ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF  THE
STATE  COMPTROLLER  AND  THE  COMMISSIONER  OF  TAXATION  AND FINANCE AN
ACCOUNT TO BE KNOWN AS THE "STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL
HOSPITAL OPERATING ACCOUNT".
  2. SUCH ACCOUNT SHALL CONSIST OF (A)  ANY  MONIES  RECEIVED  BY  STATE
UNIVERSITY  HEALTH  CARE FACILITIES FROM FEES, CHARGES AND REIMBURSEMENT
FROM ALL OTHER SOURCES, AND (B) ANY FUNDING FROM THE STATE GENERAL  FUND
PROVIDED  TO  THE STATE UNIVERSITY HEALTH CARE FACILITIES PURSUANT TO AN
ANNUAL TRANSFER SO DESIGNATED AS BEING ASSOCIATED WITH THE STATE UNIVER-
SITY HEALTH CARE FACILITY AT SYRACUSE.   NOTWITHSTANDING THE  PROVISIONS
OF ANY LAW, RULE OR REGULATION TO THE CONTRARY, A PORTION OF SUCH MONIES
CREDITED  MAY  BE TRANSFERRED TO A STATE UNIVERSITY ACCOUNT AS REQUESTED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD03278-03-6

S. 278--A                           2

BY THE STATE UNIVERSITY CHANCELLOR OR HIS OR  HER  DESIGNEE.  MONIES  TO
ESTABLISH  RESERVES  FOR  LONG-TERM  EXPENSES OF STATE UNIVERSITY HEALTH
CARE FACILITIES AND TO FULFILL OBLIGATIONS REQUIRED FOR ANY CONTRACT FOR
HEALTH  CARE  SERVICES  AUTHORIZED  PURSUANT  TO  SUBDIVISION SIXTEEN OF
SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW MAY BE  DESIGNATED
BY  THE  STATE  UNIVERSITY HEALTH CARE FACILITY AT SYRACUSE AS A RESERVE
AND TRANSFERRED TO A SEPARATE CONTRACTUAL RESERVE ACCOUNT.  THE  AMOUNTS
IN SUCH ACCOUNTS SHALL BE AVAILABLE FOR USE IN ACCORDANCE WITH PARAGRAPH
B  OF  SUBDIVISION  FOUR  AND SUBDIVISION EIGHT OF SECTION THREE HUNDRED
FIFTY-FIVE OF THE EDUCATION LAW. MONIES SHALL ONLY BE EXPENDED FROM  THE
STATE  UNIVERSITY OF NEW YORK UPSTATE MEDICAL HOSPITAL OPERATING ACCOUNT
AND THE CONTRACTUAL RESERVE ACCOUNT PURSUANT TO APPROPRIATION.  NOTWITH-
STANDING  ANY  OTHER PROVISION OF THIS CHAPTER, THE EDUCATION LAW OR ANY
OTHER LAW TO THE CONTRARY, SUCH APPROPRIATION SHALL REMAIN IN FULL FORCE
AND EFFECT FOR TWO YEARS FROM THE EFFECTIVE DATE  OF  THE  APPROPRIATION
ACT  MAKING SUCH APPROPRIATION. MONIES SO TRANSFERRED MAY BE RETURNED TO
THE STATE UNIVERSITY OF NEW  YORK  UPSTATE  MEDICAL  HOSPITAL  OPERATING
ACCOUNT;  PROVIDED,  HOWEVER,  THAT  FUNDS  IN  SUCH CONTRACTUAL RESERVE
ACCOUNT  MUST  BE  SUFFICIENT  TO  MEET  THE  OBLIGATIONS  OF  ALL  SUCH
CONTRACTS.
  3.  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH C OF SUBDIVISION FOUR
OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW, OR  ANY  OTHER
LAW,  RULE OR REGULATION TO THE CONTRARY, AND EXCEPT AS OUTLINED IN THIS
SECTION, SUCH FUNDS CONTAINED WITHIN THE STATE UNIVERSITY  OF  NEW  YORK
UPSTATE  MEDICAL  HOSPITAL OPERATING ACCOUNT SHALL BE FOR THE OPERATIONS
OF THE STATE UNIVERSITY HEALTH CARE FACILITY AT SYRACUSE ALONE  AND  MAY
NOT BE SUPPLEMENTED BY MONIES CONTAINED WITHIN ANY OTHER STATE UNIVERSI-
TY ACCOUNT.
  S  99-Z. STATE UNIVERSITY OF NEW YORK DOWNSTATE MEDICAL HOSPITAL OPER-
ATING ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE  JOINT  CUSTODY  OF
THE  STATE  COMPTROLLER  AND THE COMMISSIONER OF TAXATION AND FINANCE AN
ACCOUNT TO BE KNOWN AS THE  "STATE  UNIVERSITY  OF  NEW  YORK  DOWNSTATE
MEDICAL HOSPITAL OPERATING ACCOUNT".
  2.    SUCH  ACCOUNT  SHALL CONSIST OF (A) ANY MONIES RECEIVED BY STATE
UNIVERSITY HEALTH CARE FACILITIES FROM FEES, CHARGES  AND  REIMBURSEMENT
FROM  ALL OTHER SOURCES, AND (B) ANY FUNDING FROM THE STATE GENERAL FUND
PROVIDED TO THE STATE UNIVERSITY HEALTH CARE FACILITIES PURSUANT  TO  AN
ANNUAL TRANSFER SO DESIGNATED AS BEING ASSOCIATED WITH THE STATE UNIVER-
SITY HEALTH CARE FACILITY AT BROOKLYN.  NOTWITHSTANDING ANY LAW, RULE OR
REGULATION  TO  THE  CONTRARY,  A PORTION OF SUCH MONIES CREDITED MAY BE
TRANSFERRED TO A STATE UNIVERSITY ACCOUNT  AS  REQUESTED  BY  THE  STATE
UNIVERSITY  CHANCELLOR  OR  HIS  OR  HER  DESIGNEE.  MONIES TO ESTABLISH
RESERVES FOR LONG-TERM EXPENSES OF STATE UNIVERSITY HEALTH CARE  FACILI-
TIES  AND  TO  FULFILL  OBLIGATIONS REQUIRED FOR ANY CONTRACT FOR HEALTH
CARE SERVICES AUTHORIZED PURSUANT  TO  SUBDIVISION  SIXTEEN  OF  SECTION
THREE  HUNDRED  FIFTY-FIVE OF THE EDUCATION LAW MAY BE DESIGNATED BY THE
STATE UNIVERSITY HEALTH CARE FACILITY  AT  BROOKLYN  AS  A  RESERVE  AND
TRANSFERRED  TO  A  SEPARATE CONTRACTUAL RESERVE ACCOUNT. THE AMOUNTS IN
SUCH ACCOUNTS SHALL BE AVAILABLE FOR USE IN ACCORDANCE WITH PARAGRAPH  B
OF  SUBDIVISION  FOUR  AND  SUBDIVISION  EIGHT  OF SECTION THREE HUNDRED
FIFTY-FIVE OF THE EDUCATION LAW.  MONIES SHALL ONLY BE EXPENDED FROM THE
STATE UNIVERSITY  OF  NEW  YORK  DOWNSTATE  MEDICAL  HOSPITAL  OPERATING
ACCOUNT  AND  THE CONTRACTUAL RESERVE ACCOUNT PURSUANT TO APPROPRIATION.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE  EDUCATION  LAW
OR  ANY  OTHER  LAW  TO THE CONTRARY, SUCH APPROPRIATION SHALL REMAIN IN
FULL FORCE AND EFFECT FOR TWO YEARS  FROM  THE  EFFECTIVE  DATE  OF  THE

S. 278--A                           3

APPROPRIATION  ACT MAKING SUCH APPROPRIATION.  MONIES SO TRANSFERRED MAY
BE RETURNED TO THE STATE UNIVERSITY OF NEW YORK DOWNSTATE MEDICAL HOSPI-
TAL OPERATING ACCOUNT; PROVIDED, HOWEVER, THAT FUNDS IN SUCH CONTRACTUAL
RESERVE  ACCOUNT  MUST BE SUFFICIENT TO MEET THE OBLIGATIONS OF ALL SUCH
CONTRACTS.
  3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH C OF  SUBDIVISION  FOUR
OF  SECTION  THREE  HUNDRED FIFTY-FIVE OF THE EDUCATION LAW, OR ANY LAW,
RULE OR REGULATION TO THE CONTRARY,  AND  EXCEPT  AS  OUTLINED  IN  THIS
SECTION,  SUCH  FUNDS  CONTAINED WITHIN THE STATE UNIVERSITY OF NEW YORK
DOWNSTATE MEDICAL HOSPITAL OPERATING ACCOUNT SHALL BE FOR THE OPERATIONS
OF THE STATE UNIVERSITY HEALTH CARE FACILITY AT BROOKLYN ALONE  AND  MAY
NOT BE SUPPLEMENTED BY MONIES CONTAINED WITHIN ANY OTHER STATE UNIVERSI-
TY ACCOUNT.
  S  99-AA.  STATE  UNIVERSITY  OF NEW YORK STONY BROOK MEDICAL HOSPITAL
OPERATING ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE  JOINT  CUSTODY
OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN
ACCOUNT  TO  BE  KNOWN  AS THE "STATE UNIVERSITY OF NEW YORK STONY BROOK
MEDICAL HOSPITAL OPERATING ACCOUNT".
  2.  SUCH ACCOUNT SHALL CONSIST OF (A) ANY  MONIES  RECEIVED  BY  STATE
UNIVERSITY  HEALTH  CARE FACILITIES FROM FEES, CHARGES AND REIMBURSEMENT
FROM ALL OTHER SOURCES, AND (B) ANY FUNDING FROM THE STATE GENERAL  FUND
PROVIDED  TO  THE STATE UNIVERSITY HEALTH CARE FACILITIES PURSUANT TO AN
ANNUAL TRANSFER SO DESIGNATED AS BEING ASSOCIATED WITH THE STATE UNIVER-
SITY  HEALTH  CARE  FACILITY  AT  STONY  BROOK.    NOTWITHSTANDING   THE
PROVISIONS  OF ANY LAW, RULE OR REGULATION TO THE CONTRARY, A PORTION OF
SUCH MONIES CREDITED MAY BE TRANSFERRED TO A STATE UNIVERSITY ACCOUNT AS
REQUESTED BY THE STATE UNIVERSITY CHANCELLOR OR  HIS  OR  HER  DESIGNEE.
MONIES  TO ESTABLISH RESERVES FOR LONG-TERM EXPENSES OF STATE UNIVERSITY
HEALTH CARE FACILITIES AND  TO  FULFILL  OBLIGATIONS  REQUIRED  FOR  ANY
CONTRACT  FOR  HEALTH  CARE  SERVICES AUTHORIZED PURSUANT TO SUBDIVISION
SIXTEEN OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW MAY  BE
DESIGNATED  BY  THE STATE UNIVERSITY HEALTH CARE FACILITY AT STONY BROOK
AS A RESERVE AND TRANSFERRED TO A SEPARATE CONTRACTUAL RESERVE  ACCOUNT.
THE  AMOUNTS  IN  SUCH ACCOUNTS SHALL BE AVAILABLE FOR USE IN ACCORDANCE
WITH PARAGRAPH B OF SUBDIVISION FOUR AND SUBDIVISION  EIGHT  OF  SECTION
THREE  HUNDRED  FIFTY-FIVE  OF  THE  EDUCATION LAW. MONIES SHALL ONLY BE
EXPENDED FROM THE STATE UNIVERSITY  OF  NEW  YORK  STONY  BROOK  MEDICAL
HOSPITAL  OPERATING ACCOUNT AND THE CONTRACTUAL RESERVE ACCOUNT PURSUANT
TO APPROPRIATION. NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  CHAPTER,
THE  EDUCATION  LAW OR ANY OTHER LAW TO THE CONTRARY, SUCH APPROPRIATION
SHALL REMAIN IN FULL FORCE AND EFFECT FOR TWO YEARS FROM  THE  EFFECTIVE
DATE  OF  THE  APPROPRIATION  ACT  MAKING  SUCH APPROPRIATION. MONIES SO
TRANSFERRED MAY BE RETURNED TO THE UNIVERSITY OF NEW  YORK  STONY  BROOK
MEDICAL  HOSPITAL  OPERATING  ACCOUNT;  PROVIDED, HOWEVER, THAT FUNDS IN
SUCH CONTRACTUAL RESERVE ACCOUNT MUST BE SUFFICIENT TO  MEET  THE  OBLI-
GATIONS OF ALL SUCH CONTRACTS.
  3.  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH C OF SUBDIVISION FOUR
OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW,  OR  ANY  LAW,
RULE  OR  REGULATION  TO  THE  CONTRARY,  AND EXCEPT AS OUTLINED IN THIS
SECTION, SUCH FUNDS CONTAINED WITHIN THE STATE UNIVERSITY  OF  NEW  YORK
STONY  BROOK  MEDICAL  HOSPITAL OPERATING ACCOUNT SHALL BE FOR THE OPER-
ATIONS OF THE STATE UNIVERSITY HEALTH CARE FACILITY AT STONY BROOK ALONE
AND MAY NOT BE SUPPLEMENTED BY MONIES CONTAINED WITHIN ANY  OTHER  STATE
UNIVERSITY ACCOUNT.
  S  2.  Subdivision 8-a of section 355 of the education law is REPEALED
and a new subdivision 8-a is added to read as follows:

S. 278--A                           4

  8-A. THE DIRECTOR OF THE BUDGET, IN CONSULTATION WITH THE COMMISSIONER
OF HEALTH AND CHANCELLOR OF THE STATE  UNIVERSITY  OF  NEW  YORK,  SHALL
DEVELOP A METHODOLOGY FOR THE APPORTIONMENT OF GENERAL FUND MONIES TO BE
ALLOCATED  ANNUALLY  TO  EACH OF THE STATE UNIVERSITY OF NEW YORK HEALTH
CARE FACILITIES TO REFLECT ONGOING SUPPORT FOR COSTS ATTRIBUTABLE TO THE
STATE  AGENCY STATUS OF SUCH HEALTH CARE FACILITIES.  IN DEVELOPING SUCH
METHODOLOGY, THE DIRECTOR OF THE BUDGET SHALL  TAKE  INTO  CONSIDERATION
EACH FACILITY'S SHARE OF LABOR COSTS, INCLUDING FRINGE BENEFIT COSTS, AS
WELL AS ANY APPLICABLE HOSPITAL INDUSTRY NORMS, WHICH SHALL INCLUDE, BUT
NOT  BE  LIMITED  TO,  THE NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES, AND
OUTPATIENT AND INPATIENT VOLUME. SUCH METHODOLOGY SHALL BE SUBMITTED  TO
THE  TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE
CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF  THE  ASSEMBLY  WAYS
AND  MEANS  COMMITTEE  AND  THE CHAIRS OF THE SENATE AND ASSEMBLY HIGHER
EDUCATION COMMITTEES NO LATER THAN THIRTY DAYS PRIOR TO  THE  ALLOCATION
OF MONIES TO EACH HEALTH CARE FACILITY.
  S  3.  Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law,  the  state  comptroller  is  hereby
authorized and directed to transfer, upon request of the director of the
budget,  the  outstanding  balance  of the state university income fund,
state university hospitals income reimbursable account  (22656)  to  the
state university of New York upstate medical hospital operating account,
the  state  university  of New York downstate medical hospital operating
account and the state university of New York Stony Brook medical  hospi-
tal  operating account. Such transfer shall be done in direct proportion
to the share of the revenues received by each  hospital  for  the  state
university fiscal year ending on June 30, 2015.
  S  4.  This  act shall take effect immediately, provided that sections
two and three of this act shall take effect on the thirtieth  day  after
it shall have become a law.