N.Y. Public Health Law § 409-c: Powers and duties of the commissioner; administrative and fiscal functions

§ 409-c. Powers and duties of the commissioner; administrative and

fiscal functions. 1. Notwithstanding the provisions of sections

forty-four, forty-nine, fifty, fifty-one and ninety-three of the state

finance law, section nine of the public buildings law or any other

provision of law to the contrary, the commissioner is authorized and

empowered:

(a) to expend all lump sum or consolidated appropriations and other

appropriations made for the institutional program. Within aggregate

funds available for expenditures, the state comptroller shall draw

warrants for the payment of all vouchers approved by the commissioner,

or by such person as shall be designated by the commissioner by a rule

or written direction filed with the state comptroller. Such lump sum or

consolidated appropriations made for personal service, or for

maintenance and operation or for non-personal service, or maintenance

undistributed including personal service, other than appropriations from

proprietary or fiduciary funds, shall be available for payments for

personal service, or maintenance and operation or for non-personal

service, or for maintenance undistributed including personal service

upon the filing of a schedule of positions and salaries and the amounts

to be available for other personal service classes of expenditure, and

for the expenses of maintenance and operation, or for non-personal

service with the director of the budget, chairman of the senate finance

committee, chairman of the assembly ways and means committee, and the

state comptroller. Any such schedule may be amended and such amendment

shall be filed with the officers named above. The state comptroller is

authorized to pay any amounts required for the salaries and related

employment benefits of employees of the institutional program from any

appropriations available therefor.

(b) To increase or decrease capital projects fund appropriations by

transfer or interchange as follows:

(i) Amounts appropriated for the programs or purposes or for any item

or items within such programs or purposes of the institutional program

in the department from a particular fund or funds, excluding

appropriations for major new facility construction or comprehensive

facility renovation or modernization projects, in a fiscal year may be

interchanged between items within the same program or purposes of an

institution, or with other items appropriated from such fund not in the

same program or purpose within an institution, but which are contained

in the state comptroller's classification of items as last promulgated

pursuant to a certificate of allocation. Such certificate shall be

submitted by the commissioner to the state comptroller with copies to be

sent to the chairs of the senate finance committee and the assembly ways

and means committee and the director of the budget for informational

purposes only.

2. (a) Notwithstanding any inconsistent provision of section

ninety-three of the state finance law or any other law to the contrary,

any capital projects fund appropriation for state hospitals in the

department shall be available to the department upon issuance of a

certificate of approval of availability by the director of the budget.

The certificate shall be for so much as shall be necessary to accomplish

the purposes described in the report from the department specifying the

scope of the project and the project budget within the limits of the

appropriation and a copy of such certificate of approval shall be filed

with the state comptroller, the chair of the senate finance committee

and the chair of the assembly ways and means committee. Moneys so

approved shall be paid on the audit and warrant of the state comptroller

pursuant to vouchers approved by the commissioner.

(b) Notwithstanding any inconsistent provision of section nine of the

public buildings law or any other law to the contrary, when the

commissioner shall determine that there is a construction emergency, as

defined in section nine of the public buildings law, the commissioner is

empowered and authorized to exceed the limit of forty thousand dollars

but not to exceed the limit of two hundred thousand dollars for such

project and may utilize any capital projects fund appropriation for

state hospitals within the department for the purposes of addressing

such construction emergency.

3. The commissioner shall provide the chairs of the senate finance

committee and the assembly ways and means committee and the director of

the budget with: (i) quarterly reports of all expenditures within the

institutional program pursuant to this section on the fifteenth day of

July, October, January and April of each year; and (ii) a report on the

health care activities of the facilities within the institutional

program pursuant to this section and their participation in health care

delivery networks, either directly or under contract on or around

submission of the annual budget request, but in no event later than

October fifteenth of each year. This report shall provide information

regarding: the impact of existing managed care contracts on services,

census levels, operational costs and revenue; and the impact of planned

expansion of existing managed care networks, including anticipated

changes in service areas, census, operating costs and revenue projected

as a result of such expansion.

4. Notwithstanding any provision of section one hundred sixty-three of

the state finance law or any other law, rule or regulation to the

contrary, the commissioner may:

(a) authorize contracts with public, non-profit or business entities

for the provision of general comprehensive and specialty health care

services in department inpatient or outpatient hospitals, clinics or

other ancillary facilities, as defined in section four hundred three of

this title, through managed care networks or other health care

contractual arrangements for the provision of health care services.

Consistent with applicable laws and regulations, the commissioner shall

develop policies concerning the terms and conditions for such contracts

including length of term, contributions, evidence of insurance, risk

assumption and indemnification. Health care services to be provided

under such contracts may be delivered directly by state hospitals in the

department, as defined in section four hundred three of this title, or,

with respect to health care services not provided by such hospitals,

through contract, agreement or other arrangement with physicians and

other health practitioners and providers or professional corporations,

not-for-profit or business entities comprised thereof. Contracts for the

provision of health care services hereunder: (i) shall be consistent

with applicable provisions of agreements between the state and employee

organizations pursuant to article fourteen of the civil service law;

(ii) may be entered into without formal competitive bidding subject to

the policies of the commissioner which shall include requirements for

comparative review or other competitive processes where appropriate; and

(iii) shall not increase operating costs above resulting increases in

revenue such that expenditures related to services provided pursuant to

such contracts will be limited to revenues projected to be received over

the life of the contract. Before entering into any contract pursuant to

this paragraph, the commissioner shall provide a written assurance to

the director of the budget that such contract will not require any

additional resources from the state of New York not supported by

contract revenues, based on the projected financial and economic

analyses of the proposed contract submitted by the facility, including

relevant assumptions regarding the projection.

* (b) notwithstanding section one hundred twelve of the state finance

law to the contrary, authorize contracts for the purchase of goods and

services for state hospitals in the department, as defined in section

four hundred three of this title, without prior review and approval of

any other state office or agency and subject to the commissioner's rules

and regulations: (i) for any contract which does not exceed one hundred

thousand dollars; or (ii) for joint or group purchasing arrangements

which do not exceed three hundred thousand dollars. The state

comptroller shall have ninety days to review arrangements over the

limitations prescribed pursuant to this subparagraph. Purchases made

pursuant to such joint or group purchasing arrangements shall not

include services and be made from contracts awarded by a regionally or

nationally recognized purchasing organization, and contracts with a

regionally or nationally recognized purchasing organization shall be

made on a competitive basis.

* NB Repealed March 31, 2027

(c) authorize contracts for the participation by state hospitals in

the department, as defined in section four hundred three of this title,

in joint and cooperative programs and arrangements for the delivery of

health care services, or for the planning and administration thereof,

with public, non-profit or business entities, including programs and

arrangements on a regional or national basis.

(d) authorize the department to: (i) lease, sublease or otherwise make

available in accordance with the commissioner's policies, space or

facilities within its hospitals, as defined in section four hundred

three of this title, to one or more practitioners or public, non-profit

or business entities for the purposes specified in paragraphs (a) and

(c) of this subdivision; or (ii) to lease or sublease any facilities or

other property necessary for the delivery of health care services in

accordance with the provisions of paragraphs (a) and (b) of this

subdivision.

(e) nothing contained in this subdivision shall in any way alter or

impair the rights provided pursuant to a collective bargaining

agreement, state law implementing such agreement or under article

fourteen of the civil service law of all members of certified bargaining

units currently or hereafter employed by the department in hospitals, as

defined in section four hundred three of this title, and all certified

employee organizations and negotiating units of such employees shall

continue in accordance with the provisions of article fourteen of the

civil service law. The commissioner shall assure that any contract or

agreement entered into for the provision of general comprehensive and

specialty health care services in department hospitals, as defined in

section four hundred three of this title, through participation in

managed care networks or other joint and cooperative programs and

arrangements including those on a regional basis in fulfillment of any

provision of this subdivision, the service of which is being provided by

department employees at hospitals defined in section four hundred three

of this title who are members of certified bargaining units at such

hospital will be subject to the terms and conditions of any current or

future collectively negotiated agreement between the state and certified

employee organizations pursuant to article fourteen of the civil service

law.

5. The commissioner shall submit a report to the governor, the

temporary president of the senate, the speaker of the assembly and the

office of the state comptroller on or before May first, two thousand

two, which shall include a record of all group purchasing arrangements,

including for each group purchasing arrangement: the name of the

purchasing organization, overall contract amount, dollar value of

purchases made by fiscal year, description of the commodities purchased,

and methodology used to determine the cost effectiveness of such

purchase.