senate Bill S7065

Amended

Relates to contracts for joint or group purchasing of goods for state university health care facilities

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 26 / Apr / 2012
    • REFERRED TO HIGHER EDUCATION
  • 05 / Jun / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 15 / Jun / 2012
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 15 / Jun / 2012
    • PRINT NUMBER 7065A

Summary

Relates to contracts for joint or group purchasing of goods and services for state university health care facilities.

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Bill Details

Versions:
S7065
S7065A
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Education Law
Laws Affected:
Amd ยง355, Ed L

Votes

12
1
12
Aye
1
Nay
5
aye with reservations
0
absent
0
excused
0
abstained
show Higher Education committee vote details

Sponsor Memo

BILL NUMBER:S7065

TITLE OF BILL:
An act to amend the education law, in relation to contracts for joint or
group purchasing of goods or services for state university health care
facilities

PURPOSE:
To provide that in the event State University health care facilities
purchase goods or services through joint or group purchasing arrange-
ments, such arrangements and purchases made through such arrangements
shall not be subject to the pre-approvals of the State Comptroller and
Attorney General, competitive procurement requirements, requirements to
purchase from preferred sources and through centralized contracts of the
Office of General Services and publication requirements.

SUMMARY OF PROVISIONS:
Section 1 of the legislation amends Education Law section 355(16)(b) to
authorize State University health care facilities to enter into joint or
group purchasing arrangements for goods and services, which arrangements
and purchases made through such arrangements shall not be subject to
State Finance Law section 112 (State Comptroller pre-approval), Execu-
tive Law section 63 (Attorney General approval), State Finance Law
section 163 (competitive procurement; preferred sources; OGS centralized
contracts), Economic Development Law Art. 4C (publication in Contract
Reporter or Education Law section 355(5)(a), (a-1)(rules of the State
Comptroller).

Section 2 provides that the legislation takes effect immediately.

EXISTING LAW:
Education Law section 355(26)(b) authorizes the State University to
purchase goods without prior approval of the State Comptroller and
Attorney General and to purchase services without the approval of the
State Comptroller and Attorney General at a cost under negotiated thres-
holds. Generally, the provisions of State Finance Law section 163
require competitive procurement of goods and services and require
procurement first from preferred sources then through centralized
contracts of the Office of General Services and then through procurement
by a State entity directly.

JUSTIFICATION:
SUNY's hospitals exist in increasingly competitive and rapidly changing
health care markets, requiring that they be provided with additional
flexibility to deploy limited resources more efficiently. All hospital-
including other public hospital in New York - use Group Purchasing
Organizations (GPOs) as a major purchasing tool to save money and maxi-
mize the efficiency of internal procurement resources. Current procure-
ment requirements for SUNY's hospitals, which this legislation seeks to
amend, preclude them from taking full advantage of leveraging the shared
buying power of all three hospitals and the efficiency provided by using

GPOs as a purchasing tool. Nothing in this legislation either amends the
civil service law or impacts State employee contracts.

This legislation only provides flexibility for hospital joint or group
purchasing, thereby providing an incentive for the hospitals to purchase
together to maximize savings for all three of them and freeing them from
duplicative and time consuming requirements associated with current law.
This legislation is an important step in giving the SUNY Hospitals the
flexibility from overly burdensome processes that impede their ability
to survive and compete - so they are able to continue to support the
educational mission of SUNY's public academic medical centers at Down-
state, Stony Brook and Upstate.

LEGISLATIVE HISTORY:
New legislation.

FISCAL IMPLICATIONS:
Savings in expenditures for goods and services procured for State
University health care facilities.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7065

                            I N  S E N A T E

                             April 26, 2012
                               ___________

Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Higher Education

AN ACT to amend the education law, in relation to contracts for joint or
  group purchasing of goods or services for state university health care
  facilities

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

  Section  1. Paragraph b of subdivision 16 of section 355 of the educa-
tion law, as amended by section 1 of subpart C of part D of  chapter  58
of the laws of 2011, is amended to read as follows:
  b.  Notwithstanding  the  provisions of subdivision two 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 (i) authorize contracts for the purchase of goods  for
state  university  health  care facilities without prior approval by any
other state officer or agency, including contracts for  joint  or  group
purchasing  arrangements  of  goods,  in  accordance with procedures and
requirements found in paragraph a of subdivision five of  this  section,
and  (ii)  authorize contracts for services which do not exceed seventy-
five thousand dollars without prior approval by any other state  officer
or  agency in accordance with procedures and requirements found in para-
graph [a] A-1 of subdivision five of this section.   IN ADDITION,  STATE
UNIVERSITY  HEALTH CARE FACILITIES ARE AUTHORIZED TO ENTER INTO JOINT OR
GROUP PURCHASING ARRANGEMENTS FOR GOODS OR SERVICES, WHICH  ARRANGEMENTS
AND  THE PURCHASING OF GOODS OR SERVICES THROUGH SUCH ARRANGEMENTS SHALL
NOT BE SUBJECT TO THE PROVISIONS OF SECTION ONE HUNDRED  TWELVE  OF  THE
STATE FINANCE LAW, SECTION SIXTY-THREE OF THE EXECUTIVE LAW, SECTION ONE
HUNDRED  SIXTY-THREE  OF  THE  STATE  FINANCE LAW, ARTICLE FOUR-C OF THE
ECONOMIC DEVELOPMENT LAW, OR PARAGRAPHS A AND A-1 OF SUBDIVISION FIVE OF
THIS SECTION. Contracts authorized pursuant to this paragraph  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15535-01-2

S. 7065                             2

  The trustees are authorized to negotiate annually with the state comp-
troller increases in the aforementioned dollar limits.
  S  2. This act shall take effect immediately; provided that the amend-
ments to paragraph b of subdivision 16 of section 355 of  the  education
law  made  by section one of this act shall not affect the expiration of
such paragraph and shall be deemed to expire therewith.

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