senate Bill S1653

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

  • 09 / Jan / 2013
    • REFERRED TO HIGHER EDUCATION
  • 08 / Jan / 2014
    • REFERRED TO HIGHER EDUCATION

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:
S1653
Legislative Cycle:
2013-2014
Current Committee:
Senate Higher Education
Law Section:
Education Law
Laws Affected:
Amd ยง355, Ed L
Versions Introduced in 2011-2012 Legislative Cycle:
S7065A

Sponsor Memo

BILL NUMBER:S1653

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

PURPOSE:
To provide that in the event State University health care facilities
purchase goods through joint or group purchasing arrangements, 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, which arrangements
and purchases made through such arrangements shall not be subject to
State Finance Law section 112 (State Comptroller pre-approval),
Executive Law section 63 (Attorney General approval), State Finance
Law section 163 (competitive procurement; preferred sources; OGS
centralized contracts), Economic Development Law Art. 4-C
(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
thresholds. 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 maximize the efficiency of internal procurement
resources. Current procurement 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
at 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 Downstate, Stony Brook and Upstate.

LEGISLATIVE HISTORY: 2012 S.7065A.

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
________________________________________________________________________

                                  1653

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  LAVALLE,  RANZENHOFER  --  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 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,  WHICH ARRANGEMENTS AND THE
PURCHASING OF GOODS 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06212-01-3

S. 1653                             2

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.
  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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