S T A T E O F N E W Y O R K
________________________________________________________________________
1314
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. BRODSKY -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend the not-for-profit corporation law, in relation to the
creation of the higher education research foundation accountability
and transparency act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "higher
education research foundation accountability and transparency act".
S 2. Legislative findings and declarations. The legislature finds and
declares that the state has a vital interest in the oversight of its
educational centers and associated research foundations for higher
education and in the research foundations' viability as not-for-profit
entities, as well as preserving the high academic standards and research
done throughout the state's university system. The state has an essen-
tial interest in protecting and ensuring that funding, grants and other
monies used by the state university system of New York in conjunction
with not-for-profit research foundations is facilitated in an open and
accountable manner. The combination and close relationship of a public
university system with not-for-profit research foundations presents
certain challenges and potential conflicts with the academic, labor and
other policies of the state. Therefore, the legislature finds and
declares that additional oversight and accountability is necessary to
preserve the integrity of the state university system.
S 3. The not-for-profit corporation law is amended by adding a new
section 1413 to read as follows:
S 1413. HIGHER EDUCATION RESEARCH FOUNDATIONS.
(A) FOR THE PURPOSES OF THIS SECTION, THE TERM "HIGHER EDUCATION
RESEARCH FOUNDATION" SHALL MEAN A NOT-FOR-PROFIT CORPORATION, COMPANY OR
PARTNERSHIP CLOSELY AFFILIATED WITH THE STATE UNIVERSITY OF NEW YORK AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04816-01-9
A. 1314 2
WHOSE PURPOSES ARE ESSENTIALLY TO SUPPORT, SUPPLEMENT OR EXTEND THE
FUNCTIONS AND PROGRAMS OF SUCH STATE UNIVERSITY, INCLUDING WITHOUT LIMI-
TATION THE RESEARCH FOUNDATION OF THE STATE UNIVERSITY OF NEW YORK AND
ITS AFFILIATED ENTITIES.
(B) BUDGET REPORTS AND OVERSIGHT. HIGHER EDUCATION RESEARCH FOUNDA-
TIONS SHALL BE CONSIDERED A PUBLIC BENEFIT CORPORATION AS THAT TERM IS
USED IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW FOR THE PURPOSE OF
SUBMITTING SUCH HIGHER EDUCATION RESEARCH FOUNDATIONS TO THE PROVISIONS
OF TITLE ONE OF ARTICLE NINE OF THE PUBLIC AUTHORITIES LAW. SUCH FOUNDA-
TIONS SHALL SUBMIT ANNUALLY TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF
THE SENATE, THE SPEAKER OF THE ASSEMBLY AND THE COMPTROLLER, REPORTS OF
BUDGET INFORMATION AS REQUIRED BY TITLE ONE OF ARTICLE NINE OF THE
PUBLIC AUTHORITIES LAW. REPORTS REQUIRED BY THIS SECTION SHALL BE MAIN-
TAINED AT THE PRINCIPAL OFFICE OF THE HIGHER EDUCATION RESEARCH FOUNDA-
TION AS A PUBLIC RECORD AVAILABLE FOR PUBLIC INSPECTION AND COPYING. A
HIGHER EDUCATION RESEARCH FOUNDATION SHALL BE CONSIDERED A STATE AGENCY
FOR THE PURPOSES OF COMPLYING WITH ARTICLE SIX OF THE PUBLIC OFFICERS
LAW.
(C) RESTRICTIONS OF THE TRANSFER OF FUNCTIONS. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW TO THE CONTRARY, NO FUNCTION WHICH IS PRIMARILY
PERFORMED BY EMPLOYEES OF THE STATE UNIVERSITY OF NEW YORK SHALL BE
TRANSFERRED TO, OR ASSUMED BY, OR PERFORMED BY HIGHER EDUCATION RESEARCH
FOUNDATIONS, UNLESS SUCH TRANSFER OR ASSUMPTION OR PERFORMANCE IS
SPECIFICALLY AUTHORIZED IN LAW BY AN ACT OF THE STATE LEGISLATURE.
(D) CIVIL SERVICE STATUS OF EMPLOYEES. ANY PERMANENT EMPLOYEE OF A
HIGHER EDUCATION RESEARCH FOUNDATION WHO IS HIRED AFTER THE EFFECTIVE
DATE OF THIS SECTION, SHALL BE DEEMED TO BE IN THE CLASSIFIED CIVIL
SERVICE OR THE UNCLASSIFIED CIVIL SERVICE AS PROVIDED FOR IN THE CIVIL
SERVICE LAW AND SHALL BE SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE
LAW IN THE SAME MANNER AS AN EMPLOYEE OF A DEPARTMENT OR AGENCY OF THE
STATE.
S 4. The state civil service commission may prescribe rules and regu-
lations to define permanent employees of a higher education research
foundation as defined in section 1413 of the not-for-profit corporation
law, as added by section three of this act.
S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.