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SECTION 409-C
Powers and duties of the commissioner; administrative and fiscal functions
Public Health (PBH) CHAPTER 45, ARTICLE 4, TITLE 1
§ 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 January 1, 2024

(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.