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

                                  3699

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 2, 2011
                               ___________

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 and the state finance law, in relation
  to procurement in support of the state university; to amend the educa-
  tion  law,  in  relation  to  operations  of  the   state   university
  construction  fund;  and to amend the civil service law and the educa-
  tion law, in relation to 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. Subdivision 5 of section 355 of the education law, as added
by  chapter  552  of the laws of 1985, paragraph a as amended by chapter
682 of the laws of 2007, paragraph c as added by chapter 103 of the laws
of 1989 and paragraph d as added by chapter 537 of the laws of 1997,  is
amended to read as follows:
  5.  Notwithstanding  the  provisions of [paragraph] SUBDIVISION two of
section one hundred twelve and sections one hundred fifteen, one hundred
sixty-one, AND one hundred sixty-three [and one hundred seventy-four] of
the state finance law and sections three and six of the New  York  state
printing  and public documents law or any other law to the contrary, the
state university trustees are authorized and empowered to:
  a. (i) purchase materials, equipment and supplies, including  computer
equipment  and  motor  vehicles, [where the amount for a single purchase
does not exceed twenty thousand dollars,] (ii)  execute  [contracts  for
services  and] construction contracts [to an amount not exceeding twenty
thousand  dollars],   INCLUDING   CONTRACTS   FOR   CONSTRUCTION-RELATED
SERVICES,  and  (iii)  contract for printing [to an amount not exceeding
five thousand dollars], without prior approval by any other state  offi-
cer  or  agency, but subject to rules and regulations of the state comp-
troller not otherwise inconsistent with the provisions of  this  section
and  in  accordance  with  [the]  GUIDELINES, rules [and] OR regulations
promulgated by the state university board of trustees after consultation

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09894-01-1
              

S. 3699                             2

with the state comptroller. [In addition, the trustees, after  consulta-
tion  with the commissioner of general services, are authorized to annu-
ally negotiate with the state comptroller  increases  in  the  aforemen-
tioned  dollar  limits  and the exemption of any articles, categories of
articles or commodities from these  limits.  Rules  and]  CONTRACTS  FOR
SERVICES  SHALL  BE  SUBJECT TO THE APPROVAL OF THE STATE COMPTROLLER IN
ACCORDANCE WITH THE PROVISIONS AND DOLLAR THRESHOLD OF  SUBDIVISION  TWO
OF  SECTION  ONE HUNDRED TWELVE OF THE STATE FINANCE LAW; PROVIDED, THAT
THE TRUSTEES ARE AUTHORIZED TO NEGOTIATE ANNUALLY WITH THE  STATE  COMP-
TROLLER  INCREASES  IN  THE DOLLAR THRESHOLD FOR CONTRACTS FOR SERVICES.
GUIDELINES, RULES OR regulations promulgated  by  the  state  university
board of trustees shall, to the extent practicable, require that compet-
itive  proposals  be solicited for purchases, and shall include require-
ments that purchases and contracts authorized under this section  be  at
the  lowest available price, including consideration of prices available
through other state agencies, consistent with quality requirements,  and
as  will  best  promote  the public interest. Such purchases may be made
directly from any contractor pursuant to any  contract  for  commodities
let by the office of general services or any other state agency;
  b.  to  establish  cash advance accounts for the purpose of purchasing
materials, supplies, or services, for cash advances for travel  expenses
and per diem allowances, or for advance payment of wages and salary. The
account  may  be  used to purchase such materials, supplies, or services
where the amount of a single purchase does not exceed two hundred  fifty
dollars,  in  accordance  with such guidelines as shall be prescribed by
the state university trustees after consultation with  the  state  comp-
troller.
  c.  establish  guidelines  in  consultation  with  the commissioner of
general services authorizing participation by the  state  university  in
programs administered by the office of general services for the purchase
of  available  New York state food products. The commissioner of general
services shall provide assistance to the state university  necessary  to
enable the university to participate in these programs.
  d.  [(1)]  Award contract extensions for campus transportation without
competitive bidding where such contracts  were  secured  either  through
competitive  bidding or through evaluation of proposals in response to a
request for proposals [pursuant to subparagraph (2) of this  paragraph],
however  such extensions may be rejected if the amount to be paid to the
contractor in any year of such proposed extension fails to  reflect  any
decrease  in  the  regional  consumer  price index for the New York, New
York-Northeastern, New Jersey area, based upon the index for  all  urban
consumers  (CPI-U) during the preceding twelve-month period. At the time
of any contract extension, consideration shall be given to  any  compet-
itive  proposal offered by a public transportation agency. Such contract
may be increased for each year of the contract extension  by  an  amount
not  to  exceed  the  regional consumer price index increase for the New
York, New York-Northeastern, New Jersey area, based upon the  index  for
all  urban  consumers (CPI-U), during the preceding twelve-month period,
provided it has been satisfactorily established by the  contractor  that
there has been at least an equivalent increase in the amount of his cost
of operation, during the period of the contract.
  S 2. Subdivision 2 of section 112 of the state finance law, as amended
by  chapter 319 of the laws of 1992, paragraph (a) as amended by section
2 of part D of chapter 56 of the laws of 2006, is  amended  to  read  as
follows:

S. 3699                             3

  2.  (a)  Before  any contract made for or by any state agency, depart-
ment, board, officer, commission, or institution, except the  office  of
general  services,  shall be executed or become effective, whenever such
contract exceeds  fifty  thousand  dollars  in  amount  and  before  any
contract made for or by the office of general services shall be executed
or become effective, whenever such contract exceeds eighty-five thousand
dollars  in  amount,  it  shall first be approved by the comptroller and
filed in his or her office,  provided,  however,  that  the  comptroller
shall  make  a  final  written determination with respect to approval of
such contract within ninety days of the submission of such  contract  to
his  or  her office unless the comptroller shall notify, in writing, the
state agency, department, board, officer,  commission,  or  institution,
prior to the expiration of the ninety day period, and for good cause, of
the need for an extension of not more than fifteen days, or a reasonable
period  of time agreed to by such state agency, department, board, offi-
cer, commission, or institution and provided, further, that such written
determination or extension shall be made part of the procurement  record
pursuant  to  paragraph  f  of  subdivision  one  of section one hundred
sixty-three of this chapter. THE FOREGOING NOTWITHSTANDING, ANY CONTRACT
MADE FOR OR BY THE STATE UNIVERSITY OF NEW YORK FOR GOODS SHALL  NOT  BE
SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH.
  (b)  Whenever  any liability of any nature shall be incurred by or for
any state department, board, officer, commission, or institution, notice
that such liability has been incurred  shall  be  immediately  given  in
writing to the state comptroller.
  S  3. Subparagraph (iv) of paragraph a of subdivision 3 of section 163
of the state finance law, as amended by chapter 430 of the laws of 1997,
is amended to read as follows:
  (iv) The commissioner is authorized to permit  any  officer,  body  or
agency of the state or of a political subdivision or a district therein,
or  fire  company  or volunteer ambulance service as such are defined in
section one hundred of the general municipal law, to make  purchases  of
commodities   through   the  office  of  general  services'  centralized
contracts, pursuant to the provisions of section one hundred four of the
general municipal law. The commissioner  is  authorized  to  permit  any
county  extension  service  association  as authorized under subdivision
eight of section two hundred twenty-four of the county law, or any asso-
ciation or other entity as specified in and in accordance  with  section
one  hundred  nine-a  of  the  general  municipal law, OR ANY NON-PROFIT
CORPORATION ORGANIZED IN FURTHERANCE OF THE OBJECTS AND PURPOSES OF  THE
STATE  UNIVERSITY  OF  NEW  YORK,  or any other association or entity as
specified in state law, to make purchases  of  commodities  through  the
office  of  general  services' centralized contracts; provided, however,
that such entity so empowered shall accept sole responsibility  for  any
payment  due with respect to such purchase; AND PROVIDED FURTHER, HOWEV-
ER, THAT COMMODITIES SO PURCHASED BY A NON-PROFIT CORPORATION  ORGANIZED
IN  FURTHERANCE  OF  THE OBJECTS AND PURPOSES OF THE STATE UNIVERSITY OF
NEW YORK SHALL NOT BE USED DIRECTLY OR INDIRECTLY BY A FOR-PROFIT CORPO-
RATION OR OTHER ENTITY WHICH CONTRACTS WITH THE NON-PROFIT  CORPORATION,
NOR  SHALL  SUCH COMMODITIES SO PURCHASED BY SUCH NON-PROFIT CORPORATION
BE OFFERED FOR RESALE.
  S 4. Paragraph e of subdivision 4 of section 163 of the state  finance
law, as amended by chapter 95 of the laws of 2000, is amended to read as
follows:
  e.  Any  officer, body or agency of a political subdivision as defined
in section one hundred of the general municipal law or a district there-

S. 3699                             4

in, may make  purchases  of  services  through  the  office  of  general
services'  centralized contracts for services, subject to the provisions
of section one hundred four of the general municipal  law.  The  commis-
sioner  may  permit  and  prescribe  the  conditions for the purchase of
services through the office of general services'  centralized  contracts
for  services  by  any public authority or public benefit corporation of
the state including the port authority of New York and  New  Jersey,  OR
ANY  NON-PROFIT  CORPORATION ORGANIZED IN FURTHERANCE OF THE OBJECTS AND
PURPOSES OF THE STATE UNIVERSITY OF NEW YORK, OTHER  THAN  THE  RESEARCH
FOUNDATION  OF THE STATE UNIVERSITY OF NEW YORK; PROVIDED, HOWEVER, THAT
SERVICES SO PURCHASED BY A NON-PROFIT CORPORATION ORGANIZED IN  FURTHER-
ANCE  OF  THE  OBJECTS AND PURPOSES OF THE STATE UNIVERSITY OF NEW YORK,
OTHER THAN THE RESEARCH FOUNDATION OF THE STATE UNIVERSITY OF NEW  YORK,
SHALL  NOT BE USED DIRECTLY OR INDIRECTLY BY A FOR-PROFIT CORPORATION OR
OTHER ENTITY WHICH  CONTRACTS  WITH  THE  NON-PROFIT  ORGANIZATION.  The
commissioner  is  authorized  to  permit any public library, association
library, library  system,  cooperative  library  system,  the  New  York
Library  Association,  and  the  New  York  State Association of Library
Boards or any other library except  those  which  are  operated  by  for
profit  entities,  to  make  purchases of services through the office of
general services' centralized contracts; provided,  however,  that  such
entity so empowered shall accept sole responsibility for any payment due
with respect to such purchase.
  S  5.  Subdivisions  12 and 15 of section 373 of the education law, as
added by chapter 251 of the laws of 1962, are amended and a new subdivi-
sion 20 is added to read as follows:
  12. To [make] PROCURE and execute contracts, lease agreements, and all
other instruments necessary or convenient for the exercise of its corpo-
rate powers and the fulfillment of its  corporate  purposes  under  this
article. NOTWITHSTANDING SECTION ONE HUNDRED TWELVE OF THE STATE FINANCE
LAW  OR  ANY OTHER LAW TO THE CONTRARY, ALL SUCH FUND PROCUREMENTS SHALL
BE SUBJECT ONLY TO PROCUREMENT GUIDELINES THAT ARE ANNUALLY  ADOPTED  BY
THE  FUND  TRUSTEES, WHICH SHALL CONFORM TO THE PROVISIONS OF TITLE FOUR
OF  ARTICLE  NINE  OF  THE  PUBLIC  AUTHORITIES   LAW   EXCEPT   SECTION
TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF SUCH LAW;
  15.  To  engage  the  services of construction, engineering, architec-
tural, legal and financial consultants, surveyors and appraisers,  on  a
contract  basis  or as employees, for professional service and technical
assistance and advice AND NOTWITHSTANDING SECTION ONE HUNDRED TWELVE  OF
THE STATE FINANCE LAW OR ANY OTHER LAW TO THE CONTRARY, TO DETERMINE ITS
STAFFING,  SUPPORT SERVICES AND EQUIPMENT NEEDS WHICH IN THE JUDGMENT OF
THE FUND ARE NECESSARY TO FULFILL ITS PURPOSES AS SET FORTH  IN  SECTION
THREE HUNDRED SEVENTY-TWO OF THIS ARTICLE; and
  20.  NOTWITHSTANDING ANY LAW TO THE CONTRARY, ALL RIGHTS AND BENEFITS,
INCLUDING TERMS AND CONDITIONS OF EMPLOYMENT, AND  PROTECTION  OF  CIVIL
SERVICE  AND  COLLECTIVE  BARGAINING STATUS OF ALL EMPLOYEES OF THE FUND
SHALL BE PRESERVED AND PROTECTED. EMPLOYEES IN ANY NEWLY  CREATED  POSI-
TIONS  WITHIN  THE  FUND  SHALL  BE  CONSIDERED PUBLIC EMPLOYEES FOR ALL
PURPOSES OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW.
  S 6. Subdivision 8 of section 376 of the education law,  as  added  by
chapter  251  of the laws of 1962, the opening paragraph and paragraph a
as amended by chapter 877 of the laws of 1990 and paragraph f  as  added
by chapter 769 of the laws of 1978, is amended to read as follows:
  8.  All contracts which are to be awarded pursuant to this subdivision
shall be awarded by public letting  in  accordance  with  the  following
provisions,  notwithstanding  any  contrary  provision  of  section  ONE

S. 3699                             5

HUNDRED TWELVE, one hundred thirty-five,  one  hundred  thirty-six,  one
hundred thirty-nine or one hundred forty of the state finance law OR ANY
OTHER  LAW,  provided,  however, that where the estimated expense of any
contract  which may be awarded pursuant to this subdivision is less than
TWO HUNDRED fifty thousand dollars, a performance bond and  a  bond  for
the  payment  of  labor and material may, in the discretion of the fund,
not be required, and except that  in  the  discretion  of  the  fund,  a
contract  may  be  entered into for such purposes without public letting
where the  estimated  expense  thereof  is  less  than  twenty  thousand
dollars,  or  where  in  the judgment of the fund an emergency condition
exists as a result of damage to an existing academic building, dormitory
or other facility which has been caused by an act of God, fire or  other
casualty,  or any other unanticipated, sudden and unexpected occurrence,
that has resulted in damage to or a malfunction in an existing  academic
building,  dormitory or other facility and involves a pressing necessity
for immediate repair, reconstruction or maintenance in order  to  permit
the  safe  continuation  of  the use or function of such facility, or to
protect the facility or the life, health or safety of  any  person,  and
the nature of the work is such that in the judgment of the fund it would
be  impractical  and against the public interest to have public letting;
provided, however, that the fund, prior to awarding a contract hereunder
because of an emergency condition notify the comptroller of  its  intent
to award such a contract:
  a. [If contracts are to be publicly let, the] THE letting agency shall
advertise the invitation to bid OR THE REQUEST FOR PROPOSALS in [a news-
paper  published  in  the city of Albany and in] such [other newspapers]
NEWSPAPER as will be most likely in its opinion to give adequate  notice
to  contractors  of  the  work  required  [and of the invitation to bid]
provided, however, that where the  estimated  expense  of  any  contract
which  may  be  awarded  pursuant  to  this subdivision is less than TWO
HUNDRED fifty thousand dollars, the letting  agency  may  advertise  the
invitation  to bid solely through the procurement opportunities newslet-
ter published pursuant to section one hundred forty-two of the  economic
development  law.  The  invitation to bid OR REQUEST FOR PROPOSALS shall
contain such information as the letting agency  shall  deem  appropriate
[and  a statement of the time and place where all bids received pursuant
to such notice will be publicly opened and read].
  b. The letting agency  shall  not  award  any  contract  after  public
bidding  except  to the lowest bidder who in its opinion is qualified to
perform the work required and is responsible and reliable.  The  letting
agency  may,  however, reject any or all bids, again advertise for bids,
or waive any informality in a bid if it believes that the public  inter-
est will be promoted thereby.
  c.  The  invitation  to  bid,  REQUEST  FOR PROPOSALS and the contract
awarded  shall  contain  such  other  terms  and  conditions,  and  such
provisions for penalties, as the letting agency may deem desirable.
  d. [The form of any] ANY contract awarded pursuant to this subdivision
shall  [be  approved  by the attorney general and by the comptroller and
shall] contain a clause that the contract shall be deemed  executory  to
the  extent  of  the  moneys  available  and  that no liability shall be
incurred by the fund beyond the moneys available therefor.
  e. The letting agency shall require such deposits, bonds and  security
in  connection with the submission of bids OR REQUEST FOR PROPOSALS, the
award of contracts and the performance of work as it shall determine  to
be in the public interest and for the protection of the state, the state
university, the fund and the letting agency.

S. 3699                             6

  f.  Notwithstanding  the  provisions of any other law to the contrary,
all  contracts  for  public  work  awarded  by  the   state   university
construction  fund  pursuant  to this subdivision shall be in accordance
with section one hundred thirty-nine-f of the state finance law.
  G.  EXCEPT  AS PROVIDED IN THE COLLECTIVE BARGAINING AGREEMENT BETWEEN
THE FUND AND ITS REPRESENTED EMPLOYEES, ALL WORK CURRENTLY PERFORMED  BY
REPRESENTED  EMPLOYEES OF THE FUND UPON THE EFFECTIVE DATE OF THIS PARA-
GRAPH SHALL CONTINUE TO BE PERFORMED BY SUCH EMPLOYEES. NOTHING  IN  THE
CHAPTER  OF  THE  LAWS OF TWO THOUSAND ELEVEN WHICH ADDED THIS PARAGRAPH
SHALL RESULT IN A DISPLACEMENT OF  ANY  CURRENTLY  EMPLOYED  REPRESENTED
WORKER  OR  LOSS  OF  POSITION, INCLUDING PARTIAL DISPLACEMENT SUCH AS A
REDUCTION IN WORK HOURS, WAGES OR OTHER BENEFITS.
  S 7. Subdivision 4 of section 377 of the education law,  as  added  by
chapter 624 of the laws of 1999, is amended to read as follows:
  4.  Monies received by the fund, FOR ALL OF ITS OPERATING AND ADMINIS-
TRATIVE COSTS OR in connection with approved university-related economic
development facilities, [other than state appropriations to  the  fund,]
may  be  deposited  in  a general account and other such accounts as the
fund may deem necessary, for the transaction  of  its  business  [or  in
relation to construction or property management activities undertaken in
connection with such projects] and shall be paid out on checks signed by
the chairman of the fund or such other person or persons as the trustees
of the fund may authorize.
  S  8. Subdivision 14 of section 130 of the civil service law, as added
by chapter 685 of the laws of 1995, is amended to read as follows:
  14. Notwithstanding any foregoing provisions of this  section  to  the
contrary, wage rates and/or pay differentials paid by the state PURSUANT
TO  SUBDIVISION  THIRTEEN  OF  SECTION THREE HUNDRED FIFTY-FIVE-A OF THE
EDUCATION LAW, AS ADDED BY CHAPTER SIX HUNDRED EIGHTY-FIVE OF  THE  LAWS
OF  NINETEEN HUNDRED NINETY-FIVE, to teaching and research center nurses
of the state university of New York [pursuant to subdivision thirteen of
section three hundred fifty-five-a of the education law] may be based on
a study of representative peer institutions in private or  other  public
hospitals in the same geographic area as a hospital of the state univer-
sity  which  shows  that  WAGE  RATES AND/OR pay differentials of nurses
employed by such peer institutions are higher than the wage rates and/or
pay differentials paid by the state  to  teaching  and  research  center
nurses  of  the  state university. Whenever, in the opinion of the chief
administrative officer of the health science centers at  which  teaching
and  research  center  nurses  are employed, additional compensation for
such employees is necessary to maintain adequate support to protect  the
health,  safety and welfare of patients, such chief administrative offi-
cer OR PRESIDENT shall request the state university board of trustees to
conduct such a study.
  S 9.  Subdivision 6 of section 350 of the education law, as  added  by
chapter 363 of the laws of 1998, is amended to read as follows:
  6.  "Clinic" shall mean a facility LICENSED UNDER ARTICLE TWENTY-EIGHT
OF THE PUBLIC HEALTH LAW AS A DIAGNOSTIC AND TREATMENT CENTER  WHICH  IS
located  either  within  or  outside  of  a state university health care
facility providing services related to the medical education mission  of
the  university,  but  shall not include state university student health
services.
  S 10. Paragraph b of subdivision 16 of section 355  of  the  education
law,  as added by chapter 363 of the laws of 1998, is amended to read as
follows:

S. 3699                             7

  b. Notwithstanding the provisions of subdivision two  of  section  one
hundred  twelve of the state finance law [relating to the dollar thresh-
old requiring the comptroller's approval of contracts and],  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 [and services] for state  university  health  care
facilities  WITHOUT PRIOR APPROVAL BY ANY OTHER STATE OFFICER OR AGENCY,
INCLUDING CONTRACTS:
  [(1) for any contract which  does  not  exceed  seventy-five  thousand
dollars; or
  (2)]  for  joint or group purchasing [arrangements which do not exceed
seventy-five thousand dollars without prior approval by any other state,
officer or agency] OF GOODS, in accordance with procedures and  require-
ments found in paragraph a of subdivision five of this section, AND (II)
AUTHORIZE  CONTRACTS  FOR JOINT OR GROUP PURCHASING OF 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 PARAGRAPH A OF SUBDIVISION FIVE OF THIS SECTION.
  [(3) contracts] CONTRACTS  authorized  [hereunder]  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.
  The trustees are authorized to negotiate annually with the state comp-
troller increases in the aforementioned dollar [limits] LIMIT.
  S  11.  Notwithstanding any inconsistent provision in section 8 of the
court of claims act, subdivision 10 of section 355 of the education  law
or  any  other provision of law, a state university health care facility
may include in a contract authorized by paragraph a of subdivision 16 of
section 355 of the education law,  other  than  a  contract  with  state
employees  relating  to  terms  and  conditions  of  their employment, a
provision that some or all disputes arising under  or  related  to  such
contract shall be resolved by binding arbitration in accordance with the
rules of a nationally-recognized arbitration association.
  S  12. This act shall take effect immediately provided that the amend-
ments to section 163 of the state finance law made by sections three and
four of this act shall not affect the repeal of such section  and  shall
be deemed repealed therewith.