Bill S6303-2013

Establishes operating accounts for three state university of New York medical hospitals; repealer

Establishes the state university of New York upstate medical hospital operating account, the state university of New York downstate medical hospital operating account and the state university of New York Stony Brook medical hospital operating account.

Details

Actions

  • Jun 10, 2014: referred to ways and means
  • Jun 10, 2014: DELIVERED TO ASSEMBLY
  • Jun 10, 2014: PASSED SENATE
  • Jun 9, 2014: ORDERED TO THIRD READING CAL.1214
  • Jun 9, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jan 10, 2014: REFERRED TO FINANCE

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 9, 2014
Ayes (22): Skelos, Libous, Bonacic, Carlucci, Farley, Flanagan, Hannon, Larkin, LaValle, Marcellino, Maziarz, Nozzolio, Seward, Valesky, Little, Stewart-Cousins, Breslin, Dilan, Montgomery, Parker, Perkins, Espaillat
Ayes W/R (2): Krueger, Gianaris
Excused (1): Hassell-Thompson

Memo

BILL NUMBER:S6303

TITLE OF BILL: An act to amend the state finance law, in relation to establishing the state university of New York upstate medical hospital operating account, the state university of New York downstate medical hospital operating account and the state university of New York Stony Brook medical hospital operating account and to amend the education law, in relation to apportionment to the state university; and to repeal subdivision 8-a of section 355 of the education law relating thereto

PURPOSE: To create separate accounts within the State Finance Law for each of the State University of New York (SUNY) hospitals and ensure the hospitals are only supported through self-generated revenues and State General Fund monies

SUMMARY OF PROVISIONS:

Section 1: Amends State Finance Law to create sections 99-v, 99-w and 99-x, establishing three separate accounts for the SUNY Hospitals at Syracuse (Upstate), Brooklyn (Downstate) and Stony Brook, with each in the joint custody of the State Comptroller and Commissioner of Taxation and Finance. Each account shall consist of monies received from state university healthcare facilities from self-generated sources of revenue and monies transferred from the State's general fund Monies shall only be expended from each account pursuant to appropriation Each account may not be supplemented by monies contained within any other state university account, and the funds in each account shall only be used for the operations of each health care facility.

Section 2: Amends subdivision 8-a of section 355 of the Education Law, which provides the authority for the existing state university health care account, to direct the budget director to develop a methodology for the allocation of general fund monies to each of the SUNY hospitals.

Section 3. Authorizes and directs the State Comptroller to transfer remaining funds from the existing SUNY Hospitals' Income Reimbursable Account to the newly created accounts for each of the three hospitals.

Section 4: Sets out an immediate effective date, provided that sections two and three will take effect 30 days after becoming law.

JUSTIFICATION: The State University of New York (SUNY) currently operates three public hospitals. The financial health of these hospitals is of vital importance, as public hospitals provide services to constituencies that are often not served by private, not-for-profit hospitals. Transparency is an important element in preserving the financial health of these hospitals.

Currently, funds for the three SUNY hospitals are appropriated and expended out of one account This bill would create separate accounts for each SUNY hospital within State Finance Law, thereby allowing for increased transparency and accountability of each hospital's finances.

Although all three hospitals are owned and operated by SUNY, each hospital is unique and faces a different degree of financial challenges. For instance, it is widely known that SUNY Downstate has been experiencing significant financial troubles for more than a year Despite substantial state financial assistance in the current fiscal year and the ongoing implementation of a sustainability and restructuring plan, Downstate continues to experience financial losses, largely attributable to the ongoing costs associated with operating the Long Island College Hospital (LICH). As the Downstate sustainability plan submitted by SUNY in June assumed considerable savings resulting from exiting the operation of LICH, the inability of SUNY to exit operations - due to a court ruling mandating that LICH remain open - now threatens the financial viability of the entire SUNY system At a recent SUNY Board of Trustees meeting, it was announced that the cost of continuing to operate LICH could amount to a $290 increase in annual resident undergraduate tuition rates. This is not a cost that students and families should have to bear.

This bill requires that funds to be expended out of any of the SUNY hospital accounts come from self-generated revenues or the State's General Fund pursuant to a transfer. Therefore, SUNY would not have the authority to utilize tuition revenues, or other funding streams from its state-operated campuses to support the operation of its hospitals.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: There are no direct costs to the State associated with this bill.

EFFECTIVE DATE: Immediately, provided that sections two and three will take effect 30 days after becoming law.


Text

STATE OF NEW YORK ________________________________________________________________________ 6303 IN SENATE January 10, 2014 ___________
Introduced by Sens. LAVALLE, BOYLE, DeFRANCISCO, LIBOUS, MARCHIONE, RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, in relation to establishing the state university of New York upstate medical hospital operating account, the state university of New York downstate medical hospital operating account and the state university of New York Stony Brook medical hospital operating account and to amend the education law, in relation to apportionment to the state university; and to repeal subdivision 8-a of section 355 of the education law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The state finance law is amended by adding three new sections 99-v, 99-w and 99-x to read as follows: S 99-V. STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL HOSPITAL OPERAT- ING ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT TO BE KNOWN AS THE "STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL HOSPITAL OPERATING ACCOUNT." 2. SUCH ACCOUNT SHALL CONSIST OF (A) ANY MONIES RECEIVED BY STATE UNIVERSITY HEALTH CARE FACILITIES FROM FEES, CHARGES AND REIMBURSEMENT FROM ALL OTHER SOURCES, AND (B) ANY FUNDING FROM THE STATE GENERAL FUND PROVIDED TO THE STATE UNIVERSITY HEALTH CARE FACILITIES PURSUANT TO AN ANNUAL TRANSFER SO DESIGNATED AS BEING ASSOCIATED WITH THE STATE UNIVER- SITY HEALTH CARE FACILITY AT SYRACUSE. NOTWITHSTANDING THE PROVISIONS OF ANY LAW, RULE OR REGULATION TO THE CONTRARY, A PORTION OF SUCH MONIES CREDITED MAY BE TRANSFERRED TO A STATE UNIVERSITY ACCOUNT AS REQUESTED BY THE STATE UNIVERSITY CHANCELLOR OR HIS OR HER DESIGNEE. MONIES TO ESTABLISH RESERVES FOR LONG-TERM EXPENSES OF STATE UNIVERSITY HEALTH CARE FACILITIES AND TO FULFILL OBLIGATIONS REQUIRED FOR ANY CONTRACT FOR HEALTH CARE SERVICES AUTHORIZED PURSUANT TO SUBDIVISION SIXTEEN OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW MAY BE DESIGNATED BY THE STATE UNIVERSITY HEALTH CARE FACILITY AT SYRACUSE AS A RESERVE AND TRANSFERRED TO A SEPARATE CONTRACTUAL RESERVE ACCOUNT. THE AMOUNTS
IN SUCH ACCOUNTS SHALL BE AVAILABLE FOR USE IN ACCORDANCE WITH PARAGRAPH B OF SUBDIVISION FOUR AND SUBDIVISION EIGHT OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW. MONIES SHALL ONLY BE EXPENDED FROM THE STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL HOSPITAL OPERATING ACCOUNT AND THE CONTRACTUAL RESERVE ACCOUNT PURSUANT TO APPROPRIATION. NOTWITH- STANDING ANY OTHER PROVISION OF THIS CHAPTER, THE EDUCATION LAW OR ANY OTHER LAW TO THE CONTRARY, SUCH APPROPRIATION SHALL REMAIN IN FULL FORCE AND EFFECT FOR TWO YEARS FROM THE EFFECTIVE DATE OF THE APPROPRIATION ACT MAKING SUCH APPROPRIATION. MONIES SO TRANSFERRED MAY BE RETURNED TO THE STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL HOSPITAL OPERATING ACCOUNT; PROVIDED, HOWEVER, THAT FUNDS IN SUCH CONTRACTUAL RESERVE ACCOUNT MUST BE SUFFICIENT TO MEET THE OBLIGATIONS OF ALL SUCH CONTRACTS. 3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH C OF SUBDIVISION FOUR OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW, OR ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY, AND EXCEPT AS OUTLINED IN THIS SECTION, SUCH FUNDS CONTAINED WITHIN THE STATE UNIVERSITY OF NEW YORK UPSTATE MEDICAL HOSPITAL OPERATING ACCOUNT SHALL BE FOR THE OPERATIONS OF THE STATE UNIVERSITY HEALTH CARE FACILITY AT SYRACUSE ALONE AND MAY NOT BE SUPPLEMENTED BY MONIES CONTAINED WITHIN ANY OTHER STATE UNIVERSI- TY ACCOUNT. S 99-W. STATE UNIVERSITY OF NEW YORK DOWNSTATE MEDICAL HOSPITAL OPER- ATING ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT TO BE KNOWN AS THE "STATE UNIVERSITY OF NEW YORK DOWNSTATE MEDICAL HOSPITAL OPERATING ACCOUNT." 2. SUCH ACCOUNT SHALL CONSIST OF (A) ANY MONIES RECEIVED BY STATE UNIVERSITY HEALTH CARE FACILITIES FROM FEES, CHARGES AND REIMBURSEMENT FROM ALL OTHER SOURCES, AND (B) ANY FUNDING FROM THE STATE GENERAL FUND PROVIDED TO THE STATE UNIVERSITY HEALTH CARE FACILITIES PURSUANT TO AN ANNUAL TRANSFER SO DESIGNATED AS BEING ASSOCIATED WITH THE STATE UNIVER- SITY HEALTH CARE FACILITY AT BROOKLYN. NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRARY, A PORTION OF SUCH MONIES CREDITED MAY BE TRANSFERRED TO A STATE UNIVERSITY ACCOUNT AS REQUESTED BY THE STATE UNIVERSITY CHANCELLOR OR HIS OR HER DESIGNEE. MONIES TO ESTABLISH RESERVES FOR LONG-TERM EXPENSES OF STATE UNIVERSITY HEALTH CARE FACILI- TIES AND TO FULFILL OBLIGATIONS REQUIRED FOR ANY CONTRACT FOR HEALTH CARE SERVICES AUTHORIZED PURSUANT TO SUBDIVISION SIXTEEN OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW MAY BE DESIGNATED BY THE STATE UNIVERSITY HEALTH CARE FACILITY AT BROOKLYN AS A RESERVE AND TRANSFERRED TO A SEPARATE CONTRACTUAL RESERVE ACCOUNT. THE AMOUNTS IN SUCH ACCOUNTS SHALL BE AVAILABLE FOR USE IN ACCORDANCE WITH PARAGRAPH B OF SUBDIVISION FOUR AND SUBDIVISION EIGHT OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW. MONIES SHALL ONLY BE EXPENDED FROM THE STATE UNIVERSITY OF NEW YORK DOWNSTATE MEDICAL HOSPITAL OPERATING ACCOUNT AND THE CONTRACTUAL RESERVE ACCOUNT PURSUANT TO APPROPRIATION. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE EDUCATION LAW OR ANY OTHER LAW TO THE CONTRARY, SUCH APPROPRIATION SHALL REMAIN IN FULL FORCE AND EFFECT FOR TWO YEARS FROM THE EFFECTIVE DATE OF THE APPROPRIATION ACT MAKING SUCH APPROPRIATION. MONIES SO TRANSFERRED MAY BE RETURNED TO THE STATE UNIVERSITY OF NEW YORK DOWNSTATE MEDICAL HOSPI- TAL OPERATING ACCOUNT; PROVIDED, HOWEVER, THAT FUNDS IN SUCH CONTRACTUAL RESERVE ACCOUNT MUST BE SUFFICIENT TO MEET THE OBLIGATIONS OF ALL SUCH CONTRACTS. 3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH C OF SUBDIVISION FOUR OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW, OR ANY LAW,
RULE OR REGULATION TO THE CONTRARY, AND EXCEPT AS OUTLINED IN THIS SECTION, SUCH FUNDS CONTAINED WITHIN THE STATE UNIVERSITY OF NEW YORK DOWNSTATE MEDICAL HOSPITAL OPERATING ACCOUNT SHALL BE FOR THE OPERATIONS OF THE STATE UNIVERSITY HEALTH CARE FACILITY AT BROOKLYN ALONE AND MAY NOT BE SUPPLEMENTED BY MONIES CONTAINED WITHIN ANY OTHER STATE UNIVERSI- TY ACCOUNT. S 99-X. STATE UNIVERSITY OF NEW YORK STONY BROOK MEDICAL HOSPITAL OPERATING ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT TO BE KNOWN AS THE "STATE UNIVERSITY OF NEW YORK STONY BROOK MEDICAL HOSPITAL OPERATING ACCOUNT." 2. SUCH ACCOUNT SHALL CONSIST OF (A) ANY MONIES RECEIVED BY STATE UNIVERSITY HEALTH CARE FACILITIES FROM FEES, CHARGES AND REIMBURSEMENT FROM ALL OTHER SOURCES, AND (B) ANY FUNDING FROM THE STATE GENERAL FUND PROVIDED TO THE STATE UNIVERSITY HEALTH CARE FACILITIES PURSUANT TO AN ANNUAL TRANSFER SO DESIGNATED AS BEING ASSOCIATED WITH THE STATE UNIVER- SITY HEALTH CARE FACILITY AT STONY BROOK. NOTWITHSTANDING THE PROVISIONS OF ANY LAW, RULE OR REGULATION TO THE CONTRARY, A PORTION OF SUCH MONIES CREDITED MAY BE TRANSFERRED TO A STATE UNIVERSITY ACCOUNT AS REQUESTED BY THE STATE UNIVERSITY CHANCELLOR OR HIS OR HER DESIGNEE. MONIES TO ESTABLISH RESERVES FOR LONG-TERM EXPENSES OF STATE UNIVERSITY HEALTH CARE FACILITIES AND TO FULFILL OBLIGATIONS REQUIRED FOR ANY CONTRACT FOR HEALTH CARE SERVICES AUTHORIZED PURSUANT TO SUBDIVISION SIXTEEN OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW MAY BE DESIGNATED BY THE STATE UNIVERSITY HEALTH CARE FACILITY AT STONY BROOK AS A RESERVE AND TRANSFERRED TO A SEPARATE CONTRACTUAL RESERVE ACCOUNT. THE AMOUNTS IN SUCH ACCOUNTS SHALL BE AVAILABLE FOR USE IN ACCORDANCE WITH PARAGRAPH B OF SUBDIVISION FOUR AND SUBDIVISION EIGHT OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW. MONIES SHALL ONLY BE EXPENDED FROM THE STATE UNIVERSITY OF NEW YORK STONY BROOK MEDICAL HOSPITAL OPERATING ACCOUNT AND THE CONTRACTUAL RESERVE ACCOUNT PURSUANT TO APPROPRIATION. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE EDUCATION LAW OR ANY OTHER LAW TO THE CONTRARY, SUCH APPROPRIATION SHALL REMAIN IN FULL FORCE AND EFFECT FOR TWO YEARS FROM THE EFFECTIVE DATE OF THE APPROPRIATION ACT MAKING SUCH APPROPRIATION. MONIES SO TRANSFERRED MAY BE RETURNED TO THE UNIVERSITY OF NEW YORK STONY BROOK MEDICAL HOSPITAL OPERATING ACCOUNT; PROVIDED, HOWEVER, THAT FUNDS IN SUCH CONTRACTUAL RESERVE ACCOUNT MUST BE SUFFICIENT TO MEET THE OBLI- GATIONS OF ALL SUCH CONTRACTS. 3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH C OF SUBDIVISION FOUR OF SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW, OR ANY LAW, RULE OR REGULATION TO THE CONTRARY, AND EXCEPT AS OUTLINED IN THIS SECTION, SUCH FUNDS CONTAINED WITHIN THE STATE UNIVERSITY OF NEW YORK STONY BROOK MEDICAL HOSPITAL OPERATING ACCOUNT SHALL BE FOR THE OPER- ATIONS OF THE STATE UNIVERSITY HEALTH CARE FACILITY AT STONY BROOK ALONE AND MAY NOT BE SUPPLEMENTED BY MONIES CONTAINED WITHIN ANY OTHER STATE UNIVERSITY ACCOUNT. S 2. Subdivision 8-a of section 355 of the education law is REPEALED and a new subdivision 8-a is added to read as follows: 8-A. THE DIRECTOR OF THE BUDGET, IN CONSULTATION WITH THE COMMISSIONER OF HEALTH AND CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK, SHALL DEVELOP A METHODOLOGY FOR THE APPORTIONMENT OF GENERAL FUND MONIES TO BE ALLOCATED ANNUALLY TO EACH OF THE STATE UNIVERSITY OF NEW YORK HEALTH CARE FACILITIES TO REFLECT ONGOING SUPPORT FOR COSTS ATTRIBUTABLE TO THE STATE AGENCY STATUS OF SUCH HEALTH CARE FACILITIES. IN DEVELOPING SUCH METHODOLOGY, THE DIRECTOR OF THE BUDGET SHALL TAKE INTO CONSIDERATION
EACH FACILITY'S SHARE OF LABOR COSTS, INCLUDING FRINGE BENEFIT COSTS, AS WELL AS ANY APPLICABLE HOSPITAL INDUSTRY NORMS, WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, THE NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES, AND OUTPATIENT AND INPATIENT VOLUME. SUCH METHODOLOGY SHALL BE SUBMITTED TO THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND THE CHAIRS OF THE SENATE AND ASSEMBLY HIGHER EDUCATION COMMITTEES NO LATER THAN THIRTY DAYS PRIOR TO THE ALLOCATION OF MONIES TO EACH HEALTH CARE FACILITY. S 3. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the state comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, the outstanding balance of the state university income fund, state university hospitals income reimbursable account (22656) to the state university of New York upstate medical hospital operating account, the state university of New York downstate medical hospital operating account and the state university of New York Stony Brook medical hospi- tal operating account. Such transfer shall be done in direct proportion to the share of the revenues received by each hospital for the state university fiscal year ending on June 30, 2013. S 4. This act shall take effect immediately, provided that sections two and three of this act shall take effect on the thirtieth day after it shall have become a law.

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