Relates to contracts for joint or group purchasing of goods and services for state university health care facilities.
TITLE OF BILL: An act to amend the education law, in relation to contracts for joint or group purchasing of goods or services for state university health care facilities
PURPOSE: To provide that in the event State University health care facilities purchase goods or services 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 and services, 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. 4C (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 hospitalincluding 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 or 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: New legislation.
FISCAL IMPLICATIONS: Savings in expenditures for goods and services procured for State University health care facilities.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 7065 IN SENATE April 26, 2012 ___________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, in relation to contracts for joint or group purchasing of goods or services 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 OR SERVICES, WHICH ARRANGEMENTS AND THE PURCHASING OF GOODS OR SERVICES 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 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.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15535-01-2 S. 7065 2
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.