Section 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.
    (ii) The commissioner shall provide the chair of  the  senate  finance
  committee  and the assembly ways and means committee and the director of
  the budget with quarterly reports of all transfers or interchanges  made
  by  the  commissioner  pursuant  to this section on the fifteenth day of
  July, October, January and April of each  year,  with  such  reports  to
  include  the  program  impact  of  each  transfer  or  interchange.  The
  allocation of lump sum appropriations from a fund or funds made  to  the
  department  for  later  distribution to the institutional program in the
  department or the allocation of lump  sum  appropriations  made  to  all
  state  departments  and  agencies  for  later  allocation  for  specific
  programs or purposes shall not  be  deemed  to  be  part  of  any  total
  increase or decrease authorized by this section.
    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, 2012
    (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.