Relates to funds concerning state university health care facilities; prohibits the use of such funds for payment of certain debts related to a state university health care facility.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1404
SPONSOR: Hunter
 
TITLE OF BILL:
An act to amend the education law, in relation to funds concerning state
university health care facilities
 
PURPOSE:
To provide debt service relief for SUNY's teaching hospitals.
 
SUMMARY OF PROVISIONS:
Section 1 prohibits the transfer of funds from the State University New
York to the general fund or any other fund within in the auspices of the
state comptroller for the purposes of prepayment or repayment of debt
service costs related to a State university health care facility.
Section 2: effective date.
 
JUSTIFICATION:
SUNY's teaching hospitals- SUNY Downstate Medical Center, Stony Brook
University Hospital, and Upstate University Hospital- are safety-net
hospitals in their communities and face extraordinary challenges while
serving patients and training the health care providers of the future.
All three institutions serve a disproportionate percentage of patients
on Medicaid and Medicare, and their medical professionals and staff
stepped up during the worst of the COVID19 pandemic, from providing
frontline emergency care to communities at the epicenter of the crisis
to developing one of the most accurate saliva tests in the nation.
Unlike other SUNY and State-owned facilities, SUNY's hospitals must pay
the debt service on capital projects from their operations. The State
taking on the debt service at these teaching hospitals would provide
parity for SUNY teaching hospitals and allow for reinvestment into the
hospitals' workforce and facilities, thus improving their ability to
meet patient needs.
 
LEGISLATIVE HISTORY:
2021-22: A9084
 
FISCAL IMPLICATIONS:
Approximately $67,000,000.
 
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
1404
2023-2024 Regular Sessions
IN ASSEMBLY
January 17, 2023
___________
Introduced by M. of A. HUNTER, LUPARDO -- read once and referred to the
Committee on Higher Education
AN ACT to amend the education law, in relation to funds concerning state
university health care facilities
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 8-a of section 355 of the education law, as
2 amended by section 8 of part Q of chapter 56 of the laws of 2013, is
3 amended to read as follows:
4 8-a. All monies received by state university health care facilities
5 from fees, charges, and reimbursement and from all other sources shall
6 be credited to a state university health care account in a fund to be
7 designated by the state comptroller. Notwithstanding the provision of
8 any law, rule or regulation to the contrary, a portion of such monies
9 credited may be transferred to a state university account as requested
10 by the state university chancellor or his or her designee. Monies to
11 establish reserves for long-term expenses of state university health
12 care facilities and to fulfill obligations required for any contract for
13 health care services authorized pursuant to subdivision sixteen of this
14 section may be designated by the state university as a reserve and
15 transferred to a separate contractual reserve account. The amounts in
16 such accounts shall be available for use in accordance with paragraph b
17 of subdivision four and subdivision eight of this section. Monies shall
18 only be expended from the state university health care account and the
19 contractual reserve account pursuant to appropriation. Notwithstanding
20 any provision of this chapter, the state finance law or any other law to
21 the contrary, such appropriations shall remain in full force and effect
22 for two years from the effective date of the appropriation act making
23 the appropriation. Monies so transferred may be returned to the state
24 university health care account; provided, however, that funds in such
25 contractual reserve account must be sufficient to meet the obligations
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05706-01-3
A. 1404 2
1 of all such contracts. Notwithstanding any other law, rule, or regu-
2 lation to the contrary, no state agency or state official or employee
3 acting in their official capacity, may transfer, loan, or otherwise
4 appropriate any income or funds impacting, involving, generated by, or
5 appropriated for any component of the state university, or community
6 colleges as defined by section sixty-three hundred one of this chapter
7 operating under the program of the state university, including such
8 income or funds impacting, involving, generated by, or appropriated for
9 a state university health care facility, to the general fund or any
10 other fund or account held within the auspices of the comptroller of the
11 state of New York, for prepayment, repayment, or otherwise recompense
12 for debt service costs related to a state university health care facili-
13 ty. The provisions of this subdivision shall supersede any other gener-
14 al, special or local law inconsistent therewith notwithstanding, unless
15 this section is expressly and specifically referred to in such other
16 general, special or local law.
17 § 2. This act shall take effect immediately.