STATE OF NEW YORK
        ________________________________________________________________________
                                         9103--A
                    IN SENATE
                                      June 17, 2018
                                       ___________
        Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
          printed to be  committed  to  the  Committee  on  Rules  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
        AN  ACT  authorizing  the  lease  of  certain lands located at the State
          University of New York at Stony Brook; and providing for the repeal of
          such provisions upon expiration thereof
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Legislative findings. The legislature finds that as part of
     2  the Amended and Restated Integration and Affiliation Agreement, dated as
     3  of  April  7, 2017 (the "IAA"), between The Southampton Hospital Associ-
     4  ation ("SHA") and the state university of New York  acting  through  its
     5  Stony  Brook University Hospital ("SBUH"), the parties committed to work
     6  together to construct, if feasible, a new  hospital  facility  on  Stony
     7  Brook  University's  (the "University") Southampton campus ("New SH") to
     8  replace the current SHA facilities, which are currently leased  to  SBUH
     9  which  uses  them to operate a hospital in Southampton, New York. New SH
    10  is a key part of the strategy for the growth of Stony Brook Medicine and
    11  University as a regional center of health care and a national leader  in
    12  innovation and discovery. It will be a state of the art facility located
    13  on  the  Southampton  campus that replaces an aging plant located in the
    14  midst of Southampton village. New SH will serve as the focus of  innova-
    15  tive  hospital, community, and population based health care for the East
    16  End and beyond. It will also be an anchor for  the  development  of  the
    17  Southampton  campus as a site of advanced technology, clinical research,
    18  and education for the health sciences and the general health care commu-
    19  nity. In addition to its proximity to other health science programs, the
    20  new location will enhance access to care for the community  and  broaden
    21  the reach of Stony Brook Medicine well beyond its current area.
    22    The  legislature further finds that granting the trustees of the state
    23  university of New York the authority and power to  lease  and  otherwise
    24  contract  to  make available grounds and facilities of the campus of the
    25  State University of New York at Stony Brook will enable SBUH to  fulfill
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16342-03-8

        S. 9103--A                          2
     1  its obligations, further its legislatively mandated mission of research,
     2  education  and  provision of health services, enhance access to care for
     3  the community and broaden the reach of  SBUH  and  the  University  well
     4  beyond its current area.
     5    §  2. Notwithstanding any other law to the contrary, the state univer-
     6  sity trustees are hereby authorized and empowered,  without  any  public
     7  bidding, to lease and otherwise contract to make available to The South-
     8  ampton  Hospital  Association, a not-for-profit corporation (the "Ground
     9  Lessee"), a portion of the lands of the University  on  its  Southampton
    10  campus,  being one of two separate parcels of land, one approximately 15
    11  acres and the other approximately 8.9 acres, for an aggregate  total  of
    12  approximately 23.9 acres generally described in this act for the purpose
    13  of  constructing  and operating New SH.  Such lease or contract shall be
    14  for a period not exceeding 100 years without any fee  simple  conveyance
    15  and  otherwise  upon  terms  and conditions determined by such trustees,
    16  subject to the approval of the director of the division of  the  budget,
    17  the  attorney  general  and the state comptroller. In the event that the
    18  real property that is the subject of such lease or contract shall  cease
    19  to be used for the purpose described in this act, such lease or contract
    20  shall  immediately  terminate and the real property and any improvements
    21  thereon shall revert to the state university of New York. Any  lease  or
    22  contract  entered  into pursuant to this act shall provide that the real
    23  property that is the subject of such lease or contract and any  improve-
    24  ments  thereon  shall  revert to the state university of New York on the
    25  expiration of such contract or lease.
    26    § 3. Any contract or lease entered into pursuant to this act shall  be
    27  deemed to be a state contract for purposes of article 15-A of the execu-
    28  tive  law, and any contractor, subcontractor, lessee or sublessee enter-
    29  ing into such contract or lease for the construction, demolition, recon-
    30  struction, excavation, rehabilitation, repair, renovation, alteration or
    31  improvement authorized pursuant to this act  shall  be  deemed  a  state
    32  agency for the purposes of article 15-A of the executive law and subject
    33  to the provisions of such article.
    34    §  4.  Notwithstanding  any  general, special or local law or judicial
    35  decision to the contrary, all work performed on a project authorized  by
    36  this  act where all or any portion thereof involves a lease or agreement
    37  for  construction,  demolition,  reconstruction,  excavation,  rehabili-
    38  tation,  repair,  renovation,  alteration or improvement shall be deemed
    39  public work and shall be subject to and performed in accordance with the
    40  provisions of article 8 of the labor law to the same extent and  in  the
    41  same  manner  as  a  contract  of the state, and compliance with all the
    42  provisions of article 8 of the  labor  law  shall  be  required  of  any
    43  lessee, sublessee, contractor or subcontractor on the project, including
    44  the enforcement of prevailing wage requirements by the fiscal officer as
    45  defined  in paragraph e of subdivision 5 of section 220 of the labor law
    46  to the same extent as a contract of the state.
    47    § 5. Notwithstanding any law, rule or regulation to the contrary,  the
    48  state  university  of  New  York  on  the site of Stony Brook University
    49  Hospital in Stony Brook, New York, shall not contract out to the  South-
    50  ampton Hospital Association or any subsidiary for the instruction or any
    51  pedagogical  functions or services, maintenance, operation or any admin-
    52  istrative services, or similar  professional  services  currently  being
    53  performed by state employees at Stony Brook Hospital. All such functions
    54  and services shall be performed by state employees pursuant to the civil
    55  service law. Nothing in this act shall result in the permanent displace-
    56  ment  of  any  currently  employed  state worker or the loss of position

        S. 9103--A                          3
     1  (including partial displacement such as the permanent reduction  in  the
     2  hours  of  non-overtime, wages or employment benefits), or result in the
     3  impairment of existing contracts for services or  collective  bargaining
     4  rights pursuant to existing agreements. All positions currently at Stony
     5  Brook  University  Hospital in the unclassified or classified service of
     6  the civil service law shall remain in  the  classified  or  unclassified
     7  service.   Except in cases of medical exigency or for training purposes,
     8  the Stony Brook University Hospital shall not have any employees working
     9  in the hospital facility based in Stony Brook, New York as employees  of
    10  Staffco  of  Brooklyn,  LLC.  No  functions,  services or work currently
    11  performed by classified employees of Stony Brook University Hospital  at
    12  the  site  of  Stony  Brook University Hospital in Stony Brook, New York
    13  shall be transferred to Staffco of Brooklyn, LLC or the Research Founda-
    14  tion of SUNY during the term of the IAA as defined  in  section  one  of
    15  this act.
    16    Except  as otherwise contemplated by the IAA as defined in section one
    17  of this act, or as permitted by relevant  collective  bargaining  agree-
    18  ments no services or work on the property described in this act which is
    19  subject  to  the  ground  lease authorized hereby currently performed by
    20  public employees or future work that is the same in scope and nature  to
    21  the  work  being  currently  performed  by  public  employees  shall  be
    22  contracted out or privatized by the Stony Brook University Hospital.
    23    Except as otherwise contemplated by the IAA as defined in section  one
    24  of  this  act,  all siting of health services at Stony Brook Southampton
    25  Hospital shall be consistent with the certificate of need process estab-
    26  lished by the department of health.
    27    Unless permitted by the IAA and section 99-y of the state finance law,
    28  there shall be no commingling of any revenue or expenses associated with
    29  a new hospital facility on Stony Brook University's Southampton  Campus,
    30  or  Staffco  of  Brooklyn,  LLC  with  expenses and revenue of the state
    31  university of New York or the State University  of  New  York  at  Stony
    32  Brook or Stony Brook University Hospital.
    33    Nothing  in  this act shall be deemed to waive or impair any rights or
    34  benefits of employees of the state university of New York that otherwise
    35  would be available to them pursuant to the terms of  agreements  between
    36  the  certified  representatives  of  such employees and the state of New
    37  York pursuant to article 14 of the civil service law.
    38    § 6. On or before November fifteenth of each year and subject  to  the
    39  New York state freedom of information law, Stony Brook University Hospi-
    40  tal  shall  provide  a list indicating bargaining unit titles, positions
    41  and salaries of employees of Staffco of Brooklyn, LLC who are working at
    42  Stony Brook by Southampton Hospital, to the chairs of the higher  educa-
    43  tion  committees  in  both  the senate and assembly. Such list shall not
    44  disclose names or other personal identifying information which shall  be
    45  redacted, if necessary.
    46    § 7. 1. For the purposes of this act: (a) "project" shall mean work at
    47  the  property  authorized  by  this  act to be leased to The Southampton
    48  Hospital Association as described in section twelve  of  this  act  that
    49  involves  the design, construction, reconstruction, demolition, excavat-
    50  ing, rehabilitation, repair, renovation, alteration  or  improvement  of
    51  New SH.
    52    (b)  "project  labor  agreement"  shall  mean  a  pre-hire  collective
    53  bargaining agreement between a  contractor  and  a  labor  organization,
    54  establishing  the labor organization as the collective bargaining repre-
    55  sentative for all persons who will perform  work  on  the  project,  and
    56  which  provides that only contractors and subcontractors who sign a pre-

        S. 9103--A                          4
     1  negotiated agreement with the labor  organization  can  perform  project
     2  work.
     3    2.  Notwithstanding  the  provisions of any general, special, or local
     4  law or judicial decision to the contrary: (a) The  Southampton  Hospital
     5  Association  may  require  a contractor awarded a contract, subcontract,
     6  lease, grant, bond, covenant or other agreement for a project  to  enter
     7  into  a  project  labor  agreement during and for the work involved with
     8  such project when such requirement is part of  Ground  Lessee's  request
     9  for  proposals for the project and when the State University of New York
    10  at Stony Brook determines that the record  supporting  the  decision  to
    11  enter  into  such an agreement establishes that the interests underlying
    12  the competitive bidding laws are best met by requiring a  project  labor
    13  agreement  including  obtaining  the  best  work  at the lowest possible
    14  price; preventing favoritism, fraud and corruption; the impact of delay;
    15  the possibility of cost savings; and any local history of labor unrest.
    16    (b) If the State University of  New  York  at  Stony  Brook  does  not
    17  require  a  project labor agreement, then any contractor, subcontractor,
    18  lease, grant, bond, covenant or other agreements for a project shall  be
    19  awarded pursuant to section 135 of the state finance law.
    20    § 8. Without limiting the determination of the terms and conditions of
    21  such  contracts  or  leases,  such  terms and conditions may provide for
    22  leasing,  subleasing,  construction,   reconstruction,   rehabilitation,
    23  improvement,  operation  and management of and provision of services and
    24  assistance and the granting of licenses, easements  and  other  arrange-
    25  ments  with  regard to such grounds and facilities by the Ground Lessee,
    26  and parties contracting with the Ground Lessee, and, in connection  with
    27  such  activities,  the obtaining of funding or financing, whether public
    28  or private, unsecured or secured (including, but not limited to, secured
    29  by leasehold mortgages and assignments of  rents  and  leases),  by  the
    30  Ground  Lessee  and  parties  contracting with the Ground Lessee for the
    31  purposes of completing the project described in this act.
    32    § 9. Such lease shall  include  an  indemnity  provision  whereby  the
    33  lessee  or sublessee promises to indemnify, hold harmless and defend the
    34  lessor against all claims, suits, actions, and liability to all  persons
    35  on  the leased premises, including tenant, tenant's agents, contractors,
    36  subcontractors, employees, customers, guests,  licensees,  invitees  and
    37  members of the public, for damage to any such person's property, whether
    38  real  or  personal, or for personal injuries arising out of tenant's use
    39  or occupation of the demised premises.
    40    § 10. Any contracts entered into pursuant  to  this  act  between  the
    41  Ground  Lessee  and  parties contracting with the Ground Lessee shall be
    42  awarded by a competitive process.
    43    § 11. The state university of New York shall not lease lands described
    44  in this act unless any such lease shall be executed within ten years  of
    45  the effective date of this act.
    46    §  12.  The property authorized by this act to be leased to The South-
    47  ampton Hospital Association is generally described as one of two parcels
    48  of real property with improvements thereon  consisting  of  a  total  of
    49  approximately  23.9 acres situated on the campus of the State University
    50  of New York at Stony Brook. The  description  in  this  section  of  the
    51  parcels  to  be made available pursuant to this act is not meant to be a
    52  legal description, but is intended only to identify the parcels:
    53    Parcel 1
    54    Beginning at a point formed by the intersection of the southerly  line
    55  of  M.T.A.  (Long  Island  Rail  Road) and the westerly line of Tuckahoe
    56  Road;

        S. 9103--A                          5
     1    Running thence South 32° 27' 30" West for a distance of 710.08 feet to
     2  a point;
     3    Running thence North 83° 56' 30" West for a distance of 555.33 feet to
     4  a point;
     5    Running thence South 89° 10' 00" West for a distance of 321.40 feet to
     6  a point;
     7    Running thence North 10° 35' 30" East for a distance of 692.66 feet to
     8  a point;
     9    Running  thence  South 83° 08' 20" East for a distance of 1135.50 feet
    10  to the point or place of beginning.
    11    Containing 653,704 sq. ft. (15.007 acres), more or less.   Subject  to
    12  all existing easements and restrictions of record.
    13    Parcel 2
    14    Beginning  at a point formed by the intersection of the southerly line
    15  of M.T.A. (Long Island Rail Road) and the easterly widened line of Tuck-
    16  ahoe Road;
    17    Running thence South 81° 38' 20" East for a distance of 751.98 feet to
    18  a point;
    19    Running thence South 15° 10' 59" West for a distance of 620.58 feet to
    20  a point;
    21    Running thence North 66° 08' 50" West for a distance of 342.64 feet to
    22  a point;
    23    Running thence North 55° 07' 30" West for a distance of 550.64 feet to
    24  a point;
    25    Running thence North 33° 57' 30" East for a distance of 219.18 feet to
    26  a point;
    27    Running thence South 57° 32' 30" East for a distance of 10.00 feet  to
    28  a point;
    29    Running  thence North 33° 57' 30" East for a distance of 94.79 feet to
    30  the point or place of beginning.
    31    Containing 389,465 sq. ft. (8.941 acres), more or less. Subject to all
    32  existing easements and restrictions of record.
    33    § 13. Insofar as the provisions of this act are inconsistent with  the
    34  provisions of any law, general, special or local, the provisions of this
    35  act shall be controlling.
    36    §  14.  This act shall take effect immediately; provided, however, the
    37  report required pursuant to section six of this act shall take effect on
    38  November fifteenth next succeeding  the  opening  of  the  new  hospital
    39  facility  on the land that is the subject of the ground lease authorized
    40  by this act; and provided further that, if the lease authorized by  this
    41  act  has  not  been  yet  executed,  this act shall expire and be deemed
    42  repealed either:
    43    (a) ten years after the effective date of this act; or
    44    (b) the date by which Stony Brook University, in its sole  discretion,
    45  determines that such lease is no longer viable and notifies the legisla-
    46  tive  bill drafting commission upon the occurrence of such determination
    47  in order that the commission may maintain an accurate and timely  effec-
    48  tive data base of the official text of the laws of the state of New York
    49  in  furtherance  of  effectuating  the  provisions  of section 44 of the
    50  legislative law and section 70-b of the public officers law.