STATE OF NEW YORK ________________________________________________________________________ 9103 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 AN ACT authorizing the lease of certain lands located at the State University of New York at Stony Brook 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 26 its obligations, further its legislatively mandated mission of research, 27 education and provision of health services, enhance access to care for EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16342-02-8S. 9103 2 1 the community and broaden the reach of SBUH and the University well 2 beyond its current area. 3 § 2. Notwithstanding any other law to the contrary, the state univer- 4 sity trustees are hereby authorized and empowered, without any public 5 bidding, to lease and otherwise contract to make available to The South- 6 ampton Hospital Association, a not-for-profit corporation (the "Ground 7 Lessee"), a portion of the lands of the University on its Southampton 8 campus, being one of two separate parcels of land, one approximately 15 9 acres and the other approximately 8.9 acres, for an aggregate total of 10 approximately 23.9 acres generally described in this act for the purpose 11 of constructing and operating New SH. Such lease or contract shall be 12 for a period not exceeding 100 years without any fee simple conveyance 13 and otherwise upon terms and conditions determined by such trustees, 14 subject to the approval of the director of the division of the budget, 15 the attorney general and the state comptroller. In the event that the 16 real property that is the subject of such lease or contract shall cease 17 to be used for the purpose described in this act, such lease or contract 18 shall immediately terminate and the real property and any improvements 19 thereon shall revert to the state university of New York. Any lease or 20 contract entered into pursuant to this act shall provide that the real 21 property that is the subject of such lease or contract and any improve- 22 ments thereon shall revert to the state university of New York on the 23 expiration of such contract or lease. 24 § 3. Any contract or lease entered into pursuant to this act shall be 25 deemed to be a state contract for purposes of article 15-A of the execu- 26 tive law, and any contractor, subcontractor, lessee or sublessee enter- 27 ing into such contract or lease for the construction, demolition, recon- 28 struction, excavation, rehabilitation, repair, renovation, alteration or 29 improvement authorized pursuant to this act shall be deemed a state 30 agency for the purposes of article 15-A of the executive law and subject 31 to the provisions of such article. 32 § 4. Notwithstanding any general, special or local law or judicial 33 decision to the contrary, all work performed on a project authorized by 34 this act where all or any portion thereof involves a lease or agreement 35 for construction, demolition, reconstruction, excavation, rehabili- 36 tation, repair, renovation, alteration or improvement shall be deemed 37 public work and shall be subject to and performed in accordance with the 38 provisions of article 8 of the labor law to the same extent and in the 39 same manner as a contract of the state, and compliance with all the 40 provisions of article 8 of the labor law shall be required of any 41 lessee, sublessee, contractor or subcontractor on the project, including 42 the enforcement of prevailing wage requirements by the fiscal officer as 43 defined in paragraph e of subdivision 5 of section 220 of the labor law 44 to the same extent as a contract of the state. 45 § 5. Notwithstanding any law, rule or regulation to the contrary, the 46 state university of New York on the site of Stony Brook University 47 Hospital in Stony Brook, New York, shall not contract out to the South- 48 ampton Hospital Association or any subsidiary for the instruction or any 49 pedagogical functions or services, maintenance, operation or any admin- 50 istrative services, or similar professional services currently being 51 performed by state employees at Stony Brook Hospital. All such functions 52 and services shall be performed by state employees pursuant to the civil 53 service law. Nothing in this act shall result in the permanent displace- 54 ment of any currently employed state worker or the loss of position 55 (including partial displacement such as the permanent reduction in the 56 hours of non-overtime, wages or employment benefits), or result in theS. 9103 3 1 impairment of existing contracts for services or collective bargaining 2 rights pursuant to existing agreements. All positions currently at Stony 3 Brook University Hospital in the unclassified or classified service of 4 the civil service law shall remain in the classified or unclassified 5 service. Except in cases of medical exigency or for training purposes, 6 the Stony Brook University Hospital shall not have any employees working 7 in the hospital facility based in Stony Brook, New York as employees of 8 Staffco of Brooklyn, LLC. No functions, services or work currently 9 performed by classified employees of Stony Brook University Hospital at 10 the site of Stony Brook University Hospital in Stony Brook, New York 11 shall be transferred to Staffco of Brooklyn, LLC or the Research Founda- 12 tion of SUNY during the term of the IAA as defined in section one of 13 this act. 14 Except as otherwise contemplated by the IAA as defined in section one 15 of this act, or as permitted by relevant collective bargaining agree- 16 ments no services or work on the property described in this act which is 17 subject to the ground lease authorized hereby currently performed by 18 public employees or future work that is the same in scope and nature to 19 the work being currently performed by public employees shall be 20 contracted out or privatized by the Stony Brook University Hospital. 21 Except as otherwise contemplated by the IAA as defined in section one 22 of this act, all siting of health services at Stony Brook Southampton 23 Hospital shall be consistent with the certificate of need process estab- 24 lished by the department of health. 25 Unless permitted by the IAA and section 99-y of the state finance law, 26 there shall be no commingling of any revenue or expenses associated with 27 a new hospital facility on Stony Brook University's Southampton Campus, 28 or Staffco of Brooklyn, LLC with expenses and revenue of the state 29 university of New York or the State University of New York at Stony 30 Brook or Stony Brook University Hospital. 31 Nothing in this act shall be deemed to waive or impair any rights or 32 benefits of employees of the state university of New York that otherwise 33 would be available to them pursuant to the terms of agreements between 34 the certified representatives of such employees and the state of New 35 York pursuant to article 14 of the civil service law. 36 § 6. On or before November fifteenth of each year, Stony Brook Univer- 37 sity shall provide documents in its possession detailing bargaining unit 38 titles, positions and salaries of employees of Staffco of Brooklyn, LLC 39 that are employed by Southampton Hospital or Stony Brook University 40 Hospital pursuant to the IAA defined in section one of this act, to the 41 chairs of the higher education committees in both the senate and assem- 42 bly. Such documents shall not disclose names or other personal identify- 43 ing information of such employees and may be redacted to remove any such 44 information. 45 § 7. 1. For the purposes of this act: (a) "project" shall mean work at 46 the property authorized by this act to be leased to The Southampton 47 Hospital Association as described in section twelve of this act that 48 involves the design, construction, reconstruction, demolition, excavat- 49 ing, rehabilitation, repair, renovation, alteration or improvement of 50 New SH. 51 (b) "project labor agreement" shall mean a pre-hire collective 52 bargaining agreement between a contractor and a labor organization, 53 establishing the labor organization as the collective bargaining repre- 54 sentative for all persons who will perform work on the project, and 55 which provides that only contractors and subcontractors who sign a pre-S. 9103 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 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.