Nullifies certain provisions which exempted certain contracts providing health related services from competitive bidding requirements; relates to enrollment broker and conflict-free evaluation services for the Medicaid program.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7176
SPONSOR: Paulin TITLE OF BILL:
An act relating to exemptions from certain provisions of the state
finance law and the economic development law
PURPOSE:
To repeal broad exemptions from normal procurement and contracting proc-
esses granted for certain Department of Health contracts.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: States that several sections of law granting exemptions from
normal procurement and contracting processes for certain Department of
Health contracts will no longer be in effect on or after the effective
date.
Section 2: Immediate effective date
JUSTIFICATION:
New York State has increasingly outsourced management of critical health
programs to third-party contractors. The largest, Maximus, holds
contracts for patient evaluation, enrollment management, customer
service, and other duties, with a combined value over $4 billion. This
is a nearly ten-fold increase from a decade ago. Contracts this large
should be subject to increased scrutiny. However, several rounds of
last-minute budget demands by the Executive (2016, 2018, and 2020) in
fact exempted these contracts from standard procurement law, including
avoiding competitive bidding and reducing the Comptroller's usual over-
sight level.
This bill would end the exemptions. It would not disrupt existing
programs and is not intended to cancel or require re-procurement of
existing Contracts. Nor would it disallow DOH from potentially extending
or modifying them. It would simply require that any such extensions or
modifications be subject to all applicable State laws without the
exemptions previously granted for these contracts.
PRIOR LEGISLATIVE HISTORY:
2022: Reported to Ways & Means
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Immediate
STATE OF NEW YORK
________________________________________________________________________
7176
2023-2024 Regular Sessions
IN ASSEMBLY
May 12, 2023
___________
Introduced by M. of A. PAULIN, COLTON -- read once and referred to the
Committee on Health
AN ACT relating to exemptions from certain provisions of the state
finance law and the economic development law
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 26 of part B of chapter 59 of the laws of 2016,
2 section 8 of part C of chapter 57 of the laws of 2018, sections 11, 12,
3 20 and 21 of part MM of chapter 56 of the laws of 2020 shall be of no
4 force or effect on or after the effective date of this section.
5 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11278-01-3
