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New York New York City health and hospitals corporation act 1016/69

Chapter 1016 of the laws of 1969
    NEW YORK CITY HEALTH AND HOSPITALS CORPORATION ACT
  Section 1.   Short title.
          2.   Declaration of policy and statement of purposes.
          3.   Definitions.
          4.   New York city health and hospitals corporation.
          4-a.
          5.   General powers of the corporation.
          6.   Relationship  to  the  city;  agreements  concerning health
                   facilities.
          7.   Conveyance of property by  the  city  to  the  corporation;
                   acquisition of property by the city.
          7-a. Relationship  with  the  New  York  state  and  the housing
                   finance agency health  and  mental  hygiene  facilities
                   improvement corporation.
          8.   Contracts.
          9.   Personnel  administration;  collective  bargaining; pension
                   and retirement benefits; article fourteen civil service
                   law; paragraph two hundred twenty labor law;  personnel
                   review board.
          10.  Officers   and   employees   not   to   be   interested  in
                   transactions.
          11.  Moneys of the corporation.
          12.  Issuance of bonds and notes by the corporation.
          13.  Reserve fund.
          14.  Agreement of the state.
          15.  State and city not liable on bonds and notes.
          16.  City's right to require redemption of bonds.
          17.  Remedies of holders of bonds and notes.
          18.  Assistance to the corporation.
          19.  Exemption from taxation.
          20.  Actions by and against the corporation.
          21.  Bonds and notes as legal investments.
          22.  Annual and special reports.
          23.  Act  not  affected   if   in   part   unconstitutional   or
                   ineffective.
          24.  Inconsistent provisions of other laws superseded.
          25.  Termination of the corporation.
    Section  1.  Short  title. This act may be cited as the "New York city
  health and hospitals corporation act".
    § 2. Declaration of policy and statement of  purposes.  It  is  hereby
  found,  declared  and  determined  that  the  provision  and delivery of
  comprehensive care and treatment of the ill and  infirm,  both  physical
  and  mental,  are  of  vital  and paramount concern and essential to the
  protection and promotion of  the  health,  safety  and  welfare  of  the
  inhabitants of the state of New York and the city of New York.
    There  are  serious  shortages  in  the number of personnel adequately
  trained and qualified to provide the quality care and treatment  needed.
  A  myriad  of complex and often deleterious constraints and restrictions
  place a harmful burden on the  delivery  of  such  care  and  treatment.
  Technological  advances  have  been such that portions of the health and
  medical services now delivered by the city are not as advanced  as  they
  should   be.   A  system  permitting  legal,  financial  and  managerial
  flexibility is required for the provision and delivery of high  quality,
  dignified  and  comprehensive care and treatment for the ill and infirm,
  particularly to those who can least afford such services.
    It is further found, declared and determined that hospitals and  other
  health  facilities  of  the  city are of vital and paramount concern and

  essential in providing comprehensive care and treatment for the ill  and
  infirm,  both  physical and mental, and are thus vital to the protection
  and the promotion of the health, welfare and safety of the people of the
  state of New York and the city of New York.
    There  are  inadequate  general and specialized health care facilities
  including but not limited to nursing homes and related laboratories  and
  ambulatory  care  clinics  and centers and diagnostic treatment centers.
  The inadequacy and shortage  of  health  facilities  derives  from  such
  factors  among  others  as  the rapid technological changes and advances
  taking place in the medical  field.  These  changes  and  advances  have
  created  the  need  for substantial structural and functional changes in
  existing facilities. Many of the  health  facilities  of  the  city  are
  overcrowded.  Buildings  are  deteriorating  and  many  suffer harm as a
  result  of  piecemeal  and  uncoordinated  additions.   The   facilities
  available for education, research and development are inadequate to meet
  the   demands   of   the  medical  field.  Procedures  inherent  in  the
  administration of health and medical services as heretofore  established
  obstruct and impair efficient operation of health and medical resources.
    It  is  found, declared and determined that in order to accomplish the
  purposes herein recited,  to  provide  the  needed  health  and  medical
  services  and  health  facilities,  a  public benefit corporation, to be
  known as the New York City health and hospital  corporation,  should  be
  created   to  provide  such  health  and  medical  services  and  health
  facilities and to otherwise carry out such purposes; that  the  creation
  and  operation of the New York city health and hospitals corporation, as
  hereinafter provided, is in all respects for the benefit of  the  people
  of  the  state  of New York and of the city of New York, and is a state,
  city and public purpose; and that the exercise by  such  corporation  of
  the functions, powers and duties as hereinafter provided constitutes the
  performance of an essential public and governmental function.
    §  3.  Definitions.  As  used  or  referred  to  in this act, unless a
  different meaning clearly appears from the text:
    1. "Administrator" or "Health service administrator"  shall  mean  the
  administrator of health services of the city of New York.
    2.  "Administration"  shall mean the health services administration of
  the city of New York.
    3. "Board" shall mean the board of directors  of  the  corporation  as
  such board is constituted pursuant to section four of this act.
    4.  "Bonds"  and  "notes"  shall  mean  bonds  and notes respectively,
  authorized and issued by the corporation pursuant to this act.
    5. "City" shall mean the city of New York.
    6. "Comptroller" shall mean the comptroller of the city of New York.
    7. "Construction"  shall  mean  site  acquisition,  planning,  design,
  erection, building, alteration, reconstruction, renovation, improvement,
  extension,  enlargement,  replacement or modification and the inspection
  or modification thereof.
    8. "Corporation" shall mean the public benefit corporation created  by
  section four of this act.
    9.  "Corporation  counsel"  shall  mean the corporation counsel of the
  city of New York.
    10. "Council" shall mean the agency or body designated as  the  health
  planning agency pursuant to article twenty-nine of the public health law
  or  public law 89-749 and which is authorized to approve construction of
  health facilities in the city of New York.
    11. "Director of management and budget" shall  mean  the  director  of
  management and budget of the city of New York.
    12.  "Health facility" shall mean a building, structure or unit or any
  improvement  to  real  property,  including  all  necessary  and   usual

  attendant  and related equipment, facilities or fixtures, or any part or
  parts thereof, or any combination or  combinations  thereof,  including,
  but   not   limited   to,  a  general  hospital,  psychiatric  hospital,
  tuberculosis  hospital,  ambulatory  clinic  or  center, chronic disease
  hospital, nursing home, extended-care facility, dispensary or laboratory
  or any other related facility, or  any  combination  of  the  foregoing,
  constructed,  acquired  or  otherwise  provided by or for the use of the
  corporation or the city in providing health and medical services to  the
  public.
    13.  "Health  and  medical  services"  shall  mean  items  or services
  provided by or under the supervision of  a  physician  or  other  person
  trained  or licensed to render health care necessary for the prevention,
  care, diagnosis or treatment of human disease, pain,  injury,  deformity
  or  other  physical  or  mental condition including, but not limited to,
  pre-admission, out-patient, in-patient  and  post-discharge  care,  home
  care,  physicians'  care, nursing care, medical care provided by interns
  or residents-in-training and other paramedical care, ambulance  service,
  bed  and  board,  drugs,  biologicals,  supplies, appliances, equipment,
  laboratory services and x-ray, radium and radio-active-isotope therapy.
    14. "Mayor" shall mean the mayor of the city of New York.
    15. "Real property"  shall  mean  lands,  structures,  franchises  and
  interests  in  land,  waters, lands under water, riparian rights and air
  rights, and any and all things and rights usually  included  within  the
  said  term  and  includes not only fees simple absolute but also any and
  all lesser interests such as  easements,  rights-of-way,  uses,  leases,
  licenses  and  all  other  incorporeal  hereditaments  and every estate,
  interest or right, legal or equitable, including  terms  for  years  and
  liens thereon by way of judgments, mortgages, or otherwise.
    16.  "Reimbursement  allowance"  shall  mean  any  money  paid  by any
  government, or any agency or subdivision thereof or by a social services
  district or  by  any  private  institution  or  organization  or  person
  including,  but not limited to, payments authorized by and made pursuant
  to the federal social security act and the state social services law, to
  the corporation for the costs of health and medical  services  furnished
  to beneficiaries thereof provided by the corporation directly or through
  agreement with the city.
    17. "State" shall mean the state of New York.
    18. "Subsidiary corporation" shall mean a corporation created pursuant
  to subdivision twenty of section five of this act.
    19. "Non-profit hospital" shall mean an organization authorized by law
  to  provide  health  and  medical  services,  organized  exclusively for
  charitable purposes on a non-profit basis, which does  not  devote  more
  than  an insubstantial part of its total activities to activities not in
  furtherance  of  its  charitable  purposes,  does  not  participate   or
  intervene (including publishing or distributing statements), directly or
  indirectly,  in  any political campaign on behalf of or in opposition to
  any candidate  for  public  office,  and  no  substantial  part  of  the
  activities of which is devoted to attempting to influence legislation by
  propaganda  or otherwise and no part of the net earnings of which inures
  to the benefit of a private shareholder or individual.
    § 4. New York city health and hospitals corporation. 1. A corporation,
  to be known as the "New York city health and hospitals corporation,"  is
  hereby  created.  Such corporation shall be a body corporate and politic
  constituting a public benefit corporation. It shall be administered by a
  board  of  directors  consisting  of  sixteen  members,  constituted  as
  follows:  five  directors  shall  be the administrator, the commissioner
  appointed by the mayor as chief administrative  officer  of  the  health
  functions of the administration, the director of community mental health

  services  of the administration, the administrator of human resources of
  the city, and the deputy mayor-city administrator of the city, or  their
  successors,  all serving ex-officio; ten directors shall be appointed by
  the  mayor,  five of whom shall be designated by the city council of the
  city of New  York;  and  the  remaining  director  shall  be  the  chief
  executive officer of the corporation. Such chief executive officer shall
  be  chosen  by  the  aforementioned fifteen directors from persons other
  than themselves and shall serve at the pleasure of the board. The  terms
  of  the  ten  directors  first  appointed by the mayor, other than those
  serving ex-officio shall be as follows:
    Two shall serve for terms of one year each, one  of  whom  shall  have
  been designated by the city council;
    Two  shall  serve  for terms of two years each, one of whom shall have
  been designated by the city council;
    Two shall serve for terms of three years each, one of whom shall  have
  been designated by the city council;
    Two  shall  serve for terms of four years each, one of whom shall have
  been designated by the city council;
    Two shall serve for terms of five years each, one of whom  shall  have
  been designated by the city council;
  thereafter  their  successors  shall serve for terms of five years each.
  The mayor shall fill any vacancy which may occur  by  reason  of  death,
  resignation  or  otherwise  in  a  manner  consistent  with the original
  appointment. Directors may be removed by the mayor for  cause,  but  not
  without an opportunity to be heard.
    2.  The administrator of health services of the city shall be chairman
  of the board of directors. He shall preside over  all  meetings  of  the
  board  and shall have such other duties as the directors may direct. The
  vice-chairman,  who  shall  be  elected  by  the  directors  from  among
  themselves,  shall  preside over meetings of the board in the absence of
  the chairman and shall have such other duties as the board may direct.
    3. The powers of the corporation shall be vested in and  exercised  by
  the  board  of  directors  at a meeting duly held at a time fixed by any
  by-law adopted by the board, or at any duly adjourned  meeting  of  such
  meeting  or  at  any  meeting  held upon reasonable notice to all of the
  directors, or upon written waiver thereof, and a majority of  the  whole
  number  of  directors  shall constitute a quorum; provided, that neither
  the business nor the powers of the corporation shall  be  transacted  or
  exercised  except  pursuant to the favorable vote of at least a majority
  of the  directors  present  at  a  meeting  at  which  a  quorum  is  in
  attendance.  The  board  may  delegate  to one or more of the directors,
  officers, agents or employees of the corporation such powers and  duties
  as  it  may  deem  proper.  For  the purposes of this subdivision three,
  "whole number" shall mean the total number of directors that  the  board
  would have were there no vacancy in the office of a director.
    4.  The  directors  shall  not  be  entitled to compensation for their
  service but shall  be  reimbursed  for  actual  and  necessary  expenses
  incurred  by  them  in  the  performance  of  their official duties. The
  directors may engage  in  private  employment  or  in  a  profession  or
  business, unless otherwise prohibited from doing so by virtue of holding
  another  public office, subject to the provisions of article eighteen of
  the general municipal law. For the purposes of  such  article  eighteen,
  the  corporation  shall  be  a  "municipality" and a director shall be a
  "municipal officer".
    5. The board shall hold an annual meeting.
    6. Except as otherwise permitted or required by any federal  or  state
  law,  rule or regulation, the corporation shall receive direct payments,
  including payments made by a social services district under title eleven

  of article five of the social services  law,  and  the  New  York  state
  medical  assistance  plan  adopted  thereunder,  and other reimbursement
  allowances whether as  a  "provider  of  services"  in  accordance  with
  federal  law  or  otherwise, for the provision by the corporation of the
  health and medical services for which  such  payments  are  made  or  by
  reason  of  ownership  by the corporation of a health facility rendering
  the health and medical services for which such payments  are  made.  For
  the   purpose  of  such  title  eleven,  the  corporation  shall  be  an
  "institution" supplying "medical assistance".
    7. The fiscal year of the corporation shall be the same as that of the
  city.
    8. Notwithstanding any inconsistent provisions of this  or  any  other
  general,  special  or local law, no officer or employee of the state, or
  of any civil division thereof, or of any public corporation, as  defined
  in  the  general  corporation law, shall be deemed to have forfeited his
  office or employment or any benefits provided under the  retirement  and
  social  security law or under any public retirement system maintained by
  the state or by any of the civil divisions thereof by reason of being  a
  director, officer, employee or agent of the corporation.
    9. The corporation shall keep each of its facilities and installations
  open  to  inspection  at all times by duly authorized representatives of
  the board of social services of the state, the comptroller of the state,
  the department of health of  the  state,  the  mayor,  the  director  of
  management  and  budget,  the  comptroller,  the administration and such
  other federal, state or city departments or agencies authorized  by  law
  to  so inspect; and each shall be provided access to all of the records,
  reports,  books,  papers  and  accounts  of  the  corporation  and   its
  facilities and installations other than privileged medical matter.
    10. The corporation shall hold annual public meetings, at least one in
  each  of  the  five  boroughs,  after due public notice, for purposes of
  informing the public of the programs and plans of the corporation.
    11. The corporation shall establish a  community  advisory  board  for
  each  of  its  hospitals  to consider and advise the corporation and the
  hospital upon  matters  concerning  the  development  of  any  plans  or
  programs  of  the  corporation,  and may establish rules and regulations
  with respect to such boards. The members of such advisory  boards  shall
  be   representatives   of   the   community   served  by  the  hospital.
  Notwithstanding any inconsistent provision of law, general,  special  or
  local,  no  officer  or  employee  of the state or of any civil division
  thereof, shall be deemed to have forfeited or shall forfeit  his  office
  or  employment  by  reason  of  his  acceptance  of  membership  on such
  community advisory board.    No  member  of  such  board  shall  receive
  compensation  or  allowance for services rendered on such board, except,
  however, that members of community advisory boards may be reimbursed for
  necessary expenses up to and  including  twenty-five  dollars  during  a
  calendar month by submitting a personal summary voucher.
    §  4-a.  For the purposes of sections one hundred seventy-five (a) and
  one hundred seventy-five (b) of the state finance law,  the  corporation
  shall be deemed to be a political subdivision.
    § 5. General powers of the corporation. The corporation shall have the
  following  powers  in addition to those specifically conferred elsewhere
  in this act:
    1. To sue and be sued;
    2. To have a seal and to alter the same at its pleasure;
    3. To adopt, alter, amend or repeal by-laws or  rules  or  regulations
  for the organization, management, and regulation of its affairs;
    4.  To  borrow  money  and  to  issue negotiable notes, bonds or other
  evidences of indebtedness and to provide for the rights of  the  holders

  thereof  in  accordance  with  the  provisions  of  this  act; provided,
  however, that the corporation shall not  issue  bonds,  notes  or  other
  evidences  of  indebtedness  for  the  construction of a health facility
  without  the  prior  approval  of  the  mayor  and, in the case of major
  construction, without first submitting to the mayor a written  statement
  of  the chairman of the board stating that the corporation has consulted
  with the New York State housing finance agency and the  New  York  State
  health  and  mental  hygiene  facilities  improvement  corporation  with
  respect to such major construction.
    5. To  make  and  to  execute  contracts  and  leases  and  all  other
  agreements  or  instruments  necessary or convenient for the exercise of
  its powers and the fulfillment of its corporate purposes;
    6. To acquire, by purchase, gift, devise, lease or  sublease,  and  to
  accept  jurisdiction  over  and to hold and own, and dispose of by sale,
  lease or sublease, real or personal property, including but not  limited
  to  a  health  facility,  or  any  interest  therein  for  its corporate
  purposes; provided, however, that  no  health  facility  or  other  real
  property  acquired  or  constructed  by  the  corporation shall be sold,
  leased or  otherwise  transferred  by  the  corporation  without  public
  hearing  by  the corporation after twenty days public notice and without
  the consent of the board of estimate of the city;
    7. To operate, manage, superintend, and control  any  health  facility
  under its jurisdiction and to repair, maintain and otherwise keep up any
  such  health  facility;  and  to  establish and collect fees, rentals or
  other charges, including reimbursement allowances, for the  sale,  lease
  or  sublease  of  any  such  health  facility,  subject to the terms and
  conditions of any contract, lease, sublease or other agreement with  the
  city;
    8.  To  provide health and medical services for the public directly or
  by agreement or lease  with  any  person,  firm  or  private  or  public
  corporation  or association, through and in the health facilities of the
  corporation and to make rules and regulations governing  admissions  and
  health and medical services; and to establish and collect fees and other
  charges,  including  reimbursement allowances, for the provision of such
  health and medical services; and  to  provide  and  maintain  continuous
  resident  physician  and  intern  medical  services;  and to sponsor and
  conduct research, educational and training programs;
    9. To provide, maintain and operate  an  ambulance  service  to  bring
  patients  to or remove them from any health facility of the corporation,
  and to adopt a schedule of appropriate charges and to  provide  for  the
  collection thereof;
    10.  To  determine,  in  accordance  with standards established by the
  administration, the conditions under which a physician may  be  extended
  the   privilege  of  practicing  within  a  health  facility  under  the
  jurisdiction of the corporation, and to promulgate reasonable rules  and
  regulations for the conduct of all persons, physicians and nurses within
  any such facility;
    11.  To  employ  officers,  executives, management personnel, and such
  other employees who formulate or participate in the formulation  of  the
  plans,  policies,  aims, standards, or who administer, manage or operate
  the corporation and its hospitals or health facilities,  or  who  assist
  and  act  in  a confidential capacity to persons who are responsible for
  the formulation, determination and effectuation of  management  policies
  concerning personnel or labor relations, or who determine the number of,
  and  appointment and removal of, employees of the corporation, fix their
  qualifications and prescribe their duties and other terms of employment.
    All such  personnel  shall  be  excluded  from  collective  bargaining
  representation.

    12.  To  employ such other employees as may be necessary and except as
  otherwise provided herein to promulgate rules and  regulations  relating
  to the creation of classes of positions, position classifications, title
  structure, class specifications, examinations, appointments, promotions,
  voluntary  demotions,  transfers, re-instatement, procedures relating to
  abolition or reduction in positions, to determine the number of  and  to
  appoint, remove and discipline employees, to prescribe their duties, fix
  their  qualifications,  salaries,  wages,  fringe  benefits, hours, work
  schedules, assignments and re-assignments,  leaves  of  absence,  annual
  leave, other time and leave rules and other terms of employment.
    13.  To  prepare,  or  cause  to  be  prepared, plans, specifications,
  designs and estimates of costs for the  construction  and  equipment  of
  health  facilities;  provided, however, that such plans, specifications,
  designs and estimates of cost shall, to the extent required by  law,  be
  subject  to  the  approval  of  the  council prior to the implementation
  thereof;
    14. To construct and equip, or by contract cause to be constructed and
  equipped, health facilities, subject to the approval of the council;
    15. To apply for and/or to receive and accept any gifts or  grants  of
  money,  property  or  services or other aid, including any reimbursement
  allowance, offered or made available to it by any person, government  or
  agency  whatever,  for  use  by  the  corporation  in  carrying  out its
  corporate purposes and in the exercise of its powers; and  to  negotiate
  for the same upon such conditions as the corporation may determine to be
  necessary,  convenient  or  desirable;  and  to  comply,  subject to the
  provisions of this act, with the terms of  any  such  gifts,  grants  or
  other aid;
    16.  To  invest  any  funds  held in reserves or sinking funds, or any
  funds not required for immediate use or disbursement, at the  discretion
  of  the  corporation,  in  obligations  of  the  city,  state or federal
  government or obligations  the  principal  and  interest  of  which  are
  guaranteed by the city, state or federal government;
    17.  To procure insurance, or obtain indemnification, against any loss
  in connection with the assets of the corporation  or  any  liability  in
  connection  with  the  activities  of the corporation, such insurance or
  indemnification to be procured or obtained in  such  amounts,  and  from
  such sources, as the corporation deems to be appropriate;
    18.  To  cooperate with any organization, public or private, including
  the health and mental  hygiene  facilities  improvement  corporation  as
  established  by an act entitled the health and mental hygiene facilities
  improvement act, and the New York  state  housing  finance  agency,  the
  objects of which are similar to the purposes of the corporation;
    19.  To  use  agents, employees and facilities of the city, subject to
  such  limitations  as  may  be  prescribed  by   collective   bargaining
  agreement, and subject to the consent of the mayor;
    20.  (a)  To exercise and perform all or part of its purposes, powers,
  duties,  functions  or  activities  through  one  or  more  wholly-owned
  subsidiary  public  benefit corporations subject to limitations provided
  herein. The board of the corporation by resolution may direct any of the
  directors, officers or employees of the corporation to organize any such
  subsidiary corporation as a public benefit corporation by executing  and
  filing with the secretary of state a certificate of incorporation, which
  may  be amended from time to time by filing with the secretary of state,
  and which shall set forth the name of such public  benefit  corporation,
  its  duration,  the  location of its principal offices and any or all of
  the powers and purposes of such corporation, provided, however, that  no
  such  subsidiary  corporations  shall  be established for the purpose of
  operating a health facility or  the  delivery  of  direct  patient  care

  without  the  prior approval of the mayor and, except in the case of the
  Harlem Hospital Center or the new Harlem Hospital Center, until at least
  two years shall have elapsed from the effective date of this act.
    (b)  No  subsidiary  corporation  shall  have  the  power to engage in
  collective bargaining or negotiate with  any  organization  representing
  any  of its employees, or to enter into collective bargaining agreements
  with any such  organization.  Each  such  subsidiary  corporation  shall
  operate  under  personnel administration policies, practices, procedures
  and programs, and terms and conditions of employment of the corporation,
  including those agreed to in collective bargaining and determined by the
  comptroller of the city pursuant to section two hundred  twenty  of  the
  labor law.
    (c)  Each  such  subsidiary  corporation  and  any  of its properties,
  functions and activities shall have all of the  privileges,  immunities,
  tax  exemptions  and  other  exemptions  of  the  corporation and of the
  corporation's properties, functions and activities except,  however,  no
  such  subsidiary  corporation  shall  issue  bonds  and  notes  or  form
  subsidiary corporations.  Each  such  subsidiary  corporation  shall  be
  subject  to  suit in accordance with the provisions of section twenty of
  this act. Any state,  city,  commission,  agency,  officer,  department,
  division  or  person is authorized to cooperate with and enter into such
  agreements with a subsidiary corporation subject to  the  provisions  of
  this  act  and to any agreement entered into pursuant thereto; provided,
  however, that each such subsidiary corporation shall be subject  to  any
  restrictions, approvals, and limitations to which the corporation may be
  subject;
    21.  To  do  any  and all things necessary, convenient or desirable to
  carry out its corporate purposes, and for the  exercise  of  the  powers
  given to it in this act.
    §   6.   Relationship   to  the  city;  agreements  concerning  health
  facilities.  1. (a) The city shall on or before the first  day  of  July
  nineteen  hundred seventy enter into an agreement or agreements with the
  corporation, pursuant to this section and section seven herein,  whereby
  the  corporation  shall operate the hospitals then being operated by the
  city for the treatment of acute and chronic diseases, and for the fiscal
  year of the city commencing on the first day of  July  nineteen  hundred
  seventy  and  thereafter the city shall include in its expense budget an
  appropriation of tax levy for the services provided by  the  corporation
  and  pay  the  corporation  an  amount  which shall not be less than one
  hundred seventy-five million dollars; provided, however,  that  for  the
  fiscal  year  beginning  July  first,  nineteen  hundred seventy-two and
  thereafter the amount shall be adjusted  annually  to  take  account  of
  increases  in  the  cost of health care as reflected in increases in the
  average rates of reimbursement set by  the  state  pursuant  to  section
  twenty-one  hundred  seven  of  the  public  health  law  for health and
  hospital services in New  York  City,  and  changes  in  the  volume  of
  services  rendered by the corporation and required by the city for which
  no reimbursement from third-party sources is available. The  corporation
  shall  submit a program budget to the city, in time for inclusion in the
  mayor's executive budget, detailing the anticipated expenditure  of  the
  tax levy funds appropriated by the city for the coming fiscal year.
    The  provisions  of subdivision three of paragraph a of section 135.00
  of the local finance law shall not apply  to  a  contract  entered  into
  pursuant to this section.
    1. (b) Within a reasonable time thereafter the city shall enter into a
  similar  agreement  or  agreements for the remaining personal health and
  medical facilities then operated by the city.

    2. (a) The corporation shall have the power to enter  into  contracts,
  leases,  sub-leases or other agreements permitting the city to purchase,
  lease, sub-lease or otherwise acquire or use any health facility  by  or
  under  the  jurisdiction  of  the corporation; and to permit the city to
  construct  or  add  health  facilities  or  improvements upon or to such
  health facility.
    (b) The city shall be  empowered  to  purchase,  lease,  sub-lease  or
  otherwise acquire or contract for the use of and use any health facility
  held by or under the jurisdiction of the corporation, or to construct or
  add health facilities or improvements upon or to such a health facility,
  in  accordance with the terms of any contract, lease, sub-lease or other
  agreement entered into pursuant to the terms of this act.
    3. Any contract, lease, sub-lease or other agreement between the  city
  and  the  corporation for the purchase, lease, sub-lease, use, operation
  or construction and equipment of a health  facility,  as  authorized  by
  this act, shall
    (a) set forth any health facility to be constructed and equipped, used
  or operated;
    (b)  provide  that  the  corporation  shall  apply for and receive all
  reimbursement allowances or other moneys available  to  the  corporation
  from  any  source  for  the provision of health and medical services for
  which such reimbursement  allowances  or  other  moneys  are  available,
  through  or  in  the  facilities  of  the  corporation,  and  that  such
  reimbursement allowances or other moneys shall be collected and received
  by the corporation directly from  any  such  source,  and  used  by  the
  corporation for the purposes herein recited;
    (c) provide that whenever the city requires the corporation to provide
  health  and  medical services to persons in the city, the city shall pay
  the corporation for the cost of such services as are actually  rendered,
  such  cost  to  be  determined  by  agreement  between  the city and the
  corporation; provided, however, that such payments shall only be made by
  the city to  the  extent  that  no  reimbursement  allowances  or  other
  payments  are paid to the corporation from any other government or other
  sources for the payment of such costs; and
    (d) provide that the  health  and  medical  services  provided  by  or
  through  any  such health facility shall be available to the public upon
  the terms and conditions set forth in such contract, lease, sub-lease or
  other agreement.
    4. (a) Any such contract, lease, sub-lease or other agreement  between
  the  city and the corporation that requires the corporation to construct
  and equip, or causes to be constructed or equipped,  a  health  facility
  shall provide that the city shall be required to pay the total estimated
  cost of such construction and equipment to the corporation at such times
  and  in such amounts as determined and requested by the corporation, any
  such payment to be made by the city upon the delivery to the comptroller
  of the corporation of a certificate requesting such payment.
    (b) For the purpose of this subdivision four, the cost of construction
  and equipment shall include, but not be limited  to,  the  cost  of  any
  plans,  specifications, drawings or designs prepared for the purposes of
  the health facility concerned.
    5. Any such contract, lease, sub-lease or other agreement between  the
  city  and  the  corporation  may  contain provisions, in addition to any
  required by the provisions of this act, as to:
    (a) pledging or assigning any part of moneys and  revenues,  including
  reimbursement  allowances,  derived  by the city, or the corporation, to
  secure payments required by such contract,  lease,  sub-lease  or  other
  agreement;

    (b)  limitations  on the purposes to which the proceeds of the sale of
  the bonds and notes of the corporation may be  applied  and  as  to  the
  pledging  of  such  proceeds to secure the payment of bonds and notes of
  the corporation or of any issued thereby, subject to any agreement  with
  the holders of bonds or notes of the corporation;
    (c)  setting  aside  reserves  and  creating  special  funds  and  the
  regulation and disposition thereof;
    (d) procedures, if any, by which such contract,  lease,  sub-lease  or
  other  agreement  may  be amended, the amount of bonds or notes or other
  obligations the holders of which must consent thereto, and the manner in
  which such consent may be given;
    (e) defining the acts or omissions to act  which  shall  constitute  a
  default  in  the  obligations  and duties of the city or corporation and
  providing for the rights and remedies of the corporation and the holders
  of its bonds, notes or other obligations in the event of such default;
    (f) any other matters, of like or different character,  which  may  be
  deemed  necessary  or  desirable  by  the  corporation  for  the  proper
  effectuation of its corporate purposes or for the security or protection
  of the holders of its bonds, notes, or other obligations.
    6. The city  shall  not  be  required  to  make  any  payment  to  the
  corporation,  nor  shall  any  charge, claim or liability exist or arise
  against the city for any such payment, in excess of amounts appropriated
  or otherwise authorized by the city therefor. Payments due or to  become
  due  by  the  city  pursuant  to any contract, lease, sub-lease or other
  agreement  with  the  corporation  shall  not   constitute   outstanding
  indebtedness  of  the  city  for  the  purposes  of  paragraph  three of
  subdivision (a) of section 135.00 of the local fianance law.
    7. The corporation shall exercise its powers to  provide  and  deliver
  health  and  medical  services to the public in accordance with policies
  and plans of the  administration  with  respect  to  the  provision  and
  delivery  of  such  services and the corporation shall have the power to
  adopt and implement rules and regulations  not  inconsistent  with  such
  policies   and   plans   of   the  administration.  For  its  part,  the
  administration shall assist and  cooperate  with  the  corporation  with
  respect to such matters.
    §   7.  Conveyance  of  property  by  the  city  to  the  corporation;
  acquisition of property by the city. 1. The city, acting by the board of
  estimate thereof, may, by deed, lease or other instrument convey,  lease
  or  otherwise  dispose  of any real or personal property or any interest
  therein owned or held by the city, without public letting or auction, to
  the corporation for its corporate purposes, for so long as it  shall  be
  in  existence  notwithstanding  the provisions of any law respecting the
  inalienability of real property by the city,  and  such  conveyance  may
  reserve to the city such rights as shall not restrict the corporation in
  carrying out its corporate purposes.
    2.  The  city  may  acquire,  in  the name of the city, by purchase or
  condemnation in the manner provided by law for the acquisition  of  real
  property  by the city, real property in the city for the purposes of the
  corporation or for the widening of existing roads, streets,  avenues  or
  highways  or for new roads, streets, avenues or highways connecting with
  a health facility constructed or otherwise acquired by the  corporation,
  or partly for such purposes and partly for other city purposes. For said
  purposes,  the city may close roads, streets, avenues or highways as may
  be necessary; provided, however, that no state highway or way  shall  be
  closed without the consent of the state commissioner of transportation.
    3.  Subject  to  the  approval  of  the board of estimate of the city,
  contracts may be entered into  between  the  corporation  and  the  city
  providing  for  the property to be acquired by the city and so conveyed,

  the roads, streets, avenues, or highways to be closed by the  city,  and
  the amounts, terms and conditions of payments, if any, to be made by the
  corporation.  Any such contract between the city and the corporation may
  be  pledged  by  the  corporation  to  secure  its bonds, notes or other
  obligations and may not be modified thereafter except as provided by the
  terms of the pledge.
    4. If the corporation determines that the use  and  occupancy  of  any
  real  property  is  no  longer  required  for its corporate purposes and
  powers, then if such real property was acquired at the cost and  expense
  of the city, the corporation shall, subject to the provisions of section
  five,  paragraph  six,  have power to surrender its use and occupancy to
  the city. The corporation shall, subject to the  provisions  of  section
  five,  paragraph  six, have power to sell, lease or otherwise dispose of
  said real property at public or private sale or as part of  a  contract,
  lease or other agreement entered into under the terms of this act and to
  use  the  proceeds  derived  from  the  sale, lease or other disposition
  thereof for its corporate purposes.
    § 7-a. Relationship with the New York state and  the  housing  finance
  agency health and mental hygiene facilities improvement corporation.
    Notwithstanding any provision of this act to the contrary:
    (a)  The  city  shall  not  sell,  assign,  transfer  or sublet to the
  corporation any health facility, as defined  in  section  three  of  the
  health  and  mental  hygiene  facilities  improvement act, located at or
  related  to  or  constituting  a  hospital,  as   defined   in   article
  twenty-eight  of  the  public  health  law,  if  such health facility is
  subject to any lease, sublease or other agreement between the  city  and
  the  New  York  state  housing finance agency, provided however, nothing
  herein shall prohibit the licensing or other operating agreement for the
  health facility so long  as  the  city  does  not  surrender  possession
  thereof  and  that  the city continues to remain liable and obligated to
  observe and perform each and every covenant, agreement,  obligation  and
  undertaking  required  to be observed and performed by the city pursuant
  to the provisions of any lease, sublease or other agreement between  the
  city and the New York state housing finance agency.
    (b)  The  corporation is authorized to sell or lease to the agency any
  real property for  the  purpose  of  causing  health  facilities  to  be
  constructed,  reconstructed, rehabilitated or improved by the health and
  mental hygiene facilities improvement corporation and the New York state
  housing finance agency pursuant to a lease, sublease or other  agreement
  between  the  city  and  the  New  York  state housing finance agency as
  provided in the health and mental hygiene facilities improvement act and
  article three of the private housing finance law.
    § 8. Contracts. 1.  Any  contract  let  by  the  corporation  for  the
  construction  of  a  health facility shall be publicly let to the lowest
  responsible bidder in the manner provided by, and  in  conformity  with,
  the  provisions  of  article five-a of the general municipal law, except
  that where the cost of such a contract  does  not  exceed  ten  thousand
  dollars  such  contract  may  be  entered  into  without public letting;
  provided, however, that if the corporation determines that in a  special
  case  or cases it would not be in the public interest to comply with the
  terms of this section  and  the  board  of  estimate  of  the  city,  by
  resolution,  rule or regulation adopted by the vote of two-thirds of the
  whole number of votes authorized to be cast by all of the members of the
  board of estimate, concurs in such determination, then such  a  contract
  may  be  entered  into  by  the  corporation  without  public letting as
  authorized by the said resolution, rules or regulations. Notwithstanding
  the provisions of this subdivision one, if  the  corporation  determines
  that   circumstances  exist  whereby  it  would  be  detrimental  to  or

  impracticable for the corporation to  comply  with  the  public  letting
  requirements  of  this  section  concerning  a  change order then such a
  change order may be let by the corporation without public  letting.  For
  the  purposes  of  article  five-a  of  the  general  municipal law, the
  corporation shall be deemed to be a "political subdivision".
    2. The corporation  may  make  rules  and  regulations  governing  the
  qualifications  of  bidders entering into such a contract where the cost
  of such a contract exceeds twenty-five thousand dollars. The bidding may
  be restricted to those who shall have qualified prior to the receipt  of
  bids according to standards fixed by the corporation; provided, however,
  that  notice  or  notices  for the submission of qualifications shall be
  published in the official publication of the city and in an  appropriate
  trade journal published in the city, or if no such trade journal exists,
  in  a  newspaper  with a general circulation in the city, at least once,
  not less than ten days prior  to  the  date  fixed  for  the  filing  of
  qualifications.
    3.  The  corporation,  in  its  discretion,  may  assign  the separate
  contracts awarded pursuant to section one hundred  one  of  the  general
  municipal  law  to the general contractor for supervision. Each contract
  for the construction of a health facility may include a  provision  that
  the  architect  who  designed the facility, or the architect or engineer
  retained or employed specifically for the purpose of supervision,  shall
  supervise  the  work to be performed through to completion and shall see
  to it that the  materials  furnished  and  the  work  performed  are  in
  accordance  with  the  drawings,  plans,  specifications  and  contracts
  therefor.
    4. All bids received for the letting of any contract pursuant to  this
  section  shall  be  submitted  to  the corporation and shall be publicly
  opened and read by the corporation. Nothing in  this  section  shall  be
  construed  to  limit the power of the corporation to do any construction
  by or through its own officers, agents or employees.
    5. (a) In addition to any other bond or bonds that may be required  by
  law  for  the  completion of a health facility, or in the absence of any
  such requirement, the corporation shall require, prior to  the  approval
  of  any contract or agreement providing for the construction of a health
  facility, that the general contractor furnish a bond guaranteeing prompt
  payment of moneys due to all persons furnishing labor or materials to or
  for the general contractor or to his subcontractors in  the  prosecution
  of  the  entire  work  provided  for  in  such agreement. A copy of such
  payment bond shall be filed in the offices of the corporation and  shall
  be open to public inspection.
    (b)  Every  person  who has furnished labor or material, to or for the
  general contractor or to a sub-contractor in the prosecution of the work
  provided for in the contract or other agreement of the corporation  with
  the general contractor and who has not been paid in full therefor before
  the  expiration  of  a  period of ninety days after the day on which the
  last of the labor was performed or material was  furnished  by  him  for
  which  the  claim  is  made, shall have the right to sue on such payment
  bond in his own name for the amount, or the balance thereof,  unpaid  at
  the time of commencement of the action; provided, however, that a person
  having  a  direct  contractual relationship with a sub-contractor of the
  general contractor  furnishing  the  payment  bond  but  no  contractual
  relationship  express  or implied with such general contractor shall not
  have a right of action upon the bond unless he shall have given  written
  notice  to  such  general contractor within ninety days from the date on
  which the last of the labor was performed or the last  of  the  material
  was  furnished,  for  which  his claim is made, stating with substantial
  accuracy the amount claimed and the  name  of  the  party  to  whom  the

  material  was  furnished or for whom the labor was performed. The notice
  shall be served  by  delivering  the  same  personally  to  the  general
  contractor  or by mailing the same by registered mail, postage pre-paid,
  in an envelope addressed to the general contractor at any place where he
  maintains an office or conducts his business or at his residence.
    6.  Any  contracts  for  design,  construction, services and materials
  entered into by the corporation pursuant to this  act  shall  be  deemed
  state  contracts within the meaning of that term as set forth in article
  fifteen-A of the executive law, and the corporation shall be deemed, for
  the purposes of this act, a contracting agency as that term is  used  in
  article fifteen-A of the executive law.
    §  9.  Personnel  administration;  collective  bargaining; pension and
  retirement benefits; article fourteen civil service law;  paragraph  two
  hundred  twenty  labor  law; personnel review board. 1.  The corporation
  shall, upon ten days written notice appropriately posted in  the  health
  facilities,  promulgate  rules  and  regulations  consistent  with civil
  service law with respect to policies, practices, procedures relating  to
  position   classifications,   title   structure,  class  specifications,
  examinations, appointments, promotions, voluntary demotions,  transfers,
  re-instatements,  procedures  relating  to  abolition  or  reduction  in
  positions, for personnel employed by the corporation pursuant to section
  five,  subdivision  twelve  of  this  act,  subject  to  the   following
  exception.  The  New  York  city  health and hospitals corporation shall
  employ peace officers appointed pursuant to this subdivision to  perform
  the  patrol,  investigation,  and  maintenance  of  the  peace duties of
  special officer, senior special officer and hospital  security  officer;
  provided  however  that  nothing  in  this  subdivision  shall  prohibit
  managerial, supervisory, or state  licensed  or  certified  professional
  employees of the corporation from performing these duties where they are
  incidental  to  their  usual  duties,  or shall prohibit police officers
  employed by the city of New York from performing these duties.
    Until the corporation adopts by-laws, rules and  regulations  relating
  to   personnel  administration  the  corporation  shall  administer  its
  personnel pursuant to the civil service law, the rules and  regulations,
  time  and  leave  rules classification and compensation schedules, class
  specifications and personnel orders of the New York city  department  of
  personnel  and  civil  service  commission,  and  all  other  applicable
  provisions of local or general laws relating to civil service personnel.
    2. (a) Every employee who was an employee of  the  administration,  or
  any  constituent  agency  or  department thereof, shall be automatically
  appointed and transferred to the corporation in the same  or  equivalent
  classification and position he held at the time of such transfer and for
  such  purposes the corporation shall be deemed the successor to the city
  as a public  employer  of  such  employee.  All  officers  or  employees
  transferred  to the corporation who had civil service status at the time
  of such transfer shall retain such status for the purpose  of  transfer,
  reassignment  or  promotion  to  any  position  in  a city department or
  agency.
    (b) (i) It is hereby found that the continued, uninterrupted, adequate
  and efficient administration of health and medical services is necessary
  for the general welfare of the people of the city of  New  York.  It  is
  further  found  that  with  respect to certain services provided for the
  corporation by the  voluntary  hospitals  and  medical  schools  in  the
  municipal  hospitals  of  the  city  of  New  York,  such administration
  properly requires that employees performing those services  be  employed
  by  the  corporation.  For  the  continued performance of those services
  assumed by  the  corporation,  the  continued  employment  of  personnel
  possessing  ability,  skill,  experience  and  knowledge is essential. A

  requirement of competitive examination for the appointment of  any  such
  employee  to  the  corporation  would seriously interrupt the continuous
  provision of health and medical services and is thus impractical. It  is
  thereby  declared  to  be  in  the public interest that because of their
  knowledge, training, experience and efficiency, those employees  of  the
  voluntary  hospitals  and medical schools be continued in the employment
  of  the  corporation  without  competitive  examination,  and  shall  be
  afforded permanent competitive status.
    (ii)  Notwithstanding  any  provision to the contrary contained in any
  general,  special  or  local  law,  those  employees  of  the  voluntary
  hospitals  and  medical  schools  in  the  city  of  New York performing
  services which are assumed by the corporation shall  be  transferred  to
  and   continued   in   employment  by  the  corporation  in  similar  or
  corresponding  positions,  which  shall  have  been  classified  by  the
  corporation in accordance with the provisions of subdivision one of this
  section.  Such  employees shall continue to hold their positions without
  further examination and shall have all the rights and privileges of  the
  jurisdictional class to which such positions may be allocated; provided,
  however,  that  after  such  transfer of functions and activities to the
  corporation all new positions thereafter created and vacancies occurring
  in positions already established shall be filled in accordance with  the
  provisions of subdivision one of this section.
    3.   The   corporation   shall   recognize   the   certified  employee
  organizations  and  bargaining  units  of  such   employees,   and   the
  corporation  shall  assume  and  be  bound  by  all  existing collective
  bargaining agreements with such  employee  organizations.  All  existing
  terms  and  conditions  of employment of the corporation shall remain in
  effect until modified or  changed  in  accordance  with  the  procedures
  provided herein.
    4.  Any officer or employee of the corporation who heretofore acquired
  or shall hereafter acquire such position status by transfer and  who  at
  the  time  of such transfer was a member of the New York city employees'
  retirement  system  shall,  with  respect  to  such  retirement  system,
  continue  to  have  the rights, privileges, obligations and status which
  would have applied to him if he had continued  to  hold  the  office  or
  position  which  entitled him to such membership prior to such transfer.
  Employment by the corporation  shall  constitute  city-service  for  the
  purposes  of  title B of chapter three of the administrative code of the
  city.
    5. The corporation, its officers and employees, shall  be  subject  to
  article  fourteen of the civil service law and for all such purposes the
  corporation shall be deemed "public employees", provided, however,  that
  chapter  fifty-four of the New York City Charter and Administrative Code
  and Executive Order No. 52 dated September 29, 1967, promulgated by  the
  mayor  of  the  city  of  New  York,  shall apply in all respects to the
  corporation, its officers and employees except that paragraph seven  and
  paragraph  eight  of said executive order shall not be applicable to the
  corporation, its officers and employees. Except as otherwise provided in
  collective bargaining agreements the corporation shall establish general
  and special grievances procedures which  shall  provide  for  final  and
  binding  arbitration  of  grievances as defined in chapter fifty-four of
  the administrative code of the city of New York. All general and special
  grievance procedures shall be reviewed by  the  personnel  review  board
  established under the terms of this act.
    6.  Any employee of the corporation shall be authorized to institute a
  proceeding against the corporation in accordance with the provisions  of
  article  seventy-eight  of the civil practice law and rules, and for the

  purposes hereof the corporation shall be deemed an  administrative  body
  or agency within the meaning of the said article seventy-eight.
    7.  Nothing  herein  contained shall supersede, impair or diminish the
  rights of any officer or employee of the corporation under  or  pursuant
  to  section  two  hundred  twenty of the labor law, and for the purposes
  hereof the fiscal officer of the corporation shall be the comptroller of
  the city of New York.
    8. (a)  For  a  period  of  five  years  after  the  creation  of  the
  corporation,  the  corporation  shall,  in  its by-laws, provide for the
  creation of a personnel review board, consisting of  three  members  who
  shall be appointed for annual terms as follows: one member designated by
  the  corporation; one member designated by the municipal labor committee
  established  pursuant  to  section  1173-9.0  of  the  New   York   city
  administrative  code,  and  one  member,  who  shall  be  the  chairman,
  designated by the other two members of the personnel review board. After
  the aforesaid period of five  years,  all  vacancies  in  the  personnel
  review  board  shall be filled by appointment by the mayor. The chairman
  of the personnel review board shall receive a per diem fee of  not  less
  than  one  hundred  fifty  dollars  and the other two members shall each
  receive a per diem fee of not less than one hundred twenty-five dollars,
  when actually rendering services, in addition to  actual  and  necessary
  expenses incurred in the performance of their duties.
    (b)  Except  for  matters  which  are subject to collective bargaining
  agreement, the personnel review board shall have the right to review, at
  the instance of  any  aggrieved  employee  of  the  corporation  or  any
  certified employee organization respresenting such employee, any by-law,
  rule  or  regulation  promulgated  pursuant  to  subdivision one of this
  section nine or any action of the corporation related thereto  and  upon
  such  review  to  direct  the  corporation  to take or refrain from such
  action as the personnel review board shall deem proper except,  however,
  nothing  contained  in  this section nine shall abridge the right of the
  corporation to exercise any managerial prerogatives which were  reserved
  by  the  city  in  section five-c of the aforesaid mayor executive order
  number fifty-two.
    The personnel review board shall,  when  requested  by  the  board  of
  directors,  conduct  any  special  reviews,  studies,  investigations or
  analyses of the administration of personnel in the corporation.
    § 10. Officers and employees not to be interested in transactions.  It
  shall  be a misdemeanor for a director of the corporation or an officer,
  agent, executive or other employee retained, employed  or  appointed  by
  the  corporation  to  be  in  any  manner or way interested, directly or
  indirectly, as principal,  surety  or  otherwise,  in  a  contract,  the
  expense  or  consideration  whereof  is  payable  out  of  funds  of the
  corporation.
    § 11. Moneys of the corporation. 1. Any  moneys  of  the  corporation,
  from  whatever  source  derived,  shall, except as otherwise provided in
  this act, be  deposited  as  soon  as  practicable  in  banks  or  trust
  companies  organized  under  the  laws  of the state or national banking
  association doing business in the city designated by the board. The said
  moneys of the corporation shall be paid out  on  checks  signed  by  the
  chairman  of  the  board or by such other person or persons as the board
  shall authorize. All deposits of such moneys shall, if required  by  the
  board, be secured by obligations of the United States or of the state or
  of  the  city  of a market value equal at all times to the amount of the
  deposits and all banks and trust companies are authorized to  give  such
  security for such deposits.
    2.  Subject  to  the  terms  of any contract, lease or other agreement
  undertaken by the corporation, any such moneys of  the  corporation  not

  required  for  immediate  use  may,  at  the discretion of the board, be
  invested by the corporation in obligations of  the  United  States,  the
  state  or the city or in obligations the principal and interest of which
  are guaranteed by the United States, the state or the city.
    3.  The  comptroller,  or  his  legally  authorized representative, is
  hereby authorized to and shall examine annually the accounts  and  books
  of  the  corporation  including  its receipts, disbursements, contracts,
  reserves, sinking funds, investments and any other matters  relating  to
  its financial operation and standing.
    §  12.  Issuance  of bonds and notes by the corporation. 1. Subject to
  the provisions of section thirteen, the corporation shall have the power
  and is hereby authorized, from time to time, to issue  negotiable  bonds
  and  notes  in such aggregate principal amounts as shall, in the opinion
  of the corporation, be necessary together  with  such  other  moneys  or
  funds  as  may  be  available  to  the  corporation,  to  provide  funds
  sufficient  to  enable  the  corporation  to  carry  out  its  corporate
  purposes,  including  site  acquisition,  construction,  maintenance and
  repair of health facilities, the payment of interest on and amortization
  of, or payment of such bonds and notes, the establishment of reserves or
  sinking funds to secure such bonds and notes, and all other expenditures
  of the corporation incident  to  and  necessary  or  desirable  for  the
  carrying  out  of its corporate purposes and the exercise of its powers.
  Except as may otherwise be expressly provided by the corporation,  every
  issue  of  its  bonds  and  notes  shall  be  general obligations of the
  corporation payable out of any revenues or moneys  of  the  corporation,
  subject  only  to any agreements with the holders of particular bonds or
  notes pledging any particular revenues or moneys.  Whether  or  not  the
  bonds  or  notes  are  of  such  form  and character as to be negotiable
  instruments under  the  provisions  of  article  eight  of  the  uniform
  commercial  code,  the  bonds  and  notes  shall  be and are hereby made
  negotiable instruments within the meaning of and for all the purposes of
  article eight of the  uniform  commercial  code,  subject  only  to  the
  provisions of the bonds or notes for registration.
    2. The corporation shall have the power and is hereby authorized, from
  time  to  time,  to  issue renewal notes, and to refund any bonds by the
  issuance of new bonds, whether the bonds to be refunded have or have not
  matured, and to issue bonds to pay notes or partly to refund bonds  then
  outstanding and partly for any of its corporate purposes.
    3.  The  said  bonds  and  notes  shall be authorized by resolution or
  resolutions of the board, and shall be dated and shall  mature  as  such
  resolution  or  resolutions  may  provide,  except  that  no note or any
  renewal thereof shall mature more than five  years  after  the  date  of
  issue  of  the  original  note  and no bond shall mature more than forty
  years from the date of its issue. Bonds and notes shall bear interest at
  such rate or rates, be in such denominations, be in  such  form,  either
  coupon or registered, carry such registration privileges, be executed in
  such  manner,  be  payable  in  such medium of payment, at such place or
  places, and be subject to such terms of redemption as such resolution or
  resolutions may provide. Bonds and notes may be sold by the  corporation
  at  public  or  private  sale at such price or prices as the corporation
  shall determine; provided, however, that no such bonds or notes  may  be
  sold  at  a private sale unless the sale and the terms thereof have been
  approved by the comptroller in writing.
    4. Any resolution or resolutions authorizing any bonds  or  notes  may
  contain  provisions,  which shall be a part of the contract or contracts
  with the holders thereof, as to
    (a) pledging all or any part of the moneys or revenues or other assets
  of the corporation to  secure  the  payment  of  such  bonds  or  notes,

  including,  but not limited to, fees, rentals and charges for the use of
  a health  facility  and  the  proceeds  of  any  grant  in  aid  of  the
  corporation  received  from  any  public or private source and contracts
  authorized by section seven of this act;
    (b)  the setting aside of reserves or sinking funds and the regulation
  or disposition thereof;
    (c) limitations on the purposes to which the proceeds of the  sale  of
  any  issue  of  bonds  or  notes  then or thereafter to be issued may be
  applied and pledging such proceeds to secure the payment of the bonds or
  notes or any issue thereof;
    (d) limitations on the issuance of  additional  bonds  or  notes;  the
  terms  upon  which  such  additional  bonds  or  notes may be issued and
  secured; the refunding of outstanding or other bonds or notes;
    (e) the procedures, if any, by which the terms of  any  contract  with
  the  holders  of bonds or notes may be extended or abrogated, the amount
  of bonds or notes the holders of which  must  consent  thereto  and  the
  manner in which such consent may be given;
    (f) the creation of special funds into which any moneys or revenues of
  the corporation may be deposited;
    (g)  limitations  on  the  amounts that the corporation may expend for
  administrative or other expenses thereof;
    (h) vesting in a trustee or trustees such properties,  rights,  powers
  and  duties  in trust as the corporation may determine which may include
  any or all of the rights, powers and duties of the trustees appointed by
  the holders of the bonds or notes pursuant to section seventeen of  this
  act  and limiting or abrogating the right of the holders of the bonds or
  notes to appoint a trustee under such section or  limiting  the  rights,
  duties and powers of such trustee;
    (i)  defining  the  acts  or omissions to act which shall constitute a
  default in the obligations and duties of the corporation to the  holders
  of  the  bonds or notes and providing for the rights and remedies of the
  holders of the bonds or notes in the event of such default, including as
  a matter of right the appointment of  a  receiver;  providing,  however,
  that such rights and remedies shall not be inconsistent with the general
  laws of the state and the other provisions of this act;
    (j)  any  other  matters, of like or different character, which in any
  way affect the security or protection of the holders  of  the  bonds  or
  notes.
    5.  Any pledge of revenues, moneys or property made by the corporation
  shall be valid and binding from the time when the pledge  is  made;  the
  revenues,  moneys  or property so pledged and thereafter received by the
  corporation shall immediately be subject to  the  lien  of  such  pledge
  without  any  physical  delivery thereof or further act, and the lien of
  any such pledge shall be valid and binding as against all parties having
  claims  of  any  kind  in  tort,  contract  or  otherwise  against   the
  corporation  irrespective  of  whether such parties have notice thereof.
  Neither the resolution or resolutions nor any other instrument by  which
  a pledge is created need be recorded.
    6.  Neither  the  directors  of  the  corporation nor any other person
  executing such bonds or notes shall be subject to any personal liability
  or accountability by reason of the issuance thereof.
    7. The corporation, subject to such agreements  with  the  holders  of
  bonds or notes as may then exist, shall have the powers out of any funds
  available  therefor  to  purchase  any  bonds or notes issued by it at a
  price not exceeding the redemption price thereof which price shall be
    (a) if the bonds or notes are then redeemable,  the  redemption  price
  then  applicable plus accrued interest to the next interest payment date
  thereon, or

    (b) if the bonds or notes are  not  then  redeemable,  the  redemption
  price  applicable  on  the first date after such purchase upon which the
  bonds or notes become subject to redemption  plus  accrued  interest  to
  such date.  All bonds or notes so purchased shall be cancelled.
    §  13.  Reserve  fund. 1. The corporation shall create and establish a
  special fund (herein referred to as the capital reserve fund), and shall
  pay into such capital reserve fund
    (a) any moneys appropriated and made available by the  state  or  city
  for the purpose of such capital reserve fund,
    (b)  any  proceeds of sale of bonds or notes to the extent provided in
  the  resolution  or  resolutions  of  the  corporation  authorizing  the
  issuance thereof, and
    (c)  any  other  moneys which may be made available to the corporation
  for the purpose of such capital reserve fund from any  other  source  or
  sources.  All  moneys  held  in  the  capital  reserve  fund,  except as
  hereinafter provided, shall be  used  solely  for  the  payment  of  the
  principal  of  bonds of the corporation, the payment of interest on such
  bonds, or the payment of any redemption premium required to be paid when
  such bonds are redeemed  prior  to  maturity;  provided,  however,  that
  moneys  in such capital reserve fund shall not be withdrawn therefrom at
  any time in such amount as would reduce the amount of such fund to  less
  than  the maximum amount of principal and interest maturing and becoming
  due in any succeeding fiscal year of the corporation on all bonds of the
  corporation then outstanding, except for the purpose of paying principal
  of and interest on such bonds of the corporation maturing  and  becoming
  due and for the payment of which other moneys of the corporation are not
  available.  Any  income  or  interest  earned  by,  or increment to, the
  capital reserve fund due to the investment thereof may be transferred to
  other funds or accounts to the extent it does not reduce the  amount  of
  the  capital  reserve  fund  below  the  maximum amount of principal and
  interest maturing and become due in any such succeeding fiscal  year  on
  all bonds of the corporation then outstanding.
    2.  The  corporation  shall not issue bonds at any time if the maximum
  amount of  principal  and  interest  maturing  and  becoming  due  in  a
  succeeding  fiscal  year  of  the  corporation  on such bonds then to be
  issued and on all other bonds of the corporation then  outstanding  will
  exceed  the  amount  of the capital reserve fund at the time of issuance
  unless the corporation, at the time of issuance  of  such  bonds,  shall
  deposit in the capital reserve fund from the proceeds of the bonds so to
  be  issued, or otherwise, an amount which, together with the amount then
  in such fund, will not be less than the maximum amount of principal  and
  interest maturing and becoming due in any such succeeding fiscal year on
  such  bonds  then to be issued and on all other bonds of the corporation
  then outstanding.
    3. For the purposes of computing the amount  of  the  capital  reserve
  fund, any securities in which any portion of such fund is invested shall
  be  valued  at  the  par  value  thereof  or  at the cost thereof to the
  corporation if such cost was less than said par value.
    4. In order to assure the continued  operation  and  solvency  of  the
  corporation  for  the carrying out of its public purposes as provided in
  this act, provision is made in subdivision one of this section  for  the
  accumulation  in  the  capital  reserve  fund  of an amount equal to the
  maximum amount of principal and interest maturing and  becoming  due  in
  any  succeeding  fiscal  year  of  the  corporation  on all bonds of the
  corporation  then  outstanding.  In  order  further   to   assure   such
  maintenance of the capital reserve fund, the chairman of the corporation
  shall annually request from the city to be paid over to the corporation,
  for  deposit  in the capital reserve fund, such sum, if any, as shall be

  certified by the chairman of the corporation to the mayor  as  necessary
  to  restore  the  capital reserve fund to an amount equal to the maximum
  amount of principal and  interest  maturing  and  becoming  due  in  any
  succeeding  fiscal  year  of  the corporation on all of the bonds of the
  corporation then outstanding; provided, however,  that  such  sum  shall
  have  been  first  appropriated by the city or shall otherwise have been
  made  lawfully  available  for  such  purpose.  The  chairman   of   the
  corporation  shall,  on  or before the fifteenth day of February in each
  year, make and deliver to the mayor his certificate stating the  amount,
  if  any,  needed  to  restore  the  capital  reserve  fund to the amount
  aforesaid and the amount so  stated,  if  any,  shall  be  paid  to  the
  corporation  by  the city. Notwithstanding any of the provisions of this
  act, in the event of the failure or inability of the city  to  pay  over
  the  stated  amount  to  the  corporation  on or before the first day of
  August of the same year, the chairman  of  the  corporation  shall  then
  forthwith  make  and  deliver  to the comptroller and to the director of
  management and budget a further  certificate  restating  the  amount  so
  required  and  such  amount  shall then be paid over to the corporation,
  upon the warrant of the comptroller on vouchers certified as correct  by
  the  director  of  management and budget, out of the general fund of the
  city.
    § 14. Agreement of the state. The state of New York does pledge to and
  agree with the holders of any and all bonds and notes of the corporation
  that the state will not limit or alter the rights hereby vested  in  the
  corporation  to  fulfill  the terms of any agreements made with the said
  holders, or in any way impair the rights and remedies  of  such  holders
  until  the bonds and notes, together with the interest thereon, interest
  on any unpaid installments of interest, and all costs  and  expenses  in
  connection  with  any  action  or  proceeding  by  or  on behalf of such
  holders, are fully met and discharged. The corporation is authorized  to
  include this pledge and agreement of the state in any agreement with the
  holders of such bonds or notes.
    §  15.  State and city not liable on bonds and notes. The bonds, notes
  or other obligations of the corporation shall not be a  debt  of  either
  the  state of New York or of the city of New York, and neither the state
  nor the city shall be liable thereon, nor shall they be payable  out  of
  any funds other than those of the corporation.
    § 16. City's right to require redemption of bonds. Notwithstanding and
  in  addition  to any provisions for the redemption of bonds which may be
  contained in any contract with the holders of the bonds, the  city  may,
  upon  furnishing  sufficient  funds therefor, require the corporation to
  redeem, prior to maturity, as  a  whole,  any  issue  of  bonds  on  any
  interest  payment  date not less than twenty years after the date of the
  bonds of such issue at one hundred five per centum of their  face  value
  and  accrued  interest  or  at  such  lower  redemption  price as may be
  provided in the bonds in case of the redemption thereof as  a  whole  on
  the  redemption date. Notice of such redemption shall be published in at
  least two newspapers published and circulating in the city of  New  York
  at  least twice, the first publication to be at least thirty days before
  the date of redemption.
    § 17. Remedies of holders of bonds and notes. 1. In the event that the
  corporation shall default in the payment of the principal of or interest
  on any issue of bonds or notes after the same shall become due,  whether
  at maturity or upon call for redemption, and such default shall continue
  for  a period of thirty days, or in the event that the corporation shall
  fail or refuse to comply with the provisions of  this  title,  or  shall
  default in any agreement made with the holders of any issue of the bonds
  or  notes,  the holders of twenty-five per centum in aggregate principal

  amount of the  bonds  or  notes  of  such  issue  then  outstanding,  by
  instrument  or  instruments filed in the office of the city clerk of the
  city and approved or acknowledged in the same manner as  a  deed  to  be
  recorded,  may  appoint a trustee to represent the holders of such bonds
  or notes for the purposes herein provided.
    2. Such trustee may, and  upon  written  request  of  the  holders  of
  twenty-five  per  centum in principal amount of such bonds or notes then
  outstanding shall, in his or its own name:
    (a) by suit, action or special proceedings enforce all rights  of  the
  holders  of  the  bonds  or  notes,  including  the right to require the
  corporation to carry out any agreements with such holders and to perform
  its duties under this title;
    (b) bring suit upon such bonds or notes;
    (c) by action or suit, require the corporation to  account  as  if  it
  were  the  trustee  of an express trust for the holders of such bonds or
  notes;
    (d) by action or suit, enjoin any acts or things which may be unlawful
  or in violation of the rights of the holders of such bonds or notes;
    (e) declare all such bonds or  notes  due  and  payable,  and  if  all
  defaults  shall  be  made good, then, with the consent of the holders of
  twenty-five per centum of the principal amount of such  bonds  or  notes
  then outstanding, annul such declaration and its consequences.
    3.  The  supreme  court shall have jurisdiction of any suit, action or
  proceedings by the trustee on behalf of such holders of bonds or  notes.
  The  venue  of  any such suit, action or proceeding shall be laid in the
  county of New York.
    4. Before declaring the principal of bonds or notes due  and  payable,
  the  trustee  shall  first  give  thirty  days' notice in writing to the
  corporation.
    5. Any such trustee, whether or not  all  bonds  or  notes  have  been
  declared  due  and  payable,  shall  be  entitled  as  of  right  to the
  appointment of a receiver who may enter and take possession of a  health
  facility  or  any part or parts thereof and maintain and repair the same
  and collect and receive all fees, rentals and charges or other  revenues
  thereafter  arising  therefrom  in  the  same  manner as the corporation
  itself might do and shall deposit all such moneys in a separate  account
  and  apply  the  same  in  such manner as the court shall direct. In any
  suit, action or proceeding by the trustee, the fees,  including  counsel
  fees,  and  expenses  of  the trustee and of the receiver, if any, shall
  constitute taxable disbursements and all costs and disbursements allowed
  by the court shall be a first charge on any rentals,  charges  or  other
  revenues derived from a health facility.
    6.  Such  trustee  shall in addition to the foregoing have and possess
  all the powers necessary or appropriate for the exercise of any function
  specifically set forth herein or incident to the general  representation
  of  the holders of such bonds or notes in the enforcement and protection
  of their rights.
    § 18. Assistance to the  corporation.  The  state  or  city  shall  be
  empowered to make grants of money or property to the corporation for the
  purpose  of  enabling it to carry out its corporate purposes and for the
  exercise of its powers, including, but not limited to, deposits  to  the
  capital  reserve  fund to assist the corporation in maintaining the said
  capital reserve fund  in  the  amounts  required  by  section  thirteen.
  Nothing  in  this  section  shall be interpreted as implying that in the
  absence thereof the state or city would not be empowered  to  make  such
  grants to the corporation.
    §  19.  Exemption  from  taxation.  1.  The moneys and property of the
  corporation  and  any  property  under  its  jurisdiction,  control   or

  supervision,  and  all  of its activities and operations shall be exempt
  from taxation.
    2. The state of New York covenants with the purchasers of and with all
  subsequent  holders  and  transferees  of  bonds and notes issued by the
  corporation pursuant to this act, in consideration of the acceptance  of
  and  payment for the said bonds and notes, that the said bonds and notes
  and the income therefrom, and all moneys, funds and revenue  pledged  to
  pay  or  secure the payment of such bonds and notes shall at all time be
  free from taxation, except for  estate  and  gift  taxes  and  taxes  on
  transfers.
    §  20.  Actions  by  and  against  the corporation. 1. In every action
  against the corporation for damages for injuries  to  real  or  personal
  property,  or  for  the destruction thereof, or for personal injuries or
  death, the complaint shall contain an allegation that  at  least  thirty
  days  have  elapsed  since  the  demand, claim or claims upon which such
  action is founded were  presented  to  a  director  or  officer  of  the
  corporation and that the corporation has neglected or refused to make an
  adjustment or payment thereof for thirty days after such presentment, or
  if  the  demand,  claim  or claims upon which such action is founded was
  presented to a director or officer of the corporation  by  service  upon
  the  secretary  of  state pursuant to section fifty-three of the general
  municipal law, that at least forty days have elapsed since such  service
  was  made,  and that the corporation has neglected or refused to make an
  adjustment or payment thereof for forty days after such presentment.
    2. Except in an action for  wrongful  death,  an  action  against  the
  corporation  for  damages  for injuries to real or personal property, or
  for the destruction thereof, or for personal injuries, alleged  to  have
  been  sustained,  shall  not  be commenced more than one year and ninety
  days after the cause of action thereof shall have accrued, nor unless  a
  notice of intention to commence such action and of the time when and the
  place  where  the  tort  occurred  and  the  injuries  or  damage,  were
  sustained, together with a verified  statement  showing  in  detail  the
  property  alleged  to  have  been  damaged  or  destroyed  and the value
  thereof, or the personal injuries alleged to have been sustained and  by
  whom,  shall  have  been  filed  with  a  director  or  officer  of  the
  corporation within ninety days after such cause  of  action  shall  have
  accrued.  All the provisions of section fifty-e of the general municipal
  law shall apply to such notice. The corporation may require any claimant
  hereunder to be examined as provided in section fifty-h of  the  general
  municipal  law,  and  all  the provisions of such section shall apply to
  such examinations. An action against the corporation for wrongful  death
  shall  be  commenced  in  accordance  with  the notice of claim and time
  limitation provisions of title eleven of  article  nine  of  the  public
  authorities law.
    3.  All  actions  against  the corporation of whatever nature shall be
  brought in the city of New York, in the county within the city in  which
  the  cause  of  action arose, or if it arose outside of the city, in the
  county of New York.
    4. The corporation may require any person presenting for settlement an
  account or claim for any cause against the  corporation,  except  as  to
  examination  on  claims as set forth in subdivision two of this section,
  to  be  sworn  before  an  officer,  counsel  or  an  attorney  of   the
  corporation,  touching  such  account  or  claim,  and when so sworn, to
  answer orally as to any facts relative to the adjustment of such account
  or claim. The corporation may settle or adjust all claims in favor of or
  against the corporation, and all accounts in which  the  corporation  is
  concerned  as  debtor  or  creditor;  but in adjusting and settling such

  claims, it shall, as far as practicable, be governed by the rules of law
  and principles of equity which prevail in courts of justice.
    5.  Except  as  hereinafter  provided in this subdivision, the rate of
  interest to be paid by the corporation  upon  any  judgment  or  accrued
  claim  against  the  corporation  shall  not exceed three per centum per
  annum. The rate of interest to be paid  upon  any  judgment  or  accrued
  claim  against  the  corporation  arising  out  of  an action to recover
  damages for wrongful death shall not exceed six per centum per annum.
    6. The corporation shall be an "agency" for the  purposes  of  section
  fifty-k  of  the  general  municipal  law and its officers and employees
  shall be entitled to legal representation and  indemnification  pursuant
  to  the  provisions  of  and  subject  to the conditions, procedures and
  limitations contained in such  section,  except  that  any  judgment  or
  settlement  pursuant to this section shall be payable from the monies of
  the corporation.
    § 21. Bonds and notes as legal investments. The bonds and notes of the
  corporation are hereby made securities in which all public officers  and
  bodies  of this state and all municipalities and municipal subdivisions,
  all insurance companies and associations, and other persons carrying  on
  an  insurance  business,  all  banks,  bankers, trust companies, savings
  banks and savings associations, including savings and loan associations,
  building and loan associations, investment companies and  other  persons
  carrying   on   a   banking  business,  all  administrators,  guardians,
  executors,  trustees  and  other  fiduciaries,  and  all  other  persons
  whatsoever who are now or may hereafter be authorized to invest in bonds
  or  in  other  obligations of the state, may properly and legally invest
  funds, including capital, in their control or belonging to them.
    § 22. Annual and special reports. 1. Within one  hundred  twenty  days
  after  the  end  of  the  fiscal  year of the corporation, the directors
  thereof shall submit to the mayor, the comptroller, the city council  of
  the  city  of New York and the state comptroller a complete and detailed
  report setting forth:
    (a) its operations and accomplishments during such fiscal year;
    (b)  its  receipts  and  expenditures  during  such  fiscal  year   in
  accordance   with  categories  or  classifications  established  by  the
  corporation for its own operating and capital outlay purposes;
    (c) its assets  and  liabilities  at  the  end  of  such  fiscal  year
  including  a  schedule  of its bonds, notes or other obligations and the
  status of reserves, depreciation, special, sinking or other funds;
    (d) details of health facilities being planned or in  the  process  of
  being  constructed or otherwise acquired and health facilities that have
  been constructed or acquired;
    (e) the performance of the corporation in completing  construction  by
  designated completion dates and within cost estimates;
    (f)  the  names, addresses and qualifications of architects, engineers
  or other consultants retained by the corporation and a statement of  any
  amounts paid or to be paid to such persons for their services;
    (g) the details of any leases or sales or other dispositions of health
  facilities  including  the  fees,  rental  and charges received or to be
  received therefrom;
    (h)  such  other  information  relating  to  the  operations  of   the
  corporation  as  shall  be deemed pertinent by the directors, the mayor,
  the comptroller, the city council of the city of New York or  the  state
  comptroller.
    2.  The  chairman  of  the  corporation,  on  behalf  of the directors
  thereof, on or before December first of each  year,  shall  prepare  and
  submit  to  the  mayor,  a  complete and detailed special report setting
  forth:

    (a) an itemized budget of the expected receipts  and  expenditures  of
  the corporation during the next fiscal year; and
    (b)  information as to the issuance or payment, or provision therefor,
  of bonds, notes and other obligations of  the  corporation  during  such
  next fiscal year.
    §  23. Act not affected if in part unconstitutional or ineffective. If
  any section, subdivision, paragraph, sentence, clause  or  provision  of
  this  act shall be unconstitutional or ineffective, in whole or in part,
  to the extent that it is not unconstitutional or ineffective it shall be
  vaild and  effective  and  no  other  section,  subdivision,  paragraph,
  sentence, clause or provision shall on account thereof be deemed invalid
  or ineffective.
    § 24. Inconsistent provisions of other laws superseded. Insofar as the
  provisions of this act are inconsistent with the provisions of any other
  law,  general,  special  or  local,  the provisions of this act shall be
  controlling, provided, however, that nothing therein shall be deemed  to
  prevent  the city from constructing a health facility by the issuance of
  bonds or notes or other obligations pursuant to the local  finance  law,
  or  from  owning,  holding, operating or using a health facility or from
  providing health and medical services.
    §  25.  Termination  of  the  corporation.  The  corporation  and  its
  corporate  existence  shall  continue until terminated by law; provided,
  however, that no such law shall take effect so long as  the  corporation
  shall   have   bonds,  notes  or  other  obligations  outstanding.  Upon
  termination of the existence of  the  corporation  all  of  its  rights,
  property,  assets  and funds shall thereupon vest in and be possessed by
  the city.

  
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Last modified: September 11, 2016