2023 New York Laws › PBA - Public Authorities › Article 10-C - New York Health Care Corporations › Title 6 - Erie County Medical Center Corporation › 3632 - Transfer of Property; Relationship With County; Certain Gifts, Loans, and Guarantees by the County.

§ 3632. Transfer of property; relationship with county; certain gifts,
loans,  and guarantees by the county. 1. (a) The county may give, grant,
sell, convey, lend, license the use of, or lease to the corporation, and
the corporation may accept any property (except monies  appropriated  by
the  county and payable to the corporation pursuant to subdivision three
of this section) which are useful in connection with the exercise by the
corporation of any of its powers under this title in order  to  transfer
the  facilities  and  operations  of  the  Erie  County  Medical  Center
healthcare network to the corporation by agreement  between  the  county
and  the corporation and any subsequent renewal or amendment thereof, by
local law adopted by a majority vote of  the  Erie  county  legislature,
notwithstanding   any   general,   special,  or  local  law,  ordinance,
resolution, or charter.
(b) Any such gift, grant, sale, conveyance, loan,  license,  or  lease
shall be upon such terms and conditions, for such consideration, if any,
and  for  such  term  or  terms  of  years, subject to the rights of the
holders of any bonds, as the corporation and the county  may  agree.  No
real  property  of the county consisting of any health facility operated
on the effective date of this title by the Erie  County  Medical  Center
healthcare  network  shall  be  transferred  to  the corporation in fee,
except under such restrictions regarding  rights  of  first  refusal  in
favor of the county and subject to a right of reverter in the event that
the  corporation  should cease to use such property for the provision of
research, education, and health care, or other rights, to repurchase the
property as the Erie  county  legislature  shall  approve  by  act,  and
subject  to  a  restrictive  covenant  prohibiting  the corporation from
pledging or mortgaging the fee interest in the property.  In  the  event
that  the  county  gives,  grants,  sells,  conveys, lends, licenses, or
leases any facilities to the corporation, the county may  contract  with
the  corporation  to  lease, borrow, license, operate, maintain, manage,
and provide services for such facilities upon such terms and  conditions
and for such term or terms of years, subject to the rights of holders of
bonds,  as the corporation and the county may agree. The corporation, in
furtherance of any purchase, conveyance, or lease  of  any  property  or
facility  from the county, may assume the primary responsibility for the
payment of the principal and interest on any bonds or  notes  issued  by
the county for such property or facility.
2.  The  county  may  acquire  by  purchase,  grant,  lease,  gift, or
condemnation,  pursuant  to  the  eminent  domain  procedure  law,  real
property  in  the  name  of  the county for any corporate purpose of the
corporation.
3. In addition to any other powers granted to it by law and consistent
with the constitution and other provisions  of  law,  the  county  shall
appropriate  sums of money to defray project costs or any other costs or
expenses of the corporation, including operating expenses.
4. On the effective  date  of  the  transfer  of  the  facilities  and
operations of the Erie County Medical Center healthcare network pursuant
to  an agreement between the corporation and the county, the Erie County
Medical Center board of managers  shall  cease  to  be  responsible  for
operation  of  the  network;  provided,  however,  that the county shall
continue the existence of the board of managers in the  event  that  the
contract  between  the corporation and the county requires the operation
of the network to revert to the county in the event that the corporation
should cease to use such property for the provision of  health  care  or
the  corporation  otherwise  fails  to  meet  its  obligations under any
agreement between the county and the corporation.
5. The county shall maintain its efforts to provide  annual  operating
funding  to  the  corporation  to  permit  it to serve all uninsured and

under-insured patients, foster its role  as  a  teaching  hospital,  and
provide tertiary care services that are unavailable at other health care
facilities in the western New York region. The county shall maintain and
provide an operating contribution to the corporation in an annual amount
that  is  the  difference between the corporation's total revenues minus
total expenses. For purposes of this section, total  revenue  and  total
expenses  shall  include  amounts  attributable  to the corporation, any
subsidiary of the corporation, and  any  entity  providing  health  care
services   thereto.  The  manner  of  calculating  the  county's  annual
maintenance of effort of the corporation shall be the  process  followed
by  the county in determining the maintenance of effort for the network.
The county shall have the right of audit at any time and  from  time  to
time  to  confirm  the  details of corporate operations. The corporation
shall provide monthly financial  reports  to  the  county  that  provide
details  concerning  all  business  operations  for the corporation on a
consistent basis.
6. (a) Notwithstanding any general, special, or local law  or  charter
provisions  to the contrary, the county of Erie shall have the power and
is hereby authorized, pursuant to section seven of article seventeen  of
the  state constitution, to lend its money or credit to or in aid of the
corporation or any subsidiary  thereof  for  the  purpose  of  providing
health  related  facilities  or  hospital facilities for the prevention,
diagnosis, or treatment of  human  disease,  pain,  injury,  disability,
deformity,  or  physical  condition,  and  for  facilities incidental or
appurtenant thereto, as may be prescribed by law. The county  is  hereby
authorized to prescribe such facilities by local law. The corporation or
any such subsidiary thereof, as a condition to any such loan of money or
credit,  shall  enter  into a regulatory agreement with the county as to
its charges, profits, dividends, and  disposition  of  its  property  or
franchises,  which  agreement  shall  be  binding and enforceable by the
county insofar  as  such  agreement  regulates  such  charges,  profits,
dividends,  and  disposition  of  property. The county may elect in such
regulatory agreement to refrain from exercising all or  any  portion  of
its  authority  to  so  regulate  such  charges, profits, dividends, and
disposition of property to the extent such charges, profits,  dividends,
and  disposition  of  property  are regulated by the state or any agency
thereof. The county shall authorize such regulatory agreement  by  local
law.
(b) In pursuance of the authority granted in this title, the county of
Erie  shall  have the power and is hereby authorized, from time to time,
to issue its bonds,  notes,  or  other  obligations  in  such  principal
amounts  as  it  shall  deem  necessary, after taking into account other
monies which may be available for the purposes set forth in this  title.
Such  bonds,  notes,  or  obligations shall be issued for the purpose of
making loans to  the  corporation  or  any  subsidiary  thereof,  paying
interest  on  such  bonds, notes, or other obligations, establishment of
reserves to secure such notes, bonds, or other obligations,  and  paying
all  other  obligations  and expenditures incidental to and necessary or
convenient  for  the  making  of  such  loans.  Such  bonds,  notes,  or
obligations shall be issued in accordance with the applicable provisions
of this chapter, the local finance law, and applicable local laws.
(c) Any guarantee by the county made pursuant to the authority granted
in  this section shall be authorized by act or acts of the county in the
same manner as such act or acts authorizing the issuance of bonds of the
county for the purposes for which such guarantee is undertaken.
(d) The  county  is  also  authorized  to  enact  laws  governing  the
conditions  under which such loans, commitments, and guarantees shall be
made.
7. For purposes of subdivision four of paragraph a of section 25.00 of
the local finance law, amounts to be derived by the county of Erie  from
the  corporation,  or  any  subsidiary thereof, shall be included in the
term "other income".
8.  (a) Notwithstanding the provisions of any other state or local law
to the contrary, including, but not limited to, sections six-n and six-j
of the general municipal law, with  the  approval  of  the  Erie  county
legislature,  amounts  deposited  for  or  on  behalf of the Erie County
Medical Center healthcare network in  the  liability  and  casualty  and
workers'  compensation  reserve funds established by the county pursuant
to such sections of the general municipal law, and  investment  earnings
thereof,  may be withdrawn by the county from such funds and transferred
to the corporation and shall be used by the corporation for the purposes
for which such funds were established.
(b) No amounts shall be withdrawn and transferred to  the  corporation
pursuant  to  this  subdivision  unless,  prior  to  such  withdrawal or
transfer, the corporation has agreed in writing to  indemnify  and  hold
harmless  the  county,  and  provide  defense,  for  all  claims, cases,
proceedings, actions, or other matters against the county arising out of
the properties, facilities, operations, or employees of the corporation,
whether commenced before or after the date of transfer of such  amounts,
and to provide such other security for such obligation as the county may
reasonably require.
9.  The county shall be responsible for the payment of all outstanding
bonded indebtedness of the Erie County Medical Center healthcare network
that was accumulated  prior  to  the  creation  of  the  public  benefit
corporation.