S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3590--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2013
                               ___________

Introduced  by  M.  of  A.  GLICK, PRETLOW, JAFFEE, O'DONNELL, CRESPO --
  Multi-Sponsored by -- M. of A. PERRY -- read once and referred to  the
  Committee  on  Health  --  recommitted  to  the Committee on Health in
  accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the public health law, in relation  to  capping  compen-
  sation for hospital executives

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public health law is amended by adding  a  new  section
2827 to read as follows:
  S  2827.  LIMITATION  ON  SALARY FOR HOSPITAL EXECUTIVES. 1.  NOTWITH-
STANDING ANY INCONSISTENT SECTION OF  LAW,  FOR  THE  PURPOSES  OF  THIS
SECTION:  (A)  "HOSPITAL"  SHALL  MEAN ANY HOSPITAL ORGANIZED UNDER THIS
ARTICLE THAT RECEIVES  PAYMENT  BY  PROVIDING  SERVICES  TO:  RECIPIENTS
ELIGIBLE FOR MEDICAL ASSISTANCE PURSUANT TO TITLE ELEVEN OF ARTICLE FIVE
OF  THE  SOCIAL  SERVICES LAW; ENROLLEES ELIGIBLE FOR MEDICAL ASSISTANCE
PURSUANT TO SUCH TITLE AND ENROLLED IN APPROVED MANAGED  CARE  ORGANIZA-
TIONS PURSUANT TO SECTION THREE HUNDRED SIXTY-FOUR-J OF SUCH TITLE ELEV-
EN;  ENROLLEES  ELIGIBLE FOR FAMILY HEALTH PLUS AND ENROLLED IN APPROVED
ORGANIZATIONS PURSUANT TO TITLE ELEVEN-D OF ARTICLE FIVE OF  THE  SOCIAL
SERVICES  LAW; ENROLLEES ELIGIBLE FOR THE CHILD HEALTH INSURANCE PROGRAM
AND ENROLLED IN APPROVED ORGANIZATIONS PURSUANT TO TITLE ONE-A OF  ARTI-
CLE TWENTY-FIVE OF THIS CHAPTER; AND ENROLLEES OF THE ELDERLY PHARMACEU-
TICAL INSURANCE COVERAGE PROGRAM, PURSUANT TO TITLE THREE OF ARTICLE TWO
OF THE ELDER LAW; AND
  (B)  "HOSPITAL EXECUTIVE" SHALL MEAN A PERSON OR GROUP HAVING ADMINIS-
TRATIVE OR MANAGERIAL AUTHORITY OF A HOSPITAL, WHICH SHALL INCLUDE,  BUT
NOT  BE  LIMITED  TO,  THE FOLLOWING POSITIONS: CHIEF EXECUTIVE OFFICER,
CHIEF EXECUTIVE, EXECUTIVE OFFICER, EXECUTIVE DIRECTOR, CHIEF  FINANCIAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04566-02-4
              

A. 3590--A                          2

OFFICER,  PRESIDENT, EXECUTIVE PRESIDENT, VICE PRESIDENT, EXECUTIVE VICE
PRESIDENT, EXECUTIVE VICE  PRESIDENT-CORPORATE,  EXECUTIVE  VICE  PRESI-
DENT-OPERATIONS,  SENIOR  VICE  PRESIDENT,  AND SENIOR VICE PRESIDENT OF
FINANCE OR ANY OTHER COMPARABLE POSITION; AND
  (C) "TOTAL ANNUAL SALARY" MEANS THE TOTAL AMOUNT OF COMPENSATION TO BE
PAID  TO  A HOSPITAL EXECUTIVE FOR SERVICES IN A CALENDAR YEAR, PROVIDED
SUCH TERM SHALL INCLUDE DEFERRED COMPENSATION EARNED DURING THAT  CALEN-
DAR  YEAR,  ANY EMPLOYER CONTRIBUTIONS TO A RETIREMENT PLAN MADE IN SUCH
CALENDAR YEAR, AND ANY LUMP-SUM CASH PAYMENT MADE TO SUCH HOSPITAL EXEC-
UTIVE IN SUCH CALENDAR YEAR INCLUDING, BUT NOT LIMITED TO, CASH BONUSES,
SEVERANCE PAY, OR OTHER BENEFITS UPON TERMINATION OF EMPLOYMENT.
  2. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF  LAW,  NO  EMPLOYMENT
CONTRACT OF A HOSPITAL EXECUTIVE SHALL PROVIDE FOR A TOTAL ANNUAL SALARY
IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS.
  3.  IN  ADDITION TO THE PAYMENT OF THE TOTAL ANNUAL SALARY, A HOSPITAL
MAY PROVIDE FOR THE PAYMENT OF THE COST  OF  INSURANCE  BENEFITS  FOR  A
HOSPITAL  EXECUTIVE,  INCLUDING,  BUT  NOT  LIMITED TO HEALTH INSURANCE,
DISABILITY INSURANCE, OR LIFE INSURANCE; PROVIDED THAT ANY SUCH PAYMENTS
FOR WHOLE LIFE, SPLIT DOLLAR OR OTHER LIFE INSURANCE POLICIES  HAVING  A
CASH  VALUE SHALL BE INCLUDED IN THE TOTAL ANNUAL SALARY OF THE HOSPITAL
EXECUTIVE FOR PURPOSES OF THIS SECTION, AND PROVIDED  FURTHER  THAT  ANY
PAYMENTS  FOR  THE  EMPLOYEE  CONTRIBUTION,  CO-PAY OR UNCOVERED MEDICAL
EXPENSES UNDER A HEALTH INSURANCE PLAN ALSO SHALL  BE  INCLUDED  IN  THE
TOTAL ANNUAL SALARY OF THE HOSPITAL EXECUTIVE. NOTWITHSTANDING ANY OTHER
PROVISION  OF LAW,  PAYMENTS FOR SUCH INSURANCE BENEFITS MAY BE BASED ON
THE HOSPITAL EXECUTIVE'S TOTAL SALARY ONLY. ANY PAYMENTS FOR TRANSPORTA-
TION OR TRAVEL EXPENSES IN EXCESS OF ACTUAL DOCUMENTED EXPENSES INCURRED
IN THE PERFORMANCE OF DUTIES  FOR  THE  HOSPITAL,  AND  OTHER  LUMP  SUM
PAYMENT  NOT SPECIFICALLY EXCLUDED FROM THE TOTAL ANNUAL SALARY PURSUANT
TO THIS SECTION, SHALL BE INCLUDED IN THE TOTAL  ANNUAL  SALARY  OF  THE
HOSPITAL EXECUTIVE FOR PURPOSES OF THIS SECTION. NOTHING IN THIS SECTION
SHALL PROHIBIT A HOSPITAL EXECUTIVE FROM WAIVING ANY RIGHTS PROVIDED FOR
IN AN EXISTING CONTRACT OR AGREEMENT AS HEREAFTER PROHIBITED IN FAVOR OF
REVISED COMPENSATION OR BENEFIT PROVISIONS AS PERMITTED IN THIS SECTION.
  S  2.  This  act  shall  take  effect  immediately,  provided that the
provisions of this act shall only apply to any employment contracts  for
persons serving as hospital executives that are entered into, amended or
extended on or after the date on which this act shall become a law.