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

                                  6676

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 12, 2013
                               ___________

Introduced  by  M.  of  A.  GOTTFRIED  --  read once and referred to the
  Committee on Health

AN ACT to amend the public health law, in relation to  the  approval  of
  construction  of  hospitals  or  diagnostic  treatment centers without
  regard to public need and  financial  resource  requirements;  and  in
  relation  to  approval  of  the transfer of ownership or operator of a
  hospital

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

  Section  1.  Subdivisions  1,  2  and  3 of section 2802 of the public
health law, subdivisions 1 and 2 as amended by section 58 of part  A  of
chapter  58  of  the  laws  of  2010,  paragraph (e) of subdivision 3 as
amended by chapter 731 of the laws of 1993, subdivision 3 as amended  by
chapter 609 of the laws of 1982, are amended to read as follows:
  1.  An  application  for  such  construction  shall  be filed with the
department, together with such other forms and information as  shall  be
prescribed  by, or acceptable to, the department. Thereafter the depart-
ment shall forward a copy of the application and accompanying  documents
to the public health and health planning council, and the health systems
agency,  if  any, having geographical jurisdiction of the area where the
hospital is located.
  2. The commissioner shall not act upon an application for construction
of a hospital until the public health and health  planning  council  and
the  health  systems  agency  have had a reasonable time to submit their
recommendations, and unless (a) the applicant has obtained all approvals
and consents required by law  for  its  incorporation  or  establishment
(including the approval of the public health and health planning council
pursuant  to the provisions of this article) provided, however, that the
commissioner may act upon an application for construction by  an  appli-
cant possessing a valid operating certificate when the application qual-
ifies  for  review without the recommendation of the council pursuant to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10262-01-3
              

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regulations adopted by the council and approved by the commissioner; and
(b) the commissioner  is  satisfied  as  to  the  public  need  for  the
construction,  at  the  time  and  place  and  under  the  circumstances
proposed, provided however that[,] in the case of an application by: (I)
a  hospital established or operated by an organization defined in subdi-
vision one of section four hundred eighty-two-b of the  social  services
law,  the  needs of the members of the religious denomination concerned,
for care or treatment in accordance  with  their  religious  or  ethical
convictions, shall be deemed to be public need[.]; (II) A GENERAL HOSPI-
TAL  OR DIAGNOSTIC AND TREATMENT CENTER, ESTABLISHED UNDER THIS ARTICLE,
TO CONSTRUCT A FACILITY TO PROVIDE PRIMARY CARE SERVICES, AS DEFINED  IN
REGULATION,  THE  CONSTRUCTION MAY BE APPROVED WITHOUT REGARD FOR PUBLIC
NEED; OR (III) A GENERAL HOSPITAL OR A DIAGNOSTIC AND TREATMENT  CENTER,
ESTABLISHED  UNDER THIS ARTICLE, TO UNDERTAKE CONSTRUCTION THAT DOES NOT
INVOLVE:  (A) A CHANGE IN CAPACITY,  THE  TYPES  OF  SERVICES  PROVIDED,
MAJOR MEDICAL EQUIPMENT; (B) FACILITY REPLACEMENT; OR (C) THE GEOGRAPHIC
LOCATION  OF  SERVICES,  THE CONSTRUCTION MAY BE APPROVED WITHOUT REGARD
FOR PUBLIC NEED.
  3. Subject to the provisions of paragraph (b) of  subdivision  two  of
this section, the commissioner in approving the construction of a hospi-
tal  shall  take into consideration and be empowered to request informa-
tion and advice as to (a) the availability  of  facilities  or  services
such  as  preadmission, ambulatory or home care services which may serve
as alternatives or substitutes for the whole or any part of the proposed
hospital construction;
  (b) the need for special equipment in view of existing utilization  of
comparable  equipment  at the time and place and under the circumstances
proposed;
  (c) the possible economies and improvements in service  to  be  antic-
ipated  from  the operation of joint central services including, but not
limited  to  laboratory,  research,  radiology,  pharmacy,  laundry  and
purchasing;
  (d) the adequacy of financial resources and sources of future revenue,
PROVIDED THAT THE COMMISSIONER MAY, BUT IS NOT REQUIRED TO, CONSIDER THE
ADEQUACY  OF  FINANCIAL  RESOURCES  AND  SOURCES  OF  FUTURE  REVENUE IN
RELATION TO APPLICATIONS UNDER SUBPARAGRAPHS (II) AND (III) OF PARAGRAPH
(B) OF SUBDIVISION TWO OF THIS SECTION; and
  (e) whether the facility is currently in substantial  compliance  with
all applicable codes, rules and regulations, provided, however, that the
commissioner  shall  not  disapprove  an application solely on the basis
that the facility is not currently in  substantial  compliance,  if  the
application is specifically:
  (i) to correct life safety code or patient care deficiencies;
  (ii)  to correct deficiencies which are necessary to protect the life,
health, safety and welfare of facility patients, residents or staff;
  (iii) for replacement of equipment that no longer meets the  generally
accepted  operational  standards existing for such equipment at the time
it was acquired; and
  (iv) for decertification of beds and services.
  S 2. Subdivisions 1, 2 and 3 of section 2807-z of  the  public  health
law,  as amended by chapter 400 of the laws of 2012, are amended to read
as follows:
  1. Notwithstanding any provision of this chapter or regulations or any
other state law or regulation,  for  any  eligible  capital  project  as
defined  in  subdivision  six of this section, the department shall have
thirty days of receipt of the certificate of need OR CONSTRUCTION appli-

A. 6676                             3

cation, PURSUANT TO SECTION TWENTY-EIGHT HUNDRED TWO  OF  THIS  ARTICLE,
for  a  limited  or  administrative  review  to  deem  such  application
complete. If the department determines the application is incomplete  or
that  more  information  is  required,  the  department shall notify the
applicant in writing within thirty days of the date of the application's
submission, and the applicant shall have twenty business days to provide
additional information or otherwise correct the deficiency in the appli-
cation.
  2. For an eligible capital project requiring a limited or  administra-
tive  review,  within ninety days of the department deeming the applica-
tion complete, the department shall make a decision to approve or disap-
prove the certificate of  need  OR  CONSTRUCTION  application  for  such
project.  If  the  department  determines to disapprove the project, the
basis for such disapproval shall be provided in writing; however, disap-
proval shall not be based on the incompleteness of the  application.  If
the  department fails to take action to approve or disapprove the appli-
cation within ninety days of the certificate of need  application  being
deemed complete, the application will be deemed approved.
  3.  For an eligible capital project requiring full review by the coun-
cil, the certificate of need OR CONSTRUCTION application shall be placed
on the next council agenda following the department deeming the applica-
tion complete.
  S 3. Section 2801-a of the public health law is amended  by  adding  a
new subdivision 3-b to read as follows:
  3-B.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  OF  THIS CHAPTER TO THE
CONTRARY, THE PUBLIC HEALTH AND HEALTH PLANNING COUNCIL MAY APPROVE  THE
ESTABLISHMENT  OF DIAGNOSTIC OR TREATMENT CENTERS TO BE ISSUED OPERATING
CERTIFICATES FOR THE PURPOSE OF PROVIDING PRIMARY CARE,  AS  DEFINED  BY
THE  COMMISSIONER  IN REGULATIONS, WITHOUT REGARD TO THE REQUIREMENTS OF
PUBLIC NEED AND FINANCIAL RESOURCES AS SET FORTH IN SUBDIVISION THREE OF
THIS SECTION.
  S 4. Subdivision 3 of section 2801-a of  the  public  health  law,  as
amended  by  section  57 of part A of chapter 58 of the laws of 2010, is
amended to read as follows:
  3. The public health and health planning council shall not  approve  a
certificate  of  incorporation,  articles of organization or application
for establishment unless it is satisfied, insofar as applicable,  as  to
(a) the public need for the existence of the institution at the time and
place  and  under the circumstances proposed, provided, however, that in
the case of an institution proposed to be established or operated by  an
organization  defined in subdivision one of section one hundred seventy-
two-a of the executive law, the needs of the members  of  the  religious
denomination  concerned,  for care or treatment in accordance with their
religious or ethical convictions, shall be deemed to be public need; (b)
the character,  competence,  and  standing  in  the  community,  of  the
proposed  incorporators,  directors,  sponsors, stockholders, members or
operators; with respect to any proposed incorporator, director, sponsor,
stockholder, member or operator who is already or within the past  [ten]
SEVEN years has been an incorporator, director, sponsor, member, princi-
pal  stockholder, principal member, or operator of any hospital, private
proprietary home for adults, residence for adults,  or  non-profit  home
for  the aged or blind which has been issued an operating certificate by
the state department of social services, or a halfway house,  hostel  or
other  residential  facility  or  institution  for  the care, custody or
treatment of the mentally disabled which is subject to approval  by  the
department  of  mental  hygiene, no approval shall be granted unless the

A. 6676                             4

public health and health planning council, having afforded  an  adequate
opportunity  to  members  of  health  systems  agencies,  if any, having
geographical jurisdiction of the area where the  institution  is  to  be
located to be heard, shall affirmatively find by substantial evidence as
to  each  such incorporator, director, sponsor, MEMBER, principal stock-
holder, PRINCIPAL MEMBER, or operator that  a  substantially  consistent
high level of care is being or was being rendered in each such hospital,
home, residence, halfway house, hostel, or other residential facility or
institution  with  which  such  person  is  or  was  affiliated; for the
purposes of this paragraph, the public health and health planning  coun-
cil  shall  adopt  rules and regulations, subject to the approval of the
commissioner, to establish the criteria to be used to determine  whether
a  substantially  consistent  high  level  of  care  has  been rendered,
provided, however, that there shall not be a finding that a substantial-
ly consistent high level of care has been rendered where there have been
violations of the state hospital code, or  other  applicable  rules  and
regulations,  that  (i) threatened to directly affect the health, safety
or welfare of any patient or resident, and (ii) were recurrent  or  were
not  promptly  corrected,  UNLESS  THE  PROPOSED INCORPORATOR, DIRECTOR,
SPONSOR, STOCKHOLDER, MEMBER OR OPERATOR DEMONSTRATES,  AND  THE  PUBLIC
HEALTH  AND HEALTH PLANNING COUNCIL FINDS, THAT THE VIOLATIONS CANNOT BE
ATTRIBUTED TO THE ACTION OR  INACTION  OF  SUCH  PROPOSED  INCORPORATOR,
DIRECTOR,  SPONSOR,  STOCKHOLDER,  MEMBER OR OPERATOR DUE TO THE TIMING,
EXTENT OR MANNER OF THE AFFILIATION; (c) the financial resources of  the
proposed  institution  and  its sources of future revenues; and (d) such
other matters as it shall deem pertinent.
  S 5. Subdivision 4 of section 2801-a of  the  public  health  law,  as
amended  by  section  57 of part A of chapter 58 of the laws of 2010, is
amended to read as follows:
  4. (a) Any change in the person who is  the  operator  of  a  hospital
shall  be  approved  by the public health and health planning council in
accordance with the provisions of subdivisions two  and  three  of  this
section.  Notwithstanding  any inconsistent provision of this paragraph,
any change by a natural person who is the operator of a hospital seeking
to transfer part of his or her interest  in  such  hospital  to  another
person  or  persons  so  as to create a partnership shall be approved in
accordance with the provisions of paragraph (b) of this subdivision.
  (b) [(i)] Any transfer, assignment or other disposition of ten percent
or more of [an] DIRECT OR INDIRECT interest or voting rights in [a part-
nership or limited liability company, which is the]  AN  operator  of  a
hospital  to  a  new  STOCKHOLDER,  partner  or member, OR ANY TRANSFER,
ASSIGNMENT OR OTHER DISPOSITION OF A  DIRECT  OR  INDIRECT  INTEREST  OR
VOTING  RIGHTS  OF  SUCH  AN  OPERATOR WHICH RESULTS IN THE OWNERSHIP OR
CONTROL OF MORE THAN TEN PERCENT OF THE INTEREST  OR  VOTING  RIGHTS  OF
SUCH OPERATOR BY ANY PERSON NOT PREVIOUSLY APPROVED BY THE PUBLIC HEALTH
AND HEALTH PLANNING COUNCIL, OR ITS PREDECESSOR, FOR THAT OPERATOR shall
be approved by the public health and health planning council, in accord-
ance  with the provisions of subdivisions two and three of this section,
except that: (A) any such change shall be subject to the approval by the
public health and health planning council in accordance  with  paragraph
(b)  of  subdivision  three of this section only with respect to the new
STOCKHOLDER, partner or member, and any remaining STOCKHOLDERS, partners
or members who have not been previously approved for  that  facility  in
accordance with such paragraph, and (B) such change shall not be subject
to paragraph (a) of subdivision three of this section. IN THE ABSENCE OF

A. 6676                             5

SUCH  APPROVAL,  THE  OPERATING  CERTIFICATE  OF  SUCH HOSPITAL SHALL BE
SUBJECT TO REVOCATION OR SUSPENSION.
  [(ii)]  (C)  (I) With respect to a transfer, assignment or disposition
involving less than ten percent of [an] A DIRECT OR INDIRECT interest or
voting rights in [such partnership  or  limited  liability  company]  AN
OPERATOR OF A HOSPITAL to a new STOCKHOLDER, partner or member, no prior
approval  of  the  public  health  and  health planning council shall be
required. However, no such transaction  shall  be  effective  unless  at
least  ninety  days  prior  to  the intended effective date thereof, the
[partnership or limited liability company] OPERATOR fully completes  and
files  with  the  public  health and health planning council notice on a
form, to be developed by the public health and health planning  council,
which shall disclose such information as may reasonably be necessary for
the  public  health  and health planning council to determine whether it
should bar the transaction for any of the reasons set forth in item (A),
(B), (C) or (D) below. Within ninety days from the date  of  receipt  of
such  notice,  the public health and health planning council may bar any
transaction under this subparagraph: (A) if the equity position  of  the
[partnership  or  limited  liability  company,]  OPERATOR, determined in
accordance with  generally  accepted  accounting  principles,  would  be
reduced  as  a result of the transfer, assignment or disposition; (B) if
the transaction would result in  the  ownership  of  a  [partnership  or
membership]  DIRECT OR INDIRECT interest OR VOTING RIGHTS by any persons
who have been convicted of a felony described  in  subdivision  five  of
section  twenty-eight  hundred  six  of  this  article; (C) if there are
reasonable grounds to believe that the  proposed  transaction  does  not
satisfy  the  character and competence criteria set forth in subdivision
three of this section; or (D) UPON THE RECOMMENDATION OF THE DEPARTMENT,
if the transaction, together with all transactions under  this  subpara-
graph for the [partnership] OPERATOR, or successor, during any five year
period  would,  in the aggregate, involve twenty-five percent or more of
the interest in the [partnership] OPERATOR. The public health and health
planning council shall state specific reasons  for  barring  any  trans-
action  under  this  subparagraph  and shall so notify each party to the
proposed transaction.
  [(iii) With respect to a transfer, assignment  or  disposition  of  an
interest  or  voting  rights  in  such  partnership or limited liability
company to any remaining partner or member, which  transaction  involves
the withdrawal of the transferor from the partnership or limited liabil-
ity  company, no prior approval of the public health and health planning
council shall be required. However, no such transaction shall be  effec-
tive  unless  at  least ninety days prior to the intended effective date
thereof, the partnership or limited liability  company  fully  completes
and files with the public health and health planning council notice on a
form,  to be developed by the public health and health planning council,
which shall disclose such information as may reasonably be necessary for
the public health and health planning council to  determine  whether  it
should bar the transaction for the reason set forth below. Within ninety
days  from  the  date  of  receipt of such notice, the public health and
health planning council may bar any transaction under this  subparagraph
if  the equity position of the partnership or limited liability company,
determined in accordance with generally accepted accounting  principles,
would be reduced as a result of the transfer, assignment or disposition.
The  public  health  and  health  planning  council shall state specific
reasons for barring any transaction under this subparagraph and shall so
notify each party to the proposed transaction.

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  (c) Any transfer, assignment or other disposition of  ten  percent  or
more  of the stock or voting rights thereunder of a corporation which is
the operator of a hospital or which is a member of a  limited  liability
company which is the operator of a hospital to a new stockholder, or any
transfer,  assignment or other disposition of the stock or voting rights
thereunder of such a corporation  which  results  in  the  ownership  or
control  of  more  than ten percent of the stock or voting rights there-
under of such corporation by any person not previously approved  by  the
public  health and health planning council, or its predecessor, for that
corporation shall be subject to approval by the public health and health
planning council, in accordance with the provisions of subdivisions  two
and  three  of  this section and rules and regulations pursuant thereto;
except that: any such transaction shall be subject to  the  approval  by
the  public  health and health planning council in accordance with para-
graph (b) of subdivision three of this section only with  respect  to  a
new stockholder or a new principal stockholder; and shall not be subject
to paragraph (a) of subdivision three of this section. In the absence of
such  approval,  the  operating  certificate  of  such hospital shall be
subject to revocation or suspension.] (II)  No  prior  approval  of  the
public health and health planning council shall be required with respect
to  a transfer, assignment or disposition of ten percent or more of [the
stock] A DIRECT OR INDIRECT INTEREST or voting rights [thereunder  of  a
corporation  which  is  the] IN AN operator of a hospital [or which is a
member of a limited liability company which is the owner of a  hospital]
to  any person previously approved by the public health and health plan-
ning council, or  its  predecessor,  for  that  [corporation]  OPERATOR.
However,  no  such transaction shall be effective unless at least ninety
days prior to the intended effective  date  thereof,  the  [stockholder]
OPERATOR  FULLY  completes  and  files with the public health and health
planning council notice on forms to be developed by  the  public  health
and  health  planning  council, which shall disclose such information as
may reasonably be necessary for the public health  and  health  planning
council  to determine whether it should bar the transaction. Such trans-
action will be final as of the intended  effective  date  unless,  prior
thereto,  the  public  health  and  health  planning council shall state
specific reasons for barring such transactions under this paragraph  and
shall  notify  each  party  to the proposed transaction. Nothing in this
paragraph shall be construed  as  permitting  a  person  not  previously
approved  by  the  public  health  and  health planning council for that
[corporation] OPERATOR to become the owner of ten percent or more of the
[stock of a corporation which is] INTEREST OR VOTING RIGHTS, DIRECTLY OR
INDIRECTLY, IN the operator of a hospital [or which is  a  member  of  a
limited  liability  company  which  is  the owner of a hospital] without
first obtaining the approval of the public health  and  health  planning
council.
  (d)  No  hospital  shall  be approved for establishment which would be
operated by a limited partnership,  or  by  a  partnership  any  of  the
members of which are not natural persons.
  (e)  No  hospital  shall  be approved for establishment which would be
operated by a corporation any of the stock of which is owned by  another
corporation  or  a  limited  liability  company  if any of its corporate
members' stock is owned by another corporation.
  (f) No corporation shall be a member of a  limited  liability  company
authorized  to  operate  a  hospital  unless its proposed incorporators,
directors,  stockholders  or  principal  stockholders  shall  have  been
approved  in accordance with the provisions of subdivision three of this

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section applicable to the approval of the proposed incorporators, direc-
tors or stockholders of any other  corporation  requiring  approval  for
establishment.
  (g)  A  natural person appointed as trustee of an express testamentary
trust, created by a deceased sole proprietor, partner or shareholder  in
the  operation  of  a  hospital for the benefit of a person of less than
twenty-five years of age, may, as the trustee, apply pursuant to  subdi-
vision two of this section for approval to operate or participate in the
operation  of  a  facility  or interest therein which is included in the
corpus of such trust until such time as all beneficiaries attain the age
of twenty-five, unless the trust instrument provides for earlier  termi-
nation,  or  such  beneficiaries receive establishment approval in their
own right, or until a transfer of the trust corpus is  approved  by  the
public  health  and  health  planning  council,  in accordance with this
subdivision and subdivisions two and three of  this  section,  whichever
first  occurs.  The  public health and health planning council shall not
approve any such application unless it is satisfied as to:
  (i) the character, competence and standing in the  community  of  each
proposed trustee operator pursuant to the provisions of paragraph (b) of
subdivision three of this section; and
  (ii)  the  ability of the trustee under the terms of the trust instru-
ment to operate or participate in the operation of  the  hospital  in  a
manner consistent with this chapter and regulations promulgated pursuant
thereto.
  (h)  A natural person appointed conservator pursuant to article eight-
y-one of the mental hygiene law, or a natural person appointed committee
of the property of an incompetent pursuant to article eighty-one of  the
mental  hygiene  law  or  a sole proprietor, partner or shareholder of a
hospital, may apply pursuant to subdivision  two  of  this  section  for
approval  to  operate a hospital owned by the conservatee or incompetent
for a period not exceeding two years or until a transfer of the hospital
is approved by the public health and health planning council in  accord-
ance  with  subdivisions two and three of this section, whichever occurs
first. The public health and health planning council shall  not  approve
any such application unless it is satisfied as to:
  (i)  the  character,  competence  and standing in the community of the
proposed conservator operator or  committee  operator  pursuant  to  the
provisions of paragraph (b) of subdivision three of this section; and
  (ii)  the  ability  of the conservator or committee under the terms of
the court order to operate the hospital in a manner consistent with this
chapter and regulations promulgated pursuant thereto.
  S 6. Section 3611-a of the public health law, as amended by section 92
of part C of chapter 58 of the laws of 2009, subdivisions  1  and  2  as
amended  by  section  67 of part A of chapter 58 of the laws of 2010, is
amended to read as follows:
  S 3611-a. Change in the operator or owner.    1.  Any  change  in  the
person  who,  or  any  transfer,  assignment, or other disposition of an
interest or voting rights of ten  percent  or  more,  or  any  transfer,
assignment  or  other  disposition  which  results  in  the ownership or
control of an interest or voting rights of ten percent  or  more,  in  a
limited  liability  company  or a partnership which is the operator of a
licensed home care services agency or a  certified  home  health  agency
shall  be  approved by the public health and health planning council, in
accordance with the provisions of subdivision four of section thirty-six
hundred five of this article relative to licensure or subdivision two of

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section thirty-six hundred six of this article relative  to  certificate
of approval, except that:
  (a)  Public  health  and  health  planning  council  approval shall be
required only with respect to the person, or the member or partner  that
is acquiring the interest or voting rights; and
  (b)  With respect to certified home health agencies, such change shall
not be subject to the public need assessment described in paragraph  (a)
of subdivision two of section thirty-six hundred six of this article.
  (c)  IN  THE  ABSENCE  OF SUCH APPROVAL, THE LICENSE OR CERTIFICATE OF
APPROVAL SHALL BE SUBJECT TO REVOCATION OR SUSPENSION.
  (D) (I) No prior approval of the public  health  and  health  planning
council  shall  be  required  with  respect to a transfer, assignment or
disposition of:
  [(i)] (A) an interest  or  voting  rights  to  any  person  previously
approved by the public health and health planning council, or its prede-
cessor, for that operator; or
  [(ii)]  (B)  an  interest or voting rights of less than ten percent in
the operator. [However, no]
  (II) NO such transaction UNDER  SUBPARAGRAPH  (I)  OF  THIS  PARAGRAPH
shall  be  effective  unless  at least ninety days prior to the intended
effective date thereof, the [partner or member] OPERATOR  completes  and
files with the public health and health planning council notice on forms
to  be developed by the public health council, which shall disclose such
information as may reasonably be necessary for  the  public  health  and
health  planning  council  to determine whether it should bar the trans-
action. Such transaction will be final as of the intended effective date
unless, prior thereto, the public health  and  health  planning  council
shall  state  specific  reasons for barring such transactions under this
paragraph and shall notify each party to the proposed transaction.
  2. Any transfer, assignment or other disposition  of  ten  percent  or
more  of the stock or voting rights thereunder of a corporation which is
the operator of a licensed home care services agency or a certified home
health agency, or any transfer, assignment or other disposition  of  the
stock or voting rights thereunder of such a corporation which results in
the ownership or control of more than ten percent of the stock or voting
rights  thereunder of such corporation by any person shall be subject to
approval by the public health and health planning council in  accordance
with  the  provisions  of subdivision four of section thirty-six hundred
five of this article relative to licensure or subdivision two of section
thirty-six hundred six  of  this  article  relative  to  certificate  of
approval, except that:
  (a)  Public  health  and  health  planning  council  approval shall be
required only with respect to the person or entity acquiring such  stock
or voting rights; and
  (b)  With respect to certified home health agencies, such change shall
not be subject to the public need assessment described in paragraph  (a)
of subdivision two of section thirty-six hundred six of this article. In
the  absence  of  such  approval, the license or certificate of approval
shall be subject to revocation or suspension.
  (c) No prior approval of the public health and health planning council
shall be required with respect to a transfer, assignment or  disposition
of an interest or voting rights to any person previously approved by the
public  health and health planning council, or its predecessor, for that
operator. However, no such transaction  shall  be  effective  unless  at
least one hundred twenty days prior to the intended effective date ther-
eof,  the  partner  or member completes and files with the public health

A. 6676                             9

and health planning council notice on  forms  to  be  developed  by  the
public  health  and  health  planning council, which shall disclose such
information as may reasonably be necessary for  the  public  health  and
health  planning  council  to determine whether it should bar the trans-
action. Such transaction will be final as of the intended effective date
unless, prior thereto, the public health  and  health  planning  council
shall  state  specific  reasons for barring such transactions under this
paragraph and shall notify each party to the proposed transaction.
  3. (a) The commissioner shall charge to applicants  for  a  change  in
operator or owner of a licensed home care services agency or a certified
home  health  agency  an  application  fee in the amount of two thousand
dollars.
  (b) The fees paid by certified home health agencies pursuant  to  this
subdivision for any application approved in accordance with this section
shall  be  deemed  allowable costs in the determination of reimbursement
rates established pursuant to this article. All fees  pursuant  to  this
section  shall  be  payable to the department of health for deposit into
the special revenue funds - other, miscellaneous special revenue fund  -
339, certificate of need account.
  S 7. This act shall take effect on the one hundred eightieth day after
it  shall  have  become  a law, provided that effective immediately, the
commissioner of health is authorized to make any  rules  or  regulations
necessary to implement the provisions of this act on its effective date.