[ ] is old law to be omitted.
LBD12671-04-6
S. 6407--B 2
to amend part H of chapter 59 of the laws of 2011, amending the public
health law and other laws, relating to general hospital inpatient
reimbursement for annual rates, in relation to supplemental Medicaid
managed care payments; to amend the public health law and the insur-
ance law, in relation to the use of abuse-deterrent technology for
opioids as a mechanism for reducing abuse and diversion of opioid
drugs; requiring the department of health to make bi-annual assess-
ments of non-preferred drugs in the best clinical interests of New
York Medicaid beneficiaries; to amend the public health law, in
relation to establishing a Medicaid drug rebate remittance demon-
stration program; to amend the public health law and the general busi-
ness law, in relation to price gouging on prescription drugs; to amend
the social services law, in relation to claims for payment furnished
by providers under the medical assistance program; to direct the
commissioner of health to implement a restorative care unit demon-
stration program; and to repeal certain provisions of the social
services law and section 31 of part B of chapter 57 of the laws of
2015 amending the social services law relating to insurance payments,
relating thereto (Part B); to amend chapter 60 of the laws of 2014
amending the social services law relating to eliminating prescriber
prevails for brand name drugs with generic equivalents, in relation to
directing the commissioner of health to establish a developmental
disability clinician advisory group (Part B-1); to amend chapter 266
of the laws of 1986, amending the civil practice law and rules and
other laws relating to malpractice and professional medical conduct,
in relation to apportioning premium for certain policies; and to amend
part J of chapter 63 of the laws of 2001 amending chapter 266 of the
laws of 1986, amending the civil practice law and rules and other laws
relating to malpractice and professional medical conduct, in relation
to extending certain provisions concerning the hospital excess liabil-
ity pool; to amend the insurance law, in relation to grounds for
liquidation; to amend the insurance law, in relation to removing the
superintendent of financial services' prior approval of a schedule of
premiums within an insurance contract; to direct the department of
financial services to study and report upon the provision of long term
care insurance coverage in this state; and to direct the superinten-
dent of financial services to provide for the conducting of a review
and audit of FAIR Health, Inc. (Part C); to amend chapter 474 of the
laws of 1996, amending the education law and other laws relating to
rates for residential healthcare facilities, in relation to extending
the authority of the department of health to make disproportionate
share payments to public hospitals outside of New York City; to amend
chapter 649 of the laws of 1996, amending the public health law, the
mental hygiene law and the social services law relating to authorizing
the establishment of special needs plans, in relation to the effec-
tiveness thereof; to amend part C of chapter 58 of the laws of 2009,
amending the public health law relating to payment by governmental
agencies for general hospital inpatient services, in relation to the
effectiveness thereof; to amend the public health law, in relation to
the appointment of a temporary operator of a facility; to amend subdi-
vision (c) of section 122 of part E of chapter 56 of the laws of 2013,
amending the public health law relating to the general public health
work program, in relation to the effectiveness thereof; to amend the
environmental conservation law and the public health law, in relation
to the updating of cancer incidence and environmental facility maps;
to amend chapter 77 of the laws of 2010 amending the environmental
S. 6407--B 3
conservation law and the public health law relating to an environ-
mental facility and cancer incidence map, in relation to extending the
expiration date of the provisions thereof; to amend chapter 465 of the
laws of 2012, constituting Lauren's law, in relation to making the
provisions of such law permanent; and to repeal subdivision 8 of
section 84 of part A of chapter 56 of the laws of 2013, amending the
public health law and other laws relating to general hospital
reimbursement for annual rates, relating to the effectiveness thereof
(Part D); intentionally omitted (Part E); to amend the public health
law, in relation to establishing a statewide health care facility
transformation program (Part F); to amend the public health law, in
relation to authorizing the establishment of limited service clinics
(Part G); to amend part D of chapter 111 of the laws of 2010 relating
to the recovery of exempt income by the office of mental health for
community residences and family-based treatment programs, in relation
to the effectiveness thereof; and to provide a report on impacted
providers (Part H); to amend chapter 723 of the laws of 1989 amending
the mental hygiene law and other laws relating to comprehensive
psychiatric emergency programs, in relation to the effectiveness of
certain provisions thereof (Part I); intentionally omitted (Part J);
intentionally omitted (Part K); to amend the mental hygiene law, in
relation to the appointment of temporary operators for the continued
operation of programs, the provision of services for persons with
serious mental illness and/or developmental disabilities; and requir-
ing notification to legislative leaders upon the determination to
appoint a temporary operator of a chemical dependence treatment
program; to amend chapter 56 of the laws of 2013 amending the public
health law and other laws relating to the general public work program,
in relation to the expiration of provisions providing for the appoint-
ment of temporary operators of certain chemical dependence treatment
programs; and providing for the repeal of certain provision upon expi-
ration thereof (Part L); to amend the mental hygiene law, in relation
to sharing clinical records with managed care organizations (Part M);
to amend the facilities development corporation act, in relation to
the definition of mental hygiene facility (Part N); to amend the
mental hygiene law, in relation to services for persons with develop-
mental disabilities (Part O); to amend the elder law, in relation to
the naturally occurring retirement community supportive service
program and the authority of the office for the aging to conduct a
public education campaign relating to elder abuse; to amend the public
health law, in relation to screening for elder abuse and maltreatment;
to amend the social services law, in relation to providing protective
services to certain individuals and investigating reports of suspected
elder abuse or maltreatment; and to amend the social services law and
the banking law, in relation to authorizing banking institutions to
refuse to disburse moneys in circumstances of the financial exploita-
tion of a vulnerable adult (Part P); to amend the mental hygiene law,
in relation to integrated employment plans; and providing for the
repeal of certain provisions upon expiration thereof (Part Q); to
amend the public health law, in relation to requiring the commissioner
of health to establish an office of accountability; to amend the state
finance law, the public health law, the social services law and the
education law, in relation to the date in which certain reports shall
be submitted; to amend part A of chapter 56 of the laws of 2013,
relating to the report on the transition of behavioral health services
as a managed care benefit in the medical assistance program, in
S. 6407--B 4
relation to the date the report shall be submitted; to amend part H of
chapter 60 of the laws of 2014, amending the insurance law, the public
health law and the financial services law relating to establishing
protections to prevent surprise medical bills including network
adequacy requirements, claim submission requirements, access to out-
of-network care and prohibition of excessive emergency charges, in
relation to the date the report shall be submitted; to amend part W of
chapter 57 of the laws of 2015, requiring the commissioner of health
to convene a task force to evaluate and make recommendations related
to increasing the transparency and accountability of the health care
reform act resources fund, in relation to the date the report shall be
submitted; and to amend part B of chapter 57 of the laws of 2015,
amending the public health law relating to physician profiles, in
relation to the date the report shall be submitted for the young adult
special populations demonstration programs (Part R); to amend part A
of chapter 56 of the laws of 2013 amending chapter 59 of the laws of
2011 amending the public health law and other laws relating to general
hospital reimbursement for annual rates relating to the cap on local
Medicaid expenditures, in relation to rates of payment paid to certain
providers by the Child Health Plus Program; and to amend chapter 111
of the laws of 2010 relating to increasing Medicaid payments to
providers through managed care organizations and providing equivalent
fees through an ambulatory patient group methodology, in relation to
rates of payment paid to certain providers by the Child Health Plus
Program (Part S); to amend the mental hygiene law, in relation to
directing the office for people with developmental disabilities to
establish a direct support professional credential pilot program (Part
T); to amend the public health law and the executive law, in relation
to the reporting, processing and secure transport of sexual offense
evidence kits (Part U); to amend the public health law and the educa-
tion law, in relation to electronic prescriptions; to amend the public
health law and the education law, in relation to exceptions to
requirements for electronic prescriptions; to amend the public health
law, in relation to loan forgiveness and practice support for physi-
cians; to amend the social services law, in relation to the use of
EQUAL program funds for adult care facilities; in relation to estab-
lishing the health care facility infrastructure development demon-
stration program; to amend the public health law and the public
authorities law, in relation to establishing a private equity pilot
program; to amend the public health law, in relation to authorizing
the comptroller to act as the fiscal agent for the department of
health and municipalities; and to repeal certain provisions of such
law relating thereto; to amend the public health law, in relation to
the amount of reimbursement; to amend the public health law, in
relation to limitations on state aid; and to amend the public health
law, in relation to state aid during public health emergencies (Part
V); and to provide for the administration of certain funds and
accounts related to the 2016-17 budget, authorizing certain payments
and transfers; to amend the state finance law, in relation to the
rainy day reserve fund, the dedicated infrastructure investment fund
infrastructure investment account, and the school tax relief fund; to
amend the state finance law, in relation to payments, transfers and
deposits; to amend the state finance law, in relation to the period
for which appropriations can be made; to amend chapter 60 of the laws
of 2015, providing for the administration of certain funds and
accounts related to the 2015-16 budget, in relation to certain trans-
S. 6407--B 5
fers and to the effectiveness of certain provisions thereof; to amend
the New York state urban development corporation act, in relation to
funding project costs for certain capital projects; to amend chapter
389 of the laws of 1997, relating to the financing of the correctional
facilities improvement fund and the youth facility improvement fund,
in relation to the issuance of bonds; to amend the private housing
finance law, in relation to housing program bonds and notes; to amend
chapter 329 of the laws of 1991, amending the state finance law and
other laws relating to the establishment of the dedicated highway and
bridge trust fund, in relation to the issuance of bonds; to amend the
public authorities law, in relation to the issuance of bonds; to amend
the public authorities law, in relation to the dormitory authority; to
amend chapter 61 of the laws of 2005 relating to providing for the
administration of certain funds and accounts related to the 2005-2006
budget, in relation to issuance of bonds by the urban development
corporation; to amend the New York state urban development corporation
act, in relation to the issuance of bonds; to amend the public author-
ities law, in relation to the state environmental infrastructure
projects; to amend the New York state urban development corporation
act, in relation to authorizing the urban development corporation to
issue bonds to fund project costs for the implementation of a NY-CUNY
challenge grant program; to amend chapter 81 of the laws of 2002,
relating to providing for the administration of certain funds and
accounts related to the 2002-2003 budget, in relation to increasing
the aggregate amount of bonds to be issued by the New York state urban
development corporation; to amend the public authorities law, in
relation to financing of peace bridge and transportation capital
projects; to amend the public authorities law, in relation to dormito-
ries at certain educational institutions other than state operated
institutions and statutory or contract colleges under the jurisdiction
of the state university of New York; to amend the New York state
medical care facilities finance agency act, in relation to bonds and
mental health facilities improvement notes; to amend chapter 63 of the
laws of 2005, relating to the composition and responsibilities of the
New York state higher education capital matching grant board, in
relation to increasing the amount of authorized matching capital
grants; to amend the public authorities law, in relation to bonds for
the health care facility transformation program; to direct the
distribution of local sales tax revenue from the city of New York; to
amend the civil practice law and rules, in relation to the undertaking
required during the pendency of a stay of enforcement of a judgment
against tobacco product master settlement agreement signatories or
their successors or affiliates; to authorize NYSERDA to expend
proceeds collected from the auction at sale of carbon dioxide emission
allowances; and providing for the repeal of certain provisions upon
expiration thereof (Part W)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2016-2017
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through W. The effective date for each particular
provision contained within such Part is set forth in the last section of
S. 6407--B 6
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding section of the
Part in which it is found. Section three of this act sets forth the
general effective date of this act.
PART A
Section 1. Section 1 of part C of chapter 58 of the laws of 2005,
relating to authorizing reimbursements for expenditures made by or on
behalf of social services districts for medical assistance for needy
persons and the administration thereof, subdivision (a) as amended by
section 3-e of part B of chapter 58 of the laws of 2010, subdivision (b)
as amended by section 24 of part B of chapter 109 of the laws of 2010,
subdivision (c-1) as added by section 1 of part F of chapter 56 of the
laws of 2012, subdivision (f) as amended by section 23 of part B of
chapter 109 of the laws of 2010, paragraph (iii) of subdivision (g) as
amended by section 2 of part F of chapter 56 of the laws of 2012, subdi-
vision (h) as added by section 61 of part D of chapter 56 of the laws of
2012, is amended to read as follows:
Section 1. (a) Notwithstanding the provisions of section 368-a of the
social services law, or any other provision of law, the department of
health shall provide reimbursement for expenditures made by or on behalf
of social services districts for medical assistance for needy persons,
and the administration thereof, in accordance with the provisions of
this section; provided, however, that this section shall not apply to
amounts expended for health care services under FORMER section 369-ee of
the social services law, which amounts shall be reimbursed in accordance
with paragraph (t) of subdivision 1 of section 368-a of such law and
shall be excluded from all calculations made pursuant to this section;
and provided further that amounts paid to the public hospitals pursuant
to subdivision 14-f of section 2807-c of the public health law and
amounts expended pursuant to: subdivision 12 of section 2808 of the
public health law; sections 211 and 212 of chapter 474 of the laws of
1996, as amended; and sections 11 through 14 of part A and sections 13
and 14 of part B of chapter 1 of the laws of 2002; and amounts paid to
public diagnostic and treatment centers as provided in sections 3-a and
3-b of part B of [the] chapter 58 of the laws of 2010 [which amended
this subdivision], amounts paid to public general hospitals as certified
public expenditures as provided in section 3-c of part B of [the] chap-
ter 58 of the laws of 2010 [which amended this subdivision], and amounts
paid to managed care providers pursuant to section 3-d of part B of
[the] chapter 58 of the laws of 2010 [which amended this subdivision],
shall be excluded from all calculations made pursuant to this section.
(b) Commencing with the period April 1, 2005 though March 31, 2006, a
social services district's yearly net share of medical assistance
expenditures shall be calculated in relation to a reimbursement base
year which, for purposes of this section, is defined as January 1, 2005
through December 31, 2005. The final base year expenditure calculation
for each social services district shall be made by the commissioner of
health, and approved by the director of the division of the budget, no
later than June 30, 2006. Such calculations shall be based on actual
expenditures made by or on behalf of social services districts, and
revenues received by social services districts, during the base year and
shall be made without regard to expenditures made, and revenues
S. 6407--B 7
received, outside the base year that are related to services provided
during, or prior to, the base year. Such base year calculations shall be
based on the social services district medical assistance shares
provisions in effect on January 1, 2005. Subject to the provisions of
subdivision four of section six of this part, the state/local social
services district relative percentages of the non-federal share of
medical assistance expenditures incurred prior to January 1, 2006 shall
not be subject to adjustment on and after July 1, 2006.
(c) Commencing with the calendar year beginning January 1, 2006,
calendar year social services district medical assistance expenditure
amounts for each social services district shall be calculated by multi-
plying the results of the calculations performed pursuant to paragraph
(b) of this section by a non-compounded trend factor, as follows:
(i) 2006 (January 1, 2006 through December 31, 2006): 3.5%;
(ii) 2007 (January 1, 2007 through December 31, 2007): 6.75% (3.25%
plus the prior year's 3.5%);
(iii) 2008 (January 1, 2008 through December 31, 2008): 9.75% (3%
plus the prior year's 6.75%);
(iv) 2009 (January 1, 2009 through December 31, 2009), and each
succeeding calendar year: prior year's trend factor percentage plus 3%.
(c-1) Notwithstanding any provisions of subdivision (c) of this
section to the contrary, effective April 1, 2013, for the period January
1, 2013 through December 31, 2013 and for each calendar year thereafter,
the medical assistance expenditure amount for the social services
district for such period shall be equal to the previous calendar year's
medical assistance expenditure amount, except that:
(1) for the period January 1, 2013 through December 31, 2013, the
previous calendar year medical assistance expenditure amount will be
increased by 2%;
(2) for the period January 1, 2014 through December 31, 2014, the
previous calendar year medical assistance expenditure amount will be
increased by 1%.
(C-2) NOTWITHSTANDING ANY PROVISIONS OF SUBDIVISION (C-1) OF THIS
SECTION TO THE CONTRARY, EFFECTIVE APRIL 1, 2016, FOR THE PERIOD JANUARY
1, 2016 THROUGH DECEMBER 31, 2016 AND FOR EACH CALENDAR YEAR THEREAFTER,
THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT FOR A SOCIAL SERVICES DISTRICT
HAVING A POPULATION OF MORE THAN FIVE MILLION SHALL BE EQUAL TO THE
AMOUNT CALCULATED PURSUANT TO SUBDIVISIONS (B) AND (C) OF THIS SECTION.
(d) The base year expenditure amounts calculated pursuant to paragraph
(b) of this section and the calendar year social services district
expenditure amounts calculated pursuant to paragraph (c) of this section
shall be converted into state fiscal year social services district
expenditure cap amounts for each social services district such that each
such state fiscal year amount is proportional to the portions of the two
calendar years within each fiscal year, as follows:
(i) fiscal year 2005-2006 (April 1, 2005 through March 31, 2006): 75%
of the base year amount plus 25% of the 2006 calendar year amount;
(ii) fiscal year 2006-2007 (April 1, 2006 through March 31, 2007): 75%
of the 2006 year calendar amount plus 25% of the 2007 calendar year
amount;
(iii) each succeeding fiscal year: 75% of the first calendar year
within that fiscal year's amount plus 25% of the second calendar year
within that fiscal year's amount.
(D-1) NOTWITHSTANDING ANY PROVISIONS OF SUBDIVISION (D) OF THIS
SECTION TO THE CONTRARY, FOR FISCAL YEARS 2015-2016 AND 2016-2017, THE
BASE YEAR EXPENDITURE AMOUNT CALCULATED PURSUANT TO PARAGRAPH (B) OF
S. 6407--B 8
THIS SECTION AND THE CALENDAR YEAR SOCIAL SERVICES DISTRICT EXPENDITURE
AMOUNT CALCULATED PURSUANT TO PARAGRAPH (C) OF THIS SECTION SHALL BE
CONVERTED INTO A STATE FISCAL YEAR SOCIAL SERVICES DISTRICT EXPENDITURE
CAP AMOUNT FOR A SOCIAL SERVICES DISTRICT HAVING A POPULATION OF MORE
THAN FIVE MILLION AS FOLLOWS:
(I) FISCAL YEAR 2015-2016 (APRIL 1, 2015 THROUGH MARCH 31, 2016): 75%
OF THE 2015 BASE YEAR AMOUNT PLUS 25% OF THE 2016 CALENDAR YEAR AMOUNT,
IF SUCH 2016 CALENDAR YEAR AMOUNT WERE CALCULATED WITHOUT REGARD TO THE
PROVISIONS OF SUBDIVISION (C-2) OF THIS SECTION;
(II) FISCAL YEAR 2016-2017 (APRIL 1, 2016 THROUGH MARCH 31, 2017): 75%
OF THE 2016 BASE YEAR AMOUNT PLUS 25% OF THE 2017 CALENDAR YEAR AMOUNT;
THIS CAP AMOUNT SHALL BE REDUCED BY ONE-HALF OF THE DIFFERENCE BETWEEN
THIS AMOUNT AND THE CAP AMOUNT FOR THIS PERIOD THAT WOULD RESULT IF
CALCULATED WITHOUT REGARD TO THE PROVISIONS OF SUBDIVISION (C-2) OF THIS
SECTION.
(e) No later than April 1, 2007, the commissioner of health shall
certify the 2006-2007 fiscal year social services district expenditure
cap amounts for each social services district calculated pursuant to
subparagraph (ii) of paragraph (d) of this section and shall communicate
such amounts to the commissioner of taxation and finance.
(f) Subject to paragraph (g) of this section, the state fiscal year
social services district expenditure cap amount calculated for each
social services district pursuant to paragraph (d) of this section shall
be allotted to each district during that fiscal year and paid to the
department in equal weekly amounts in a manner to be determined by the
commissioner and communicated to such districts and, subject to the
provisions of subdivision four of section six of this part, shall repre-
sent each district's maximum responsibility for medical assistance
expenditures governed by this section. HOWEVER, FOR FISCAL YEAR
2016-2017, THE EXPENDITURE CAP AMOUNT CALCULATED FOR A SOCIAL SERVICES
DISTRICT HAVING A POPULATION OF MORE THAN FIVE MILLION SHALL BE PAID TO
THE DEPARTMENT IN WEEKLY AMOUNTS IN A MANNER TO BE DETERMINED BY THE
COMMISSIONER, IN CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF THE
BUDGET, AND COMMUNICATED TO SUCH DISTRICT.
(g) (i) No allotment pursuant to paragraph (f) of this section shall
be applied against a social services district during the period April 1,
2005 through December 31, 2005. Social services district medical
assistance shares shall be determined for such period pursuant to shares
provisions in effect on January 1, 2005.
(ii) For the period January 1, 2006 through June 30, 2006, the commis-
sioner is authorized to allot against each district an amount based on
the commissioner's best estimate of the final base year expenditure
calculation required by paragraph (b) of this section. Upon completion
of such calculation, the commissioner shall, no later than December 31,
2006, reconcile such estimated allotments with the fiscal year social
services district expenditure cap amounts calculated pursuant to subpar-
agraphs (i) and (ii) of paragraph (d) of this section.
(iii) During each state fiscal year subject to the provisions of this
section and prior to state fiscal year 2015-16, the commissioner shall
maintain an accounting, for each social services district, of the net
amounts that would have been expended by, or on behalf of, such district
had the social services district medical assistance shares provisions in
effect on January 1, 2005 been applied to such district. For purposes
of this paragraph, fifty percent of the payments made by New York State
to the secretary of the federal department of health and human services
pursuant to section 1935(c) of the social security act shall be deemed
S. 6407--B 9
to be payments made on behalf of social services districts; such fifty
percent share shall be apportioned to each district in the same ratio as
the number of "full-benefit dual eligible individuals," as that term is
defined in section 1935(c)(6) of such act, for whom such district has
fiscal responsibility pursuant to section 365 of the social services
law, relates to the total of such individuals for whom districts have
fiscal responsibility. As soon as practicable after the conclusion of
each such fiscal year, but in no event later than six months after the
conclusion of each such fiscal year, the commissioner shall reconcile
such net amounts with such fiscal year's social services district
expenditure cap amount. Such reconciliation shall be based on actual
expenditures made by or on behalf of social services districts, and
revenues received by social services districts, during such fiscal year
and shall be made without regard to expenditures made, and revenues
received, outside such fiscal year that are related to services provided
during, or prior to, such fiscal year. The commissioner shall pay to
each social services district the amount, if any, by which such
district's expenditure cap amount exceeds such net amount.
(h) Notwithstanding the provisions of section 368-a of the social
services law or any other contrary provision of law, no reimbursement
shall be made for social services districts' claims submitted on and
after the effective date of this paragraph, for district expenditures
incurred prior to January 1, 2006, including, but not limited to,
expenditures for services provided to individuals who were eligible for
medical assistance pursuant to section three hundred sixty-six of the
social services law as a result of a mental disability, formerly
referred to as human services overburden aid to counties.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016.
PART B
Section 1. Subdivision 4 of section 365-h of the social services law,
as separately amended by section 50 of part B and section 24 of part D
of chapter 57 of the laws of 2015, is amended to read as follows:
4. The commissioner of health is authorized to assume responsibility
from a local social services official for the provision and reimburse-
ment of transportation costs under this section. If the commissioner
elects to assume such responsibility, the commissioner shall notify the
local social services official in writing as to the election, the date
upon which the election shall be effective and such information as to
transition of responsibilities as the commissioner deems prudent. The
commissioner is authorized to contract with a transportation manager or
managers to manage transportation services in any local social services
district, other than transportation services provided or arranged for
enrollees of managed long term care plans issued certificates of author-
ity under section forty-four hundred three-f of the public health law;
REGISTRANTS OF ADULT DAY HEALTH CARE PROGRAMS THAT DIRECTLY PROVIDE OR
ARRANGE FOR SUCH TRANSPORTATION SERVICES; AND INDIVIDUALS RESIDING IN
NURSING HOMES. Any transportation manager or managers selected by the
commissioner to manage transportation services shall have proven experi-
ence in coordinating transportation services in a geographic and demo-
graphic area similar to the area in New York state within which the
contractor would manage the provision of services under this section.
Such a contract or contracts may include responsibility for: review,
approval and processing of transportation orders; management of the
S. 6407--B 10
appropriate level of transportation based on documented patient medical
need; and development of new technologies leading to efficient transpor-
tation services. If the commissioner elects to assume such responsibil-
ity from a local social services district, the commissioner shall exam-
ine and, if appropriate, adopt quality assurance measures that may
include, but are not limited to, global positioning tracking system
reporting requirements and service verification mechanisms. Any and all
reimbursement rates developed by transportation managers under this
subdivision shall be subject to the review and approval of the commis-
sioner.
(A) THE COMMISSIONER SHALL CONDUCT AN ANNUAL REVIEW OF ANY TRANSPORTA-
TION MANAGER OR MANAGERS SELECTED BY THE COMMISSIONER TO ENSURE: (I)
ONLY SUCH TRANSPORTATION THAT IS ESSENTIAL, MEDICALLY NECESSARY AND
APPROPRIATE TO OBTAIN MEDICAL CARE, SERVICES OR SUPPLIES OTHERWISE
AVAILABLE UNDER THIS TITLE IS PROVIDED; (II) FOR RIDES ORIGINATING WITH-
IN A RURAL COUNTY AS DEFINED UNDER SECTION FOUR HUNDRED EIGHTY-ONE OF
THE EXECUTIVE LAW, NO EXPENDITURES FOR TAXI OR LIVERY TRANSPORTATION ARE
MADE WHEN PUBLIC TRANSPORTATION OR LOWER COST TRANSPORTATION IS REASON-
ABLY AVAILABLE TO ELIGIBLE PERSONS; AND (III) TRANSPORTATION SERVICES
ARE PROVIDED IN A SAFE, TIMELY, AND RELIABLE MANNER BY PROVIDERS THAT
COMPLY WITH STATE AND LOCAL REGULATORY REQUIREMENTS AND MEET CONSUMER
SATISFACTION CRITERIA APPROVED BY THE COMMISSIONER. THE ANNUAL REVIEW
SHALL BE CONDUCTED BY AN ENTITY UNRELATED TO THE TRANSPORTATION MANAGER.
(B) THE COMMISSIONER SHALL PROVIDE AN ANNUAL REPORT TO THE LEGISLATURE
DETAILING: (I) THE FINDINGS OF THE ANNUAL REVIEW REQUIRED BY PARAGRAPH
(A) OF THIS SUBDIVISION; (II) THE TOTAL NUMBER OF COMPLAINTS BY
COMPLAINT TYPE AND PROVIDER TYPE RECEIVED BY ENROLLEES PER COUNTY,
INCLUDING ALLEGED INSTANCES OF FRAUD; (III) THE TOTAL NUMBER OF TRANS-
PORTS PROVIDED PER COUNTY; (IV) THE TOTAL NUMBER FOR EACH TYPE OF TRANS-
PORTATION METHOD UTILIZED PER COUNTY, INCLUDING TAXI OR LIVERY TRANSPOR-
TATION, PUBLIC TRANSPORTATION INCLUDING FIXED AND DIAL-A-RIDE, AND
VOLUNTEER DRIVING SERVICES; (V) THE TOTAL FISCAL IMPACT TO THE STATE;
AND (VI) THE TOTAL FISCAL IMPACT TO THE STATE PER COUNTY.
S 1-a. Ambulance non-emergency medical transportation rate adequacy
review. The commissioner shall review the rates of reimbursement made
through the medicaid program for ambulance non-emergency medical trans-
portation for rate adequacy. At a minimum, such analysis shall consider
by region the costs of operation compared to the current Medicaid
reimbursement rate; access to services; provider sustainability; and
payer mix. By December 31, 2016 the commissioner shall report the find-
ings, of the rate adequacy review to the temporary president of the
senate and the speaker of the assembly.
S 2. Intentionally omitted.
S 3. Intentionally omitted.
S 4. Intentionally omitted.
S 5. Intentionally omitted.
S 6. Intentionally omitted.
S 7. Intentionally omitted.
S 8. Intentionally omitted.
S 9. Subdivision 25 of section 364-j of the social services law, as
added by section 55 of part D of chapter 56 of the laws of 2012, is
amended to read as follows:
25. [Effective January first, two thousand thirteen, notwithstanding]
NOTWITHSTANDING any provision of law to the contrary, managed care
providers shall cover medically necessary prescription drugs [in the
atypical antipsychotic therapeutic class], including non-formulary
S. 6407--B 11
drugs[, upon demonstration by]. IF the prescriber, after consulting with
the managed care provider, DETERMINES that such drugs, in the
prescriber's reasonable professional judgment, are medically necessary
and warranted, THE PRESCRIBER'S DETERMINATION SHALL BE FINAL.
S 10. Subdivision 25-a of section 364-j of the social services law is
REPEALED.
S 11. Intentionally omitted.
S 12. Intentionally omitted.
S 13. Intentionally omitted.
S 14. Section 364-j of the social services law is amended by adding a
new subdivision 26-a to read as follows:
26-A. MANAGED CARE PROVIDERS SHALL REQUIRE PRIOR AUTHORIZATION OF
PRESCRIPTIONS OF OPIOID ANALGESICS IN EXCESS OF FOUR PRESCRIPTIONS IN A
THIRTY-DAY PERIOD. PRIOR AUTHORIZATION OF PRESCRIPTIONS OF OPIOID ANAL-
GESICS SHALL NOT BE REQUIRED WHEN A PATIENT IS UNDER THE CARE OF A
HOSPICE.
S 15. Section 364-j of the social services law is amended by adding a
new subdivision 32 to read as follows:
32. (A) THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, APPLY PENAL-
TIES AS PRESCRIBED BELOW TO MANAGED CARE ORGANIZATIONS SUBJECT TO THIS
SECTION AND ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW FOR UNTIMELY OR
INACCURATE SUBMISSION OF ENCOUNTER DATA ONLY IF:
(I) THE DEPARTMENT PROVIDES WRITTEN NOTICE OF THE SPECIFIC DEFICIEN-
CIES TO THE MANAGED CARE ORGANIZATION, AND SUCH MANAGED CARE ORGANIZA-
TION FAILS TO SUBMIT A PLAN OF CORRECTION OR MAKE A GOOD FAITH EFFORT TO
CURE THE IDENTIFIED DEFICIENCIES WITHIN FIFTEEN BUSINESS DAYS OF RECEIV-
ING SUCH NOTICE; AND
(II) THE DEFECTIVE OR UNTIMELY SUBMISSION IS NOT ATTRIBUTABLE TO
FACTORS BEYOND THE CONTROL OF THE MANAGED CARE ORGANIZATION.
FOR PURPOSES OF THIS SECTION, "ENCOUNTER DATA" SHALL MEAN THE TRANS-
ACTIONS REQUIRED TO BE REPORTED UNDER THE MODEL CONTRACT. ANY PENALTY
ASSESSED UNDER THIS SUBDIVISION SHALL BE CALCULATED AS A PERCENTAGE OF
THE ADMINISTRATIVE COMPONENT OF THE MEDICAID PREMIUM CALCULATED BY THE
DEPARTMENT AND SHALL BE THE EXCLUSIVE REMEDY FOR UNTIMELY OR INACCURATE
SUBMISSION OF ENCOUNTER DATA.
(B) SUCH PENALTIES SHALL BE LIMITED TO:
(I) FOR ENCOUNTER DATA SUBMITTED OR RESUBMITTED PAST THE DEADLINES SET
FORTH IN THE MODEL CONTRACT, MEDICAID PREMIUMS SHALL BE REDUCED BY ONE
AND ONE-HALF PERCENT; AND
(II) FOR INCOMPLETE OR INACCURATE ENCOUNTER DATA THAT FAILS TO CONFORM
TO DEPARTMENT DEVELOPED BENCHMARKS FOR COMPLETENESS AND ACCURACY, MEDI-
CAID PREMIUMS SHALL BE REDUCED BY ONE-HALF PERCENT; AND
(III) FOR SUBMITTED DATA THAT RESULTS IN A REJECTION RATE IN EXCESS OF
TEN PERCENT OF DEPARTMENT DEVELOPED VOLUME BENCHMARKS, MEDICAID PREMIUMS
SHALL BE REDUCED BY ONE HALF-PERCENT.
(C) PENALTIES UNDER THIS SUBDIVISION MAY BE APPLIED TO ANY AND ALL
CIRCUMSTANCES DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION FOR UP TO
FOUR MONTHS FROM THE DATE SUCH PENALTIES ARE IMPOSED. NO OTHER RATE
MODIFICATIONS OR ADJUSTMENTS TO PAYMENTS MAY BE MADE FOR UNTIMELY OR
INACCURATE SUBMISSION OF ENCOUNTER DATA. THE COMMISSIONER MAY, IN HIS
OR HER DISCRETION, WAIVE SUCH PENALTY.
S 16. Intentionally omitted.
S 16-a. Section 31 of part B of chapter 57 of the laws of 2015 amend-
ing the social services law relating to insurance payments is REPEALED.
S. 6407--B 12
S 17. Subdivision 2-b of section 365-l of the social services law, as
added by section 25 of part B of chapter 57 of the laws of 2015, is
amended to read as follows:
2-b. The commissioner is authorized to make [grants] LUMP SUM
PAYMENTS OR ADJUST RATES OF PAYMENT TO PROVIDERS up to a gross amount of
five million dollars, to establish coordination between the health homes
and the criminal justice system and for the integration of information
of health homes with state and local correctional facilities, to the
extent permitted by law. SUCH RATE ADJUSTMENTS MAY BE MADE TO HEALTH
HOMES PARTICIPATING IN A CRIMINAL JUSTICE PILOT PROGRAM WITH THE PURPOSE
OF ENROLLING INCARCERATED INDIVIDUALS WITH SERIOUS MENTAL ILLNESS, TWO
OR MORE CHRONIC CONDITIONS, INCLUDING SUBSTANCE ABUSE DISORDERS, OR
HIV/AIDS, INTO SUCH HEALTH HOME. Health homes receiving funds under this
subdivision shall be required to document and demonstrate the effective
use of funds distributed herein.
S 18. Intentionally omitted.
S 19. Subdivisions 3 and 4 of section 92 of part H of chapter 59 of
the laws of 2011, amending the social services law and other laws relat-
ing to covered part D drugs, are amended to read as follows:
3. (a) The commissioner of health shall seek the input of the legisla-
ture, as well as organizations representing health care providers,
consumers, businesses, workers, health insurers, and others with rele-
vant expertise, in developing such medicaid savings allocation plan, to
the extent that all or part of such plan, in the discretion of the
commissioner, is likely to have [a material] MORE THAN A DE MINIMIS
impact on the overall medicaid program, [particular categories] ANY
SINGLE CATEGORY of service, ON THE DISBURSEMENT OF FUNDS UNDER THE
GLOBAL MEDICAID CAP, or [particular] ON ANY ONE OR MORE geographic
regions of the [states] STATE.
(b)(i) The commissioner of health [shall] MUST post the medicaid
savings allocation plan, INCLUDING THE EXPECTED IMPACTS OF ITS IMPLEMEN-
TATION, on the department of health's website and shall provide written
copies of such plan to the chairs of the senate finance and the assembly
ways and means committees at least 30 days before the date on which
implementation is expected to begin. ANY ADJUSTMENTS MADE TO AVOID
EXCEEDING THE DEPARTMENT OF HEALTH MEDICAID STATE FUNDS DISBURSEMENT
AMOUNT IN THE ENACTED BUDGET FINANCIAL PLAN SHALL BE DEEMED A COMPONENT
OF THE MEDICAID SAVINGS ALLOCATION PLAN.
(ii) The commissioner of health may revise the medicaid savings allo-
cation plan [subsequent to the provision of notice and prior to imple-
mentation but need provide a new notice pursuant to subparagraph (i) of
this paragraph only if the commissioner determines, in his or her
discretion, that such revisions materially alter the plan] UPON APPROVAL
OF THE SECRETARY OF THE SENATE FINANCE COMMITTEE AND THE SECRETARY OF
THE ASSEMBLY WAYS AND MEANS COMMITTEE.
(c) [Notwithstanding the provisions of paragraphs (a) and (b) of this
subdivision, the commissioner of health need not seek the input
described in paragraph (a) of this subdivision or provide notice pursu-
ant to paragraph (b) of this paragraph if, in the discretion of the
commissioner, expedited development and implementation of a medicaid
savings allocation plan is necessary due to a public health emergency.]
For purposes of this section, a public health emergency is defined as:
(i) a disaster, natural or otherwise, that significantly increases the
immediate need for health care personnel in an area of the state; (ii)
an event or condition that creates a widespread risk of exposure to a
serious communicable disease, or the potential for such widespread risk
S. 6407--B 13
of exposure; or (iii) any other event or condition determined by the
commissioner to constitute an imminent threat to public health. IF THE
COMMISSIONER MAKES A PUBLIC DETERMINATION THAT THERE IS A PUBLIC HEALTH
EMERGENCY, THE APPROVALS REQUIRED PURSUANT TO SUBPARAGRAPH (II) OF PARA-
GRAPH (B) OF THIS SUBDIVISION MAY BE MADE SUBSEQUENT TO ACTIVITY.
[(d) Nothing in this paragraph shall be deemed to prevent all or part
of such medical savings allocation plan from taking effect retroactively
to the extent permitted by the federal centers for medicare and medicaid
services.]
4. In accordance with the medicaid savings allocation plan, the
commissioner of the department of health shall reduce department of
health state funds medicaid disbursements by the amount of the projected
overspending [through, actions including, but not limited to modifying
or suspending reimbursement methods, including but not limited to all
fees, premium levels and rates of payment, notwithstanding any provision
of law that sets a specific amount or methodology for any such payments
or rates of payment; modifying Medicaid program benefits; seeking all
necessary Federal approvals, including, but not limited to waivers,
waiver amendments; and suspending time frames for notice, approval or
certification of rate requirements, notwithstanding any provision of
law, rule or regulation to the contrary, including but not limited to
sections 2807 and 3614 of the public health law, section 18 of chapter 2
of the laws of 1988, and 18 NYCRR 505.14(h)] UPON APPROVAL PURSUANT TO
SUBDIVISION THREE OF THIS SECTION.
S 20. Section 7 of part O of chapter 56 of the laws of 2013 authoriz-
ing the actions necessary to manage the loss of federal revenue and
create the Mental Hygiene Stabilization Fund, is amended to read as
follows:
S 7. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2013, AND SHALL
EXPIRE AND BE DEEMED REPEALED ON AND AFTER MARCH 31, 2021.
S 21. The social services law is amended by adding a new section 365-o
to read as follows:
S 365-O. MEDICAID REDESIGN ACCOUNTABILITY PROCESS. (A) THE COMMIS-
SIONER, IN CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF BUDGET,
SHALL ESTABLISH A PROCESS TO REVIEW AND REPORT ON EACH PHASE OF THE
MEDICAID REDESIGN TEAM, INCLUDING ADMINISTRATIVE ACTIONS, AND INITI-
ATIVES THAT WERE AUTHORIZED AND NOT IMPLEMENTED. THE PROCESS SHALL
INCLUDE A REVIEW OF EACH MEDICAID REDESIGN TEAM INITIATIVE AT LEAST
EVERY FIVE YEARS FROM THE EFFECTIVE DATE OF THIS SECTION. THE DEPART-
MENT, IN CONSULTATION WITH THE DIVISION OF BUDGET, SHALL PROVIDE AN
ANNUAL REPORT DETAILING THE FINDINGS OF THE ANNUAL REVIEW OF EACH MEDI-
CAID REDESIGN TEAM PHASE TO THE CHAIR OF THE SENATE FINANCE COMMITTEE
AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE ON OR BEFORE
OCTOBER FIRST OF EACH YEAR.
(B) FOR EACH MEDICAID REDESIGN TEAM PHASE ANNUAL REVIEW, THE COMMIS-
SIONER AND THE DIRECTOR SHALL REVIEW EACH INITIATIVE AND PROVIDE A
DETAILED REPORT, INCLUDING BUT NOT LIMITED TO:
(I) A COMPARISON OF EACH RECOMMENDED INITIATIVE TO THE IMPLEMENTED
INITIATIVE, INCLUDING AN ANALYSIS OF INITIATIVE COMPLETENESS, ANY SUBSE-
QUENT MODIFICATIONS AND ANY ADMINISTRATIVE ACTION BEYOND THE SCOPE OF
THE RECOMMENDED INITIATIVE;
(II) A COST BENEFIT ANALYSIS OF EACH INITIATIVE, INCLUDING THE LEVEL
OF FEDERAL FINANCIAL PARTICIPATION AND FISCAL IMPLICATIONS TO THE STATE,
LOCAL GOVERNMENTS, HEALTH CARE PROVIDERS, AND INSURANCE AND HEALTH
PLANS;
S. 6407--B 14
(III) AN ANALYSIS OF THE IMPACT OF EACH INITIATIVE ON THE ACCESS TO
CARE, QUALITY OF CARE, ADMINISTRATIVE PROCESS AND PROCEDURES, AND SHIFTS
IN CARE SETTING;
(IV) AN ANALYSIS OF THE IMPACT ON PROVIDER SUSTAINABILITY;
(V) AN ANALYSIS OF PHARMACY REIMBURSEMENT RATES, DRUG FILL SETTING
TRENDS, DRUG UTILIZATION, TOTAL STATE DRUG SPENDING DURING EACH IMPLE-
MENTATION PHASE AND THE FACTORS RESPONSIBLE FOR ANY DRUG SPENDING
REDUCTIONS OVER THE COURSE OF REFORM INITIATIVES;
(VI) AN ANALYSIS OF UNINTENDED CONSEQUENCES TO THE STATE, LOCAL
GOVERNMENTS, HEALTH CARE PROVIDERS, INSURANCE AND HEALTH PLANS, MEDICAID
ENROLLEES AND OTHER STAKEHOLDERS; AND
(VII) IF APPLICABLE, THE BASIS FOR NOT IMPLEMENTING AN INITIATIVE.
S 22. Subdivision 3 of section 364-j of the social services law is
amended by adding a new paragraph (d-2) to read as follows:
(D-2) SERVICES PROVIDED PURSUANT TO WAIVERS, GRANTED PURSUANT TO
SUBSECTION (C) OF SECTION 1915 OF THE FEDERAL SOCIAL SECURITY ACT, TO
PERSONS SUFFERING FROM TRAUMATIC BRAIN INJURIES OR QUALIFYING FOR NURS-
ING HOME DIVERSION AND TRANSITION SERVICES SHALL NOT BE PROVIDED TO
MEDICAL ASSISTANCE RECIPIENTS THROUGH MANAGED CARE PROGRAMS ESTABLISHED
PURSUANT TO THIS SECTION, AND SHALL CONTINUE TO BE PROVIDED OUTSIDE OF
MANAGED CARE PROGRAMS AND IN ACCORDANCE WITH SUCH WAIVER PROGRAMS AS
THEY EXISTED ON JANUARY FIRST, TWO THOUSAND FIFTEEN; PROVIDED, FURTHER
THAT THE COMMISSIONER OF HEALTH IS HEREBY DIRECTED TO TAKE ANY ACTION
REQUIRED, INCLUDING BUT NOT LIMITED TO FILING WAIVERS AND WAIVER EXTEN-
SIONS AS NECESSARY WITH THE FEDERAL GOVERNMENT, TO CONTINUE THE
PROVISION OF SUCH SERVICES.
S 23. Subdivision 1 of section 364-j of the social services law is
amended by adding a new paragraph (w) to read as follows:
(W) "SCHOOL-BASED HEALTH CENTER." A CLINIC LICENSED UNDER ARTICLE
TWENTY-EIGHT OF THE PUBLIC HEALTH LAW OR SPONSORED BY A FACILITY
LICENSED UNDER THE PUBLIC HEALTH LAW WHICH PROVIDES PRIMARY HEALTH CARE
SERVICES INCLUDING URGENT CARE, WELL CHILD CARE, REPRODUCTIVE HEALTH
CARE, DENTAL CARE, BEHAVIORAL HEALTH SERVICES, VISION CARE, AND MANAGE-
MENT OF CHRONIC DISEASES TO CHILDREN AND ADOLESCENTS WITHIN AN ELEMENTA-
RY, SECONDARY OR PREKINDERGARTEN PUBLIC SCHOOL SETTING.
S 24. Subdivision 2 of section 364-j of the social services law is
amended by adding a new paragraph (d) to read as follows:
(D) THE COMMISSIONER OF HEALTH SHALL BE AUTHORIZED TO INCLUDE THE
SERVICES OF A SCHOOL-BASED HEALTH CENTER IN THE MANAGED CARE PROGRAM
PURSUANT TO THIS SECTION ON AND AFTER JULY FIRST, TWO THOUSAND SEVEN-
TEEN.
S 25. Subdivision 3 of section 364-j of the social services law is
amended by adding a new paragraph (d-2) to read as follows:
(D-2) BEHAVIORAL HEALTH AND REPRODUCTIVE HEALTH CARE SERVICES PROVIDED
BY SCHOOL-BASED HEALTH CENTERS SHALL NOT BE PROVIDED TO MEDICAL ASSIST-
ANCE RECIPIENTS THROUGH MANAGED CARE PROGRAMS ESTABLISHED PURSUANT TO
THIS SECTION, AND SHALL CONTINUE TO BE PROVIDED OUTSIDE OF MANAGEMENT
CARE PROGRAMS IN ACCORDANCE WITH APPLICABLE REIMBURSEMENT METHODOLOGIES.
APPLICABLE REIMBURSEMENT METHODOLOGIES SHALL MEAN:
(I) FOR SCHOOL-BASED HEALTH CENTERS SPONSORED BY A FEDERALLY QUALIFIED
HEALTH CENTER, RATES OF REIMBURSEMENT AND REQUIREMENTS IN ACCORDANCE
WITH THOSE MANDATED BY 42 U.S.C. SECS. 1396A(BB), 1396(M)(2)(A)(IX) AND
1936(A)(13)(C); AND
(II) FOR SCHOOL-BASED HEALTH CENTERS SPONSORED BY AN ENTITY LICENSED
PURSUANT TO ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH LAW THAT IS NOT A
FEDERALLY QUALIFIED HEALTH CENTER, RATES OF REIMBURSEMENT AT THE FEE FOR
S. 6407--B 15
SERVICE RATE FOR SUCH SERVICES IN EFFECT PRIOR TO THE ENACTMENT OF THIS
CHAPTER FOR THE AMBULATORY PATIENT GROUP RATE FOR THE APPLICABLE
SERVICE.
(III) FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "BEHAVIORAL HEALTH
SERVICES" SHALL MEAN PRIMARY PREVENTION, INDIVIDUAL MENTAL HEALTH
ASSESSMENT, TREATMENT AND FOLLOW-UP, CRISIS INTERVENTION, GROUP AND
FAMILY COUNSELING, AND SHORT AND LONG-TERM COUNSELING.
S 26. Paragraph (d) of subdivision 2-a of section 2808 of the public
health law, as amended by section 52 of part B of chapter 57 of the laws
of 2015, is amended to read as follows:
(d) For facilities granted operating certificates on or after March
tenth, nineteen hundred seventy-five, recognition of real property costs
in such regulations shall be based upon historical costs to the owner of
the facility, provided that payment for real property costs shall not be
in excess of the actual debt service, including principal and interest,
and payment with respect to owner's equity, and further provided that,
subject to federal financial participation, and subject to the approval
of the commissioner, effective April first, two thousand fifteen, the
commissioner may modify such payments for real property costs for
purposes of effectuating a shared savings program, whereby facilities
share a minimum of fifty percent of savings, for facilities that elect
to refinance their mortgage loans. For purposes of this subdivision,
owner's equity shall be calculated without regard to any surplus created
by revaluation of assets and shall not include amounts resulting from
mortgage amortization where the payment therefor has been provided by
real property cost reimbursement; PROVIDED, HOWEVER, AS USED IN THIS
SUBDIVISION THE TERMS "HISTORICAL COSTS" AND "OWNER'S EQUITY" SHALL
INCLUDE THE FULL REVALUATION OF THE ASSETS OF A FACILITY PURCHASED AND
TRANSFERRED IMMEDIATELY FOLLOWING THE OPERATION OF SUCH FACILITY UNDER A
COURT-ORDERED RECEIVERSHIP, BUT ONLY IF:
(I) THE FACILITY HAS BEEN CONTINUOUSLY OPERATED AND OCCUPIED PRIMARILY
WITH PERSONS WHO ARE IN RECEIPT OF MEDICAL ASSISTANCE BENEFITS FROM THE
TIME THAT THE RECEIVERSHIP WAS ESTABLISHED UNTIL THE TIME OF PURCHASE OR
TRANSFER;
(II) THE PUBLIC HEALTH AND HEALTH PLANNING COUNCIL HAS CONSIDERED THE
APPLICATION FOR THE ESTABLISHMENT OF A NEW OPERATOR OF A RESIDENTIAL
HEALTH CARE FACILITY AT THE SITE OF THE FACILITY;
(III) THE COMMISSIONER HAS REQUIRED SIGNIFICANT UPGRADE TO THE FACILI-
TY'S PHYSICAL PLANT IN CONSIDERATION OF HIS OR HER APPROVAL OF THE
CONSTRUCTION OF A RESIDENTIAL HEALTH CARE FACILITY AT THE SITE OF THE
FACILITY; AND
(IV) THE COMMISSIONER HAS DETERMINED EACH OF THE FOLLOWING CONDITIONS
IS TRUE:
(1) THERE IS A CONTINUING NEED FOR THE BEDS AT THEIR CURRENT LOCATION;
(2) THE ESTIMATED TOTAL PROJECT COST FOR NEW CONSTRUCTION OF A FACILI-
TY OF THE SAME BED CAPACITY IN THE AREA WOULD SUBSTANTIALLY EXCEED THE
COMBINED PURCHASE PRICE AND TOTAL PROJECT COST FOR APPROVED RENOVATION
COSTS OF THE REVALUED FACILITY;
(3) THE PURCHASE PRICE IS REASONABLE; AND
(4) THE CONTINUED USE OF THE FACILITY AS A RESIDENTIAL HEALTH CARE
FACILITY IS IN THE PUBLIC INTEREST.
S 27. Paragraph (d) of subdivision 2-a of section 2808 of the public
health law, as added by chapter 483 of the laws of 1978, is amended to
read as follows:
(d) For facilities granted operating certificates on or after March
tenth, nineteen hundred seventy-five, recognition of real property costs
S. 6407--B 16
in such regulations shall be based upon historical costs to the owner of
the facility, provided that payment for real property costs shall not be
in excess of the actual debt service, including principal and interest,
and payment with respect to owner's equity. For purposes of this subdi-
vision, owner's equity shall be calculated without regard to any surplus
created by revaluation of assets and shall not include amounts resulting
from mortgage amortization where the payment therefor has been provided
by real property cost reimbursement; PROVIDED, HOWEVER, AS USED IN THIS
SUBDIVISION THE TERMS "HISTORICAL COSTS" AND "OWNER'S EQUITY" SHALL
INCLUDE THE FULL REVALUATION OF THE ASSETS OF A FACILITY PURCHASED AND
TRANSFERRED IMMEDIATELY FOLLOWING THE OPERATION OF SUCH FACILITY UNDER A
COURT-ORDERED RECEIVERSHIP, BUT ONLY IF:
(I) THE FACILITY HAS BEEN CONTINUOUSLY OPERATED AND OCCUPIED PRIMARILY
WITH PERSONS WHO ARE IN RECEIPT OF MEDICAL ASSISTANCE BENEFITS FROM THE
TIME THAT THE RECEIVERSHIP WAS ESTABLISHED UNTIL THE TIME OF PURCHASE OR
TRANSFER;
(II) THE PUBLIC HEALTH AND HEALTH PLANNING COUNCIL HAS CONSIDERED THE
APPLICATION FOR THE ESTABLISHMENT OF A NEW OPERATOR OF A RESIDENTIAL
HEALTH CARE FACILITY AT THE SITE OF THE FACILITY;
(III) THE COMMISSIONER HAS REQUIRED SIGNIFICANT UPGRADE TO THE FACILI-
TY'S PHYSICAL PLANT IN CONSIDERATION OF HIS OR HER APPROVAL OF THE
CONSTRUCTION OF A RESIDENTIAL HEALTH CARE FACILITY AT THE SITE OF THE
FACILITY; AND
(IV) THE COMMISSIONER HAS DETERMINED EACH OF THE FOLLOWING CONDITIONS
IS TRUE:
(1) THERE IS A CONTINUING NEED FOR THE BEDS AT THEIR CURRENT LOCATION;
(2) THE ESTIMATED TOTAL PROJECT COST FOR NEW CONSTRUCTION OF A FACILI-
TY OF THE SAME BED CAPACITY IN THE AREA WOULD SUBSTANTIALLY EXCEED THE
COMBINED PURCHASE PRICE AND TOTAL PROJECT COST FOR APPROVED RENOVATION
COSTS OF THE REVALUED FACILITY;
(3) THE PURCHASE PRICE IS REASONABLE; AND
(4) THE CONTINUED USE OF THE FACILITY AS A RESIDENTIAL HEALTH CARE
FACILITY IS IN THE PUBLIC INTEREST.
S 28. Subparagraph (i) of paragraph (e-2) of subdivision 4 of section
2807-c of the public health law, as added by section 13 of part C of
chapter 58 of the laws of 2009, is amended to read as follows:
(i) For physical medical rehabilitation services and for chemical
dependency rehabilitation services, the operating cost component of such
rates shall reflect the use of two thousand five operating costs for
each respective category of services as reported by each facility to the
department prior to July first, two thousand nine and as adjusted for
inflation pursuant to paragraph (c) of subdivision ten of this section,
as otherwise modified by any applicable statute, provided, however, that
such two thousand five reported operating costs, but not including
reported direct medical education cost, shall, for rate-setting
purposes, be held to a ceiling of one hundred ten percent of the average
of such reported costs in the region in which the facility is located,
as determined pursuant to clause (E) of subparagraph [(iii)] (IV) of
paragraph (1) of this subdivision; AND PROVIDED, FURTHER, THAT FOR PHYS-
ICAL MEDICAL REHABILITATION SERVICES, THE COMMISSIONER IS AUTHORIZED TO
MAKE ADJUSTMENTS TO SUCH RATES FOR THE PURPOSES OF REIMBURSING PEDIATRIC
VENTILATOR SERVICES.
S 29. Subdivision 2-a of section 2807 of the public health law is
amended by adding a new paragraph (j) to read as follows:
(J) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY AND, SUBJECT TO AN APPROPRIATION
S. 6407--B 17
THEREFOR, ON AND AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN, RATES OF
PAYMENT FOR DIAGNOSTIC AND TREATMENT CENTER SERVICES, EMERGENCY
SERVICES, GENERAL HOSPITAL OUTPATIENT SERVICES, AMBULATORY SURGICAL
SERVICES AND REFERRED AMBULATORY SERVICES, PROVIDED BY A RURAL HOSPITAL
DESIGNATED AS A CRITICAL ACCESS HOSPITAL IN ACCORDANCE WITH TITLE XVIII
OF THE FEDERAL SOCIAL SECURITY ACT SHALL BE EQUAL TO ONE HUNDRED ONE
PERCENT OF THE REASONABLE COSTS OF A FACILITY IN PROVIDING SUCH SERVICES
TO PATIENTS ELIGIBLE FOR PAYMENTS MADE IN ACCORDANCE WITH THIS SUBDIVI-
SION. REASONABLE COSTS SHALL BE DETERMINED IN A MANNER CONSISTENT WITH
THAT USED TO DETERMINE PAYMENT FOR OUTPATIENT CRITICAL ACCESS HOSPITAL
SERVICES PROVIDED TO BENEFICIARIES OF TITLE XVIII OF THE FEDERAL SOCIAL
SECURITY ACT. FOR FACILITIES WITHOUT ADEQUATE COST EXPERIENCE, SUCH
RATES SHALL BE BASED ON BUDGETED COSTS SUBSEQUENTLY ADJUSTED TO ONE
HUNDRED ONE PERCENT OF REASONABLE ACTUAL COSTS.
S 30. Paragraph d of subdivision 20 of section 2808 of the public
health law, as added by section 8 of part H of section 59 of the laws of
2011, is amended to read as follows:
d. Notwithstanding any contrary provision of law, rule or regulation,
for rate periods on and after April first, two thousand eleven THROUGH
MARCH THIRTY-FIRST, TWO THOUSAND SIXTEEN, the commissioner may reduce or
eliminate the payment factor for return on or return of equity in the
capital cost component of Medicaid rates of payment for services
provided by residential health care facilities.
S 31. Section 26 of part H of chapter 59 of the laws of 2011, amending
the public health law and other laws, relating to general hospital inpa-
tient reimbursement for annual rates, is amended to read as follows:
S 26. Notwithstanding any provision of law to the contrary and subject
to the availability of federal financial participation, for periods on
and after April 1, 2011, clinics certified pursuant to [articles 16,]
ARTICLE 31 or 32 of the mental hygiene law shall be subject to targeted
Medicaid reimbursement rate reductions in accordance with the provisions
of this section. Such reductions shall be based on utilization thresh-
olds which may be established either as provider-specific or patient-
specific thresholds. Provider-specific thresholds shall be based on
average patient utilization for a given provider in comparison to a peer
based standard to be determined for each service. The commissioners of
the office of mental health[, the office for persons with developmental
disabilities,] and the office of alcoholism and substance abuse
services, in consultation with the commissioner of health, are author-
ized to waive utilization thresholds for patients of clinics certified
pursuant to article [16,] 31[,] or 32 of the mental hygiene law who are
enrolled in specific treatment programs or otherwise meet criteria as
may be specified by such commissioners. When applying a provider-spe-
cific threshold, rates will be reduced on a prospective basis based on
the amount any provider is over the determined threshold level.
Patient-specific thresholds will be based on annual thresholds deter-
mined for each service over which the per visit payment for each visit
in excess of the standard during a twelve month period shall be reduced
by a pre-determined amount. The thresholds, peer based standards and the
payment reductions shall be determined by the department of health, with
the approval of the division of the budget, and in consultation with the
office of mental health[, the office for people with developmental disa-
bilities] and the office of alcoholism and substance abuse services, and
any such resulting rates shall be subject to certification by the appro-
priate commissioners pursuant to subdivision (a) of section 43.02 of the
mental hygiene law. The base period used to establish the thresholds
S. 6407--B 18
shall be the 2009 calendar year. The total annualized reduction in
payments shall be not more than $10,900,000 for Article 31 clinics[, not
more than $2,400,000 for Article 16 clinics,] and not more than
$13,250,000 for Article 32 clinics. The commissioner of health may
promulgate regulations to implement the provisions of this section.
S 32. The public health law is amended by adding a new section 3340 to
read as follows:
S 3340. SUBSTITUTION OF OPIOIDS WITH ABUSE-DETERRENT TECHNOLOGY. 1.
(A) NOTWITHSTANDING THE PROVISIONS OF SECTION SIXTY-EIGHT HUNDRED
SIXTEEN-A OF THE EDUCATION LAW, NO PHARMACIST SHALL INTERCHANGE OR
SUBSTITUTE AN ABUSE-DETERRENT OPIOID ANALGESIC DRUG PRODUCT, BRAND OR
GENERIC, WITH AN OPIOID ANALGESIC DRUG PRODUCT LACKING ABUSE-DETERRENT
PROPERTIES WHEN THE PRESCRIBER WRITES OR ELECTRONICALLY NOTATES
"DISPENSE AS WRITTEN" OR "DAW" ON THE PRESCRIPTION, WITHOUT OBTAINING A
NEW PRESCRIPTION FOR A NON-ABUSE DETERRENT OPIOID DRUG FROM THE PRESCRI-
BER. ANY SUBSTITUTABLE OPIOID DRUG PRODUCT SHALL CONTAIN THE SAME OPIOID
ACTIVE PHARMACEUTICAL INGREDIENT AND THE SAME DRUG RELEASE CHARACTER-
ISTICS WITH REGARD TO IMMEDIATE RELEASE, OR EXTENDED RELEASE LONG ACTING
PROPERTIES. A DETERMINATION OF INTERCHANGEABILITY BETWEEN TWO ABUSE-DET-
ERRENT OPIOID ANALGESIC DRUG PRODUCTS SHALL NOT REQUIRE THAT BOTH
PRODUCTS INCORPORATE THE SAME METHODS OF ABUSE-DETERRENCE, BUT THAT THE
OPIOID DRUG PRODUCTS HAVE THE SAME LEVEL OF FDA-APPROVED ABUSE DETER-
RENCE LABELING CLAIMS.
(B) THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SECTION SHALL NOT APPLY
TO A PHARMACIST DISPENSING MEDICATION IN THE INPATIENT HOSPITAL SETTING
WHEN THE PRESCRIBED MEDICATION WILL BE ADMINISTERED TO THE PATIENT BY AN
EMPLOYEE OF THE HOSPITAL.
2. DEFINITIONS. AS USED IN THIS SECTION:
(A) "OPIOID ANALGESIC DRUG PRODUCT" MEANS A DRUG IN THE OPIOID ANAL-
GESIC DRUG CLASS PRESCRIBED TO TREAT MODERATE TO SEVERE PAIN OR OTHER
CONDITIONS, WHETHER IN IMMEDIATE RELEASE OR EXTENDED RELEASE LONG ACTING
FORM AND WHETHER OR NOT COMBINED WITH OTHER DRUG SUBSTANCES TO FORM A
SINGLE DRUG PRODUCT OR OTHER DOSAGE FORM.
(B) "ABUSE-DETERRENT OPIOID ANALGESIC DRUG PRODUCT" MEANS A BRAND OR
GENERIC OPIOID ANALGESIC DRUG PRODUCT APPROVED BY THE FEDERAL FOOD AND
DRUG ADMINISTRATION WITH ABUSE-DETERRENCE LABELING CLAIMS INDICATING ITS
ABUSE-DETERRENT PROPERTIES ARE EXPECTED TO DETER OR REDUCE ITS ABUSE.
(C) "INTERCHANGE OR SUBSTITUTION OF AN OPIOID DRUG" MEANS THE SUBSTI-
TUTION OF ANY ABUSE-DETERRENT OPIOID DRUG PRODUCT, BRAND OR GENERIC,
WITH AN OPIOID ANALGESIC DRUG LACKING ABUSE-DETERRENT PROPERTIES.
(D) "PHARMACIST" INCLUDES ANY PHARMACIST DISPENSING DRUGS UNDER THE
JURISDICTION OF THE STATE BOARD OF PHARMACY, INCLUDING BUT NOT LIMITED
TO, COMMUNITY PHARMACISTS AND PHARMACISTS IN MAIL ORDER PHARMACIES
LICENSED BY THE STATE TO DISTRIBUTE IN THE STATE.
S 33. The insurance law is amended by adding a new section 3216-a to
read as follows:
S 3216-A. ACCESS TO ABUSE-DETERRENT OPIOID MEDICATIONS. (A) AN INSUR-
ANCE CARRIER OR HEALTH PLAN SHALL PROVIDE COVERAGE ON ITS FORMULARY,
DRUG LIST OR OTHER LISTS OF SIMILAR CONSTRUCT FOR AT LEAST ONE
ABUSE-DETERRENT OPIOID ANALGESIC DRUG PRODUCT PER OPIOID ANALGESIC
ACTIVE INGREDIENT.
(1) COST-SHARING FOR BRAND NAME ABUSE-DETERRENT OPIOID ANALGESIC DRUG
PRODUCTS COVERED PURSUANT TO THIS SECTION SHALL NOT EXCEED THE LOWEST
COST-SHARING LEVEL APPLIED TO BRAND NAME NON-ABUSE DETERRENT OPIOID
DRUGS COVERED UNDER THE APPLICABLE HEALTH PLAN OR POLICY.
S. 6407--B 19
(2) COST-SHARING FOR GENERIC ABUSE-DETERRENT OPIOID ANALGESIC DRUG
PRODUCTS COVERED PURSUANT TO THIS SECTION SHALL NOT EXCEED THE LOWEST
COST-SHARING LEVEL APPLIED TO GENERIC NON-ABUSE DETERRENT OPIOID DRUGS
COVERED UNDER THE APPLICABLE HEALTH PLAN OR POLICY.
(3) AN INCREASE IN PATIENT COST-SHARING OR DISINCENTIVES FOR PRESCRI-
BERS OR DISPENSERS SHALL NOT BE ALLOWED TO ACHIEVE COMPLIANCE WITH THIS
SECTION.
(B) ANY PRIOR-AUTHORIZATION REQUIREMENTS OR OTHER UTILIZATION REVIEW
MEASURES FOR OPIOID ANALGESICS, AND ANY SERVICE DENIALS MADE PURSUANT
THERETO, SHALL NOT REQUIRE USE OF OPIOID ANALGESIC DRUG PRODUCTS WITHOUT
ABUSE-DETERRENT PROPERTIES IN ORDER TO ACCESS ABUSE-DETERRENT OPIOID
ANALGESIC DRUG PRODUCTS.
(C) DEFINITIONS. AS USED IN THIS SECTION:
(1) "OPIOID ANALGESIC DRUG PRODUCT" MEANS A DRUG IN THE OPIOID ANAL-
GESIC DRUG CLASS PRESCRIBED TO TREAT MODERATE TO SEVERE PAIN OR OTHER
CONDITIONS, WHETHER IN IMMEDIATE RELEASE OR EXTENDED LONG ACTING RELEASE
FORM AND WHETHER OR NOT COMBINED WITH OTHER DRUG SUBSTANCES TO FORM A
SINGLE DRUG PRODUCT OR OTHER DOSAGE FORM.
(2) "ABUSE DETERRENT OPIOID ANALGESIC DRUG PRODUCT" MEANS A BRAND OR
GENERIC OPIOID ANALGESIC DRUG PRODUCT APPROVED BY THE FEDERAL FOOD AND
DRUG ADMINISTRATION WITH ABUSE-DETERRENCE LABELING CLAIMS INDICATING ITS
ABUSE-DETERRENT PROPERTIES ARE EXPECTED TO DETER OR REDUCE ITS ABUSE.
(3) "COST-SHARING" MEANS ANY COVERAGE LIMIT, COPAYMENT, COINSURANCE,
DEDUCTIBLE OR OTHER OUT-OF-POCKET PATIENT EXPENSE REQUIREMENTS.
S 34. In Medicaid FFS, the department of health shall make bi-annual
assessments of non-preferred drugs in the best clinical interests of New
York Medicaid beneficiaries. The department shall include, at the
manufacturer's option, a non-preferred drug as a preferred drug when at
least 35 percent of prescriptions filled in that drug's class in the
previous two quarters were for a non-preferred drug on the preferred
drug list, provided that the manufacturer of such previously non-pre-
ferred drug agrees to the rebate required under section 1927 of the
Social Security Act and an additional supplemental rebate. The depart-
ment of health and the manufacturer may negotiate the alternative
supplemental rebate. The previously non-preferred drug will not be
disadvantaged, including but not limited to imposing prior authorization
or utilization management requirements, relative to the other preferred
drugs in its class other than what is required by the FDA-approved
label.
S 35. The department of health shall provide an annual report to the
legislature that outlines, with respect to any drug class on the
preferred drug list in which only a single therapeutic pathway, which
may involve one or more drugs prescribed in combination for the same
patient, is preferred, the financial impact of the state's preferred
drug list decision, the clinical evidence the state relied on in estab-
lishing preferences for the class, and the clinical criteria that permit
beneficiaries to access non-preferred drugs in such a class.
S 36. The public health law is amended by adding a new section 276-a
to read as follows:
S 276-A. MEDICAID DRUG REBATE REMITTANCE DEMONSTRATION PROGRAM. 1. THE
DEPARTMENT SHALL ESTABLISH A MEDICAID DRUG REBATE REMITTANCE DEMON-
STRATION PROGRAM FOR THE PURPOSE OF WORKING COLLABORATIVELY WITH THIRD
PARTY VENDORS TO VALIDATE THE EXISTING MEDICAID DRUG REBATE CLAIMS AND
DETERMINE WHETHER THE DATA CONTAINS DUPLICATE CLAIMS OR CLAIMS ON WHICH
REBATES MAY ALREADY HAVE BEEN PAID ALL OR IN PART TO MEDICARE PART D
PLANS OR SOME OTHER THIRD PARTIES IN ORDER TO RECTIFY DISPUTED CLAIMS.
S. 6407--B 20
2. FOR THE PURPOSES OF THIS DEMONSTRATION PROGRAM, THE DEPARTMENT
SHALL PROVIDE UTILIZATION INFORMATION TYING TO INVOICES SENT TO PHARMA-
CEUTICAL MANUFACTURERS, WHICH HAVE ENTERED INTO A REBATE AGREEMENT WITH
THE DEPARTMENT OR WITH THE FEDERAL SECRETARY OF HEALTH AND HUMAN
SERVICES ON BEHALF OF THE DEPARTMENT UNDER SECTION 1927 OF THE FEDERAL
SOCIAL SECURITY ACT, AND TO THIRD PARTY DATA VENDORS, FOR THE PURPOSE OF
VALIDATING CLAIMS SUBMITTED UNDER SUCH REBATE AGREEMENT OR PROGRAM
INCLUDING BUT NOT LIMITED TO, THE PROGRAM FOR ELDERLY PHARMACEUTICAL
INSURANCE COVERAGE, AND THE MEDICAID DRUG REBATE PROGRAM IN GENERAL FOR
THE PERIOD FROM JANUARY FIRST, TWO THOUSAND FOURTEEN THROUGH JUNE THIR-
TIETH, TWO THOUSAND SEVENTEEN. SUCH UTILIZATION INFORMATION SHALL
INCLUDE, BUT NOT BE LIMITED TO: PRESCRIPTION NUMBERS, NATIONAL DRUG
CODES, NUMBER OF UNITS DISPENSED, CLAIMS PAID DATE, DATE OF SERVICE,
PRESCRIBING PHYSICIAN STATE IDENTIFICATION NUMBER, AMOUNT BILLED FOR
EACH PRESCRIPTION, AMOUNT OF REIMBURSEMENT RECEIVED FOR EACH
PRESCRIPTION (INCLUDING ANY ADJUSTMENT CODES), DISPENSING PHARMACY'S
STATE IDENTIFICATION NUMBER, DISPENSING FEE, ANY APPLICABLE THIRD-PARTY
PAYMENTS, APPLICABLE CO-PAYMENTS, REFILL CODE, INTERNAL CLAIM NUMBER OF
THE SCRIPT, DAYS SUPPLY, J-CODE CLAIMS INCLUDING SINGLE SOURCE AND
MULTISOURCE PHYSICIAN ADMINISTERED DRUGS, NPI NUMBERS, MCO PLAN IDENTI-
FIER, MCO PLAN NAME, AND THE NAME, ADDRESS, CITY, STATE AND ZIP CODE OF
THE PRESCRIBING PRACTITIONER AND PHARMACY. THE PRESCRIPTION DRUG UTILI-
ZATION INFORMATION SHALL BE PROVIDED TO THE THIRD PARTY DATA VENDORS AS
SOON AS PRACTICABLE FOLLOWING ESTABLISHMENT OF THIS PROGRAM. THERE SHALL
BE NO COST TO THE DEPARTMENT FOR SERVICES PERFORMED BY THIRD PARTY DATA
VENDORS. ANY PRESCRIPTION DRUG UTILIZATION DATA PROVIDED TO THIRD PARTY
DATA VENDORS UNDER THIS DEMONSTRATION PROGRAM SHALL NOT BE SHARED WITH
OTHER PARTIES, EXCEPT PARTICIPATING DRUG MANUFACTURERS WHO HAVE ENTERED
INTO A REBATE AGREEMENT WITH THE DEPARTMENT OR WITH THE FEDERAL SECRE-
TARY OF HEALTH AND HUMAN SERVICES ON BEHALF OF THE DEPARTMENT UNDER
SECTION 1927 OF THE FEDERAL SOCIAL SECURITY ACT. UTILIZATION DATA
PROVIDED UNDER THIS SECTION SHALL BE USED FOR THE FOLLOWING PURPOSE:
REBATE VALIDATION SERVICES FOR THE BENEFIT OF DRUG COMPANIES AND
STATE/FEDERAL AGENCIES INCLUDING DRUG USE TREND REVIEW. INDIVIDUAL
PATIENT IDENTIFYING INFORMATION SHALL BE KEPT CONFIDENTIAL BY ANY PERSON
OR ENTITY TO WHOM OR TO WHICH IT IS PROVIDED UNDER THIS SECTION. THE
DISCLOSURE OF THE FOREGOING DATA BY THE DEPARTMENT SHALL BE CONSIDERED,
FOR PURPOSES OF SECTION THREE HUNDRED SIXTY-NINE OF THE SOCIAL SERVICES
LAW, TO BE DIRECTLY CONNECTED WITH THE ADMINISTRATION OF MEDICAL ASSIST-
ANCE FOR NEEDY PERSONS.
3. THE DEPARTMENT SHALL PROVIDE A REPORT ON THE RESULTS OF THE DEMON-
STRATION PROGRAM, WITH INPUT FROM STAKEHOLDERS, TO THE GOVERNOR, THE
DIRECTOR OF THE DIVISION OF BUDGET, THE STATE COMPTROLLER AND THE LEGIS-
LATURE ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN. THE
REPORT SHALL INCLUDE FINDINGS AS TO THE DEMONSTRATION PROGRAM'S CONTRIB-
UTION TO IMPROVING THE ABILITY OF THE DEPARTMENT TO VALIDATE DRUG REBATE
CLAIMS AND RECTIFY DISPUTED CLAIMS. IN THE REPORT, THE DEPARTMENT SHALL
OFFER RECOMMENDATIONS AS TO WHETHER THE DEMONSTRATION PROGRAM SHOULD BE
EXTENDED, MODIFIED, ELIMINATED OR MADE PERMANENT.
S 37. The public health law is amended by adding a new section 278-a
to read as follows:
S 278-A. LIMITATION ON EXCESSIVE PRICE INCREASES; PRESCRIPTION DRUGS:
1. IN THE EVENT A MANUFACTURER, AS DEFINED IN SUBDIVISION TWENTY-ONE OF
SECTION SIXTY-EIGHT HUNDRED TWO OF THE EDUCATION LAW, OF A BRAND OR
GENERIC DRUG, MADE AVAILABLE IN NEW YORK, INCREASES THE WHOLESALE ACQUI-
SITION COST (WAC) OF A DRUG BY A PERCENT EQUAL TO OR GREATER THAN ONE
S. 6407--B 21
HUNDRED PERCENT AT ANY ONE TIME OR IN THE AGGREGATE IN ANY TWELVE MONTH
PERIOD:
(A) THE MANUFACTURER SHALL, NOT LESS THAN THIRTY DAYS PRIOR TO INSTI-
TUTING SUCH INCREASE, NOTIFY THE COMMISSIONER AND THE DRUG UTILIZATION
REVIEW BOARD ESTABLISHED UNDER SECTION THREE HUNDRED SIXTY-NINE-BB OF
THE SOCIAL SERVICES LAW. NOTICE SHALL BE PROVIDED ON THE FORM ESTAB-
LISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION; AND
(B) THE COMMISSIONER SHALL REQUIRE PRIOR AUTHORIZATION AND AUTHORIZE
MEDICAID MANAGED CARE PLANS TO REQUIRE PRIOR AUTHORIZATION FOR THE DRUG
EFFECTIVE AS OF THE DATE OF THE PRICE INCREASE AND CONTINUING UNTIL A
DETERMINATION IS MADE BY THE DRUG UTILIZATION REVIEW BOARD.
2. THE COMMISSIONER, IN CONSULTATION WITH THE DRUG UTILIZATION REVIEW
BOARD, SHALL PRODUCE AND MAKE AVAILABLE TO MANUFACTURERS A PRICE
INCREASE NOTIFICATION FORM THAT SHALL ELICIT:
(A) THE MOST RECENT WHOLESALE ACQUISITION COST (WAC) OF THE DRUG PRIOR
TO AN INCREASE EQUAL TO OR GREATER THAN ONE HUNDRED PERCENT AT ANY ONE
TIME OR IN THE AGGREGATE IN ANY TWELVE MONTH PERIOD IN EITHER PRICING
MEASURE. FOR THE PURPOSES OF THIS SECTION WHOLESALE ACQUISITION COST
(WAC) SHALL INCLUDE THE PRICES FOR EACH DOSAGE, SIZE OR CONCENTRATION OF
THE DRUG OFFERED OR SOLD BY THE MANUFACTURER;
(B) THE WHOLESALE ACQUISITION COST (WAC) OF THE DRUG WHEN EXCEEDING
THE ONE HUNDRED PERCENT THRESHOLD;
(C) ANY MATERIAL CHANGE IN INGREDIENT, PRODUCTION, OR MANUFACTURING
COSTS RESULTING IN THE PRICE INCREASE;
(D) IN THE CASE OF A BRAND DRUG, THE EXPIRATION DATE OF THE PATENT;
(E) IN THE CASE OF A GENERIC DRUG, WHETHER THE DRUG IS A SOLE SOURCE
DRUG; AND
(F) ANY OTHER INFORMATION THE MANUFACTURER DEEMS RELEVANT TO THE
BOARD'S REVIEW.
3. UPON RECEIPT OF A PRICE INCREASE NOTIFICATION FORM, THE DRUG UTILI-
ZATION REVIEW BOARD SHALL REVIEW THE PRICE INCREASE AND MAKE A DETERMI-
NATION AS TO WHETHER THE PRICE INCREASE IS EXCESSIVE. IN MAKING A DETER-
MINATION THE BOARD SHALL CONSIDER:
(A) THE WHOLESALE ACQUISITION COST (WAC) OF THE DRUG IN COMPARISON TO
ANY GENERIC EQUIVALENT OR THERAPEUTICALLY EQUIVALENT DRUG;
(B) THE FDA APPROVED OR COMPENDIUM SUPPORTED USE OF THE DRUG AND CRIT-
ICAL NEED TO THE PATIENT;
(C) ANY KNOWN MARKET FACTORS JUSTIFYING THE PRICE INCREASE, INCLUDING
BUT NOT LIMITED TO:
(I) WHETHER THE DRUG HAS BEEN ABSENT FROM THE MARKET FOR ANY PERIOD OF
TIME; AND
(II) CHANGES IN MANUFACTURING OR REGULATORY REQUIREMENTS OR COSTS.
(D) ANY MATERIAL CHANGE IN THE PREVALENCE OR SEVERITY OF THE DISEASE
OR MEDICAL CONDITION OR CONDITIONS THAT THE DRUG IS APPROVED TO TREAT;
(E) IN THE CASE OF A BRAND DRUG, THE EXPIRATION DATE OF THE PATENT;
AND
(F) IN THE CASE OF A GENERIC DRUG, WHETHER THE DRUG IS A SOLE SOURCE
DRUG.
4. UPON A FINDING BY THE DRUG UTILIZATION REVIEW BOARD THAT A MANUFAC-
TURER HAS INSTITUTED AN EXCESSIVE PRICE INCREASE, (I) THE BOARD SHALL
REQUIRE PRIOR AUTHORIZATION FOR THE DRUG AND AUTHORIZE MEDICAID MANAGED
CARE PLANS TO REQUIRE PRIOR AUTHORIZATION UNTIL THE BOARD DETERMINES
OTHERWISE; AND (II) THE BOARD MAY REFER THE MATTER TO THE ATTORNEY
GENERAL WITH ANY INFORMATION NECESSARY FOR THE INVESTIGATION AND PROSE-
CUTION OF PRICE GOUGING VIOLATIONS UNDER SECTION THREE HUNDRED
NINETY-SIX-RRR OF THE GENERAL BUSINESS LAW. IN THE EVENT THE BOARD DOES
S. 6407--B 22
NOT FIND THAT THE MANUFACTURER HAS ENGAGED IN AN EXCESSIVE PRICE
INCREASE, THE BOARD SHALL REMOVE THE REQUIREMENT FOR PRIOR AUTHORIZATION
AND SUCH AUTHORITY GRANTED TO MEDICAID MANAGED CARE PLANS TO INSTITUTE
PRIOR AUTHORIZATION UNDER THIS SECTION SHALL CEASE.
S 38. The general business law is amended by adding a new section
396-rrr to read as follows:
S 396-RRR. PRICE GOUGING; PRESCRIPTION DRUGS. 1. LEGISLATIVE FINDINGS
AND DECLARATION. THE LEGISLATURE HEREBY FINDS THAT EXCESSIVE PRICE
INCREASES TO PRESCRIPTION DRUGS THAT LACK JUSTIFICATION BASED ON MARKET
FORCES CREATE A PUBLIC HEALTH RISK TO CONSUMERS THAT RELY ON THESE
PRESCRIPTION DRUGS. IN ORDER TO PREVENT A MANUFACTURER, AS DEFINED IN
SUBDIVISION TWENTY-ONE OF SECTION SIXTY-EIGHT HUNDRED TWO OF THE EDUCA-
TION LAW, FROM TAKING UNFAIR ADVANTAGE OF CONSUMERS WHO RELY UPON AND
MAY LOSE ACCESS TO THE PRESCRIPTION DRUGS IF THE MEDICATION HAS A SUDDEN
AND EXCESSIVE PRICE INCREASE, THE LEGISLATURE DECLARES THAT THE PUBLIC
INTEREST REQUIRES THAT SUCH CONDUCT BE PROHIBITED AND MADE SUBJECT TO
CIVIL PENALTIES.
2. IN ORDER TO PREVENT A DRUG MANUFACTURER, AS DEFINED IN SUBDIVISION
TWENTY-ONE OF SECTION SIXTY-EIGHT HUNDRED TWO OF THE EDUCATION LAW, FROM
IMPOSING UNCONSCIONABLY AND UNJUSTIFIABLY EXCESSIVE PRICE INCREASES, THE
ATTORNEY GENERAL MAY, UPON REFERRAL FROM THE DRUG UTILIZATION REVIEW
BOARD AS CODIFIED IN SECTION TWO HUNDRED SEVENTY-EIGHT-A OF THE PUBLIC
HEALTH LAW, APPLY IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO
THE SUPREME COURT OF THE STATE OF NEW YORK WITHIN THE JUDICIAL DISTRICT
IN WHICH SUCH VIOLATIONS ARE ALLEGED TO HAVE OCCURRED, ON NOTICE OF FIVE
DAYS, FOR AN ORDER ENJOINING OR RESTRAINING COMMISSION OR CONTINUANCE OF
THE ALLEGED UNLAWFUL ACTS. IN ANY SUCH PROCEEDING, THE COURT MAY IMPOSE
A CIVIL PENALTY IN AN AMOUNT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS
AND, WHERE APPROPRIATE, ORDER RESTITUTION TO AGGRIEVED CONSUMERS.
3. WHETHER A PRICE IS UNCONSCIONABLY AND UNJUSTIFIABLY EXCESSIVE IS A
QUESTION OF LAW FOR THE COURT. THE COURT'S DETERMINATION THAT A
VIOLATION OF THIS SECTION HAS OCCURRED SHALL BE BASED UPON THE FOLLOWING
FACTORS:
(A) THE INCREASE IN PRICE IS UNCONSCIONABLY EXTREME;
(B) THE DRUG IS VITAL AND MEDICALLY NECESSARY TO THE HEALTH OF THE
CONSUMER;
(C) THE DRUG IS A SOLE SOURCE DRUG WITHOUT A THERAPEUTIC EQUIVALENT;
AND
(D) THE PRICE INCREASE WAS WITHIN THE CONTROL OF THE MANUFACTURER AND
NOT CAUSED BY COSTS IMPOSED ON OR FACTORS BEYOND THE CONTROL OF THE
MANUFACTURER.
S 39. Section 367-b of the social services law is amended by adding a
new subdivision 15 to read as follows:
15. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, CLAIMS FOR PAYMENT
FOR MEDICAL CARE, SERVICES OR SUPPLIES FURNISHED BY ANY PROVIDER UNDER
THE MEDICAL ASSISTANCE PROGRAM MUST BE INITIALLY SUBMITTED WITHIN NINETY
DAYS OF THE DATE THE MEDICAL CARE, SERVICES OR SUPPLIES WERE FURNISHED
TO AN ELIGIBLE PERSON TO BE VALID AND ENFORCEABLE AGAINST THE DEPARTMENT
OR A SOCIAL SERVICES DISTRICT, UNLESS THE PROVIDER'S SUBMISSION OF THE
CLAIMS IS DELAYED BEYOND NINETY DAYS DUE TO CIRCUMSTANCES OUTSIDE OF THE
CONTROL OF THE PROVIDER. SUCH CIRCUMSTANCES INCLUDE, BUT ARE NOT LIMITED
TO, ATTEMPTS TO RECOVER FROM A THIRD-PARTY INSURER, LEGAL PROCEEDINGS
AGAINST A RESPONSIBLE THIRD-PARTY OR THE RECIPIENT OF THE MEDICAL CARE,
SERVICES OR SUPPLIES, AN UNFORESEEABLE COMPUTER OR SYSTEMS MALFUNCTION
WHICH, IN THE JUDGMENT OF THE DEPARTMENT, IMPACTED THE SUBMISSION OF A
SIGNIFICANT NUMBER OF CLAIMS AND WAS UNKNOWN TO THE PROVIDER PRIOR TO
S. 6407--B 23
THE EXPIRATION OF THE NINETY DAY TIME PERIOD, OR DELAYS IN THE DETERMI-
NATION OF CLIENT ELIGIBILITY BY THE SOCIAL SERVICES DISTRICT. ALL CLAIMS
SUBMITTED AFTER NINETY DAYS MUST BE ACCOMPANIED BY A STATEMENT OF THE
REASON FOR SUCH DELAY AND MUST BE SUBMITTED WITHIN THIRTY DAYS FROM THE
TIME SUBMISSION CAME WITHIN THE CONTROL OF THE PROVIDER, SUBJECT TO THE
LIMITATIONS OF PARAGRAPH (C) OF THIS SUBDIVISION.
(B) ANY CLAIM RETURNED TO A PROVIDER DUE TO DATA INSUFFICIENCY OR
CLAIMING ERRORS MAY BE RESUBMITTED BY THE PROVIDER UPON PROPER
COMPLETION OF THE CLAIM IN ACCORDANCE WITH THE CLAIMS PROCESSING
REQUIREMENTS OF THE DEPARTMENT WITHIN SIXTY DAYS OF THE DATE OF THE
NOTIFICATION TO THE PROVIDER ADVISING THE PROVIDER OF SUCH INSUFFICIENCY
OR INVALIDITY. ANY RETURNED CLAIM NOT CORRECTLY RESUBMITTED WITHIN SIXTY
DAYS OR ON THE SECOND RESUBMISSION IS NEITHER VALID NOR ENFORCEABLE
AGAINST THE DEPARTMENT OR A SOCIAL SERVICES DISTRICT.
(C) NOTWITHSTANDING PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION TO THE
CONTRARY:
(I) ALL CLAIMS FOR PAYMENT FOR MEDICAL CARE, SERVICES OR SUPPLIES
FURNISHED BY NON-PUBLIC PROVIDERS UNDER THE MEDICAL ASSISTANCE PROGRAM
MUST BE FINALLY SUBMITTED TO THE DEPARTMENT OR ITS FISCAL AGENT AND BE
PAYABLE WITHIN TWO YEARS FROM THE DATE THE CARE, SERVICES OR SUPPLIES
WERE FURNISHED IN ORDER TO BE VALID AND ENFORCEABLE AS AGAINST THE
DEPARTMENT OR A SOCIAL SERVICES DISTRICT; AND
(II) ALL CLAIMS FOR PAYMENT FOR MEDICAL CARE, SERVICES OR SUPPLIES
FURNISHED BY PUBLIC PROVIDERS MUST BE FINALLY SUBMITTED TO THE DEPART-
MENT OR ITS FISCAL AGENT AND BE PAYABLE WITHIN TWO YEARS FROM THE DATE
THE CARE, SERVICES OR SUPPLIES WERE FURNISHED (OR WITHIN SUCH OTHER
PERIOD AS AGREED BY THE DEPARTMENT AND THE PUBLIC PROVIDER FOR PAYMENTS
INITIALLY MADE BY THE PUBLIC PROVIDER UNDER A PROGRAM OTHER THAN THE
MEDICAL ASSISTANCE PROGRAM) IN ORDER TO BE VALID AND ENFORCEABLE AS
AGAINST THE DEPARTMENT OR A SOCIAL SERVICES DISTRICT.
(D) FOR PURPOSES OF THIS SUBDIVISION, A CLAIM IS CONSIDERED SUBMITTED
UPON ITS RECEIPT BY THE DEPARTMENT OR ITS FISCAL AGENT.
S 40. Restorative care unit demonstration program. 1. Notwithstanding
any law, rule or regulation to the contrary, the commissioner of health,
within amounts appropriated, shall implement a restorative care unit
demonstration program within one year of the effective date of this
section to reduce hospital admissions and readmissions from residential
health care facilities established pursuant to article 28 of the public
health law, through the establishment of restorative care units. Such
units shall provide higher-intensity treatment services for residents
who are at risk of hospitalization upon an acute change in condition,
and seek to improve the capacity of nursing facilities to identify and
treat higher acuity patients with multiple co-morbidities as effectively
as possible in-situ, rather than through admission to an acute care
facility. The unit shall utilize evidence based tools, as well as: (a) a
critical indicator monitoring system to evaluate performance indicators;
(b) patient-focused education to support advanced care planning and
palliative care decisions; and (c) protocols to effect care monitoring
practices designed to reduce the likelihood of change in patient status
conditions that may require acute care evaluation. A residential health
care facility, established pursuant to article 28 of the public health
law, wishing to establish restorative care units must contract with an
eligible applicant.
2. For the purposes of this section, an eligible applicant must at a
minimum meet the following criteria: (a) be a New York state entity in
good standing; and (b) have demonstrated experience and capacity in
S. 6407--B 24
developing and implementing a similar unit as described herein. An
eligible applicant for this demonstration program shall contract with a
residential health care facility, established pursuant to article 28 of
the public health law, with a license in good standing that: (i) employs
a nursing home administrator with at least two years operational experi-
ence; (ii) has a minimum of 160 certified beds; (iii) accepts reimburse-
ment pursuant to title XVIII and title XIX of the federal social securi-
ty act; (iv) has achieved at least a three star overall nursing home
compare rating from the Center for Medicare and Medicaid Services five-
star quality rating system; and (v) operates a discreet dedicated
restorative care unit with a minimum of 18 beds. Additionally, the
contracting facility must have at the time of application, and maintain
during the course of the demonstration, functional wireless internet
connectivity throughout the facility, including backup, with sufficient
bandwidth to support technological monitoring.
3. Restorative care units; requirements. Restorative care units shall
provide on-site healthcare services, including, but not limited to: (a)
radiology; (b) peripherally inserted central catheter insertion; (c)
blood sugar, hemoglobin/hematocrit, electrolytes and blood gases moni-
toring; (d) 12-lead transmissible electrocardiograms; (e) specialized
cardiac services, including rapid response teams, crash carts, and defi-
brillators; (f) telemedicine and telemetry which shall have the capabil-
ity to notify the user, in real time, when an urgent or emergent physio-
logical change has occurred in a patient's condition requiring
intervention, and to generate reports that can be accessed by any
provider, in real time, in any location to allow for immediate clinical
intervention. For the purposes of this demonstration, each such unit
must maintain the following clinical staffing levels: (a) one registered
nurse for every six patients, each of whom must be certified in intrave-
nous therapy and advanced cardiovascular life support; and (b) a medical
director certified by the American Board of Critical Care Medicine or
the American Board of Hospital Medicine.
4. Electronic health records. For the duration of the demonstration,
the restorative care unit shall utilize and maintain an electronic
health record system that connects to the local regional health informa-
tion organization to facilitate the exchange of health information.
5. The department of health shall monitor the quality and effective-
ness of the demonstration program in reducing hospital admissions and
readmissions over a three year period and shall report to the legisla-
ture, within one year of implementation, on the demonstration program's
effectiveness in providing a higher level of care at lower cost, and
include recommendations regarding the utilization of the restorative
care unit model in the state.
S 41. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016; provided
that:
(a) section one of this act shall take effect October 1, 2016;
(b) subdivisions 26-a and 32 of section 364-j of the social services
law, as added by sections fourteen and fifteen of this act shall be
deemed repealed on the same date and in the same manner as such section
is repealed;
(c) the amendments to section 364-j of the social services law, made
by section twenty-two of this act shall not affect the expiration and
repeal of such section, and shall expire and be deemed repealed there-
with;
S. 6407--B 25
(d) the amendments to subdivision 1 of section 364-j of the social
services law made by section twenty-three of this act shall not affect
the repeal of such section and shall be deemed to repeal therewith;
(e) the amendments to subdivision 2 of section 364-j of the social
services law made by section twenty-four of this act shall not affect
the repeal of such section and shall be deemed to repeal therewith;
(f) the amendments to subdivision 3 of section 364-j of the social
services law made by section twenty-five of this act shall not affect
the repeal of such section and shall be deemed to repeal therewith;
(g) the amendments to paragraph (d) of subdivision 2-a of section 2808
of the public health law made by section twenty-six of this act shall
not affect the expiration of such paragraph and shall be deemed to
expire therewith, when upon such date section twenty-seven of this act
shall take effect;
(h) the implementation of the provisions of section twenty-nine of
this act shall be subject to the appropriation of moneys specifically
for the purposes thereof;
(i) the provisions of sections thirty-two and thirty-three of this act
shall take effect on the one hundred twentieth day after it shall have
become a law, and shall apply to all policies and contracts issued,
renewed, modified, altered or amended on or after such date; and
(j) section thirty-nine of this act shall apply to all provider claims
that were the subject of an appeal or department of health review on or
after January 1, 2015.
PART B-1
Section 1. Section 18 of part C of chapter 60 of the laws of 2014,
amending the social services law relating to eliminating prescriber
prevails for brand name drugs with generic equivalents, is amended to
read as follows:
S 18. The commissioner of health [is authorized to] SHALL establish a
disability clinician advisory group of experienced clinicians and clinic
administrators who have an understanding of the comprehensive needs of
people with disabilities INCLUDING BUT NOT LIMITED TO PEOPLE WITH DEVEL-
OPMENTAL DISABILITIES. Such group shall provide the commissioner and
the department of health with information and data on the effect of
policies, including proposed regulations or statutes, and of fiscal
proposals, including rate setting and appropriations, on the delivery of
supports and services, INCLUDING BUT NOT LIMITED TO THE ROLE OF SPECIAL-
TY SERVICES for individuals with disabilities [including but not limited
to the role of specialty services.], INCLUDING BUT NOT LIMITED TO INDI-
VIDUALS WITH DEVELOPMENTAL DISABILITIES. SUCH GROUP SHALL CONSIST OF
THE FOLLOWING PERSONS OR THEIR DESIGNEES: THE COMMISSIONER OF DEVELOP-
MENTAL DISABILITIES, THE COMMISSIONER OF HEALTH, THREE INDIVIDUALS
APPOINTED BY THE GOVERNOR, AND TWO INDIVIDUALS EACH BY THE TEMPORARY
PRESIDENT OF THE SENATE AND BY THE SPEAKER OF THE ASSEMBLY. THE MEMBERS
OF THE GROUP SHALL BE APPOINTED FOR A TERM OF TWO YEARS AND SHALL MEET
AT LEAST THREE TIMES IN EACH FULL CALENDAR YEAR DURING THE FIRST TWO
YEARS AND ADDITIONALLY UPON THE REQUEST OF THE COMMISSIONER OF HEALTH.
THE MEMBERS OF THE GROUP SHALL RECEIVE NO COMPENSATION FOR THEIR
SERVICES AS MEMBERS, BUT EACH SHALL BE ALLOWED THE NECESSARY AND ACTUAL
EXPENSES INCURRED IN THE PERFORMANCE OF HIS OR HER DUTIES.
S 2. This act shall take effect immediately; provided, however, that
any appointments pursuant to section one of this act shall be made with-
in one hundred eighty days of such effective date.
S. 6407--B 26
PART C
Section 1. Intentionally Omitted.
S 2. Paragraph (a) of subdivision 1 of section 18 of chapter 266 of
the laws of 1986, amending the civil practice law and rules and other
laws relating to malpractice and professional medical conduct, as
amended by section 1 of part Y of chapter 57 of the laws of 2015, is
amended to read as follows:
(a) The superintendent of financial services and the commissioner of
health or their designee shall, from funds available in the hospital
excess liability pool created pursuant to subdivision 5 of this section,
purchase a policy or policies for excess insurance coverage, as author-
ized by paragraph 1 of subsection (e) of section 5502 of the insurance
law; or from an insurer, other than an insurer described in section 5502
of the insurance law, duly authorized to write such coverage and actual-
ly writing medical malpractice insurance in this state; or shall
purchase equivalent excess coverage in a form previously approved by the
superintendent of financial services for purposes of providing equiv-
alent excess coverage in accordance with section 19 of chapter 294 of
the laws of 1985, for medical or dental malpractice occurrences between
July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30, 1988,
between July 1, 1988 and June 30, 1989, between July 1, 1989 and June
30, 1990, between July 1, 1990 and June 30, 1991, between July 1, 1991
and June 30, 1992, between July 1, 1992 and June 30, 1993, between July
1, 1993 and June 30, 1994, between July 1, 1994 and June 30, 1995,
between July 1, 1995 and June 30, 1996, between July 1, 1996 and June
30, 1997, between July 1, 1997 and June 30, 1998, between July 1, 1998
and June 30, 1999, between July 1, 1999 and June 30, 2000, between July
1, 2000 and June 30, 2001, between July 1, 2001 and June 30, 2002,
between July 1, 2002 and June 30, 2003, between July 1, 2003 and June
30, 2004, between July 1, 2004 and June 30, 2005, between July 1, 2005
and June 30, 2006, between July 1, 2006 and June 30, 2007, between July
1, 2007 and June 30, 2008, between July 1, 2008 and June 30, 2009,
between July 1, 2009 and June 30, 2010, between July 1, 2010 and June
30, 2011, between July 1, 2011 and June 30, 2012, between July 1, 2012
and June 30, 2013, between July 1, 2013 and June 30, 2014, between July
1, 2014 and June 30, 2015, [and] between July 1, 2015 and June 30, 2016,
AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 or reimburse the hospital
where the hospital purchases equivalent excess coverage as defined in
subparagraph (i) of paragraph (a) of subdivision 1-a of this section for
medical or dental malpractice occurrences between July 1, 1987 and June
30, 1988, between July 1, 1988 and June 30, 1989, between July 1, 1989
and June 30, 1990, between July 1, 1990 and June 30, 1991, between July
1, 1991 and June 30, 1992, between July 1, 1992 and June 30, 1993,
between July 1, 1993 and June 30, 1994, between July 1, 1994 and June
30, 1995, between July 1, 1995 and June 30, 1996, between July 1, 1996
and June 30, 1997, between July 1, 1997 and June 30, 1998, between July
1, 1998 and June 30, 1999, between July 1, 1999 and June 30, 2000,
between July 1, 2000 and June 30, 2001, between July 1, 2001 and June
30, 2002, between July 1, 2002 and June 30, 2003, between July 1, 2003
and June 30, 2004, between July 1, 2004 and June 30, 2005, between July
1, 2005 and June 30, 2006, between July 1, 2006 and June 30, 2007,
between July 1, 2007 and June 30, 2008, between July 1, 2008 and June
30, 2009, between July 1, 2009 and June 30, 2010, between July 1, 2010
and June 30, 2011, between July 1, 2011 and June 30, 2012, between July
1, 2012 and June 30, 2013, between July 1, 2013 and June 30, 2014,
S. 6407--B 27
between July 1, 2014 and June 30, 2015, [and] between July 1, 2015 and
June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 for physicians
or dentists certified as eligible for each such period or periods pursu-
ant to subdivision 2 of this section by a general hospital licensed
pursuant to article 28 of the public health law; provided that no single
insurer shall write more than fifty percent of the total excess premium
for a given policy year; and provided, however, that such eligible
physicians or dentists must have in force an individual policy, from an
insurer licensed in this state of primary malpractice insurance coverage
in amounts of no less than one million three hundred thousand dollars
for each claimant and three million nine hundred thousand dollars for
all claimants under that policy during the period of such excess cover-
age for such occurrences or be endorsed as additional insureds under a
hospital professional liability policy which is offered through a volun-
tary attending physician ("channeling") program previously permitted by
the superintendent of financial services during the period of such
excess coverage for such occurrences. During such period, such policy
for excess coverage or such equivalent excess coverage shall, when
combined with the physician's or dentist's primary malpractice insurance
coverage or coverage provided through a voluntary attending physician
("channeling") program, total an aggregate level of two million three
hundred thousand dollars for each claimant and six million nine hundred
thousand dollars for all claimants from all such policies with respect
to occurrences in each of such years provided, however, if the cost of
primary malpractice insurance coverage in excess of one million dollars,
but below the excess medical malpractice insurance coverage provided
pursuant to this act, exceeds the rate of nine percent per annum, then
the required level of primary malpractice insurance coverage in excess
of one million dollars for each claimant shall be in an amount of not
less than the dollar amount of such coverage available at nine percent
per annum; the required level of such coverage for all claimants under
that policy shall be in an amount not less than three times the dollar
amount of coverage for each claimant; and excess coverage, when combined
with such primary malpractice insurance coverage, shall increase the
aggregate level for each claimant by one million dollars and three
million dollars for all claimants; and provided further, that, with
respect to policies of primary medical malpractice coverage that include
occurrences between April 1, 2002 and June 30, 2002, such requirement
that coverage be in amounts no less than one million three hundred thou-
sand dollars for each claimant and three million nine hundred thousand
dollars for all claimants for such occurrences shall be effective April
1, 2002.
S 3. Subdivision 3 of section 18 of chapter 266 of the laws of 1986,
amending the civil practice law and rules and other laws relating to
malpractice and professional medical conduct, as amended by section 2 of
part Y of chapter 57 of the laws of 2015, is amended to read as follows:
(3)(a) The superintendent of financial services shall determine and
certify to each general hospital and to the commissioner of health the
cost of excess malpractice insurance for medical or dental malpractice
occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988
and June 30, 1989, between July 1, 1989 and June 30, 1990, between July
1, 1990 and June 30, 1991, between July 1, 1991 and June 30, 1992,
between July 1, 1992 and June 30, 1993, between July 1, 1993 and June
30, 1994, between July 1, 1994 and June 30, 1995, between July 1, 1995
and June 30, 1996, between July 1, 1996 and June 30, 1997, between July
1, 1997 and June 30, 1998, between July 1, 1998 and June 30, 1999,
S. 6407--B 28
between July 1, 1999 and June 30, 2000, between July 1, 2000 and June
30, 2001, between July 1, 2001 and June 30, 2002, between July 1, 2002
and June 30, 2003, between July 1, 2003 and June 30, 2004, between July
1, 2004 and June 30, 2005, between July 1, 2005 and June 30, 2006,
between July 1, 2006 and June 30, 2007, between July 1, 2007 and June
30, 2008, between July 1, 2008 and June 30, 2009, between July 1, 2009
and June 30, 2010, between July 1, 2010 and June 30, 2011, between July
1, 2011 and June 30, 2012, between July 1, 2012 and June 30, 2013, and
between July 1, 2013 and June 30, 2014, between July 1, 2014 and June
30, 2015, [and] between July 1, 2015 and June 30, 2016, AND BETWEEN JULY
1, 2016 AND JUNE 30, 2017 allocable to each general hospital for physi-
cians or dentists certified as eligible for purchase of a policy for
excess insurance coverage by such general hospital in accordance with
subdivision 2 of this section, and may amend such determination and
certification as necessary.
(b) The superintendent of financial services shall determine and
certify to each general hospital and to the commissioner of health the
cost of excess malpractice insurance or equivalent excess coverage for
medical or dental malpractice occurrences between July 1, 1987 and June
30, 1988, between July 1, 1988 and June 30, 1989, between July 1, 1989
and June 30, 1990, between July 1, 1990 and June 30, 1991, between July
1, 1991 and June 30, 1992, between July 1, 1992 and June 30, 1993,
between July 1, 1993 and June 30, 1994, between July 1, 1994 and June
30, 1995, between July 1, 1995 and June 30, 1996, between July 1, 1996
and June 30, 1997, between July 1, 1997 and June 30, 1998, between July
1, 1998 and June 30, 1999, between July 1, 1999 and June 30, 2000,
between July 1, 2000 and June 30, 2001, between July 1, 2001 and June
30, 2002, between July 1, 2002 and June 30, 2003, between July 1, 2003
and June 30, 2004, between July 1, 2004 and June 30, 2005, between July
1, 2005 and June 30, 2006, between July 1, 2006 and June 30, 2007,
between July 1, 2007 and June 30, 2008, between July 1, 2008 and June
30, 2009, between July 1, 2009 and June 30, 2010, between July 1, 2010
and June 30, 2011, between July 1, 2011 and June 30, 2012, between July
1, 2012 and June 30, 2013, between July 1, 2013 and June 30, 2014,
between July 1, 2014 and June 30, 2015, [and] between July 1, 2015 and
June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 allocable to
each general hospital for physicians or dentists certified as eligible
for purchase of a policy for excess insurance coverage or equivalent
excess coverage by such general hospital in accordance with subdivision
2 of this section, and may amend such determination and certification as
necessary. The superintendent of financial services shall determine and
certify to each general hospital and to the commissioner of health the
ratable share of such cost allocable to the period July 1, 1987 to
December 31, 1987, to the period January 1, 1988 to June 30, 1988, to
the period July 1, 1988 to December 31, 1988, to the period January 1,
1989 to June 30, 1989, to the period July 1, 1989 to December 31, 1989,
to the period January 1, 1990 to June 30, 1990, to the period July 1,
1990 to December 31, 1990, to the period January 1, 1991 to June 30,
1991, to the period July 1, 1991 to December 31, 1991, to the period
January 1, 1992 to June 30, 1992, to the period July 1, 1992 to December
31, 1992, to the period January 1, 1993 to June 30, 1993, to the period
July 1, 1993 to December 31, 1993, to the period January 1, 1994 to June
30, 1994, to the period July 1, 1994 to December 31, 1994, to the period
January 1, 1995 to June 30, 1995, to the period July 1, 1995 to December
31, 1995, to the period January 1, 1996 to June 30, 1996, to the period
July 1, 1996 to December 31, 1996, to the period January 1, 1997 to June
S. 6407--B 29
30, 1997, to the period July 1, 1997 to December 31, 1997, to the period
January 1, 1998 to June 30, 1998, to the period July 1, 1998 to December
31, 1998, to the period January 1, 1999 to June 30, 1999, to the period
July 1, 1999 to December 31, 1999, to the period January 1, 2000 to June
30, 2000, to the period July 1, 2000 to December 31, 2000, to the period
January 1, 2001 to June 30, 2001, to the period July 1, 2001 to June 30,
2002, to the period July 1, 2002 to June 30, 2003, to the period July 1,
2003 to June 30, 2004, to the period July 1, 2004 to June 30, 2005, to
the period July 1, 2005 and June 30, 2006, to the period July 1, 2006
and June 30, 2007, to the period July 1, 2007 and June 30, 2008, to the
period July 1, 2008 and June 30, 2009, to the period July 1, 2009 and
June 30, 2010, to the period July 1, 2010 and June 30, 2011, to the
period July 1, 2011 and June 30, 2012, to the period July 1, 2012 and
June 30, 2013, to the period July 1, 2013 and June 30, 2014, to the
period July 1, 2014 and June 30, 2015, [and] to the period July 1, 2015
and June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017.
S 4. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
18 of chapter 266 of the laws of 1986, amending the civil practice law
and rules and other laws relating to malpractice and professional
medical conduct, as amended by section 3 of part Y of chapter 57 of the
laws of 2015, are amended to read as follows:
(a) To the extent funds available to the hospital excess liability
pool pursuant to subdivision 5 of this section as amended, and pursuant
to section 6 of part J of chapter 63 of the laws of 2001, as may from
time to time be amended, which amended this subdivision, are insuffi-
cient to meet the costs of excess insurance coverage or equivalent
excess coverage for coverage periods during the period July 1, 1992 to
June 30, 1993, during the period July 1, 1993 to June 30, 1994, during
the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
to June 30, 1996, during the period July 1, 1996 to June 30, 1997,
during the period July 1, 1997 to June 30, 1998, during the period July
1, 1998 to June 30, 1999, during the period July 1, 1999 to June 30,
2000, during the period July 1, 2000 to June 30, 2001, during the period
July 1, 2001 to October 29, 2001, during the period April 1, 2002 to
June 30, 2002, during the period July 1, 2002 to June 30, 2003, during
the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
to June 30, 2005, during the period July 1, 2005 to June 30, 2006,
during the period July 1, 2006 to June 30, 2007, during the period July
1, 2007 to June 30, 2008, during the period July 1, 2008 to June 30,
2009, during the period July 1, 2009 to June 30, 2010, during the period
July 1, 2010 to June 30, 2011, during the period July 1, 2011 to June
30, 2012, during the period July 1, 2012 to June 30, 2013, during the
period July 1, 2013 to June 30, 2014, during the period July 1, 2014 to
June 30, 2015, [and] during the period July 1, 2015 and June 30, 2016,
AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 allocated or reallocated in
accordance with paragraph (a) of subdivision 4-a of this section to
rates of payment applicable to state governmental agencies, each physi-
cian or dentist for whom a policy for excess insurance coverage or
equivalent excess coverage is purchased for such period shall be respon-
sible for payment to the provider of excess insurance coverage or equiv-
alent excess coverage of an allocable share of such insufficiency, based
on the ratio of the total cost of such coverage for such physician to
the sum of the total cost of such coverage for all physicians applied to
such insufficiency.
(b) Each provider of excess insurance coverage or equivalent excess
coverage covering the period July 1, 1992 to June 30, 1993, or covering
S. 6407--B 30
the period July 1, 1993 to June 30, 1994, or covering the period July 1,
1994 to June 30, 1995, or covering the period July 1, 1995 to June 30,
1996, or covering the period July 1, 1996 to June 30, 1997, or covering
the period July 1, 1997 to June 30, 1998, or covering the period July 1,
1998 to June 30, 1999, or covering the period July 1, 1999 to June 30,
2000, or covering the period July 1, 2000 to June 30, 2001, or covering
the period July 1, 2001 to October 29, 2001, or covering the period
April 1, 2002 to June 30, 2002, or covering the period July 1, 2002 to
June 30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
covering the period July 1, 2004 to June 30, 2005, or covering the peri-
od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
June 30, 2007, or covering the period July 1, 2007 to June 30, 2008, or
covering the period July 1, 2008 to June 30, 2009, or covering the peri-
od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
June 30, 2011, or covering the period July 1, 2011 to June 30, 2012, or
covering the period July 1, 2012 to June 30, 2013, or covering the peri-
od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
June 30, 2015, or covering the period July 1, 2015 to June 30, 2016, OR
COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 shall notify a covered
physician or dentist by mail, mailed to the address shown on the last
application for excess insurance coverage or equivalent excess coverage,
of the amount due to such provider from such physician or dentist for
such coverage period determined in accordance with paragraph (a) of this
subdivision. Such amount shall be due from such physician or dentist to
such provider of excess insurance coverage or equivalent excess coverage
in a time and manner determined by the superintendent of financial
services.
(c) If a physician or dentist liable for payment of a portion of the
costs of excess insurance coverage or equivalent excess coverage cover-
ing the period July 1, 1992 to June 30, 1993, or covering the period
July 1, 1993 to June 30, 1994, or covering the period July 1, 1994 to
June 30, 1995, or covering the period July 1, 1995 to June 30, 1996, or
covering the period July 1, 1996 to June 30, 1997, or covering the peri-
od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
June 30, 1999, or covering the period July 1, 1999 to June 30, 2000, or
covering the period July 1, 2000 to June 30, 2001, or covering the peri-
od July 1, 2001 to October 29, 2001, or covering the period April 1,
2002 to June 30, 2002, or covering the period July 1, 2002 to June 30,
2003, or covering the period July 1, 2003 to June 30, 2004, or covering
the period July 1, 2004 to June 30, 2005, or covering the period July 1,
2005 to June 30, 2006, or covering the period July 1, 2006 to June 30,
2007, or covering the period July 1, 2007 to June 30, 2008, or covering
the period July 1, 2008 to June 30, 2009, or covering the period July 1,
2009 to June 30, 2010, or covering the period July 1, 2010 to June 30,
2011, or covering the period July 1, 2011 to June 30, 2012, or covering
the period July 1, 2012 to June 30, 2013, or covering the period July 1,
2013 to June 30, 2014, or covering the period July 1, 2014 to June 30,
2015, or covering the period July 1, 2015 to June 30, 2016, OR COVERING
THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 determined in accordance with
paragraph (a) of this subdivision fails, refuses or neglects to make
payment to the provider of excess insurance coverage or equivalent
excess coverage in such time and manner as determined by the superinten-
dent of financial services pursuant to paragraph (b) of this subdivi-
sion, excess insurance coverage or equivalent excess coverage purchased
for such physician or dentist in accordance with this section for such
coverage period shall be cancelled and shall be null and void as of the
S. 6407--B 31
first day on or after the commencement of a policy period where the
liability for payment pursuant to this subdivision has not been met.
(d) Each provider of excess insurance coverage or equivalent excess
coverage shall notify the superintendent of financial services and the
commissioner of health or their designee of each physician and dentist
eligible for purchase of a policy for excess insurance coverage or
equivalent excess coverage covering the period July 1, 1992 to June 30,
1993, or covering the period July 1, 1993 to June 30, 1994, or covering
the period July 1, 1994 to June 30, 1995, or covering the period July 1,
1995 to June 30, 1996, or covering the period July 1, 1996 to June 30,
1997, or covering the period July 1, 1997 to June 30, 1998, or covering
the period July 1, 1998 to June 30, 1999, or covering the period July 1,
1999 to June 30, 2000, or covering the period July 1, 2000 to June 30,
2001, or covering the period July 1, 2001 to October 29, 2001, or cover-
ing the period April 1, 2002 to June 30, 2002, or covering the period
July 1, 2002 to June 30, 2003, or covering the period July 1, 2003 to
June 30, 2004, or covering the period July 1, 2004 to June 30, 2005, or
covering the period July 1, 2005 to June 30, 2006, or covering the peri-
od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to
June 30, 2008, or covering the period July 1, 2008 to June 30, 2009, or
covering the period July 1, 2009 to June 30, 2010, or covering the peri-
od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to
June 30, 2012, or covering the period July 1, 2012 to June 30, 2013, or
covering the period July 1, 2013 to June 30, 2014, or covering the peri-
od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to
June 30, 2016, OR COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 that
has made payment to such provider of excess insurance coverage or equiv-
alent excess coverage in accordance with paragraph (b) of this subdivi-
sion and of each physician and dentist who has failed, refused or
neglected to make such payment.
(e) A provider of excess insurance coverage or equivalent excess
coverage shall refund to the hospital excess liability pool any amount
allocable to the period July 1, 1992 to June 30, 1993, and to the period
July 1, 1993 to June 30, 1994, and to the period July 1, 1994 to June
30, 1995, and to the period July 1, 1995 to June 30, 1996, and to the
period July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to
June 30, 1998, and to the period July 1, 1998 to June 30, 1999, and to
the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
to June 30, 2001, and to the period July 1, 2001 to October 29, 2001,
and to the period April 1, 2002 to June 30, 2002, and to the period July
1, 2002 to June 30, 2003, and to the period July 1, 2003 to June 30,
2004, and to the period July 1, 2004 to June 30, 2005, and to the period
July 1, 2005 to June 30, 2006, and to the period July 1, 2006 to June
30, 2007, and to the period July 1, 2007 to June 30, 2008, and to the
period July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
June 30, 2010, and to the period July 1, 2010 to June 30, 2011, and to
the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
to June 30, 2013, and to the period July 1, 2013 to June 30, 2014, and
to the period July 1, 2014 to June 30, 2015, and to the period July 1,
2015 to June 30, 2016, AND TO THE PERIOD JULY 1, 2016 TO JUNE 30, 2017
received from the hospital excess liability pool for purchase of excess
insurance coverage or equivalent excess coverage covering the period
July 1, 1992 to June 30, 1993, and covering the period July 1, 1993 to
June 30, 1994, and covering the period July 1, 1994 to June 30, 1995,
and covering the period July 1, 1995 to June 30, 1996, and covering the
period July 1, 1996 to June 30, 1997, and covering the period July 1,
S. 6407--B 32
1997 to June 30, 1998, and covering the period July 1, 1998 to June 30,
1999, and covering the period July 1, 1999 to June 30, 2000, and cover-
ing the period July 1, 2000 to June 30, 2001, and covering the period
July 1, 2001 to October 29, 2001, and covering the period April 1, 2002
to June 30, 2002, and covering the period July 1, 2002 to June 30, 2003,
and covering the period July 1, 2003 to June 30, 2004, and covering the
period July 1, 2004 to June 30, 2005, and covering the period July 1,
2005 to June 30, 2006, and covering the period July 1, 2006 to June 30,
2007, and covering the period July 1, 2007 to June 30, 2008, and cover-
ing the period July 1, 2008 to June 30, 2009, and covering the period
July 1, 2009 to June 30, 2010, and covering the period July 1, 2010 to
June 30, 2011, and covering the period July 1, 2011 to June 30, 2012,
and covering the period July 1, 2012 to June 30, 2013, and covering the
period July 1, 2013 to June 30, 2014, and covering the period July 1,
2014 to June 30, 2015, and covering the period July 1, 2015 to June 30,
2016, AND COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 for a physi-
cian or dentist where such excess insurance coverage or equivalent
excess coverage is cancelled in accordance with paragraph (c) of this
subdivision.
S 5. Section 40 of chapter 266 of the laws of 1986, amending the civil
practice law and rules and other laws relating to malpractice and
professional medical conduct, as amended by section 4 of part Y of chap-
ter 57 of the laws of 2015, is amended to read as follows:
S 40. The superintendent of financial services shall establish rates
for policies providing coverage for physicians and surgeons medical
malpractice for the periods commencing July 1, 1985 and ending June 30,
[2016] 2017; provided, however, that notwithstanding any other provision
of law, the superintendent shall not establish or approve any increase
in rates for the period commencing July 1, 2009 and ending June 30,
2010. The superintendent shall direct insurers to establish segregated
accounts for premiums, payments, reserves and investment income attrib-
utable to such premium periods and shall require periodic reports by the
insurers regarding claims and expenses attributable to such periods to
monitor whether such accounts will be sufficient to meet incurred claims
and expenses. On or after July 1, 1989, the superintendent shall impose
a surcharge on premiums to satisfy a projected deficiency that is
attributable to the premium levels established pursuant to this section
for such periods; provided, however, that such annual surcharge shall
not exceed eight percent of the established rate until July 1, [2016]
2017, at which time and thereafter such surcharge shall not exceed twen-
ty-five percent of the approved adequate rate, and that such annual
surcharges shall continue for such period of time as shall be sufficient
to satisfy such deficiency. The superintendent shall not impose such
surcharge during the period commencing July 1, 2009 and ending June 30,
2010. On and after July 1, 1989, the surcharge prescribed by this
section shall be retained by insurers to the extent that they insured
physicians and surgeons during the July 1, 1985 through June 30, [2016]
2017 policy periods; in the event and to the extent physicians and
surgeons were insured by another insurer during such periods, all or a
pro rata share of the surcharge, as the case may be, shall be remitted
to such other insurer in accordance with rules and regulations to be
promulgated by the superintendent. Surcharges collected from physicians
and surgeons who were not insured during such policy periods shall be
apportioned among all insurers in proportion to the premium written by
each insurer during such policy periods; if a physician or surgeon was
insured by an insurer subject to rates established by the superintendent
S. 6407--B 33
during such policy periods, and at any time thereafter a hospital,
health maintenance organization, employer or institution is responsible
for responding in damages for liability arising out of such physician's
or surgeon's practice of medicine, such responsible entity shall also
remit to such prior insurer the equivalent amount that would then be
collected as a surcharge if the physician or surgeon had continued to
remain insured by such prior insurer. In the event any insurer that
provided coverage during such policy periods is in liquidation, the
property/casualty insurance security fund shall receive the portion of
surcharges to which the insurer in liquidation would have been entitled.
The surcharges authorized herein shall be deemed to be income earned for
the purposes of section 2303 of the insurance law. The superintendent,
in establishing adequate rates and in determining any projected defi-
ciency pursuant to the requirements of this section and the insurance
law, shall give substantial weight, determined in his discretion and
judgment, to the prospective anticipated effect of any regulations
promulgated and laws enacted and the public benefit of stabilizing
malpractice rates and minimizing rate level fluctuation during the peri-
od of time necessary for the development of more reliable statistical
experience as to the efficacy of such laws and regulations affecting
medical, dental or podiatric malpractice enacted or promulgated in 1985,
1986, by this act and at any other time. Notwithstanding any provision
of the insurance law, rates already established and to be established by
the superintendent pursuant to this section are deemed adequate if such
rates would be adequate when taken together with the maximum authorized
annual surcharges to be imposed for a reasonable period of time whether
or not any such annual surcharge has been actually imposed as of the
establishment of such rates.
S 6. Section 5 and subdivisions (a) and (e) of section 6 of part J of
chapter 63 of the laws of 2001, amending chapter 266 of the laws of
1986, amending the civil practice law and rules and other laws relating
to malpractice and professional medical conduct, as amended by section 5
of part Y of chapter 57 of the laws of 2015, are amended to read as
follows:
S 5. The superintendent of financial services and the commissioner of
health shall determine, no later than June 15, 2002, June 15, 2003, June
15, 2004, June 15, 2005, June 15, 2006, June 15, 2007, June 15, 2008,
June 15, 2009, June 15, 2010, June 15, 2011, June 15, 2012, June 15,
2013, June 15, 2014, June 15, 2015, [and] June 15, 2016, AND JUNE 15,
2017 the amount of funds available in the hospital excess liability
pool, created pursuant to section 18 of chapter 266 of the laws of 1986,
and whether such funds are sufficient for purposes of purchasing excess
insurance coverage for eligible participating physicians and dentists
during the period July 1, 2001 to June 30, 2002, or July 1, 2002 to June
30, 2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30,
2007, or July 1, 2007 to June 30, 2008, or July 1, 2008 to June 30,
2009, or July 1, 2009 to June 30, 2010, or July 1, 2010 to June 30,
2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June 30,
2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
2015, or July 1, 2015 to June 30, 2016, OR JULY 1, 2016 TO JUNE 30, 2017
as applicable.
(a) This section shall be effective only upon a determination, pursu-
ant to section five of this act, by the superintendent of financial
services and the commissioner of health, and a certification of such
determination to the state director of the budget, the chair of the
S. 6407--B 34
senate committee on finance and the chair of the assembly committee on
ways and means, that the amount of funds in the hospital excess liabil-
ity pool, created pursuant to section 18 of chapter 266 of the laws of
1986, is insufficient for purposes of purchasing excess insurance cover-
age for eligible participating physicians and dentists during the period
July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or July 1,
2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007
to June 30, 2008, or July 1, 2008 to June 30, 2009, or July 1, 2009 to
June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June
30, 2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June 30,
2014, or July 1, 2014 to June 30, 2015, or July 1, 2015 to June 30,
2016, OR JULY 1, 2016 TO JUNE 30, 2017 as applicable.
(e) The commissioner of health shall transfer for deposit to the
hospital excess liability pool created pursuant to section 18 of chapter
266 of the laws of 1986 such amounts as directed by the superintendent
of financial services for the purchase of excess liability insurance
coverage for eligible participating physicians and dentists for the
policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30,
2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30,
2007, as applicable, and the cost of administering the hospital excess
liability pool for such applicable policy year, pursuant to the program
established in chapter 266 of the laws of 1986, as amended, no later
than June 15, 2002, June 15, 2003, June 15, 2004, June 15, 2005, June
15, 2006, June 15, 2007, June 15, 2008, June 15, 2009, June 15, 2010,
June 15, 2011, June 15, 2012, June 15, 2013, June 15, 2014, June 15,
2015, [and] June 15, 2016, AND JUNE 15, 2017 as applicable.
S 7. Notwithstanding any law, rule or regulation to the contrary, only
physicians or dentists who were eligible, and for whom the superinten-
dent of financial services and the commissioner of health, or their
designee, purchased, with funds available in the hospital excess liabil-
ity pool, a full or partial policy for excess coverage or equivalent
excess coverage for the coverage period ending the thirtieth of June,
two thousand sixteen, shall be eligible to apply for such coverage for
the coverage period beginning the first of July, two thousand sixteen;
provided, however, if the total number of physicians or dentists for
whom such excess coverage or equivalent excess coverage was purchased
for the policy year ending the thirtieth of June, two thousand sixteen
exceeds the total number of physicians or dentists certified as eligible
for the coverage period beginning the first of July, two thousand
sixteen, then the general hospitals may certify additional eligible
physicians or dentists in a number equal to such general hospital's
proportional share of the total number of physicians or dentists for
whom excess coverage or equivalent excess coverage was purchased with
funds available in the hospital excess liability pool as of the thirti-
eth of June, two thousand sixteen, as applied to the difference between
the number of eligible physicians or dentists for whom a policy for
excess coverage or equivalent excess coverage was purchased for the
coverage period ending the thirtieth of June, two thousand sixteen and
the number of such eligible physicians or dentists who have applied for
excess coverage or equivalent excess coverage for the coverage period
beginning the first of July, two thousand sixteen.
S 8. Section 7404 of the insurance law, as amended by chapter 215 of
the laws of 1993, is amended to read as follows:
S. 6407--B 35
S 7404. Grounds for liquidation. (A) The superintendent may apply
under this article for an order directing the superintendent to liqui-
date the business of a domestic insurer, or of the United States branch
of an alien insurer having trusteed assets in this state, upon any of
the grounds specified in subsections [(a)] (B) through (o) of section
seven thousand four hundred two of this article, whether or not there
has been a prior order directing the superintendent to rehabilitate such
insurer.
(B) WITHIN THIRTY DAYS OF BEING DEEMED INSOLVENT PURSUANT TO
SUBSECTION (A) OF SECTION SEVEN THOUSAND FOUR HUNDRED TWO OF THIS ARTI-
CLE, THE SUPERINTENDENT SHALL APPLY FOR AN ORDER DIRECTING THE SUPER-
INTENDENT TO LIQUIDATE THE BUSINESS OF A DOMESTIC INSURER, OR OF THE
UNITED STATES BRANCH OF AN ALIEN INSURER HAVING TRUSTEED ASSETS IN THIS
STATE, UNLESS THERE HAS BEEN A PRIOR ORDER DIRECTING THE SUPERINTENDENT
TO REHABILITATE SUCH INSURER.
S 9. Subsections (d) and (e) of section 3231 of the insurance law,
subsection (d) as amended by section 1 of part A of chapter 494 of the
laws of 2009, subsection (e) as amended by chapter 107 of the laws of
2010, subparagraph (A) of paragraph 1 of subsection (e) as further
amended by section 104 of part A of chapter 62 of the laws of 2011 and
subparagraph (B) of paragraph 1 of subsection (e) as amended by section
61 of part D of chapter 56 of the laws of 2013, are amended to read as
follows:
(d) (1) Notwithstanding any other provision of this chapter to the
contrary, no policy form subject to this section shall be issued or
delivered, nor any insurance contract entered into, unless and until the
insurer has filed with the superintendent a schedule of premiums, not to
exceed twelve months in duration, to be paid under the policy forms [and
obtained the superintendent's approval thereof. The superintendent may
refuse such approval if he or she finds that such premiums are exces-
sive, inadequate, or unfairly discriminatory. The superintendent may
consider the financial condition of such insurer in approving or disap-
proving any premium. In determining whether to approve the schedule of
premiums filed, the superintendent shall, subject to the provisions of
section three thousand two hundred thirty-three of this article, consid-
er the prior experience of the insurer's community pool and the insur-
er's projections relating to claim costs, utilization and administrative
expenses and shall not adjust the insurer's rates based upon the rates
approved for other insurers.
(2) An insurer shall provide specific claims experience to a municipal
corporation, as defined in subsection (f) of section four thousand seven
hundred two of this chapter, covered by the insurer under a community
rated policy when the municipal corporation requests its claims experi-
ence for purposes of forming or joining a municipal cooperative health
benefit plan certified pursuant to article forty-seven of this chapter.
Notwithstanding the forgoing provisions, no insurer shall be required to
provide more than three years' claims experience to a municipal corpo-
ration making this request.
(e) (1) (A) An insurer desiring to increase or decrease premiums for
any policy form subject to this section shall submit a rate filing or
application to the superintendent.
An insurer shall send written notice of the proposed rate adjustment,
including the specific change requested, to each policy holder and
certificate holder affected by the adjustment on or before the date the
rate filing or application is submitted to the superintendent. The
notice shall prominently include mailing and website addresses for both
S. 6407--B 36
the department of financial services and the insurer through which a
person may, within thirty days from the date the rate filing or applica-
tion is submitted to the superintendent, contact the department of
financial services or insurer to receive additional information or to
submit written comments to the department of financial services on the
rate filing or application. The superintendent shall establish a process
to post on the department's website, in a timely manner, all relevant
written comments received pertaining to rate filings or applications.
The insurer shall provide a copy of the notice to the superintendent
with the rate filing or application. The superintendent shall immediate-
ly cause the notice to be posted on the department of financial
services' website. The superintendent shall determine whether the filing
or application shall become effective as filed, shall become effective
as modified, or shall be disapproved. The superintendent may modify or
disapprove the rate filing or application if the superintendent finds
that the premiums are unreasonable, excessive, inadequate, or unfairly
discriminatory, and may consider the financial condition of the insurer
when approving, modifying or disapproving any premium adjustment. The
determination of the superintendent shall be supported by sound actuari-
al assumptions and methods, and shall be rendered in writing between
thirty and sixty days from the date the rate filing or application is
submitted to the superintendent. Should the superintendent require addi-
tional information from the insurer in order to make a determination,
the superintendent shall require the insurer to furnish such informa-
tion, and in such event, the sixty days shall be tolled and shall resume
as of the date the insurer furnishes the information to the superinten-
dent. If the superintendent requests additional information less than
ten days from the expiration of the sixty days (exclusive of tolling),
the superintendent may extend the sixty day period an additional twenty
days to make a determination. The application or rate filing will be
deemed approved if a determination is not rendered within the time
allotted under this section. An insurer shall not implement a rate
adjustment unless the insurer provides at least sixty days advance writ-
ten notice of the premium rate adjustment approved by the superintendent
to each policy holder and certificate holder affected by the rate
adjustment.
(B) The expected minimum loss ratio for a policy form subject to this
section, for which a rate filing or application is made pursuant to this
paragraph, other than a medicare supplemental insurance policy, or, with
the approval of the superintendent, an aggregation of policy forms that
are combined into one community rating experience pool and rated
consistent with community rating requirements, shall not be less than
eighty-two percent. In reviewing a rate filing or application, the
superintendent may modify the eighty-two percent expected minimum loss
ratio requirement if the superintendent determines the modification to
be in the interests of the people of this state or if the superintendent
determines that a modification is necessary to maintain insurer solven-
cy. No later than July thirty-first of each year, every insurer subject
to this subparagraph shall annually report the actual loss ratio for the
previous calendar year in a format acceptable to the superintendent. If
an expected loss ratio is not met, the superintendent may direct the
insurer to take corrective action, which may include the submission of a
rate filing to reduce future premiums, or to issue dividends, premium
refunds or credits, or any combination of these.
(2) (A) Until September thirtieth, two thousand ten, as an alternate
procedure to the requirements of paragraph one of this subsection, an
S. 6407--B 37
insurer desiring to increase or decrease premiums for any policy form
subject to this section may instead submit a rate filing or application
to the superintendent and such application or]. SUCH filing shall be
deemed approved, provided that: (i) the anticipated minimum loss ratio
for a policy form shall not be less than eighty-two percent of the
premium; and (ii) the insurer submits, as part of such filing, a certif-
ication by a member of the American Academy of Actuaries or other indi-
vidual acceptable to the superintendent that the insurer is in compli-
ance with the provisions of this paragraph, based upon that person's
examination, including a review of the appropriate records and of the
actuarial assumptions and methods used by the insurer in establishing
premium rates for policy forms subject to this section. [An insurer
shall not utilize the alternate procedure pursuant to this paragraph to
implement a change in rates to be effective on or after October first,
two thousand ten] AN INSURER SHALL NOT IMPLEMENT A PREMIUM RATE ADJUST-
MENT UNLESS THE INSURER PROVIDES AT LEAST ONE HUNDRED TWENTY DAYS
ADVANCE NOTICE OF THE PREMIUM RATE ADJUSTMENT BY WRITTEN NOTICE TO EACH
POLICY HOLDER AND CERTIFICATE HOLDER AFFECTED BY THE RATE ADJUSTMENT.
[(B)] (2) Each calendar year, an insurer shall return, in the form of
aggregate benefits for each policy form [filed pursuant to the alternate
procedure set forth in this paragraph] at least eighty-two percent of
the aggregate premiums collected for the policy form during that calen-
dar year. Insurers shall annually report, no later than [June thirtieth]
JULY THIRTY-FIRST of each year, the loss ratio calculated pursuant to
this paragraph for each such policy form for the previous calendar year.
In each case where the loss ratio for a policy form fails to comply with
the eighty-two percent loss ratio requirement, the insurer shall issue a
dividend or credit against future premiums for all policy holders with
that policy form in an amount sufficient to assure that the aggregate
benefits paid in the previous calendar year plus the amount of the divi-
dends and credits shall equal eighty-two percent of the aggregate premi-
ums collected for the policy form in the previous calendar year. The
dividend or credit shall be issued to each policy holder who had a poli-
cy which was in effect at any time during the applicable year. The divi-
dend or credit shall be prorated based on the direct premiums earned for
the applicable year among all policy holders eligible to receive such
dividend or credit. An insurer shall make a reasonable effort to identi-
fy the current address of, and issue dividends or credits to, former
policy holders entitled to the dividend or credit. An insurer shall,
with respect to dividends or credits to which former policy holders that
the insurer is unable to identify after a reasonable effort would other-
wise be entitled, have the option, as deemed acceptable by the super-
intendent, of prospectively adjusting premium rates by the amount of
such dividends or credits, issuing the amount of such dividends or cred-
its to existing policy holders, depositing the amount of such dividends
or credits in the fund established pursuant to section four thousand
three hundred twenty-two-a of this chapter, or utilizing any other meth-
od which offsets the amount of such dividends or credits. All dividends
and credits must be distributed by September thirtieth of the year
following the calendar year in which the loss ratio requirements were
not satisfied. The annual report required by this paragraph shall
include an insurer's calculation of the dividends and credits, as well
as an explanation of the insurer's plan to issue dividends or credits.
The instructions and format for calculating and reporting loss ratios
and issuing dividends or credits shall be specified by the superinten-
dent by regulation. Such regulations shall include provisions for the
S. 6407--B 38
distribution of a dividend or credit in the event of cancellation or
termination by a policy holder.
[(3) All policy forms subject to this subsection, other than medicare
supplemental insurance policy forms, issued or in effect during calendar
year two thousand ten shall be subject to a minimum loss ratio require-
ment of eighty-two percent. Insurers may use the alternate filing proce-
dure set forth in paragraph two of this subsection to adjust premium
rates in order to meet the required minimum loss ratio for calendar year
two thousand ten. The rate filing or application shall be submitted no
later than September thirtieth, two thousand ten.]
S 10. Section 4308 of the insurance law, as amended by chapter 107 of
the laws of 2010, paragraph 2 of subsection (c) as further amended by
section 104 of part A of chapter 62 of the laws of 2011 and subparagraph
(A) of paragraph 3 of subsection (c) as amended by section 62 of part D
of chapter 56 of the laws of 2013, is amended to read as follows:
S 4308. Supervision of superintendent. (a) No corporation subject to
the provisions of this article shall enter into any contract unless and
until it shall have filed with the superintendent a copy of the contract
or certificate [and of], all applications, riders and endorsements for
use in connection with the issuance or renewal thereof[, to be formally
approved by him as conforming to the applicable provisions of this arti-
cle and not inconsistent with any other provision of law applicable
thereto. The superintendent shall, within a reasonable time after the
filing of any such form, notify the corporation filing the same either
of his approval or of his disapproval of such form.
(b) No corporation subject to the provisions of this article shall
enter into any contract unless and until it shall have filed with the
superintendent a schedule of the premiums or, if appropriate, rating
formula from which premiums are determined, to be paid under the
contracts and shall have obtained the superintendent's approval thereof.
The superintendent may refuse such approval if he finds that such premi-
ums, or the premiums derived from the rating formula, are excessive,
inadequate or unfairly discriminatory, provided, however, the super-
intendent may also consider the financial condition of such corporation
in approving or disapproving any premium or rating formula. Any adjust-
ments to an approved schedule of premiums or to the approved rating
formula for non-community rated contracts shall also be subject to the
approval of the superintendent provided, however, such adjustments shall
not be subject to the requirements of subsection (c) of this section.
Any premium or formula approved by the superintendent shall make
provision for such increase as may be necessary to meet the requirements
of a plan approved by the superintendent in the manner prescribed in
section four thousand three hundred ten of this article for restoration
of the statutory reserve fund required by such section. Notwithstanding
any other provision of law, the superintendent, as part of the rate
increase approval process, may defer, reduce or reject a rate increase
if, in the judgment of the superintendent, the salary increases for
senior level management executives employed at corporations subject to
the provisions of this article are excessive or unwarranted given the
financial condition or overall performance of such corporation. The
superintendent is authorized to promulgate rules and regulations which
the superintendent deems necessary to carry out such deferral, reduction
or rejection.
(c) (1) An increase or decrease in premiums with respect to community
rated contracts shall not be approved by the superintendent unless it is
S. 6407--B 39
in compliance with the provisions of this subsection as well as other
applicable provisions of law.
(2) A corporation desiring to increase or decrease premiums for any
contract subject to this subsection shall submit a rate filing or appli-
cation to the superintendent. A corporation shall send written notice of
the proposed rate adjustment, including the specific change requested,
to each contract holder and subscriber affected by the adjustment on or
before the date the rate filing or application is submitted to the
superintendent. The notice shall prominently include mailing and website
addresses for both the department of financial services and the corpo-
ration through which a person may, within thirty days from the date the
rate filing or application is submitted to the superintendent, contact
the department of financial services or corporation to receive addi-
tional information or to submit written comments to the department of
financial services on the rate filing or application. The superintendent
shall establish a process to post on the department's website, in a
timely manner, all relevant written comments received pertaining to rate
filings or applications. The corporation shall provide a copy of the
notice to the superintendent with the rate filing or application. The
superintendent shall immediately cause the notice to be posted on the
department of financial services' website. The superintendent shall
determine whether the filing or application shall become effective as
filed, shall become effective as modified, or shall be disapproved. The
superintendent may modify or disapprove the rate filing or application
if the superintendent finds that the premiums are unreasonable, exces-
sive, inadequate, or unfairly discriminatory, and may consider the
financial condition of the corporation in approving, modifying or disap-
proving any premium adjustment. The determination of the superintendent
shall be supported by sound actuarial assumptions and methods, and shall
be rendered in writing between thirty and sixty days from the date the
rate filing or application is submitted to the superintendent. Should
the superintendent require additional information from the corporation
in order to make a determination, the superintendent shall require the
corporation to furnish such information, and in such event, the sixty
days shall be tolled and shall resume as of the date the corporation
furnishes the information to the superintendent. If the superintendent
requests additional information less than ten days from the expiration
of the sixty days (exclusive of tolling), the superintendent may extend
the sixty day period an additional twenty days, to make a determination.
The application or rate filing will be deemed approved if a determi-
nation is not rendered within the time allotted under this section. A
corporation shall not implement a rate adjustment unless the corporation
provides at least sixty days advance written notice of the premium rate
adjustment approved by the superintendent to each contract holder and
subscriber affected by the rate adjustment.
(3) (A) The expected minimum loss ratio for a contract form subject to
this subsection for which a rate filing or application is made pursuant
to this paragraph, other than a medicare supplemental insurance
contract, or, with the approval of the superintendent, an aggregation of
contract forms that are combined into one community rating experience
pool and rated consistent with community rating requirements, shall not
be less than eighty-two percent. In reviewing a rate filing or applica-
tion, the superintendent may modify the eighty-two percent expected
minimum loss ratio requirement if the superintendent determines the
modification to be in the interests of the people of this state or if
the superintendent determines that a modification is necessary to main-
S. 6407--B 40
tain insurer solvency. No later than July thirty-first of each year,
every corporation subject to this subparagraph shall annually report the
actual loss ratio for the previous calendar year in a format acceptable
to the superintendent. If an expected loss ratio is not met, the super-
intendent may direct the corporation to take corrective action, which
may include the submission of a rate filing to reduce future premiums,
or to issue dividends, premium refunds or credits, or any combination of
these.
(B) The expected minimum loss ratio for a medicare supplemental insur-
ance contract form shall not be less than eighty percent. No later than
May first of each year, every corporation subject to this subparagraph
shall annually report the actual loss ratio for each contract form
subject to this section for the previous calendar year in a format
acceptable to the superintendent. In each case where the loss ratio for
the contract form fails to comply with the eighty percent loss ratio
requirement, the corporation shall submit a corrective action plan to
the superintendent for assuring compliance with the applicable minimum
loss ratio standard. The corrective action plan shall be submitted to
the superintendent within sixty days of the corporation's submission of
the annual report required by this subparagraph. The corporation's plan
may utilize premium refunds or credits, subject to the approval of the
superintendent.
(4) In case of conflict between this subsection and any other
provision of law, this subsection shall prevail] AND A SCHEDULE OF THE
PREMIUMS OR, IF APPROPRIATE, RATING FORMULA FROM WHICH PREMIUMS ARE
DETERMINED, TO BE PAID UNDER SUCH CONTRACTS. SUCH APPLICATION OR FILING
SHALL BE DEEMED APPROVED, PROVIDED THAT (A) THE ANTICIPATED INCURRED
LOSS RATIO FOR A CONTRACT FORM SHALL NOT BE LESS THAN EIGHTY-TWO PERCENT
FOR INDIVIDUAL DIRECT PAYMENT CONTRACTS OR EIGHTY-TWO PERCENT FOR SMALL
GROUP AND SMALL GROUP REMITTANCE CONTRACTS, AND (B) THE CORPORATION
SUBMITS, AS PART OF SUCH FILING, A CERTIFICATION BY A MEMBER OF THE
AMERICAN ACADEMY OF ACTUARIES OR OTHER INDIVIDUAL ACCEPTABLE TO THE
SUPERINTENDENT THAT THAT CORPORATION IS IN COMPLIANCE WITH THE
PROVISIONS OF THIS SUBSECTION, BASED UPON THAT PERSON'S EXAMINATION,
INCLUDING A REVIEW OF THE APPROPRIATE RECORDS AND OF THE ACTUARIAL
ASSUMPTIONS AND METHODS USED BY THE CORPORATION IN ESTABLISHING PREMIUM
RATES FOR CONTRACTS SUBJECT TO THIS SECTION. FOR PURPOSES OF THIS
SECTION, A SMALL GROUP IS ANY GROUP WHOSE CONTRACT IS SUBJECT TO THE
REQUIREMENTS OF SECTION FORTY-THREE HUNDRED SEVENTEEN OF THIS ARTICLE.
THE PROVISIONS OF THIS SUBSECTION SHALL APPLY TO INDIVIDUAL DIRECT
PAYMENT CONTRACTS ISSUED PURSUANT TO SECTIONS FOUR THOUSAND THREE
HUNDRED TWENTY-ONE AND FOUR THOUSAND THREE HUNDRED TWENTY-TWO OF THIS
ARTICLE. A CORPORATION SHALL NOT IMPLEMENT A PREMIUM RATE ADJUSTMENT
UNLESS THE CORPORATION PROVIDES AT LEAST ONE HUNDRED TWENTY DAYS ADVANCE
NOTICE OF THE PREMIUM RATE ADJUSTMENT BY WRITTEN NOTICE TO EACH POLICY
HOLDER AND CERTIFICATE HOLDER AFFECTED BY THE RATE ADJUSTMENT.
(B)(1) EACH CALENDAR YEAR, A CORPORATION SUBJECT TO THE PROVISIONS OF
THIS ARTICLE SHALL RETURN, IN THE FORM OF AGGREGATE BENEFITS INCURRED
FOR EACH CONTRACT FORM FILED, AT LEAST EIGHTY-TWO PERCENT FOR INDIVIDUAL
DIRECT PAYMENT CONTRACTS OR EIGHTY-TWO PERCENT FOR SMALL GROUP AND SMALL
GROUP REMITTANCE CONTRACTS. CORPORATIONS SUBJECT TO THE PROVISIONS OF
THIS ARTICLE SHALL ANNUALLY REPORT, NO LATER THAN JULY THIRTY-FIRST OF
EACH YEAR, THE LOSS RATIO CALCULATED PURSUANT TO THIS SUBSECTION FOR
EACH SUCH CONTRACT FORM FOR THE PREVIOUS CALENDAR YEAR.
(2) IN EACH CASE WHERE THE LOSS RATIO FOR A CONTRACT FORM FAILS TO
COMPLY WITH THE EIGHTY-TWO PERCENT MINIMUM LOSS RATIO REQUIREMENT FOR
S. 6407--B 41
INDIVIDUAL DIRECT PAYMENT CONTRACTS, OR THE EIGHTY-TWO PERCENT MINIMUM
LOSS RATIO REQUIREMENT FOR SMALL GROUP AND SMALL GROUP REMITTANCE
CONTRACTS, AS SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION, THE CORPO-
RATION SHALL ISSUE A DIVIDEND OR CREDIT AGAINST FUTURE PREMIUMS FOR ALL
CONTRACT HOLDERS WITH THAT CONTRACT FORM IN AN AMOUNT SUFFICIENT TO
ASSURE THAT THE AGGREGATE BENEFITS INCURRED IN THE PREVIOUS CALENDAR
YEAR PLUS THE AMOUNT OF THE DIVIDENDS AND CREDITS SHALL EQUAL NO LESS
THAN EIGHTY-TWO PERCENT FOR INDIVIDUAL DIRECT PAYMENT CONTRACTS, OR
EIGHTY-TWO PERCENT FOR SMALL GROUP AND SMALL GROUP REMITTANCE CONTRACTS,
OF THE AGGREGATE PREMIUMS EARNED FOR THE CONTRACT FORM IN THE PREVIOUS
CALENDAR YEAR. THE DIVIDEND OR CREDIT SHALL BE ISSUED TO EACH CONTRACT
HOLDER OR SUBSCRIBER WHO HAD A CONTRACT THAT WAS IN EFFECT AT ANY TIME
DURING THE APPLICABLE YEAR. THE DIVIDEND OR CREDIT SHALL BE PRORATED
BASED ON THE DIRECT PREMIUMS EARNED FOR THE APPLICABLE YEAR AMONG ALL
CONTRACT HOLDERS OR SUBSCRIBERS ELIGIBLE TO RECEIVE SUCH DIVIDEND OR
CREDIT. A CORPORATION SHALL MAKE A REASONABLE EFFORT TO IDENTIFY THE
CURRENT ADDRESS OF, AND ISSUE DIVIDENDS OR CREDITS TO, FORMER CONTRACT
HOLDERS OR SUBSCRIBERS ENTITLED TO THE DIVIDEND OR CREDIT. A CORPORATION
SHALL, WITH RESPECT TO DIVIDENDS OR CREDITS TO WHICH FORMER CONTRACT
HOLDERS THAT THE CORPORATION IS UNABLE TO IDENTIFY AFTER A REASONABLE
EFFORT WOULD OTHERWISE BE ENTITLED, HAVE THE OPTION, AS DEEMED ACCEPTA-
BLE BY THE SUPERINTENDENT, OF PROSPECTIVELY ADJUSTING PREMIUM RATES BY
THE AMOUNT OF SUCH DIVIDENDS OR CREDITS, ISSUING THE AMOUNT OF SUCH
DIVIDENDS OR CREDITS TO EXISTING CONTRACT HOLDERS, DEPOSITING THE AMOUNT
OF SUCH DIVIDENDS OR CREDITS IN THE FUND ESTABLISHED PURSUANT TO SECTION
FOUR THOUSAND THREE HUNDRED TWENTY-TWO-A OF THIS ARTICLE, OR UTILIZING
ANY OTHER METHOD WHICH OFFSETS THE AMOUNT OF SUCH DIVIDENDS OR CREDITS.
ALL DIVIDENDS AND CREDITS MUST BE DISTRIBUTED BY SEPTEMBER THIRTIETH OF
THE YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE LOSS RATIO REQUIRE-
MENTS WERE NOT SATISFIED. THE ANNUAL REPORT REQUIRED BY PARAGRAPH ONE OF
THIS SUBSECTION SHALL INCLUDE A CORPORATION'S CALCULATION OF THE DIVI-
DENDS AND CREDITS, AS WELL AS AN EXPLANATION OF THE CORPORATION'S PLAN
TO ISSUE DIVIDENDS OR CREDITS. THE INSTRUCTIONS AND FORMAT FOR CALCU-
LATING AND REPORTING LOSS RATIOS AND ISSUING DIVIDENDS OR CREDITS SHALL
BE SPECIFIED BY THE SUPERINTENDENT BY REGULATION. SUCH REGULATIONS
SHALL INCLUDE PROVISIONS FOR THE DISTRIBUTION OF A DIVIDEND OR CREDIT IN
THE EVENT OF CANCELLATION OR TERMINATION BY A CONTRACT HOLDER OR
SUBSCRIBER.
[(d)] (C) The superintendent shall order an independent management and
financial audit of corporations subject to the provisions of this arti-
cle with a combined premium volume exceeding two billion dollars annual-
ly in order to develop a detailed understanding of such corporation's
financial status and to determine the viability of such corporation's
products. Such audit shall be performed by an organization upon
submission of a program plan in response to a request for proposal
approved by the superintendent in consultation with the commissioner of
health and the state comptroller. Such audit shall not be performed by
any organization that has in any way performed or furnished services of
any kind to the corporation within the past five years, unless it is
adequately demonstrated that such services would not compromise that
organization's performance and objectivity. The audit shall be completed
and a report submitted by May first, nineteen hundred ninety-three to
the superintendent, the commissioner of health, and the chairs of the
senate and assembly committees on health and insurance. The scope of the
audit shall include, but not be limited to, financial and competitive
position, corporate structure and governance, organization and manage-
S. 6407--B 42
ment, strategic direction, rate adequacy, and the regulatory and compet-
itive environment in the state of New York. Specifically, the audit
shall include, but not be limited to:
(i) determining the corporation's financial and market position,
including its reserves, trends in membership, market share, and profit-
ability by market segment;
(ii) evaluating the corporation's product offerings with respect to
market requirements and trends, the corporation's responses to the New
York health care market, and its management of medical claims costs;
(iii) assessing the effectiveness of the organizational and management
structure and performance, including, but not limited to, possible
improvement in the size, structure, composition and operation of the
board of directors, productivity improvement, information systems,
management development, personnel practices, mix and level of skills,
personnel turnover, investment practices and rate of return upon invest-
ment activities;
(iv) analyzing the corporation's strategic directions, its adequacy to
meet competitive, market, and existing regulatory trends, including an
evaluation of the use of brokers in marketing products, and the impact
of those strategies on the corporation's future financial performance
and on the health care system of New York;
(v) evaluating the adequacy of rates for existing products, partic-
ularly (but not limited to) small group, medicare supplemental, and
direct payment to identify areas that may need immediate remedial atten-
tion;
(vi) identifying any changes to the regulatory and legislative envi-
ronment that may need to be made to ensure that the corporation can
continue to be financially viable and competitive;
(vii) identifying and assessing specific transactions such as the
procurement of reinsurance, sale of real property and the sale of future
investment income to improve the financial condition of the corporation;
and
(viii) evaluating and identifying possible improvements in the corpo-
ration's managed care strategies, operations and claims handling.
[(e)] (D) Notwithstanding any other provision of law, the superinten-
dent shall have the power to require independent management and finan-
cial audits of corporations subject to the provisions of this article
whenever in the judgment of the superintendent, losses sustained by a
corporation jeopardize its ability to provide meaningful coverage at
affordable rates or when such audit would be necessary to protect the
interests of subscribers. The audit shall include, but not be limited
to, an investigation of the corporation's provision of benefits to
senior citizens, individual and family, and small group and small busi-
ness subscribers in relation to the needs of those subscribers. The
audit shall also include an evaluation of the efficiency of the corpo-
ration's management, particularly with respect to lines of business
which are experiencing losses. In every case in which the superintendent
chooses to require an audit provided for in this subsection, the super-
intendent shall have the authority to select the auditor. Any costs
incurred as a result of the operation of this subsection shall be
assessed on all domestic insurers in the same manner as provided for in
section [three hundred thirty-two of this chapter] TWO HUNDRED SIX OF
THE FINANCIAL SERVICES LAW.
[(f)] (E) The results of any audit conducted pursuant to subsections
[(d)] (C) and [(e)] (D) of this section shall be provided to the corpo-
ration and each member of its board of directors. The superintendent
S. 6407--B 43
shall have the authority to direct the corporation in writing to imple-
ment any recommendations resulting from the audit that the superinten-
dent finds to be necessary and reasonable; provided, however, that the
superintendent shall first consider any written response submitted by
the corporation or the board of directors prior to making such finding.
Upon any application for a rate adjustment by the corporation, the
superintendent shall review the corporation's compliance with the
directions and recommendations made previously by the superintendent, as
a result of the most recently completed management or financial audit
and shall include such findings in any written decision concerning such
application.
[(g)(1) Until September thirtieth, two thousand ten, as an alternate
procedure to the requirements of subsection (c) of this section, a
corporation subject to the provisions of this article desiring to
increase or decrease premiums for any contract subject to this section
may instead submit a rate filing or application to the superintendent
and such application or filing shall be deemed approved, provided that
(A) the anticipated incurred loss ratio for a contract form shall not be
less than eighty-two percent for individual direct payment contracts or
eighty-two percent for small group and small group remittance contracts,
nor, except in the case of individual direct payment contracts with a
loss ratio of greater than one hundred five percent during nineteen
hundred ninety-four, shall the loss ratio for any direct payment, group
or group remittance contract be more than one hundred five percent of
the anticipated earned premium, and (B) the corporation submits, as part
of such filing, a certification by a member of the American Academy of
Actuaries or other individual acceptable to the superintendent that that
corporation is in compliance with the provisions of this subsection,
based upon that person's examination, including a review of the appro-
priate records and of the actuarial assumptions and methods used by the
corporation in establishing premium rates for contracts subject to this
section. A corporation shall not utilize the alternate procedure pursu-
ant to this subsection to implement a change in rates to be effective on
or after October first, two thousand ten. For purposes of this section,
a small group is any group whose contract is subject to the requirements
of section forty-three hundred seventeen of this article.
(2) Prior to January first, two thousand, no rate increase or decrease
may be deemed approved under this subsection if that increase or
decrease, together with any other rate increases or decreases imposed on
the same contract form, would cause the aggregate rate increase or
decrease for that contract form to exceed ten percent during any contin-
uous twelve month period. No rate increase may be imposed pursuant to
this subsection unless at least thirty days advance written notice of
such increase has been provided to each contract holder and subscriber.
(h)(1) Each calendar year, a corporation subject to the provisions of
this article shall return, in the form of aggregate benefits incurred
for each contract form filed pursuant to the alternate procedure set
forth in subsection (g) of this section, at least eighty-two percent for
individual direct payment contracts or eighty-two percent for small
group and small group remittance contracts, but, except in the case of
individual direct payment contracts with a loss ratio of greater than
one hundred five percent in nineteen hundred ninety-four, for any direct
payment, group or group remittance contract, not in excess of one
hundred five percent of the aggregate premiums earned for the contract
form during that calendar year. Corporations subject to the provisions
of this article shall annually report, no later than June thirtieth of
S. 6407--B 44
each year, the loss ratio calculated pursuant to this subsection for
each such contract form for the previous calendar year.
(2) In each case where the loss ratio for a contract form fails to
comply with the eighty-two percent minimum loss ratio requirement for
individual direct payment contracts, or the eighty-two percent minimum
loss ratio requirement for small group and small group remittance
contracts, as set forth in paragraph one of this subsection, the corpo-
ration shall issue a dividend or credit against future premiums for all
contract holders with that contract form in an amount sufficient to
assure that the aggregate benefits incurred in the previous calendar
year plus the amount of the dividends and credits shall equal no less
than eighty-two percent for individual direct payment contracts, or
eighty-two percent for small group and small group remittance contracts,
of the aggregate premiums earned for the contract form in the previous
calendar year. The dividend or credit shall be issued to each contract
holder or subscriber who had a contract that was in effect at any time
during the applicable year. The dividend or credit shall be prorated
based on the direct premiums earned for the applicable year among all
contract holders or subscribers eligible to receive such dividend or
credit. A corporation shall make a reasonable effort to identify the
current address of, and issue dividends or credits to, former contract
holders or subscribers entitled to the dividend or credit. A corporation
shall, with respect to dividends or credits to which former contract
holders that the corporation is unable to identify after a reasonable
effort would otherwise be entitled, have the option, as deemed accepta-
ble by the superintendent, of prospectively adjusting premium rates by
the amount of such dividends or credits, issuing the amount of such
dividends or credits to existing contract holders, depositing the amount
of such dividends or credits in the fund established pursuant to section
four thousand three hundred twenty-two-a of this article, or utilizing
any other method which offsets the amount of such dividends or credits.
All dividends and credits must be distributed by September thirtieth of
the year following the calendar year in which the loss ratio require-
ments were not satisfied. The annual report required by paragraph one of
this subsection shall include a corporation's calculation of the divi-
dends and credits, as well as an explanation of the corporation's plan
to issue dividends or credits. The instructions and format for calculat-
ing and reporting loss ratios and issuing dividends or credits shall be
specified by the superintendent by regulation. Such regulations shall
include provisions for the distribution of a dividend or credit in the
event of cancellation or termination by a contract holder or subscriber.
(3) In each case where the loss ratio for a contract form fails to
comply with the one hundred five percent maximum loss ratio requirement
of paragraph one of this subsection, the corporation shall institute a
premium rate increase in an amount sufficient to assure that the aggre-
gate benefits incurred in the previous calendar year shall equal no more
than one hundred five percent of the sum of the aggregate premiums
earned for the contract form in the previous calendar year and the
aggregate premium rate increase. The rate increase shall be applied to
each contract that was in effect as of December thirty-first of the
applicable year and remains in effect as of the date the rate increase
is imposed. All rate increases must be imposed by September thirtieth of
the year following the calendar year in which the loss ratio require-
ments were not satisfied. The annual report required by paragraph one of
this subsection shall include a corporation's calculation of the premium
rate increase, as well as an explanation of the corporation's plan to
S. 6407--B 45
implement the rate increase. The instructions and format for calculating
and reporting loss ratios and implementing rate increases shall be spec-
ified by the superintendent by regulation.
(i) The alternate procedure described in subsections (g) and (h) of
this section shall apply to individual direct payment contracts issued
pursuant to sections four thousand three hundred twenty-one and four
thousand three hundred twenty-two of this article on and after January
first, nineteen hundred ninety-seven. Such alternate procedure shall not
be utilized to implement a change in rates to be effective on or after
October first, two thousand ten.
(j) All community rated contracts, other than medicare supplemental
insurance contracts, issued or in effect during calendar year two thou-
sand ten shall be subject to a minimum loss ratio requirement of eight-
y-two percent. Corporations may use the alternate procedure set forth in
subsection (g) of this section to adjust premium rates in order to meet
the required minimum loss ratio for calendar year two thousand ten. The
rate filing or application shall be submitted no later than September
thirtieth, two thousand ten.]
S 11. 1. The department of financial services shall examine, evaluate,
and make recommendations concerning the provision of long term care
insurance coverage in this state, as authorized pursuant to section 1117
of the insurance law. In conducting its study, such department shall
seek input from a representation of interested parties, such as policy-
holders, insurance carriers, and caregivers. Such study shall specif-
ically include, but not be limited to the following:
(a) the present state of the long term care insurance market, with
respect to the growing aging population and other demographic shifts as
well as market participation by insurance carriers;
(b) the impact of long term care coverage to public benefits such as
Medicaid, care recipients and caregivers;
(c) identifiable trends in life expectancy, policy claim and utiliza-
tion rates, and policy lapse rates;
(d) a review of the National Association of Insurance Commissioners
(NAIC) activities as well as studies and reports prepared by the Ameri-
can Academy of Actuaries and/or the Society of Actuaries regarding long
term care insurance premium rates increases;
(e) the actuarial assumptions and methodologies used by such depart-
ment to ensure benefits are reasonable to premiums charged when approv-
ing and adjusting premium for this product, at this product's inception
and presently;
(f) the impact of premium rates on the solvency of the plans offering
this product;
(g) the impact of premium increases, and options offered to policy-
holders, on the affordability of long term care insurance and the abili-
ty of policyholders to maintain meaningful benefits; and
(h) solutions to making this public benefit more affordable and
attractive to consumers.
2. Within twelve months of the effective date of this act, the super-
intendent of financial services shall submit a report to the governor,
the temporary president of the senate, and the speaker of the assembly,
of the department's findings, conclusions, and recommendations.
S 12. Notwithstanding any other provision of law, to encourage high
standards of conflict-free and transparent data, the superintendent of
financial services shall procure an independent not-for-profit research
organization to review and audit the nonprofit organization FAIR Health,
Inc., established pursuant to the 2009 attorney general settlement and
S. 6407--B 46
referenced in subdivision 7 of section 4408 of the public health law,
subdivision (i) of section 603 of the financial services law, and
subsection (f) of section 4324 and paragraph (2) of subsection (b) of
section 3241 of the insurance law.
(a) Such audit shall include, but not be limited to, reviewing the
sources, data, modifiers, values, metrics and methodologies FAIR Health,
Inc., utilizes to determine fee schedules.
(b) Upon completion of the review and audit, the superintendent of
financial services shall review and discuss the findings and recommenda-
tions with FAIR Health, Inc. Such superintendent shall compile a report
of the findings and recommendations to be made available to any inter-
ested parties, and to be distributed to the chairs of the senate finance
committee and the assembly ways and means committee within 60 days of
the initial findings.
S 13. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016, provided
however, section two of this act shall take effect on July 1, 2016;
provided further that for any insurer that has been deemed insolvent
within six months prior to the effective date of this act, the super-
intendent shall have thirty days from the effective date of this act to
comply with subsection (b) of section 7404 of the insurance law as added
by section eight of this act.
PART D
Section 1. Paragraph (a) of subdivision 1 of section 212 of chapter
474 of the laws of 1996, amending the education law and other laws
relating to rates for residential healthcare facilities, as amended by
section 2 of part B of chapter 56 of the laws of 2013, is amended to
read as follows:
(a) Notwithstanding any inconsistent provision of law or regulation to
the contrary, effective beginning August 1, 1996, for the period April
1, 1997 through March 31, 1998, April 1, 1998 for the period April 1,
1998 through March 31, 1999, August 1, 1999, for the period April 1,
1999 through March 31, 2000, April 1, 2000, for the period April 1, 2000
through March 31, 2001, April 1, 2001, for the period April 1, 2001
through March 31, 2002, April 1, 2002, for the period April 1, 2002
through March 31, 2003, and for the state fiscal year beginning April 1,
2005 through March 31, 2006, and for the state fiscal year beginning
April 1, 2006 through March 31, 2007, and for the state fiscal year
beginning April 1, 2007 through March 31, 2008, and for the state fiscal
year beginning April 1, 2008 through March 31, 2009, and for the state
fiscal year beginning April 1, 2009 through March 31, 2010, and for the
state fiscal year beginning April 1, 2010 through March 31, 2016, AND
FOR THE STATE FISCAL YEAR BEGINNING APRIL 1, 2016 THROUGH MARCH 31,
2017, the department of health is authorized to pay public general
hospitals, as defined in subdivision 10 of section 2801 of the public
health law, operated by the state of New York or by the state university
of New York or by a county, which shall not include a city with a popu-
lation of over one million, of the state of New York, and those public
general hospitals located in the county of Westchester, the county of
Erie or the county of Nassau, additional payments for inpatient hospital
services as medical assistance payments pursuant to title 11 of article
5 of the social services law for patients eligible for federal financial
participation under title XIX of the federal social security act in
medical assistance pursuant to the federal laws and regulations govern-
S. 6407--B 47
ing disproportionate share payments to hospitals up to one hundred
percent of each such public general hospital's medical assistance and
uninsured patient losses after all other medical assistance, including
disproportionate share payments to such public general hospital for
1996, 1997, 1998, and 1999, based initially for 1996 on reported 1994
reconciled data as further reconciled to actual reported 1996 reconciled
data, and for 1997 based initially on reported 1995 reconciled data as
further reconciled to actual reported 1997 reconciled data, for 1998
based initially on reported 1995 reconciled data as further reconciled
to actual reported 1998 reconciled data, for 1999 based initially on
reported 1995 reconciled data as further reconciled to actual reported
1999 reconciled data, for 2000 based initially on reported 1995 recon-
ciled data as further reconciled to actual reported 2000 data, for 2001
based initially on reported 1995 reconciled data as further reconciled
to actual reported 2001 data, for 2002 based initially on reported 2000
reconciled data as further reconciled to actual reported 2002 data, and
for state fiscal years beginning on April 1, 2005, based initially on
reported 2000 reconciled data as further reconciled to actual reported
data for 2005, and for state fiscal years beginning on April 1, 2006,
based initially on reported 2000 reconciled data as further reconciled
to actual reported data for 2006, for state fiscal years beginning on
and after April 1, 2007 through March 31, 2009, based initially on
reported 2000 reconciled data as further reconciled to actual reported
data for 2007 and 2008, respectively, for state fiscal years beginning
on and after April 1, 2009, based initially on reported 2007 reconciled
data, adjusted for authorized Medicaid rate changes applicable to the
state fiscal year, and as further reconciled to actual reported data for
2009, for state fiscal years beginning on and after April 1, 2010, based
initially on reported reconciled data from the base year two years prior
to the payment year, adjusted for authorized Medicaid rate changes
applicable to the state fiscal year, and further reconciled to actual
reported data from such payment year, and to actual reported data for
each respective succeeding year. The payments may be added to rates of
payment or made as aggregate payments to an eligible public general
hospital.
S 2. Section 10 of chapter 649 of the laws of 1996, amending the
public health law, the mental hygiene law and the social services law
relating to authorizing the establishment of special needs plans, as
amended by section 20 of part D of chapter 59 of the laws of 2011, is
amended to read as follows:
S 10. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after July 1, 1996; provided,
however, that sections one, two and three of this act shall expire and
be deemed repealed on March 31, [2016] 2020 provided, however that the
amendments to section 364-j of the social services law made by section
four of this act shall not affect the expiration of such section and
shall be deemed to expire therewith and provided, further, that the
provisions of subdivisions 8, 9 and 10 of section 4401 of the public
health law, as added by section one of this act; section 4403-d of the
public health law as added by section two of this act and the provisions
of section seven of this act, except for the provisions relating to the
establishment of no more than twelve comprehensive HIV special needs
plans, shall expire and be deemed repealed on July 1, 2000.
S 3. Subdivision 8 of section 84 of part A of chapter 56 of the laws
of 2013, amending the public health law and other laws relating to
general hospital reimbursement for annual rates is REPEALED.
S. 6407--B 48
S 4. Subdivision (f) of section 129 of part C of chapter 58 of the
laws of 2009, amending the public health law relating to payment by
governmental agencies for general hospital inpatient services, as
amended by section 1 of part B of chapter 56 of the laws of 2013, is
amended to read as follows:
(f) section twenty-five of this act shall expire and be deemed
repealed April 1, [2016] 2019;
S 4-a. Section 2806-a of the public health law is amended by adding a
new subdivision 8 to read as follows:
8. THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF AN INTENTION
TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH (A) OF SUBDIVISION
TWO OF THIS SECTION, PRIOR TO THE COMMENCEMENT OF THE APPOINTMENT, CAUSE
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND
THE CHAIRS OF THE SENATE AND THE ASSEMBLY HEALTH COMMITTEES TO BE NOTI-
FIED OF SUCH APPOINTMENT. SUCH NOTIFICATION SHALL INCLUDE, BUT NOT BE
LIMITED TO, THE NAME OF THE ESTABLISHED OPERATOR, THE NAMES OF ALL
APPOINTED TEMPORARY OPERATORS AND A DETAILED DESCRIPTION OF THE FINDINGS
UNDERLYING THE INTENTION TO APPOINT A TEMPORARY OPERATOR.
S 5. Subdivision (c) of section 122 of part E of chapter 56 of the
laws of 2013 amending the public health law relating to the general
public health work program, is amended to read as follows:
(c) section fifty of this act shall take effect immediately and shall
expire [three] SIX years after it becomes law;
S 5-a. Subdivision 2 of section 3-0317 of the environmental conserva-
tion law, as added by chapter 77 of the laws of 2010, is amended to read
as follows:
2. The department shall, pursuant to established security protocols,
provide to the department of health the GPS coordinates, category of
license or permit, facility identification number, and address on
current environmental facilities that are necessary for the department
of health to develop and maintain cancer incidence and environmental
facility maps required pursuant to section twenty-four hundred one-b of
the public health law, and shall provide any technical assistance neces-
sary for the development of such maps. The department, in consultation
with the department of health, shall update such data [periodically] NOT
LESS THAN ONCE EVERY FIVE YEARS.
S 5-b. Subdivisions 3 and 9 of section 2401-b of the public health
law, as added by chapter 77 of the laws of 2010, are amended to read as
follows:
3. The technical advisory group shall make recommendations BIENNIALLY
to the department on the appropriate use and communication of the cancer
incidence and environmental facility maps. Such recommendations shall
consider the scientific strengths and limitations of such mapping and
overlay methodologies for cancer tracking and geospatial linking to
significant disease risk factors, and the appropriate means for communi-
cating such strengths and limitation to the public in an easily discern-
ible manner. The department shall consider the recommendations of the
technical advisory group when making the maps required by this section
available to the public.
9. The department shall make available to the public cancer incidence
and environmental facility maps in the manner described in subdivision
four of this section showing cancer clusters by cancer types. Prior to
plotting such data, the department shall use an appropriate statistical
method to detect statistical anomalies for the purpose of identifying
cancer clusters.
[(a)] The department shall make such maps available [as follows:
S. 6407--B 49
(i) by June thirtieth, two thousand twelve cancer types listed in
paragraphs (a) through (e) of subdivision five of this section;
(ii) by December thirty-first, two thousand twelve cancer types listed
in paragraphs (f) through (o) of subdivision five of this section; and
(iii) by June thirtieth, two thousand thirteen cancer types listed in
paragraphs (p) through (w) of subdivision five of this section.
(b) The department] ON ITS PUBLIC WEBSITE, AND SHALL, in consultation
with the department of environmental conservation, [shall] update the
maps [periodically.
(c) The department shall post these maps on its public website as soon
as practicable following the dates set forth in paragraph (a) of this
subdivision] NOT LESS THAN ONCE EVERY FIVE YEARS.
S 5-c. Section 5 of chapter 77 of the laws of 2010 amending the envi-
ronmental conservation law and the public health law relating to an
environmental facility and cancer incidence map, is amended to read as
follows:
S 5. This act shall take effect immediately and shall expire and be
deemed repealed March 31, [2016] 2020.
S 6. Section 6 of chapter 465 of the laws of 2012, constituting
Lauren's law, is amended to read as follows:
S 6. This act shall take effect one year after it shall have become a
law; provided that the commissioners of health and motor vehicles may
implement sections two, four and five of this act within their respec-
tive jurisdictions before that date[; and provided, further, that the
provisions of this act shall expire and be deemed repealed three years
after such effective date].
S 7. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016; provided,
however, that:
(a) the amendments to section 2806-a of the public health law, made by
section four-a of this act, shall not affect the expiration and repeal
of such section, and shall expire and be deemed repealed therewith; and
(b) the amendments to section 3-0317 of the environmental conservation
law, made by section five-a of this act, shall not affect the expiration
and repeal of such section, and shall expire and be deemed repealed
therewith; and provided, further, that the amendments to section 2401-b
of the public health law, made by section five-b of this act, shall not
affect the expiration and repeal of such section, and shall expire and
be deemed repealed therewith.
PART E
Intentionally Omitted
PART F
Section 1. The public health law is amended by adding a new section
2825-d to read as follows:
S 2825-D. HEALTH CARE FACILITY TRANSFORMATION PROGRAM; STATEWIDE. 1.
A STATEWIDE HEALTH CARE FACILITY TRANSFORMATION PROGRAM IS HEREBY ESTAB-
LISHED UNDER THE JOINT ADMINISTRATION OF THE COMMISSIONER AND THE PRESI-
DENT OF THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK FOR THE PURPOSE
OF STRENGTHENING AND PROTECTING CONTINUED ACCESS TO HEALTH CARE SERVICES
IN COMMUNITIES. WITHIN AMOUNTS APPROPRIATED THE PROGRAM SHALL PROVIDE
FUNDING TO SUPPORT DEBT RETIREMENT, CAPITAL PROJECTS OR NON-CAPITAL
PROJECTS THAT FACILITATE HEALTH CARE TRANSFORMATION, INCLUDING MERGERS,
S. 6407--B 50
CONSOLIDATIONS, ACQUISITIONS, AND RESTRUCTURING ACTIVITIES THAT ARE PART
OF AN OVERALL TRANSFORMATION PLAN INTENDED TO CREATE A FINANCIALLY
SUSTAINABLE SYSTEM OF CARE. A MINIMUM OF TWENTY-FIVE PERCENT OF TOTAL
AWARDED FUNDS SHALL BE MADE TO COMMUNITY BASED PROVIDERS. GRANTS SHALL
NOT BE AVAILABLE TO SUPPORT GENERAL OPERATING EXPENSES. THE ISSUANCE OF
ANY BONDS OR NOTES HEREUNDER SHALL BE SUBJECT TO THE APPROVAL OF THE
DIRECTOR OF THE DIVISION OF THE BUDGET, AND ANY PROJECTS FUNDED THROUGH
THE ISSUANCE OF BONDS OR NOTES HEREUNDER SHALL BE APPROVED BY THE NEW
YORK STATE PUBLIC AUTHORITIES CONTROL BOARD, AS REQUIRED UNDER SECTION
FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW.
2. THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY SHALL ENTER
INTO AN AGREEMENT, SUBJECT TO APPROVAL BY THE DIRECTOR OF THE BUDGET,
AND SUBJECT TO SECTION SIXTEEN HUNDRED EIGHTY-R OF THE PUBLIC AUTHORI-
TIES LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND ADMINISTERING
THE FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION. SUCH FUNDS MAY BE
DISTRIBUTED BY THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY FOR
GRANTS TO GENERAL HOSPITALS, RESIDENTIAL HEALTH CARE FACILITIES, DIAG-
NOSTIC AND TREATMENT CENTERS AND CLINICS LICENSED PURSUANT TO THIS CHAP-
TER OR THE MENTAL HYGIENE LAW, PRIMARY CARE PROVIDERS, AND HOME CARE
PROVIDERS CERTIFIED OR LICENSED PURSUANT TO ARTICLE THIRTY-SIX OF THIS
CHAPTER, FOR PROJECTS THAT SUPPORT THE PURPOSES SET FORTH IN THIS
SECTION. A COPY OF SUCH AGREEMENT, AND ANY AMENDMENTS THERETO, SHALL BE
PROVIDED TO THE CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF THE
ASSEMBLY WAYS AND MEANS COMMITTEE, AND THE DIRECTOR OF THE DIVISION OF
BUDGET NO LATER THAN THIRTY DAYS PRIOR TO THE RELEASE OF A REQUEST FOR
APPLICATIONS FOR FUNDING UNDER THIS PROGRAM. PRIORITY SHALL BE GIVEN TO
PROJECTS NOT FUNDED, IN WHOLE OR IN PART, UNDER SECTION TWENTY-EIGHT
HUNDRED TWENTY-FIVE, TWENTY-EIGHT HUNDRED TWENTY-FIVE-A, TWENTY-EIGHT
HUNDRED TWENTY-FIVE-B, OR TWENTY-EIGHT HUNDRED TWENTY-FIVE-C OF THIS
ARTICLE. GRANTS UNDER THIS SECTION SHALL BE AWARDED BY DECEMBER THIRTY-
FIRST ANNUALLY. TO THE EXTENT PRACTICABLE, FUNDS SHALL BE AWARDED
REGIONALLY IN PROPORTION TO THE APPLICATIONS RECEIVED.
3. NOTWITHSTANDING SECTION ONE HUNDRED SIXTY-THREE OF THE STATE
FINANCE LAW OR ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, FUNDS
APPROPRIATED FOR THIS PROGRAM SHALL BE AWARDED WITHOUT A COMPETITIVE BID
OR REQUEST FOR PROPOSAL PROCESS FOR GRANTS TO HEALTH CARE PROVIDERS
(HEREAFTER "APPLICANTS"). ELIGIBLE APPLICANTS SHALL BE THOSE DEEMED BY
THE COMMISSIONER TO BE A PROVIDER THAT FULFILLS OR WILL FULFILL A HEALTH
CARE NEED FOR ACUTE INPATIENT, OUTPATIENT, PRIMARY, HOME CARE OR RESI-
DENTIAL HEALTH CARE SERVICES IN A COMMUNITY.
4. IN DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER THIS SECTION,
THE COMMISSIONER AND THE PRESIDENT OF THE AUTHORITY SHALL CONSIDER
CRITERIA INCLUDING, BUT NOT LIMITED TO: (A) THE EXTENT TO WHICH THE
PROPOSED PROJECT WILL CONTRIBUTE TO THE INTEGRATION OF HEALTH CARE
SERVICES AND LONG TERM SUSTAINABILITY OF THE APPLICANT OR PRESERVATION
OF ESSENTIAL HEALTH SERVICES IN THE COMMUNITY OR COMMUNITIES SERVED BY
THE APPLICANT; (B) THE EXTENT TO WHICH THE PROPOSED PROJECT OR PURPOSE
IS ALIGNED WITH DELIVERY SYSTEM REFORM INCENTIVE PAYMENT ("DSRIP")
PROGRAM GOALS AND OBJECTIVES; (C) CONSIDERATION OF GEOGRAPHIC DISTRIB-
UTION OF FUNDS; (D) THE RELATIONSHIP BETWEEN THE PROPOSED PROJECT AND
IDENTIFIED COMMUNITY NEED; (E) THE EXTENT TO WHICH THE APPLICANT HAS
ACCESS TO ALTERNATIVE FINANCING; (F) THE EXTENT THAT THE PROPOSED
PROJECT FURTHERS THE DEVELOPMENT OF PRIMARY CARE AND OTHER OUTPATIENT
SERVICES; (G) THE EXTENT TO WHICH THE PROPOSED PROJECT BENEFITS MEDICAID
ENROLLEES AND UNINSURED INDIVIDUALS; (H) THE EXTENT TO WHICH THE APPLI-
CANT HAS ENGAGED THE COMMUNITY AFFECTED BY THE PROPOSED PROJECT AND THE
S. 6407--B 51
MANNER IN WHICH COMMUNITY ENGAGEMENT HAS SHAPED SUCH PROJECT; AND (I)
THE EXTENT TO WHICH THE PROPOSED PROJECT ADDRESSES POTENTIAL RISK TO
PATIENT SAFETY AND WELFARE.
5. DISBURSEMENT OF AWARDS MADE PURSUANT TO THIS SECTION SHALL BE
CONDITIONED ON THE AWARDEE ACHIEVING CERTAIN PROCESS AND PERFORMANCE
METRICS AND MILESTONES AS DETERMINED IN THE SOLE DISCRETION OF THE
COMMISSIONER. SUCH METRICS AND MILESTONES SHALL BE STRUCTURED TO ENSURE
THAT THE HEALTH CARE TRANSFORMATION AND PROVIDER SUSTAINABILITY GOALS OF
THE PROJECT ARE ACHIEVED, AND SUCH METRICS AND MILESTONES SHALL BE
INCLUDED IN GRANT DISBURSEMENT AGREEMENTS OR OTHER CONTRACTUAL DOCUMENTS
AS REQUIRED BY THE COMMISSIONER.
6. THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS TO THE
CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, SENATE HEALTH AND
ASSEMBLY HEALTH COMMITTEES. SUCH REPORTS SHALL BE SUBMITTED NO LATER
THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL INCLUDE, FOR
EACH AWARD, THE NAME OF THE APPLICANT, A DESCRIPTION OF THE PROJECT OR
PURPOSE, THE AMOUNT OF THE AWARD, DISBURSEMENT DATE, AND STATUS OF
ACHIEVEMENT OF PROCESS AND PERFORMANCE METRICS AND MILESTONES PURSUANT
TO SUBDIVISION FIVE OF THIS SECTION.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016.
PART G
Section 1. Section 2801-a of the public health law is amended by
adding a new subdivision 17 to read as follows:
17. (A) DIAGNOSTIC OR TREATMENT CENTERS ESTABLISHED TO PROVIDE HEALTH
CARE SERVICES WITHIN THE SPACE OF A RETAIL BUSINESS OPERATION, SUCH AS A
PHARMACY OR A STORE OPEN TO THE GENERAL PUBLIC, OR WITHIN SPACE USED BY
AN EMPLOYER FOR PROVIDING HEALTH CARE SERVICES TO ITS EMPLOYEES, MAY BE
OPERATED BY LEGAL ENTITIES FORMED UNDER THE LAWS OF THE STATE OF NEW
YORK:
(I) WHOSE STOCKHOLDERS OR MEMBERS, AS APPLICABLE, ARE NOT NATURAL
PERSONS;
(II) WHOSE PRINCIPAL STOCKHOLDERS AND MEMBERS, AS APPLICABLE, AND
CONTROLLING PERSONS COMPLY WITH ALL APPLICABLE REQUIREMENTS OF THIS
SECTION; AND
(III) THAT DEMONSTRATE, TO THE SATISFACTION OF THE PUBLIC HEALTH AND
HEALTH PLANNING COUNCIL, SUFFICIENT EXPERIENCE AND EXPERTISE IN DELIVER-
ING HIGH QUALITY HEALTH CARE SERVICES, AND FURTHER DEMONSTRATE A COMMIT-
MENT TO OPERATE LIMITED SERVICES CLINICS IN MEDICALLY UNDERSERVED AREAS
OF THE STATE. SUCH DIAGNOSTIC AND TREATMENT CENTERS SHALL BE REFERRED TO
IN THIS SECTION AS "LIMITED SERVICES CLINICS".
(B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, THE PUBLIC
HEALTH AND HEALTH PLANNING COUNCIL SHALL ADOPT AND AMEND RULES AND REGU-
LATIONS, NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, TO
ADDRESS ANY MATTER IT DEEMS PERTINENT TO THE ESTABLISHMENT OF LIMITED
SERVICES CLINICS. SUCH RULES AND REGULATIONS SHALL INCLUDE, BUT NOT BE
LIMITED TO, PROVISIONS GOVERNING OR RELATING TO:
(I) ANY DIRECT OR INDIRECT CHANGES OR TRANSFERS OF OWNERSHIP INTERESTS
OR VOTING RIGHTS IN SUCH ENTITIES OR THEIR STOCKHOLDERS OR MEMBERS, AS
APPLICABLE;
(II) PUBLIC HEALTH AND HEALTH PLANNING COUNCIL APPROVAL OF ANY CHANGE
IN CONTROLLING INTERESTS, PRINCIPAL STOCKHOLDERS, CONTROLLING PERSONS,
PARENT COMPANY OR SPONSORS;
S. 6407--B 52
(III) OVERSIGHT OF THE OPERATOR AND ITS SHAREHOLDERS OR MEMBERS, AS
APPLICABLE, INCLUDING LOCAL GOVERNANCE OF THE LIMITED SERVICES CLINICS;
AND
(IV) THE CHARACTER AND COMPETENCE AND QUALIFICATIONS OF, AND CHANGES
RELATING TO, THE DIRECTORS AND OFFICERS OF THE OPERATOR AND ITS PRINCI-
PAL STOCKHOLDERS, CONTROLLING PERSONS, PARENT COMPANY OR SPONSORS.
(C) THE FOLLOWING PROVISIONS OF THIS SECTION SHALL NOT APPLY TO LIMIT-
ED SERVICES CLINICS:
(I) PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION;
(II) PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION, RELATING TO
STOCKHOLDERS AND MEMBERS OTHER THAN PRINCIPAL STOCKHOLDERS AND PRINCIPAL
MEMBERS;
(III) PARAGRAPH (C) OF SUBDIVISION FOUR OF THIS SECTION, RELATING TO
THE DISPOSITION OF STOCK OR VOTING RIGHTS; AND
(IV) PARAGRAPH (E) OF SUBDIVISION FOUR OF THIS SECTION, RELATING TO
THE OWNERSHIP OF STOCK OR MEMBERSHIP.
(D) A LIMITED SERVICES CLINIC SHALL BE DEEMED TO BE A "HEALTH CARE
PROVIDER" FOR THE PURPOSES OF TITLE TWO-D OF ARTICLE TWO OF THIS CHAP-
TER. A PRESCRIBER PRACTICING IN A LIMITED SERVICES CLINIC SHALL NOT BE
DEEMED TO BE IN THE EMPLOY OF A PHARMACY OR PRACTICING IN A HOSPITAL FOR
PURPOSES OF SUBDIVISION TWO OF SECTION SIXTY-EIGHT HUNDRED SEVEN OF THE
EDUCATION LAW.
(E) THE COMMISSIONER SHALL PROMULGATE REGULATIONS SETTING FORTH OPERA-
TIONAL AND PHYSICAL PLANT STANDARDS FOR LIMITED SERVICES CLINICS, WHICH
MAY BE DIFFERENT FROM THE REGULATIONS OTHERWISE APPLICABLE TO DIAGNOSTIC
OR TREATMENT CENTERS, INCLUDING, BUT NOT LIMITED TO:
(I) REQUIRING THAT LIMITED SERVICES CLINICS ATTAIN AND MAINTAIN
ACCREDITATION AND REQUIRING TIMELY REPORTING TO THE DEPARTMENT IF A
LIMITED SERVICES CLINIC LOSES ITS ACCREDITATION;
(II) DESIGNATING OR LIMITING THE TREATMENTS AND SERVICES THAT MAY BE
PROVIDED, INCLUDING:
(A) LIMITING THE SCOPE OF SERVICES TO THE FOLLOWING, PROVIDED THAT
SUCH SERVICES SHALL NOT INCLUDE MONITORING OR TREATMENT AND SERVICES
OVER PROLONGED PERIODS:
(1) THE PROVISION OF TREATMENT AND SERVICES TO PATIENTS FOR MINOR
ACUTE EPISODIC ILLNESSES OR CONDITIONS;
(2) EPISODIC PREVENTIVE AND WELLNESS TREATMENTS AND SERVICES SUCH AS
IMMUNIZATIONS; AND
(3) TREATMENT AND SERVICES FOR MINOR TRAUMAS THAT ARE NOT REASONABLY
LIKELY TO BE LIFE THREATENING OR POTENTIALLY DISABLING IF AMBULATORY
CARE WITHIN THE CAPACITY OF THE LIMITED SERVICES CLINIC IS PROVIDED;
(B) PROHIBITING THE PROVISION OF SERVICES TO PATIENTS TWENTY-FOUR
MONTHS OF AGE OR YOUNGER;
(C) THE PROVISION OF SPECIFIC IMMUNIZATIONS TO PATIENTS YOUNGER THAN
EIGHTEEN YEARS OF AGE;
(III) REQUIRING LIMITED SERVICES CLINICS TO ACCEPT WALK-INS AND OFFER
EXTENDED BUSINESS HOURS;
(IV) SETTING FORTH GUIDELINES FOR ADVERTISING AND SIGNAGE, WHICH SHALL
INCLUDE SIGNAGE INDICATING THAT PRESCRIPTIONS AND OVER-THE-COUNTER
SUPPLIES MAY BE PURCHASED BY A PATIENT FROM ANY BUSINESS AND DO NOT NEED
TO BE PURCHASED ON-SITE;
(V) SETTING FORTH GUIDELINES FOR DISCLOSURE OF OWNERSHIP INTERESTS,
INFORMED CONSENT, RECORD KEEPING, REFERRAL FOR TREATMENT AND CONTINUITY
OF CARE, CASE REPORTING TO THE PATIENT'S PRIMARY CARE OR OTHER HEALTH
CARE PROVIDERS, DESIGN, CONSTRUCTION, FIXTURES, AND EQUIPMENT; AND
S. 6407--B 53
(VI) REQUIRING THE OPERATOR TO DIRECTLY EMPLOY A MEDICAL DIRECTOR WHO
IS LICENSED AND CURRENTLY REGISTERED TO PRACTICE MEDICINE IN THE STATE
OF NEW YORK.
(F) SUCH REGULATIONS ALSO SHALL PROMOTE AND STRENGTHEN PRIMARY CARE BY
REQUIRING LIMITED SERVICES CLINICS TO:
(I) INQUIRE OF EACH PATIENT WHETHER HE OR SHE HAS A PRIMARY CARE
PROVIDER;
(II) MAINTAIN AND REGULARLY UPDATE A LIST OF LOCAL PRIMARY CARE
PROVIDERS AND PROVIDE SUCH LIST TO EACH PATIENT WHO INDICATES THAT HE OR
SHE DOES NOT HAVE A PRIMARY CARE PROVIDER;
(III) REFER PATIENTS TO THEIR PRIMARY CARE PROVIDERS OR OTHER HEALTH
CARE PROVIDERS AS APPROPRIATE;
(IV) TRANSMIT, BY ELECTRONIC MEANS WHENEVER POSSIBLE, RECORDS OF
SERVICES TO PATIENTS' PRIMARY CARE PROVIDERS;
(V) EXECUTE PARTICIPATION AGREEMENTS WITH HEALTH INFORMATION ORGANIZA-
TIONS, ALSO KNOWN AS QUALIFIED ENTITIES, PURSUANT TO WHICH LIMITED
SERVICES CLINICS AGREE TO PARTICIPATE IN THE STATEWIDE HEALTH INFORMA-
TION NETWORK FOR NEW YORK (SHIN-NY); AND
(VI) DECLINE TO TREAT ANY PATIENT FOR THE SAME CONDITION OR ILLNESS
MORE THAN THREE TIMES IN A YEAR.
(G) A LIMITED SERVICES CLINIC SHALL PROVIDE TREATMENT WITHOUT DISCRIM-
INATION AS TO SOURCE OF PAYMENT.
(H) NOTWITHSTANDING THIS SUBDIVISION AND OTHER LAW OR REGULATION TO
THE CONTRARY AND SUBJECT TO THE PROVISIONS OF SECTION TWENTY-EIGHT
HUNDRED TWO OF THIS ARTICLE, A GENERAL HOSPITAL, A DIAGNOSTIC AND TREAT-
MENT CENTER, COMMUNITY HEALTH CENTER OR FEDERALLY QUALIFIED HEALTH
CENTER MAY OPERATE A LIMITED SERVICES CLINIC WHICH MEETS THE REGULATION
PROMULGATED PURSUANT TO PARAGRAPH (E) OF THIS SUBDIVISION REGARDING
OPERATIONAL PHYSICAL PLANT STANDARDS.
(I) IN DETERMINING WHETHER TO APPROVE ADDITIONAL LIMITED SERVICES
CLINIC LOCATIONS, THE DEPARTMENT SHALL CONSIDER WHETHER THE OPERATOR HAS
FULFILLED ITS COMMITMENT TO OPERATE LIMITED SERVICES CLINICS IN
MEDICALLY UNDERSERVED AREAS OF THE STATE.
S 2. This act shall take effect immediately.
PART H
Section 1. Section 1 of part D of chapter 111 of the laws of 2010
relating to the recovery of exempt income by the office of mental health
for community residences and family-based treatment programs, as amended
by section 1 of part JJ of chapter 58 of the laws of 2015, is amended to
read as follows:
Section 1. The office of mental health is authorized to recover fund-
ing from community residences and family-based treatment providers
licensed by the office of mental health, consistent with contractual
obligations of such providers, and notwithstanding any other inconsist-
ent provision of law to the contrary, in an amount equal to 50 percent
of the income received by such providers which exceeds the fixed amount
of annual Medicaid revenue limitations, as established by the commis-
sioner of mental health. Recovery of such excess income shall be for the
following fiscal periods: for programs in counties located outside of
the city of New York, the applicable fiscal periods shall be January 1,
2003 through December 31, 2009 and January 1, 2011 through December 31,
[2016] 2017; and for programs located within the city of New York, the
applicable fiscal periods shall be July 1, 2003 through June 30, 2010
and July 1, 2011 through June 30, [2016] 2017.
S. 6407--B 54
S 2. The office of mental health shall report on the providers
impacted by section one of this act. This information shall be submitted
to the governor, the temporary president of the senate and the speaker
of the assembly no later than December 31, 2016.
S 3. This act shall take effect immediately.
PART I
Section 1. Sections 19 and 21 of chapter 723 of the laws of 1989
amending the mental hygiene law and other laws relating to comprehensive
psychiatric emergency programs, as amended by section 1 of part K of
chapter 56 of the laws of 2012, are amended to read as follows:
S 19. Notwithstanding any other provision of law, the commissioner of
mental health shall, until July 1, [2016] 2020, be solely authorized, in
his or her discretion, to designate those general hospitals, local
governmental units and voluntary agencies which may apply and be consid-
ered for the approval and issuance of an operating certificate pursuant
to article 31 of the mental hygiene law for the operation of a compre-
hensive psychiatric emergency program.
S 21. This act shall take effect immediately, and sections one, two
and four through twenty of this act shall remain in full force and
effect, until July 1, [2016] 2020, at which time the amendments and
additions made by such sections of this act shall be deemed to be
repealed, and any provision of law amended by any of such sections of
this act shall revert to its text as it existed prior to the effective
date of this act.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016.
PART J
Intentionally Omitted
PART K
Intentionally Omitted
PART L
Section 1. The mental hygiene law is amended by adding a new section
16.25 to read as follows:
S 16.25 TEMPORARY OPERATOR.
(A) FOR THE PURPOSES OF THIS SECTION:
(1) "ESTABLISHED OPERATOR" SHALL MEAN THE PROVIDER OF SERVICES THAT
HAS BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE PURSUANT TO
THIS ARTICLE.
(2) "EXTRAORDINARY FINANCIAL ASSISTANCE" SHALL MEAN STATE FUNDS
PROVIDED TO, OR REQUESTED BY, A PROGRAM FOR THE EXPRESS PURPOSE OF
PREVENTING THE CLOSURE OF THE PROGRAM THAT THE COMMISSIONER FINDS
PROVIDES ESSENTIAL AND NECESSARY SERVICES WITHIN THE COMMUNITY.
(3) "SERIOUS FINANCIAL INSTABILITY" SHALL INCLUDE BUT NOT BE LIMITED
TO DEFAULTING OR VIOLATING MATERIAL COVENANTS OF BOND ISSUES, MISSED
MORTGAGE PAYMENTS, MISSED RENT PAYMENTS, A PATTERN OF UNTIMELY PAYMENT
OF DEBTS, FAILURE TO PAY ITS EMPLOYEES OR VENDORS, INSUFFICIENT FUNDS TO
MEET THE GENERAL OPERATING EXPENSES OF THE PROGRAM, FAILURE TO MAINTAIN
REQUIRED DEBT SERVICE COVERAGE RATIOS AND/OR, AS APPLICABLE, FACTORS
S. 6407--B 55
THAT HAVE TRIGGERED A WRITTEN EVENT OF DEFAULT NOTICE TO THE OFFICE BY
THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK.
(4) "OFFICE" SHALL MEAN THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISA-
BILITIES.
(5) "TEMPORARY OPERATOR" SHALL MEAN ANY PROVIDER OF SERVICES THAT HAS
BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE PURSUANT TO THIS
ARTICLE OR WHICH IS DIRECTLY OPERATED BY THE OFFICE, THAT:
A. AGREES TO PROVIDE SERVICES CERTIFIED PURSUANT TO THIS ARTICLE ON A
TEMPORARY BASIS IN THE BEST INTERESTS OF ITS INDIVIDUALS SERVED BY THE
PROGRAM; AND
B. HAS A HISTORY OF COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REGU-
LATIONS AND A RECORD OF PROVIDING CARE OF GOOD QUALITY, AS DETERMINED BY
THE COMMISSIONER; AND
C. PRIOR TO APPOINTMENT AS TEMPORARY OPERATOR, DEVELOPS A PLAN DETER-
MINED TO BE SATISFACTORY BY THE COMMISSIONER TO ADDRESS THE PROGRAM'S
DEFICIENCIES.
(B) (1) IN THE EVENT THAT: (I) THE ESTABLISHED OPERATOR IS SEEKING
EXTRAORDINARY FINANCIAL ASSISTANCE; (II) OFFICE COLLECTED DATA DEMON-
STRATES THAT THE ESTABLISHED OPERATOR IS EXPERIENCING SERIOUS FINANCIAL
INSTABILITY ISSUES; (III) OFFICE COLLECTED DATA DEMONSTRATES THAT THE
ESTABLISHED OPERATOR'S BOARD OF DIRECTORS OR ADMINISTRATION IS UNABLE OR
UNWILLING TO ENSURE THE PROPER OPERATION OF THE PROGRAM; OR (IV) OFFICE
COLLECTED DATA INDICATES THERE ARE CONDITIONS THAT SERIOUSLY ENDANGER OR
JEOPARDIZE CONTINUED ACCESS TO NECESSARY SERVICES WITHIN THE COMMUNITY,
THE COMMISSIONER SHALL NOTIFY THE ESTABLISHED OPERATOR OF HIS OR HER
INTENTION TO APPOINT A TEMPORARY OPERATOR TO ASSUME SOLE RESPONSIBILITY
FOR THE PROVIDER OF SERVICES' OPERATIONS FOR A LIMITED PERIOD OF TIME.
THE APPOINTMENT OF A TEMPORARY OPERATOR SHALL BE EFFECTUATED PURSUANT TO
THIS SECTION, AND SHALL BE IN ADDITION TO ANY OTHER REMEDIES PROVIDED BY
LAW.
(2) THE ESTABLISHED OPERATOR MAY AT ANY TIME REQUEST THE COMMISSIONER
TO APPOINT A TEMPORARY OPERATOR. UPON RECEIVING SUCH A REQUEST, THE
COMMISSIONER MAY, IF HE OR SHE DETERMINES THAT SUCH AN ACTION IS NECES-
SARY, ENTER INTO AN AGREEMENT WITH THE ESTABLISHED OPERATOR FOR THE
APPOINTMENT OF A TEMPORARY OPERATOR TO RESTORE OR MAINTAIN THE PROVISION
OF QUALITY CARE TO THE INDIVIDUALS UNTIL THE ESTABLISHED OPERATOR CAN
RESUME OPERATIONS WITHIN THE DESIGNATED TIME PERIOD OR OTHER ACTION IS
TAKEN AS DESCRIBED IN SECTION 16.17 OF THIS ARTICLE.
(C) (1) A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION SHALL
USE HIS OR HER BEST EFFORTS TO IMPLEMENT THE PLAN DEEMED SATISFACTORY BY
THE COMMISSIONER TO CORRECT OR ELIMINATE ANY DEFICIENCIES IN THE PROGRAM
AND TO PROMOTE THE QUALITY AND ACCESSIBILITY OF SERVICES IN THE COMMUNI-
TY SERVED BY THE PROVIDER OF SERVICES.
(2) DURING THE TERM OF APPOINTMENT, THE TEMPORARY OPERATOR SHALL HAVE
THE AUTHORITY TO DIRECT THE STAFF OF THE ESTABLISHED OPERATOR AS NECES-
SARY TO APPROPRIATELY PROVIDE SERVICES FOR INDIVIDUALS. THE TEMPORARY
OPERATOR SHALL, DURING THIS PERIOD, PROVIDE SERVICES IN SUCH A MANNER AS
TO PROMOTE SAFETY AND THE QUALITY AND ACCESSIBILITY OF SERVICES IN THE
COMMUNITY SERVED BY THE ESTABLISHED OPERATOR UNTIL EITHER THE ESTAB-
LISHED OPERATOR CAN RESUME OPERATIONS OR UNTIL THE OFFICE REVOKES THE
OPERATING CERTIFICATE FOR THE SERVICES ISSUED UNDER THIS ARTICLE.
(3) THE ESTABLISHED OPERATOR SHALL GRANT ACCESS TO THE TEMPORARY OPER-
ATOR TO THE ESTABLISHED OPERATOR'S ACCOUNTS AND RECORDS IN ORDER TO
ADDRESS ANY DEFICIENCIES RELATED TO THE PROGRAM EXPERIENCING SERIOUS
FINANCIAL INSTABILITY OR AN ESTABLISHED OPERATOR REQUESTING FINANCIAL
ASSISTANCE IN ACCORDANCE WITH THIS SECTION. THE TEMPORARY OPERATOR SHALL
S. 6407--B 56
APPROVE ANY FINANCIAL DECISION RELATED TO AN ESTABLISHED PROVIDER'S DAY
TO DAY OPERATIONS OR THE ESTABLISHED PROVIDER'S ABILITY TO PROVIDE
SERVICES.
(4) THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE ANY BOND. NO
SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRISING THE ESTAB-
LISHED OPERATOR OR CONTAINED WITHIN THE ESTABLISHED OPERATOR OR IN ANY
FIXTURE OF THE PROGRAM, SHALL BE IMPAIRED OR DIMINISHED IN PRIORITY BY
THE TEMPORARY OPERATOR. NEITHER THE TEMPORARY OPERATOR NOR THE OFFICE
SHALL ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION OF PROPER-
TY.
(D) THE TEMPORARY OPERATOR SHALL BE ENTITLED TO A REASONABLE FEE, AS
DETERMINED BY THE COMMISSIONER AND SUBJECT TO THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, AND NECESSARY EXPENSES INCURRED WHILE
SERVING AS A TEMPORARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE
ONLY IN ITS CAPACITY AS TEMPORARY OPERATOR FOR INJURY TO PERSON AND
PROPERTY BY REASON OF ITS OPERATION OF SUCH PROGRAM; NO LIABILITY SHALL
INCUR IN THE TEMPORARY OPERATOR'S PERSONAL CAPACITY, EXCEPT FOR GROSS
NEGLIGENCE AND INTENTIONAL ACTS.
(E) (1) THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR
SHALL NOT EXCEED NINETY DAYS. AFTER NINETY DAYS, IF THE COMMISSIONER
DETERMINES THAT TERMINATION OF THE TEMPORARY OPERATOR WOULD CAUSE
SIGNIFICANT DETERIORATION OF THE QUALITY OF, OR ACCESS TO, CARE IN THE
COMMUNITY OR THAT REAPPOINTMENT IS NECESSARY TO CORRECT THE DEFICIENCIES
THAT REQUIRED THE APPOINTMENT OF THE TEMPORARY OPERATOR, THE COMMISSION-
ER MAY AUTHORIZE AN ADDITIONAL NINETY-DAY TERM. HOWEVER, SUCH AUTHORI-
ZATION SHALL INCLUDE THE COMMISSIONER'S REQUIREMENTS FOR CONCLUSION OF
THE TEMPORARY OPERATORSHIP TO BE SATISFIED WITHIN THE ADDITIONAL TERM.
(2) WITHIN FOURTEEN DAYS PRIOR TO THE TERMINATION OF EACH TERM OF THE
APPOINTMENT OF THE TEMPORARY OPERATOR, THE TEMPORARY OPERATOR SHALL
SUBMIT TO THE COMMISSIONER AND TO THE ESTABLISHED OPERATOR A REPORT
DESCRIBING:
A. THE ACTIONS TAKEN DURING THE APPOINTMENT TO ADDRESS THE IDENTIFIED
PROGRAM DEFICIENCIES, THE RESUMPTION OF PROGRAM OPERATIONS BY THE ESTAB-
LISHED OPERATOR, OR THE REVOCATION OF AN OPERATING CERTIFICATE ISSUED BY
THE OFFICE;
B. OBJECTIVES FOR THE CONTINUATION OF THE TEMPORARY OPERATORSHIP IF
NECESSARY AND A SCHEDULE FOR SATISFACTION OF SUCH OBJECTIVES; AND
C. IF APPLICABLE, THE RECOMMENDED ACTIONS FOR THE ONGOING PROVISION OF
SERVICES SUBSEQUENT TO THE TEMPORARY OPERATORSHIP.
(3) THE TERM OF THE INITIAL APPOINTMENT AND OF ANY SUBSEQUENT REAP-
POINTMENT MAY BE TERMINATED PRIOR TO THE EXPIRATION OF THE DESIGNATED
TERM, IF THE ESTABLISHED OPERATOR AND THE COMMISSIONER AGREE ON A PLAN
OF CORRECTION AND THE IMPLEMENTATION OF SUCH PLAN.
(F) (1) THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF AN
INTENTION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH ONE OF
SUBDIVISION (B) OF THIS SECTION, CAUSE THE ESTABLISHED OPERATOR TO BE
NOTIFIED OF THE INTENTION BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO
THE PRINCIPAL OFFICE OF THE ESTABLISHED OPERATOR. SUCH NOTIFICATION
SHALL INCLUDE A DETAILED DESCRIPTION OF THE FINDINGS UNDERLYING THE
INTENTION TO APPOINT A TEMPORARY OPERATOR, AND THE DATE AND TIME OF A
REQUIRED MEETING WITH THE COMMISSIONER AND/OR HIS OR HER DESIGNEE WITHIN
TEN BUSINESS DAYS OF THE RECEIPT OF SUCH NOTICE. AT SUCH MEETING, THE
ESTABLISHED OPERATOR SHALL HAVE THE OPPORTUNITY TO REVIEW AND DISCUSS
ALL RELEVANT FINDINGS. AT SUCH MEETING, THE COMMISSIONER AND THE ESTAB-
LISHED OPERATOR SHALL ATTEMPT TO DEVELOP A MUTUALLY SATISFACTORY PLAN OF
CORRECTION AND SCHEDULE FOR IMPLEMENTATION. IN SUCH EVENT, THE COMMIS-
S. 6407--B 57
SIONER SHALL NOTIFY THE ESTABLISHED OPERATOR THAT THE COMMISSIONER WILL
ABSTAIN FROM APPOINTING A TEMPORARY OPERATOR CONTINGENT UPON THE ESTAB-
LISHED OPERATOR REMEDIATING THE IDENTIFIED DEFICIENCIES WITHIN THE
AGREED UPON TIMEFRAME.
(2) SHOULD THE COMMISSIONER AND THE ESTABLISHED OPERATOR BE UNABLE TO
ESTABLISH A PLAN OF CORRECTION PURSUANT TO PARAGRAPH ONE OF THIS SUBDI-
VISION, OR SHOULD THE ESTABLISHED OPERATOR FAIL TO RESPOND TO THE
COMMISSIONER'S INITIAL NOTIFICATION, THERE SHALL BE AN ADMINISTRATIVE
HEARING ON THE COMMISSIONER'S DETERMINATION TO APPOINT A TEMPORARY OPER-
ATOR TO BEGIN NO LATER THAN THIRTY DAYS FROM THE DATE OF THE NOTICE TO
THE ESTABLISHED OPERATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED TO
THE ISSUE OF WHETHER THE DETERMINATION OF THE COMMISSIONER TO APPOINT A
TEMPORARY OPERATOR IS SUPPORTED BY SUBSTANTIAL EVIDENCE. A COPY OF THE
DECISION SHALL BE SENT TO THE ESTABLISHED OPERATOR.
(3) IF THE DECISION TO APPOINT A TEMPORARY OPERATOR IS UPHELD SUCH
TEMPORARY OPERATOR SHALL BE APPOINTED AS SOON AS IS PRACTICABLE AND
SHALL PROVIDE SERVICES PURSUANT TO THE PROVISIONS OF THIS SECTION.
(G) NOTWITHSTANDING THE APPOINTMENT OF A TEMPORARY OPERATOR, THE
ESTABLISHED OPERATOR SHALL REMAIN OBLIGATED FOR THE CONTINUED PROVISION
OF SERVICES. NO PROVISION CONTAINED IN THIS SECTION SHALL BE DEEMED TO
RELIEVE THE ESTABLISHED OPERATOR OR ANY OTHER PERSON OF ANY CIVIL OR
CRIMINAL LIABILITY INCURRED, OR ANY DUTY IMPOSED BY LAW, BY REASON OF
ACTS OR OMISSIONS OF THE ESTABLISHED OPERATOR OR ANY OTHER PERSON PRIOR
TO THE APPOINTMENT OF ANY TEMPORARY OPERATOR OF THE PROGRAM HEREUNDER;
NOR SHALL ANYTHING CONTAINED IN THIS SECTION BE CONSTRUED TO SUSPEND
DURING THE TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR OF THE
PROGRAM ANY OBLIGATION OF THE ESTABLISHED OPERATOR OR ANY OTHER PERSON
FOR THE MAINTENANCE AND REPAIR OF THE FACILITY, PROVISION OF UTILITY
SERVICES, PAYMENT OF TAXES OR OTHER OPERATING AND MAINTENANCE EXPENSES
OF THE FACILITY, NOR OF THE ESTABLISHED OPERATOR OR ANY OTHER PERSON FOR
THE PAYMENT OF MORTGAGES OR LIENS.
(H) THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF AN INTEN-
TION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH ONE OF SUBDI-
VISION (B) OF THIS SECTION, PRIOR TO THE COMMENCEMENT OF THE APPOINT-
MENT, CAUSE THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, AND THE CHAIRS OF THE SENATE COMMITTEE ON MENTAL HEALTH AND
DEVELOPMENTAL DISABILITIES AND THE ASSEMBLY COMMITTEE ON MENTAL HEALTH
TO BE NOTIFIED OF SUCH APPOINTMENT. SUCH NOTIFICATION SHALL INCLUDE BUT
NOT BE LIMITED TO, THE NAME OF THE ESTABLISHED OPERATOR, THE NAMES OF
ALL APPOINTED TEMPORARY OPERATORS AND A DETAILED DESCRIPTION OF THE
FINDINGS UNDERLYING THE INTENTION TO APPOINT A TEMPORARY OPERATOR.
S 2. The mental hygiene law is amended by adding a new section 31.20
to read as follows:
S 31.20 TEMPORARY OPERATOR.
(A) FOR THE PURPOSES OF THIS SECTION:
(1) "ESTABLISHED OPERATOR" SHALL MEAN THE OPERATOR OF A MENTAL HEALTH
PROGRAM THAT HAS BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE
PURSUANT TO THIS ARTICLE.
(2) "EXTRAORDINARY FINANCIAL ASSISTANCE" SHALL MEAN STATE FUNDS
PROVIDED TO, OR REQUESTED BY, A PROGRAM FOR THE EXPRESS PURPOSE OF
PREVENTING THE CLOSURE OF THE PROGRAM THAT THE COMMISSIONER FINDS
PROVIDES ESSENTIAL AND NECESSARY SERVICES WITHIN THE COMMUNITY.
(3) "MENTAL HEALTH PROGRAM" SHALL MEAN A PROVIDER OF SERVICES FOR
PERSONS WITH SERIOUS MENTAL ILLNESS, AS SUCH TERMS ARE DEFINED IN
SECTION 1.03 OF THIS CHAPTER, WHICH IS LICENSED OR OPERATED BY THE
OFFICE.
S. 6407--B 58
(4) "OFFICE" SHALL MEAN THE OFFICE OF MENTAL HEALTH.
(5) "SERIOUS FINANCIAL INSTABILITY" SHALL INCLUDE BUT NOT BE LIMITED
TO DEFAULTING OR VIOLATING MATERIAL COVENANTS OF BOND ISSUES, MISSED
MORTGAGE PAYMENTS, A PATTERN OF UNTIMELY PAYMENT OF DEBTS, FAILURE TO
PAY ITS EMPLOYEES OR VENDORS, INSUFFICIENT FUNDS TO MEET THE GENERAL
OPERATING EXPENSES OF THE PROGRAM, FAILURE TO MAINTAIN REQUIRED DEBT
SERVICE COVERAGE RATIOS AND/OR, AS APPLICABLE, FACTORS THAT HAVE TRIG-
GERED A WRITTEN EVENT OF DEFAULT NOTICE TO THE OFFICE BY THE DORMITORY
AUTHORITY OF THE STATE OF NEW YORK.
(6) "TEMPORARY OPERATOR" SHALL MEAN ANY OPERATOR OF A MENTAL HEALTH
PROGRAM THAT HAS BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE
PURSUANT TO THIS ARTICLE OR WHICH IS DIRECTLY OPERATED BY THE OFFICE OF
MENTAL HEALTH, THAT:
A. AGREES TO OPERATE A MENTAL HEALTH PROGRAM ON A TEMPORARY BASIS IN
THE BEST INTERESTS OF ITS PATIENTS SERVED BY THE PROGRAM; AND
B. HAS A HISTORY OF COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REGU-
LATIONS AND A RECORD OF PROVIDING CARE OF GOOD QUALITY, AS DETERMINED BY
THE COMMISSIONER; AND
C. PRIOR TO APPOINTMENT AS TEMPORARY OPERATOR, DEVELOPS A PLAN DETER-
MINED TO BE SATISFACTORY BY THE COMMISSIONER TO ADDRESS THE PROGRAM'S
DEFICIENCIES.
(B) (1) IN THE EVENT THAT: (I) THE ESTABLISHED OPERATOR IS SEEKING
EXTRAORDINARY FINANCIAL ASSISTANCE; (II) OFFICE COLLECTED DATA DEMON-
STRATES THAT THE ESTABLISHED OPERATOR IS EXPERIENCING SERIOUS FINANCIAL
INSTABILITY ISSUES; (III) OFFICE COLLECTED DATA DEMONSTRATES THAT THE
ESTABLISHED OPERATOR'S BOARD OF DIRECTORS OR ADMINISTRATION IS UNABLE OR
UNWILLING TO ENSURE THE PROPER OPERATION OF THE PROGRAM; OR (IV) OFFICE
COLLECTED DATA INDICATES THERE ARE CONDITIONS THAT SERIOUSLY ENDANGER OR
JEOPARDIZE CONTINUED ACCESS TO NECESSARY MENTAL HEALTH SERVICES WITHIN
THE COMMUNITY, THE COMMISSIONER SHALL NOTIFY THE ESTABLISHED OPERATOR OF
HIS OR HER INTENTION TO APPOINT A TEMPORARY OPERATOR TO ASSUME SOLE
RESPONSIBILITY FOR THE PROGRAM'S TREATMENT OPERATIONS FOR A LIMITED
PERIOD OF TIME. THE APPOINTMENT OF A TEMPORARY OPERATOR SHALL BE EFFEC-
TUATED PURSUANT TO THIS SECTION, AND SHALL BE IN ADDITION TO ANY OTHER
REMEDIES PROVIDED BY LAW.
(2) THE ESTABLISHED OPERATOR MAY AT ANY TIME REQUEST THE COMMISSIONER
TO APPOINT A TEMPORARY OPERATOR. UPON RECEIVING SUCH A REQUEST, THE
COMMISSIONER MAY, IF HE OR SHE DETERMINES THAT SUCH AN ACTION IS NECES-
SARY, ENTER INTO AN AGREEMENT WITH THE ESTABLISHED OPERATOR FOR THE
APPOINTMENT OF A TEMPORARY OPERATOR TO RESTORE OR MAINTAIN THE PROVISION
OF QUALITY CARE TO THE PATIENTS UNTIL THE ESTABLISHED OPERATOR CAN
RESUME OPERATIONS WITHIN THE DESIGNATED TIME PERIOD; THE PATIENTS MAY BE
TRANSFERRED TO OTHER MENTAL HEALTH PROGRAMS OPERATED OR LICENSED BY THE
OFFICE; OR THE OPERATIONS OF THE MENTAL HEALTH PROGRAM SHOULD BE
COMPLETELY DISCONTINUED.
(C) (1) A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION SHALL
USE HIS OR HER BEST EFFORTS TO IMPLEMENT THE PLAN DEEMED SATISFACTORY BY
THE COMMISSIONER TO CORRECT OR ELIMINATE ANY DEFICIENCIES IN THE MENTAL
HEALTH PROGRAM AND TO PROMOTE THE QUALITY AND ACCESSIBILITY OF MENTAL
HEALTH SERVICES IN THE COMMUNITY SERVED BY THE MENTAL HEALTH PROGRAM.
(2) IF THE IDENTIFIED DEFICIENCIES CANNOT BE ADDRESSED IN THE TIME
PERIOD DESIGNATED IN THE PLAN, THE PATIENTS SHALL BE TRANSFERRED TO
OTHER APPROPRIATE MENTAL HEALTH PROGRAMS LICENSED OR OPERATED BY THE
OFFICE.
(3) DURING THE TERM OF APPOINTMENT, THE TEMPORARY OPERATOR SHALL HAVE
THE AUTHORITY TO DIRECT THE STAFF OF THE ESTABLISHED OPERATOR AS NECES-
S. 6407--B 59
SARY TO APPROPRIATELY TREAT AND/OR TRANSFER THE PATIENTS. THE TEMPORARY
OPERATOR SHALL, DURING THIS PERIOD, OPERATE THE MENTAL HEALTH PROGRAM IN
SUCH A MANNER AS TO PROMOTE SAFETY AND THE QUALITY AND ACCESSIBILITY OF
MENTAL HEALTH SERVICES IN THE COMMUNITY SERVED BY THE ESTABLISHED OPERA-
TOR UNTIL EITHER THE ESTABLISHED OPERATOR CAN RESUME PROGRAM OPERATIONS
OR UNTIL THE PATIENTS ARE APPROPRIATELY TRANSFERRED TO OTHER PROGRAMS
LICENSED OR OPERATED BY THE OFFICE.
(4) THE ESTABLISHED OPERATOR SHALL GRANT ACCESS TO THE TEMPORARY OPER-
ATOR TO THE ESTABLISHED OPERATOR'S ACCOUNTS AND RECORDS IN ORDER TO
ADDRESS ANY DEFICIENCIES RELATED TO A MENTAL HEALTH PROGRAM EXPERIENCING
SERIOUS FINANCIAL INSTABILITY OR AN ESTABLISHED OPERATOR REQUESTING
FINANCIAL ASSISTANCE IN ACCORDANCE WITH THIS SECTION. THE TEMPORARY
OPERATOR SHALL APPROVE ANY FINANCIAL DECISION RELATED TO A PROGRAM'S DAY
TO DAY OPERATIONS OR PROGRAM'S ABILITY TO PROVIDE MENTAL HEALTH
SERVICES.
(5) THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE ANY BOND. NO
SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRISING THE ESTAB-
LISHED OPERATOR OR CONTAINED WITHIN THE ESTABLISHED OPERATOR OR IN ANY
FIXTURE OF THE MENTAL HEALTH PROGRAM, SHALL BE IMPAIRED OR DIMINISHED IN
PRIORITY BY THE TEMPORARY OPERATOR. NEITHER THE TEMPORARY OPERATOR NOR
THE OFFICE SHALL ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION
OF PROPERTY.
(D) THE TEMPORARY OPERATOR SHALL BE ENTITLED TO A REASONABLE FEE, AS
DETERMINED BY THE COMMISSIONER AND SUBJECT TO THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, AND NECESSARY EXPENSES INCURRED WHILE
SERVING AS A TEMPORARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE
ONLY IN ITS CAPACITY AS TEMPORARY OPERATOR OF THE MENTAL HEALTH PROGRAM
FOR INJURY TO PERSON AND PROPERTY BY REASON OF ITS OPERATION OF SUCH
PROGRAM; NO LIABILITY SHALL INCUR IN THE TEMPORARY OPERATOR'S PERSONAL
CAPACITY, EXCEPT FOR GROSS NEGLIGENCE AND INTENTIONAL ACTS.
(E) (1) THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR
SHALL NOT EXCEED NINETY DAYS. AFTER NINETY DAYS, IF THE COMMISSIONER
DETERMINES THAT TERMINATION OF THE TEMPORARY OPERATOR WOULD CAUSE
SIGNIFICANT DETERIORATION OF THE QUALITY OF, OR ACCESS TO, MENTAL HEALTH
CARE IN THE COMMUNITY OR THAT REAPPOINTMENT IS NECESSARY TO CORRECT THE
DEFICIENCIES THAT REQUIRED THE APPOINTMENT OF THE TEMPORARY OPERATOR,
THE COMMISSIONER MAY AUTHORIZE AN ADDITIONAL NINETY-DAY TERM. HOWEVER,
SUCH AUTHORIZATION SHALL INCLUDE THE COMMISSIONER'S REQUIREMENTS FOR
CONCLUSION OF THE TEMPORARY OPERATORSHIP TO BE SATISFIED WITHIN THE
ADDITIONAL TERM.
(2) WITHIN FOURTEEN DAYS PRIOR TO THE TERMINATION OF EACH TERM OF THE
APPOINTMENT OF THE TEMPORARY OPERATOR, THE TEMPORARY OPERATOR SHALL
SUBMIT TO THE COMMISSIONER AND TO THE ESTABLISHED OPERATOR A REPORT
DESCRIBING:
A. THE ACTIONS TAKEN DURING THE APPOINTMENT TO ADDRESS THE IDENTIFIED
MENTAL HEALTH PROGRAM DEFICIENCIES, THE RESUMPTION OF MENTAL HEALTH
PROGRAM OPERATIONS BY THE ESTABLISHED OPERATOR, OR THE TRANSFER OF THE
PATIENTS TO OTHER PROVIDERS LICENSED OR OPERATED BY THE OFFICE;
B. OBJECTIVES FOR THE CONTINUATION OF THE TEMPORARY OPERATORSHIP IF
NECESSARY AND A SCHEDULE FOR SATISFACTION OF SUCH OBJECTIVES; AND
C. IF APPLICABLE, THE RECOMMENDED ACTIONS FOR THE ONGOING OPERATION OF
THE MENTAL HEALTH PROGRAM SUBSEQUENT TO THE TEMPORARY OPERATORSHIP.
(3) THE TERM OF THE INITIAL APPOINTMENT AND OF ANY SUBSEQUENT REAP-
POINTMENT MAY BE TERMINATED PRIOR TO THE EXPIRATION OF THE DESIGNATED
TERM, IF THE ESTABLISHED OPERATOR AND THE COMMISSIONER AGREE ON A PLAN
OF CORRECTION AND THE IMPLEMENTATION OF SUCH PLAN.
S. 6407--B 60
(F) (1) THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF AN
INTENTION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH ONE OF
SUBDIVISION (B) OF THIS SECTION CAUSE THE ESTABLISHED OPERATOR TO BE
NOTIFIED OF THE INTENTION BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO
THE PRINCIPAL OFFICE OF THE ESTABLISHED OPERATOR. SUCH NOTIFICATION
SHALL INCLUDE A DETAILED DESCRIPTION OF THE FINDINGS UNDERLYING THE
INTENTION TO APPOINT A TEMPORARY OPERATOR, AND THE DATE AND TIME OF A
REQUIRED MEETING WITH THE COMMISSIONER AND/OR HIS OR HER DESIGNEE WITHIN
TEN BUSINESS DAYS OF THE RECEIPT OF SUCH NOTICE. AT SUCH MEETING, THE
ESTABLISHED OPERATOR SHALL HAVE THE OPPORTUNITY TO REVIEW AND DISCUSS
ALL RELEVANT FINDINGS. AT SUCH MEETING, THE COMMISSIONER AND THE ESTAB-
LISHED OPERATOR SHALL ATTEMPT TO DEVELOP A MUTUALLY SATISFACTORY PLAN OF
CORRECTION AND SCHEDULE FOR IMPLEMENTATION. IN SUCH EVENT, THE COMMIS-
SIONER SHALL NOTIFY THE ESTABLISHED OPERATOR THAT THE COMMISSIONER WILL
ABSTAIN FROM APPOINTING A TEMPORARY OPERATOR CONTINGENT UPON THE ESTAB-
LISHED OPERATOR REMEDIATING THE IDENTIFIED DEFICIENCIES WITHIN THE
AGREED UPON TIMEFRAME.
(2) SHOULD THE COMMISSIONER AND THE ESTABLISHED OPERATOR BE UNABLE TO
ESTABLISH A PLAN OF CORRECTION PURSUANT TO PARAGRAPH ONE OF THIS SUBDI-
VISION, OR SHOULD THE ESTABLISHED OPERATOR FAIL TO RESPOND TO THE
COMMISSIONER'S INITIAL NOTIFICATION, THERE SHALL BE AN ADMINISTRATIVE
HEARING ON THE COMMISSIONER'S DETERMINATION TO APPOINT A TEMPORARY OPER-
ATOR TO BEGIN NO LATER THAN THIRTY DAYS FROM THE DATE OF THE NOTICE TO
THE ESTABLISHED OPERATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED TO
THE ISSUE OF WHETHER THE DETERMINATION OF THE COMMISSIONER TO APPOINT A
TEMPORARY OPERATOR IS SUPPORTED BY SUBSTANTIAL EVIDENCE. A COPY OF THE
DECISION SHALL BE SENT TO THE ESTABLISHED OPERATOR.
(3) IF THE DECISION TO APPOINT A TEMPORARY OPERATOR IS UPHELD SUCH
TEMPORARY OPERATOR SHALL BE APPOINTED AS SOON AS IS PRACTICABLE AND
SHALL OPERATE THE MENTAL HEALTH PROGRAM PURSUANT TO THE PROVISIONS OF
THIS SECTION.
(G) NOTWITHSTANDING THE APPOINTMENT OF A TEMPORARY OPERATOR, THE
ESTABLISHED OPERATOR SHALL REMAIN OBLIGATED FOR THE CONTINUED OPERATION
OF THE MENTAL HEALTH PROGRAM SO THAT SUCH PROGRAM CAN FUNCTION IN A
NORMAL MANNER. NO PROVISION CONTAINED IN THIS SECTION SHALL BE DEEMED TO
RELIEVE THE ESTABLISHED OPERATOR OR ANY OTHER PERSON OF ANY CIVIL OR
CRIMINAL LIABILITY INCURRED, OR ANY DUTY IMPOSED BY LAW, BY REASON OF
ACTS OR OMISSIONS OF THE ESTABLISHED OPERATOR OR ANY OTHER PERSON PRIOR
TO THE APPOINTMENT OF ANY TEMPORARY OPERATOR OF THE PROGRAM HEREUNDER;
NOR SHALL ANYTHING CONTAINED IN THIS SECTION BE CONSTRUED TO SUSPEND
DURING THE TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR OF THE
PROGRAM ANY OBLIGATION OF THE ESTABLISHED OPERATOR OR ANY OTHER PERSON
FOR THE MAINTENANCE AND REPAIR OF THE FACILITY, PROVISION OF UTILITY
SERVICES, PAYMENT OF TAXES OR OTHER OPERATING AND MAINTENANCE EXPENSES
OF THE FACILITY, NOR OF THE ESTABLISHED OPERATOR OR ANY OTHER PERSON FOR
THE PAYMENT OF MORTGAGES OR LIENS.
(H) THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF AN INTEN-
TION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH ONE OF SUBDI-
VISION (B) OF THIS SECTION, PRIOR TO THE COMMENCEMENT OF THE APPOINT-
MENT, CAUSE THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, AND THE CHAIRS OF THE SENATE COMMITTEE ON MENTAL HEALTH AND
DEVELOPMENTAL DISABILITIES AND THE ASSEMBLY COMMITTEE ON MENTAL HEALTH
TO BE NOTIFIED OF SUCH APPOINTMENT. SUCH NOTIFICATION SHALL INCLUDE BUT
NOT BE LIMITED TO, THE NAME OF THE ESTABLISHED OPERATOR, THE NAMES OF
ALL APPOINTED TEMPORARY OPERATORS AND A DETAILED DESCRIPTION OF THE
FINDINGS UNDERLYING THE INTENTION TO APPOINT A TEMPORARY OPERATOR.
S. 6407--B 61
S 3. Intentionally omitted.
S 4. Intentionally omitted.
S 5. Intentionally omitted.
S 5-a. Section 32.20 of the mental hygiene law is amended by adding a
new subdivision 8 to read as follows:
8. THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF AN INTENTION
TO APPOINT TEMPORARY OPERATOR PURSUANT TO PARAGRAPH (A) OF SUBDIVISION
TWO OF THIS SECTION, PRIOR TO THE COMMENCEMENT OF THE APPOINTMENT, CAUSE
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND
THE CHAIRS OF THE SENATE AND ASSEMBLY COMMITTEES ON ALCOHOLISM AND DRUG
ABUSE TO BE NOTIFIED OF SUCH APPOINTMENT. SUCH NOTIFICATION SHALL
INCLUDE BUT NOT BE LIMITED TO, THE NAME OF THE ESTABLISHED OPERATOR, THE
NAMES OF ALL APPOINTED TEMPORARY OPERATORS AND A DETAILED DESCRIPTION OF
THE FINDINGS UNDERLYING THE INTENTION TO APPOINT A TEMPORARY OPERATOR.
S 5-b. Subdivisions (d), (e), (f), (g) and (h) of section 122 of part
E of chapter 56 of the laws of 2013 amending the public health law and
other laws relating to the general public work program are relettered
subdivisions (e), (f), (g), (h) and (i), and a new subdivision (d) is
added to read as follows:
(D) SECTION FIFTY-ONE OF THIS ACT SHALL TAKE EFFECT IMMEDIATELY AND
SHALL EXPIRE MARCH 31, 2019;
S 6. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016; provided,
however, that sections one and two of this act shall expire and be
deemed repealed on March 31, 2019; provided, further, that the amendment
to section 32.20 of the mental hygiene law, made by section five-a of
this act shall not affect the expiration of such section and shall be
deemed to expire therewith.
PART M
Section 1. Subdivision (d) of section 33.13 of the mental hygiene law,
as amended by section 3 of part E of chapter 111 of the laws of 2010, is
amended to read as follows:
(d) Nothing in this section shall prevent the electronic or other
exchange of information concerning patients or clients, including iden-
tification, between and among (i) facilities or others providing
services for such patients or clients pursuant to an approved local
services plan, as defined in article forty-one of this chapter, or
pursuant to agreement with the department, and (ii) the department or
any of its licensed or operated facilities. NEITHER SHALL ANYTHING IN
THIS SECTION PREVENT THE EXCHANGE OF INFORMATION CONCERNING PATIENTS OR
CLIENTS, INCLUDING IDENTIFICATION, BETWEEN FACILITIES AND MANAGED CARE
ORGANIZATIONS, BEHAVIORAL HEALTH ORGANIZATIONS, HEALTH HOMES OR OTHER
ENTITIES AUTHORIZED BY THE DEPARTMENT OR THE DEPARTMENT OF HEALTH TO
PROVIDE, ARRANGE FOR OR COORDINATE HEALTH CARE SERVICES FOR SUCH
PATIENTS OR CLIENTS WHO ARE ENROLLED IN OR RECEIVING SERVICES FROM SUCH
ORGANIZATIONS OR ENTITIES. Furthermore, subject to the prior approval of
the commissioner of mental health, hospital emergency services licensed
pursuant to article twenty-eight of the public health law shall be
authorized to exchange information concerning patients or clients elec-
tronically or otherwise with other hospital emergency services licensed
pursuant to article twenty-eight of the public health law and/or hospi-
tals licensed or operated by the office of mental health; provided that
such exchange of information is consistent with standards, developed by
the commissioner of mental health, which are designed to ensure confi-
S. 6407--B 62
dentiality of such information. Additionally, information so exchanged
shall be kept confidential and any limitations on the release of such
information imposed on the party giving the information shall apply to
the party receiving the information.
S 2. Subdivision (d) of section 33.13 of the mental hygiene law, as
amended by section 4 of part E of chapter 111 of the laws of 2010, is
amended to read as follows:
(d) Nothing in this section shall prevent the exchange of information
concerning patients or clients, including identification, between (i)
facilities or others providing services for such patients or clients
pursuant to an approved local services plan, as defined in article
forty-one, or pursuant to agreement with the department and (ii) the
department or any of its facilities. NEITHER SHALL ANYTHING IN THIS
SECTION PREVENT THE EXCHANGE OF INFORMATION CONCERNING PATIENTS OR
CLIENTS, INCLUDING IDENTIFICATION, BETWEEN FACILITIES AND MANAGED CARE
ORGANIZATIONS, BEHAVIORAL HEALTH ORGANIZATIONS, HEALTH HOMES OR OTHER
ENTITIES AUTHORIZED BY THE DEPARTMENT OR THE DEPARTMENT OF HEALTH TO
PROVIDE, ARRANGE FOR OR COORDINATE HEALTH CARE SERVICES FOR SUCH
PATIENTS OR CLIENTS WHO ARE ENROLLED IN OR RECEIVING SERVICES FOR SUCH
ORGANIZATIONS OR ENTITIES. Information so exchanged shall be kept confi-
dential and any limitations on the release of such information imposed
on the party giving the information shall apply to the party receiving
the information.
S 3. This act shall take effect immediately; provided that the amend-
ments to subdivision (d) of section 33.13 of the mental hygiene law made
by section one of this act shall be subject to the expiration and rever-
sion of such subdivision pursuant to section 18 of chapter 408 of the
laws of 1999, as amended, when upon such date the provisions of section
two of this act shall take effect.
PART N
Section 1. Subdivision 10 of section 3 of section 1 of chapter 359 of
the laws of 1968, constituting the facilities development corporation
act, as amended by chapter 723 of the laws of 1993, is amended to read
as follows:
10. "Mental hygiene facility" shall mean a building, a unit within a
building, a laboratory, a classroom, a housing unit, a dining hall, an
activities center, a library, real property of any kind or description,
or any structure on or improvement to real property, or an interest in
real property, of any kind or description, owned by or under the juris-
diction of the corporation, including fixtures and equipment which are
an integral part of any such building, unit, structure or improvement, a
walkway, a roadway or a parking lot, and improvements and connections
for water, sewer, gas, electrical, telephone, heating, air conditioning
and other utility services, or a combination of any of the foregoing,
whether for patient care and treatment or staff, staff family or service
use, located at or related to any psychiatric center, any developmental
center, or any state psychiatric or research institute or other facility
now or hereafter established under the department. A mental hygiene
facility shall also mean and include a residential care center for
adults, a "community mental health and retardation facility" and a
treatment facility for use in the conduct of an alcoholism or substance
abuse treatment program as defined in the mental hygiene law unless such
residential care center for adults, community mental health and retarda-
tion facility or alcoholism or substance abuse facility is expressly
S. 6407--B 63
excepted, or the context clearly requires otherwise, AND SHALL ALSO MEAN
AND INCLUDE ANY TREATMENT FACILITY FOR USE IN THE CONDUCT OF AN ALCOHOL-
ISM OR SUBSTANCE ABUSE TREATMENT PROGRAM THAT IS ALSO OPERATED AS AN
ASSOCIATED HEALTH CARE FACILITY. The definition contained in this subdi-
vision shall not be construed to exclude therefrom a facility owned or
leased by one or more voluntary agencies that is to be financed, refi-
nanced, designed, constructed, acquired, reconstructed, rehabilitated or
improved under any lease, sublease, loan or other financing agreement
entered into with such voluntary agencies, and shall not be construed to
exclude therefrom a facility to be made available from the corporation
to a voluntary agency at the request of the commissioners of the offices
of the department having jurisdiction thereof. The definition contained
in this subdivision shall not be construed to exclude therefrom a facil-
ity with respect to which a voluntary agency has an ownership interest
in, and proprietary lease from, an organization formed for the purpose
of the cooperative ownership of real estate.
S 2. Section 3 of section 1 of chapter 359 of the laws of 1968,
constituting the facilities development corporation act, is amended by
adding a new subdivision 20 to read as follows:
20. "ASSOCIATED HEALTH CARE FACILITY" SHALL MEAN A FACILITY LICENSED
UNDER AND OPERATED PURSUANT TO ARTICLE 28 OF THE PUBLIC HEALTH LAW OR
ANY HEALTH CARE FACILITY LICENSED UNDER AND OPERATED IN ACCORDANCE WITH
ANY OTHER PROVISIONS OF THE PUBLIC HEALTH LAW OR THE MENTAL HYGIENE LAW
THAT PROVIDES HEALTH CARE SERVICES AND/OR TREATMENT TO ALL PERSONS,
REGARDLESS OF WHETHER SUCH PERSONS ARE PERSONS RECEIVING TREATMENT OR
SERVICES FOR ALCOHOL, SUBSTANCE ABUSE, OR CHEMICAL DEPENDENCY.
S 3. This act shall take effect immediately.
PART O
Section 1. Section 13.17 of the mental hygiene law is amended by
adding two new subdivisions (d) and (e) to read as follows:
(D) THE COMMISSIONER SHALL NOT UNDERTAKE ANY ACTION DESIGNED TO CLOSE,
CONSOLIDATE, REDUCE, TRANSFER OR LIMIT THE CENSUS OF STATE OPERATED
INDIVIDUALIZED RESIDENTIAL ALTERNATIVES (IRA) AS PART OF THE TWO THOU-
SAND SIXTEEN-TWO THOUSAND SEVENTEEN FISCAL YEAR PLAN.
(E) THE COMMISSIONER SHALL ESTABLISH POLICY AND PROCEDURES TO ADDRESS
THE INDIVIDUALS AWAITING SERVICES AND EXPAND STATE OPERATED SERVICES
THAT ARE COMPATIBLE WITH THE HEALTH, SAFETY AND PROGRAMMATIC NEEDS OF
PERSONS REQUESTING SERVICES ON SUCH WAITLIST WITHIN EACH DEVELOPMENTAL
DISABILITY SERVICES OFFICE'S GEOGRAPHIC AREA INCLUDING RESIDENTIAL
PLACEMENT, RESPITE AND OTHER REQUESTED SERVICES.
S 2. This act shall take effect immediately.
PART P
Section 1. Paragraph (f) of subdivision 1 of section 209 of the elder
law, as amended by section 41 of part A of chapter 58 of the laws of
2010, is amended to read as follows:
(f) "Naturally occurring retirement community" shall mean an apartment
building or housing complex which:
(1) was constructed with government assistance;
(2) was not originally built for older adults;
(3) does not restrict admissions solely to older adults;
S. 6407--B 64
(4) at least fifty percent of the units have an occupant who is an
older adult or in which at least twenty-five hundred of the residents
are older adults; and
(5) a majority of the older adults to be served are low or moderate
income, as defined by the United States Department of Housing and Urban
Development.
PROGRAMS ESTABLISHED AND PROVIDING SERVICES ON MARCH FIRST, TWO THOU-
SAND SIXTEEN SHALL NOT BE SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH FOUR
OF THIS PARAGRAPH REQUIRING THAT AT LEAST FIFTY PERCENT OF THE UNITS
HAVE AN OCCUPANT WHO IS AN OLDER ADULT OR AT LEAST TWENTY-FIVE HUNDRED
OF THE RESIDENTS WHO ARE OLDER ADULTS, UNTIL JUNE THIRTIETH, TWO THOU-
SAND SEVENTEEN.
S 2. Paragraph (a) of subdivision 5-a of section 209 of the elder law,
as amended by section 41 of part A of chapter 58 of the laws of 2010, is
amended to read as follows:
(a) the term Neighborhood NORC as used in this subdivision shall mean
and refer to a residential dwelling or group of residential dwellings in
a geographically defined neighborhood of a municipality containing not
more than two thousand persons who are older adults reside in at least
forty percent of the units and which is made up of low-rise buildings
six stories or less in height and/or single and multi-family homes and
which area was not originally developed for older adults, and which does
not restrict admission strictly to older adults. HOWEVER, PROGRAMS
ESTABLISHED AND PROVIDING SERVICES ON MARCH FIRST, TWO THOUSAND SIXTEEN
SHALL NOT BE SUBJECT TO THE REQUIREMENT THAT NOT MORE THAN TWO THOUSAND
PERSONS WHO ARE OLDER ADULTS RESIDE IN AT LEAST FORTY PERCENT OF THE
UNITS, UNTIL JUNE THIRTIETH, TWO THOUSAND SEVENTEEN;
S 3. Section 209 of the elder law is amended by adding two new subdi-
visions 9 and 10 to read as follows:
9. ON OR BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, THE DIRECTOR,
AFTER CONSULTATION WITH APPROPRIATE STAKEHOLDERS, SHALL REPORT TO THE
GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE FINANCE COMMITTEE OF THE SENATE AND THE WAYS AND MEANS
COMMITTEE OF THE ASSEMBLY CONCERNING THE OVERALL EFFECTIVENESS OF THE
NATURALLY OCCURRING RETIREMENT COMMUNITY SUPPORTIVE SERVICES PROGRAM,
AND THE NEIGHBORHOOD NORCS IN ACHIEVING THE OBJECTIVES SET FORTH BY THIS
SECTION, WHICH INCLUDE: HELPING TO ADDRESS THE NEEDS OF RESIDENTS IN
SUCH NATURALLY OCCURRING RETIREMENT COMMUNITIES AND NEIGHBORHOOD
NATURALLY OCCURRING RETIREMENT COMMUNITIES; ASSURING ACCESS TO A CONTIN-
UUM OF NECESSARY SERVICES; INCREASING PRIVATE, PHILANTHROPIC AND OTHER
PUBLIC FUNDING FOR PROGRAMS; AND PREVENTING UNNECESSARY HOSPITAL AND
NURSING HOME STAYS.
THE REPORT SHALL INCLUDE AN EVALUATION AND RECOMMENDATIONS CONCERNING
THE CONTINUATION, ELIMINATION OR MODIFICATION OF SUCH PROGRAMS. AREAS OF
EVALUATION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
(A) THE NUMBER, SIZE, TYPE AND LOCATION OF THE PROJECTS DEVELOPED AND
FUNDED, INCLUDING THE NUMBER, KINDS AND FUNCTIONS OF STAFF IN EACH
PROGRAM;
(B) INFORMATION REGARDING THE SOURCES AND ADEQUACY OF FUNDING FOR EACH
PROGRAM;
(C) THE AGE, SEX, INCOME AND OTHER APPROPRIATE DEMOGRAPHIC INFORMATION
CONCERNING THE RESIDENTS SERVED;
(D) THE SERVICES PROVIDED TO RESIDENTS, REPORTED IN SUCH A MANNER AS
TO ALLOW COMPARISON OF SERVICES BY DEMOGRAPHIC GROUP AND REGION;
(E) A LISTING OF THE SERVICES PROVIDED BY ELIGIBLE APPLICANTS, INCLUD-
ING THE NUMBER, KIND AND INTENSITY OF SUCH SERVICES;
S. 6407--B 65
(F) A LISTING OF OTHER ORGANIZATIONS PROVIDING SERVICES, THE NUMBER,
KIND AND INTENSITY OF SUCH SERVICES, THE NUMBER OF REFERRALS TO SUCH
ORGANIZATIONS AND, TO THE EXTENT PRACTICABLE, THE OUTCOMES OF SUCH
REFERRALS;
(G) A DESCRIPTION OF THE DEVELOPMENT OF EACH OF THE PROGRAMS OVER THE
PREVIOUS FIVE YEARS;
(H) A DESCRIPTION OF THE COORDINATION OF SERVICES WITH THE LOCAL AREA
AGENCY ON AGING; AND
(I) ANY IDENTIFIED AREAS OF CONCERN RELATED TO SUCH PROGRAMS.
10. IN ORDER TO PREVENT THE DESTABILIZATION OF THE NORC AND NEIGHBOR-
HOOD NORC PROGRAMS AND TO PREVENT SENIORS FROM LOSING ESSENTIAL
SERVICES, ALL PROGRAMS THAT ARE PROVIDING SERVICES AS OF MARCH FIRST,
TWO THOUSAND SIXTEEN SHALL HAVE THEIR CONTRACTS EXTENDED UNTIL JUNE
THIRTIETH, TWO THOUSAND SEVENTEEN, UNLESS GOOD CAUSE CAN BE SHOWN AS TO
WHY SUCH CONTRACTS SHOULD NOT BE EXTENDED.
S 4. Paragraph (b) of subdivision 14 and subdivision 15 of section 202
of the elder law, paragraph (b) of subdivision 14 as amended and subdi-
vision 15 as added by chapter 263 of the laws of 2011, are amended and a
new subdivision 16 is added to read as follows:
(b) make recommendations, in consultation with the division of housing
and community renewal, to the governor and legislature for assisting
mixed-use age-integrated housing development or redevelopment demon-
stration projects in urban, suburban and rural areas of the state. The
director of the office for the aging and secretary of state shall estab-
lish an advisory committee for purposes of this subdivision. Such
committee shall include, but not be limited to, top representatives of
local government, senior citizen organizations, developers, senior
service providers and planners; [and]
15. to periodically, in consultation with the state director of
[veteran's] VETERANS' affairs, review the programs operated by the
office to ensure that the needs of the state's aging veteran population
are being met and to develop improvements to programs to meet such
needs[.]; AND
16. TO THE EXTENT APPROPRIATIONS ARE AVAILABLE, AND IN CONSULTATION
WITH THE OFFICE OF CHILDREN AND FAMILY SERVICES, CONDUCT A PUBLIC EDUCA-
TION CAMPAIGN THAT EMPHASIZES ZERO-TOLERANCE FOR ELDER ABUSE. SUCH
CAMPAIGN SHALL INCLUDE INFORMATION ABOUT THE SIGNS AND SYMPTOMS OF ELDER
ABUSE, IDENTIFICATION OF POTENTIAL CAUSES OF ELDER ABUSE, RESOURCES
AVAILABLE TO ASSIST IN THE PREVENTION OF ELDER ABUSE, WHERE SUSPECTED
ELDER ABUSE CAN BE REPORTED, CONTACT INFORMATION FOR PROGRAMS OFFERING
SERVICES TO VICTIMS OF ELDER ABUSE SUCH AS COUNSELING, AND ASSISTANCE
WITH ARRANGING PERSONAL CARE AND SHELTER. SUCH CAMPAIGN MAY INCLUDE,
BUT NOT BE LIMITED TO: PRINTED EDUCATIONAL AND INFORMATIONAL MATERIALS;
AUDIO, VIDEO, ELECTRONIC, OTHER MEDIA; AND PUBLIC SERVICE ANNOUNCEMENTS
OR ADVERTISEMENTS.
S 5. The public health law is amended by adding a new article 19 to
read as follows:
ARTICLE 19
ELDER ABUSE AND MALTREATMENT SCREENING
SECTION 1900. LEGISLATIVE PURPOSE.
1901. ELDER ABUSE AND MALTREATMENT SCREENING.
S 1900. LEGISLATIVE PURPOSE. THE CORRELATION BETWEEN ELDER ABUSE AND
MALTREATMENT WITH INCREASED HOSPITALIZATIONS, ADMISSIONS AND MORTALITY
HIGHLIGHTS THE NEED FOR INCREASED MEDICAL INTERVENTIONS, PARTICULARLY AS
NEW YORK CONTINUES TO IMPLEMENT NATIONAL HEALTHCARE REFORM INITIATIVES.
A SCREENING TOOL, TO BE UTILIZED BY MEDICAL PROFESSIONALS AT IMPORTANT
S. 6407--B 66
JUNCTURES IN THE LIVES OF THOSE SIXTY YEARS OF AGE AND OLDER, PRESENTS A
SIGNIFICANT OPPORTUNITY FOR TRUSTED MEDICAL PROVIDERS TO HELP IDENTIFY
HIGH RISK PATIENTS AND HELP TO ENSURE THEIR CONTINUED HEALTH AND SAFETY.
S 1901. ELDER ABUSE AND MALTREATMENT SCREENING. 1. THE COMMISSIONER
SHALL ESTABLISH A SCREENING TOOL TO IDENTIFY ABUSE IN ELDERLY INDIVID-
UALS. PHYSICIANS, PHYSICIAN ASSISTANTS AND NURSE PRACTITIONERS MAY USE
THE TOOL TO ASSIST IN IDENTIFYING ABUSE OR MALTREATMENT IN THEIR ELDERLY
PATIENTS DURING THE COURSE OF TREATMENT INCLUDING, BUT NOT LIMITED TO,
ANNUAL PHYSICAL EXAMS OR AS PART OF PATIENT SCREENING UNDER THE UNIFORM
ASSESSMENT SYSTEM FOR LONG TERM CARE AS ESTABLISHED BY THE DEPARTMENT.
2. THE SCREENING TOOL SHALL INCLUDE, BUT NOT BE LIMITED TO:
A. A UNIFORM INTERVENTION QUESTIONNAIRE WITH A COMMON SCALE THAT CAN
BE USED ACROSS HEALTH CARE ENVIRONMENTS AND POPULATIONS TO ASSIST IN THE
IDENTIFICATION OF HIGH RISK PATIENTS;
B. QUESTIONS THAT CAN BE USED FOR BOTH COGNITIVELY INTACT AS WELL AS
COGNITIVELY IMPAIRED INDIVIDUALS;
C. STANDARDIZED INTERVENTION PROTOCOLS INCLUDING SPECIFIC LANGUAGE AND
UNIFORM DEFINITIONS OF PHYSICAL, SEXUAL, EMOTIONAL, AND PSYCHOLOGICAL
ABUSE, IN ADDITION TO, NEGLECT, ABANDONMENT, FINANCIAL OR MATERIAL
EXPLOITATION, SELF-NEGLECT AND UNWARRANTED CONTROL;
D. A LIST OF RESOURCES TO ADDRESS THE NEEDS OF PATIENTS IDENTIFIED AS
BEING VICTIMS OF ABUSE; AND
E. DOCUMENTATION IN A REPORTABLE FORMAT THAT MAY BE USED BY THE PRAC-
TITIONER TO REPORT SUSPECTED ELDER ABUSE AND MALTREATMENT CASES TO THE
DEPARTMENT FOR THE PURPOSES OF TRACKING PREVALENCE.
3. THE SCREENING TOOL SHALL BE CULTURALLY AND LINGUISTICALLY APPROPRI-
ATE IN ACCORDANCE WITH RULES AND REGULATIONS PROMULGATED BY THE COMMIS-
SIONER.
4. PATIENTS SHALL NOT BE REQUIRED TO BE SUBJECT TO SCREENING IF THEY
REFUSE TO PARTICIPATE OR ARE IN AN URGENT OR EMERGENT SITUATION.
5. THIS SECTION SHALL NOT AFFECT THE SCOPE OF PRACTICE OF ANY HEALTH
CARE PRACTITIONER OR DIMINISH ANY AUTHORITY OR LEGAL OR PROFESSIONAL
OBLIGATIONS OF ANY HEALTH CARE PRACTITIONER.
6. THE COMMISSIONER SHALL PROMULGATE ANY RULES AND REGULATIONS NECES-
SARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
S 6. Subdivision 1 of section 473 of the social services law, as
amended by chapter 395 of the laws of 1995, is amended to read as
follows:
1. In addition to services provided by social services officials
pursuant to other provisions of this chapter, such officials shall
provide protective services in accordance with federal and state regu-
lations to or for individuals without regard to income who[, because of
mental or physical impairments,] are unable to manage their own
resources, carry out the activities of daily living, or protect them-
selves from physical abuse, sexual abuse, emotional abuse, active,
passive or self neglect, financial exploitation or other hazardous situ-
ations without assistance from others and have no one available who is
willing and able to assist them responsibly. Such services shall
include:
(a) receiving and investigating reports of seriously impaired individ-
uals who may be in need of protection;
(b) arranging for medical and psychiatric services to evaluate and
whenever possible to safeguard and improve the circumstances of those
with serious impairments;
(c) arranging, when necessary, for commitment, guardianship, or other
protective placement of such individuals either directly or through
S. 6407--B 67
referral to another appropriate agency, provided, however, that where
possible, the least restrictive of these measures shall be employed
before more restrictive controls are imposed;
(d) providing services to assist such individuals to move from situ-
ations which are, or are likely to become, hazardous to their health and
well-being;
(e) cooperating and planning with the courts as necessary on behalf of
individuals with serious mental impairments; and
(f) other protective services for adults included in the regulations
of the department.
S 7. Section 473 of the social services law is amended by adding a new
subdivision 9 to read as follows:
9. (A) WITHIN AMOUNTS APPROPRIATED THEREFOR, THE OFFICE OF CHILDREN
AND FAMILY SERVICES, IN CONJUNCTION WITH THE OFFICE FOR THE AGING, THE
DEPARTMENT OF LAW, THE OFFICE FOR THE PREVENTION OF DOMESTIC VIOLENCE,
THE DIVISION OF CRIMINAL JUSTICE SERVICES, AND THE NEW YORK STATE
DEPARTMENT OF HEALTH, SHALL CREATE AND ESTABLISH AN INTERAGENCY CLEAR-
INGHOUSE FOR THE REPORTING OF CASES INVOLVING PHYSICAL ABUSE, SEXUAL
ABUSE, EMOTIONAL ABUSE, ACTIVE, PASSIVE OR SELF NEGLECT, FINANCIAL
EXPLOITATION AS DEFINED IN SUBDIVISION SIX OF THIS SECTION, OR OTHER
HAZARDOUS SITUATIONS THAT CAN REASONABLY BE EXPECTED TO JEOPARDIZE THE
HEALTH AND WELFARE OF AN INDIVIDUAL. THE INTERAGENCY CLEARINGHOUSE SHALL
OPERATE AND MAINTAIN A CENTRAL DATABASE TO RECEIVE REPORTS OF ALLEGA-
TIONS OF REPORTABLE INCIDENTS TWENTY-FOUR HOURS PER DAY, SEVEN DAYS A
WEEK. REPORTS OF ALLEGATIONS OF REPORTABLE INCIDENTS SHALL BE SUBMITTED,
BY A STATEWIDE, TOLL-FREE TELEPHONE NUMBER (A "HOTLINE") OR BY ELECTRON-
IC TRANSMISSION, IN A MANNER AND ON FORMS PRESCRIBED BY THE COMMISSIONER
FOR THE OFFICE OF CHILDREN AND FAMILY SERVICES. THE HOTLINE SHALL ACCEPT
ANONYMOUS CALLS.
(B) WHEN ANY ALLEGATION THAT COULD REASONABLY CONSTITUTE A REPORTABLE
INCIDENT IS RECEIVED BY THE CLEARINGHOUSE, THE CLEARINGHOUSE SHALL
ACCEPT AND IMMEDIATELY TRANSMIT NOTICE OF THE REPORT ORALLY AND ELEC-
TRONICALLY TO ANY APPROPRIATE STATE AGENCIES OR LOCAL SOCIAL SERVICES
OFFICES. WHENEVER A TELEPHONE CALL OR ELECTRONIC TRANSMISSION TO THE
CLEARINGHOUSE ALLEGES AN ACT OR CIRCUMSTANCES THAT MAY CONSTITUTE A
CRIMINAL OFFENSE OR AN IMMEDIATE THREAT TO AN INDIVIDUAL'S HEALTH, SAFE-
TY OR WELFARE, THE CLEARINGHOUSE SHALL CONVEY, BY THE MOST EXPEDIENT
MEANS AVAILABLE, THE INFORMATION CONTAINED IN SUCH CALL OR TRANSMISSION
TO THE APPROPRIATE LAW ENFORCEMENT AGENCY OR DISTRICT ATTORNEY AND, TO
THE EXTENT NECESSARY, THE APPROPRIATE EMERGENCY RESPONDER, AND THE RELE-
VANT STATE AGENCY OR LOCAL SOCIAL SERVICES OFFICE.
(C) THE CLEARINGHOUSE SHALL:
(1) UPON ACCEPTANCE OF A REPORT PROMPTLY FORWARD THE COMPLAINT TO THE
APPROPRIATE SOCIAL SERVICES AGENCY OR LAW ENFORCEMENT ENTITY;
(2) TAKE ALL APPROPRIATE MEASURES TO PROTECT THE LIFE AND HEALTH OF
THE PERSON WHO IS THE ALLEGED VICTIM OF A REPORTABLE INCIDENT, WHICH MAY
INCLUDE WORKING WITH OTHER STATE AGENCIES, OR IF THERE IS REASONABLE
CAUSE TO BELIEVE THAT THERE IS AN IMMINENT DANGER TO THE ALLEGED VICTIM
PROMPTLY FORWARD THE COMPLAINT TO THE DISTRICT ATTORNEY OR LAW ENFORCE-
MENT;
(3) IF A REPORT OF A REPORTABLE INCIDENT TO THE REGISTRY INVOLVES THE
DEATH OF A PERSON, THE CLEARINGHOUSE SHALL GIVE TELEPHONE NOTICE AND
IMMEDIATELY SEND A COPY OF THE REPORT TO THE APPROPRIATE DISTRICT ATTOR-
NEY AND TO THE MEDICAL EXAMINER OR CORONER;
(4) MAINTAIN AND KEEP UP TO DATE RECORDS OF ALL INCIDENTS REPORTED TO
THE CLEARINGHOUSE WITH DOCUMENTED MEASURES TAKEN TO FORWARD TO THE
S. 6407--B 68
APPROPRIATE AUTHORITIES GIVEN THE CIRCUMSTANCES OF THE ALLEGED CASE.
LOCAL SOCIAL SERVICES ENTITIES SHALL BE REQUIRED TO SUBMIT DOCUMENTATION
TO THE CLEARINGHOUSE UPON COMPLETION OF AN INVESTIGATION INDICATING
OFFICIAL FINDINGS, MEASURES TAKEN, AND OFFICIAL DISPOSITION OF THE
REPORT; AND
(5) WHENEVER A TELEPHONE CALL OR ELECTRONIC TRANSMISSION TO THE CLEAR-
INGHOUSE CANNOT BE ACCEPTED AS A REPORT, BUT THE INFORMATION PROVIDED
ALLEGES OTHER POTENTIAL WRONGDOING, THE CLEARINGHOUSE SHALL FORWARD THE
REPORT TO THE APPLICABLE STATE OVERSIGHT AGENCY FOR INVESTIGATION AND
PROTECTIVE ACTIONS.
(D) THE REGISTRY SHALL MAINTAIN AN ELECTRONIC DATABASE OF ALL ACCEPTED
REPORTS. WHILE LOCAL AGENCIES SHALL RETAIN THE PRIMARY RESPONSIBILITY
FOR INVESTIGATION AND THE PROVISION OF SERVICES, THE CLEARINGHOUSE SHALL
MAINTAIN RECORDS DOCUMENTING INITIAL COMPLAINTS AS WELL AS DOCUMENTATION
SUBMITTED BY THE LOCAL SOCIAL SERVICE ENTITIES INDICATING OFFICIAL FIND-
INGS, MEASURES TAKEN, AND THE OFFICIAL DISPOSITION OF THE REPORT.
(E) THE CLEARINGHOUSE SHALL TAKE REASONABLE STEPS TO MAINTAIN CONFI-
DENTIALITY OF ALL REPORTS INCLUDING, BUT NOT LIMITED TO THE USE OF A
UNIQUE IDENTIFIER ASSIGNED TO EACH REPORT BY THE CLEARINGHOUSE.
S 8. Article 9-B of the social services law is amended by adding a new
title 4 to read as follows:
TITLE 4
ELDER ABUSE
SECTION 473-M. ELDER ABUSE REPORTING.
S 473-M. ELDER ABUSE REPORTING. 1. WITHIN AMOUNTS APPROPRIATED THERE-
FOR, THE COMMISSIONER SHALL ESTABLISH A PROGRAM FOR THE DEVELOPMENT OF A
MULTIDISCIPLINARY INVESTIGATIVE TEAM OR TEAMS FOR THE PURPOSE OF INVES-
TIGATING REPORTS OF SUSPECTED ELDER ABUSE OR MALTREATMENT.
(A) THE PROGRAM SHALL PROVIDE THAT THE SOCIAL SERVICES DISTRICT SHALL
HAVE DISCRETION WITH REGARD TO THE CATEGORY OR CATEGORIES OF SUSPECTED
ELDER ABUSE OR MALTREATMENT SUCH TEAM OR TEAMS MAY INVESTIGATE,
PROVIDED, HOWEVER, THAT THE SOCIAL SERVICES DISTRICT SHALL PLACE PARTIC-
ULAR EMPHASIS ON CASES INVOLVING PHYSICAL ABUSE, SEXUAL ABUSE, EMOTIONAL
ABUSE, ACTIVE, PASSIVE OR SELF NEGLECT, AND FINANCIAL EXPLOITATION AS
DEFINED IN SUBDIVISION SIX OF SECTION FOUR HUNDRED SEVENTY-THREE OF THE
SOCIAL SERVICES LAW.
(B) MEMBERS OF MULTIDISCIPLINARY TEAMS SHALL INCLUDE BUT NOT BE LIMIT-
ED TO REPRESENTATIVES FROM THE FOLLOWING AGENCIES: ADULT PROTECTIVE
SERVICES, LAW ENFORCEMENT, THE DISTRICT ATTORNEY'S OFFICE, BANKS AND
FINANCIAL INSTITUTIONS, AS WELL AS FORENSIC ACCOUNTANTS, PHYSICIAN OR
MEDICAL PROVIDERS TRAINED IN ELDER ABUSE AND MALTREATMENT, MENTAL HEALTH
PROFESSIONALS, AND VICTIM ADVOCACY PERSONNEL. MEMBERS OF THE MULTIDISCI-
PLINARY TEAM PRIMARILY RESPONSIBLE FOR THE INVESTIGATION OF ELDER ABUSE
AND MALTREATMENT REPORTS, INCLUDING THOSE REPRESENTATIVES FROM ADULT
PROTECTIVE SERVICES, LAW ENFORCEMENT, AND THE DISTRICT ATTORNEY'S
OFFICE, SHALL PARTICIPATE IN JOINT INTERVIEWS AND CONDUCT INVESTIGATIVE
FUNCTIONS CONSISTENT WITH THE MISSION OF THE PARTICULAR AGENCY MEMBER
INVOLVED. IT SHALL NOT BE REQUIRED THAT MEMBERS OF A MULTIDISCIPLINARY
TEAM NOT RESPONSIBLE FOR THE INVESTIGATION OF REPORTS PARTICIPATE IN
EVERY INVESTIGATION. SUCH OTHER MEMBERS SHALL PROVIDE VICTIM ADVOCACY,
EMOTIONAL SUPPORT, AND ACCESS TO MEDICAL AND MENTAL HEALTH CARE, WHERE
APPLICABLE.
(C) ALL MEMBERS, CONSISTENT WITH THEIR RESPECTIVE AGENCY MISSIONS AND
PROFESSIONS, SHALL FACILITATE EFFICIENT DELIVERY OF SERVICES TO VICTIMS
AND APPROPRIATE DISPOSITION OF CASES THROUGH THE CRIMINAL JUSTICE SYSTEM
IN A COLLABORATIVE MANNER. HOWEVER, NON-INVESTIGATIVE TEAM MEMBERS
S. 6407--B 69
SHALL NOTE THEIR SPECIFIC ROLE IN THE TEAM FOR REPORTS COVERED BY THIS
SECTION.
(D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
MEMBERS OF A MULTIDISCIPLINARY INVESTIGATIVE TEAM MAY SHARE WITH OTHER
TEAM MEMBERS CLIENT-IDENTIFIABLE INFORMATION CONCERNING THE VICTIM OR
THE VICTIM'S FAMILY TO FACILITATE THE INVESTIGATION OF SUSPECTED ELDER
ABUSE OR MALTREATMENT. NOTHING IN THIS SUBDIVISION SHALL PRECLUDE THE
CREATION OF MULTIDISCIPLINARY TEAMS WHICH INCLUDE MORE THAN ONE SOCIAL
SERVICES DISTRICT. EACH TEAM SHALL DEVELOP A WRITTEN PROTOCOL FOR INVES-
TIGATION OF ELDER ABUSE AND MALTREATMENT CASES AND FOR INTERVIEWING
ELDER ABUSE AND MALTREATMENT VICTIMS.
2. APPROVED PROJECTS SHALL SUBMIT A REPORT TO THE DIRECTOR OF THE
STATE OFFICE FOR THE AGING, WHO SHALL MAKE SUCH REPORTS AVAILABLE TO THE
MAJORITY LEADER OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE
CHAIRS OF THE AGING COMMITTEES OF THE SENATE AND ASSEMBLY, BY NOVEMBER
FIRST, TWO THOUSAND SIXTEEN, DOCUMENTING INITIAL FINDINGS OF THE MULTI-
DISCIPLINARY TEAM INVESTIGATIONS, INCLUDING, BUT NOT LIMITED TO:
(A) FINAL DISPOSITIONS OF CRIMINAL CASES THAT WERE INVESTIGATED AND
ASSISTED BY THE MULTIDISCIPLINARY TEAM, WITH APPROPRIATE CONFIDENTIALITY
MEASURES TAKEN TO PROTECT THE IDENTITIES OF VICTIMS AND THE ACCUSED;
(B) PHYSICAL AND MENTAL HEALTH OUTCOMES OF VICTIMS WHO WERE THE
SUBJECTS OF ELDER ABUSE AND MALTREATMENT CASES;
(C) FINANCIAL JUDGMENTS AND REPAYMENTS MADE AS A RESULT OF THE INVES-
TIGATION AND INTERVENTION OF THE MULTIDISCIPLINARY TEAM;
(D) NECESSARY MEASURES TAKEN TO ENSURE CROSS-COLLABORATION ACROSS
AGENCIES AND PROVIDERS; AND
(E) NECESSARY TRAINING THAT EACH SOCIAL SERVICES DISTRICT TOOK TO
TRAIN MEMBERS INCLUDING APPROPRIATE WAYS TO ASSESS RISK, IDENTIFY INDI-
CATORS OF ELDER ABUSE AND MALTREATMENT, AND CONDUCT APPROPRIATE INTER-
VIEWS.
S 9. Section 473 of the social services law is amended by adding a new
subdivision 9 to read as follows:
9. (A) AS USED IN THIS SUBDIVISION:
(I) "BANKING INSTITUTION" MEANS ANY STATE OR FEDERALLY CHARTERED BANK,
TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR, CREDIT
UNION.
(II) "VULNERABLE ADULT" MEANS AN INDIVIDUAL WHO BECAUSE OF MENTAL
AND/OR PHYSICAL IMPAIRMENT, IS UNABLE TO MANAGE HIS OR HER OWN
RESOURCES, OR PROTECT HIMSELF OR HERSELF FROM FINANCIAL EXPLOITATION.
(B) IF A BANKING INSTITUTION, SOCIAL SERVICES OFFICIAL OR LAW ENFORCE-
MENT AGENCY REASONABLY BELIEVES THAT FINANCIAL EXPLOITATION OF A VULNER-
ABLE ADULT HAS OCCURRED OR MAY OCCUR, THE BANKING INSTITUTION MAY, BUT
SHALL NOT BE REQUIRED TO, REFUSE ANY TRANSACTION REQUIRING THE DISBURSAL
OF MONEYS IN THE ACCOUNT OF:
(I) A VULNERABLE ADULT;
(II) WHICH A VULNERABLE ADULT IS A BENEFICIARY, INCLUDING TRUST AND
GUARDIANSHIP ACCOUNTS; AND
(III) A PERSON WHO IS SUSPECTED OF ENGAGING IN THE FINANCIAL EXPLOITA-
TION OF A VULNERABLE ADULT.
(C) A BANKING INSTITUTION MAY ALSO REFUSE TO DISBURSE MONEYS PURSUANT
TO THIS SUBDIVISION IF A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT
AGENCY PROVIDES INFORMATION TO SUCH INSTITUTION DEMONSTRATING THAT IT IS
REASONABLE TO BELIEVE THAT FINANCIAL EXPLOITATION OF A VULNERABLE ADULT
HAS OCCURRED OR MAY OCCUR.
(D) A BANKING INSTITUTION SHALL NOT BE REQUIRED TO REFUSE TO DISBURSE
FUNDS PURSUANT TO THIS SECTION. SUCH A REFUSAL SHALL BE IN THE BANKING
S. 6407--B 70
INSTITUTION'S DISCRETION, BASED ON THE INFORMATION AVAILABLE TO SUCH
INSTITUTION.
(E) ANY BANKING INSTITUTION WHICH REFUSES TO DISBURSE MONEYS PURSUANT
TO THIS SUBDIVISION SHALL:
(I) MAKE A REASONABLE EFFORT TO PROVIDE NOTICE, ORALLY OR IN WRITING,
TO ALL PARTIES AUTHORIZED TO TRANSACT BUSINESS ON THE ACCOUNT FROM WHICH
DISBURSEMENT WAS REFUSED; AND
(II) REPORT THE INCIDENT TO THE SOCIAL SERVICES OFFICIAL RESPONSIBLE
FOR ADMINISTERING ADULT PROTECTIVE SERVICES PURSUANT TO THIS ARTICLE FOR
THE AFFECTED VULNERABLE ADULT.
(F) THE REFUSAL TO DISBURSE MONEYS PURSUANT TO THIS SUBDIVISION SHALL
TERMINATE UPON THE EARLIER OF:
(I) THE TIME AT WHICH THE BANKING INSTITUTION IS SATISFIED THAT THE
DISBURSEMENT WILL NOT RESULT IN THE FINANCIAL EXPLOITATION OF A VULNER-
ABLE ADULT; OR
(II) THE ISSUANCE OF AN ORDER BY A COURT OF COMPETENT JURISDICTION,
DIRECTING THE DISBURSAL OF THE MONEYS.
(G) A BANKING INSTITUTION MAY PROVIDE ACCESS TO OR COPIES OF RECORDS
RELEVANT TO SUSPECTED FINANCIAL EXPLOITATION OF A VULNERABLE ADULT TO
LAW ENFORCEMENT AGENCIES AND SOCIAL SERVICES OFFICIALS RESPONSIBLE FOR
ADMINISTERING THE PROVISIONS OF THIS ARTICLE. SUCH RECORDS MAY INCLUDE
RELEVANT HISTORICAL RECORDS AND RECENT TRANSACTIONS RELATING TO
SUSPECTED FINANCIAL EXPLOITATION.
(H) A BANKING INSTITUTION OR AN EMPLOYEE OF SUCH AN INSTITUTION SHALL
BE IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR REFUSING
TO DISBURSE MONEYS OR DISBURSING MONEYS PURSUANT TO THIS SUBDIVISION,
AND FOR ACTIONS TAKEN IN FURTHERANCE OF THAT DETERMINATION, INCLUDING
THE MAKING OF A REPORT OR THE PROVIDING OF ACCESS TO OR COPIES OF RELE-
VANT RECORDS TO A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT AGENCY, IF
SUCH DETERMINATIONS AND ACTIONS WERE MADE IN GOOD FAITH AND IN ACCORD-
ANCE WITH THE PROVISIONS OF THIS SUBDIVISION.
S 10. Section 4 of the banking law is amended by adding a new subdivi-
sion 4 to read as follows:
4. A BANKING INSTITUTION OR AN EMPLOYEE OF SUCH AN INSTITUTION SHALL
BE IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR REFUSING
TO DISBURSE MONEYS OR DISBURSING MONEYS PURSUANT TO SUBDIVISION NINE OF
SECTION FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL SERVICES LAW, AND FOR
ACTIONS TAKEN IN FURTHERANCE OF THAT DETERMINATION, INCLUDING THE MAKING
OF A REPORT OR THE PROVIDING OF ACCESS TO OR COPIES OF RELEVANT RECORDS
TO A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT AGENCY, IF SUCH DETER-
MINATIONS AND ACTIONS WERE MADE IN GOOD FAITH AND IN ACCORDANCE WITH
SUBDIVISION NINE OF SECTION FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL
SERVICES LAW. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "BANKING INSTI-
TUTION" SHALL MEAN ANY STATE OR FEDERALLY CHARTERED BANK, TRUST COMPANY,
SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR, CREDIT UNION.
S 11. This act shall take effect immediately; provided, however, that
sections six and seven of this act shall take effect on the ninetieth
day after this act shall have become a law; and provided, further that
sections nine and ten of this act shall take effect on the one hundred
eightieth day after this act shall have become a law.
PART Q
Section 1. Legislative intent. The legislature hereby supports
increasing access to integrated employment settings for individuals with
developmental disabilities. The legislature additionally finds, however,
S. 6407--B 71
that there is no one-size fits all solution, and people who cannot or
choose not to participate in community employment should have access to
services and other activities that will offer each individual the chance
to be engaged in his or her community.
S 2. Section 13.41 of the mental hygiene law, as added by section 1 of
part E of chapter 60 of the laws of 2014, is amended by adding 5 new
subdivisions (d), (e), (f), (g) and (h) to read as follows:
(D) NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN AND
ANNUALLY THEREAFTER THE OFFICE SHALL REPORT ON THE OVERALL TRANSITION OF
SHELTERED WORKSHOPS TO INTEGRATED EMPLOYMENT SETTINGS, ITS IMPACT ON
WORKSHOP PROVIDERS, INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES THAT ARE
EMPLOYED IN SUCH WORKSHOPS, THEIR FAMILIES AND THE IMPACT INTEGRATED
EMPLOYMENT WILL HAVE ON GOVERNMENT BENEFITS FOR INDIVIDUALS WITH DEVEL-
OPMENTAL DISABILITIES.
(E) INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES THAT WERE EMPLOYED IN
SHELTERED WORKSHOPS ON OR AFTER JULY FIRST, TWO THOUSAND THIRTEEN WHO
ARE UNABLE OR NOT INTERESTED IN WORKING IN AN INTEGRATED PROVIDER-OWNED
BUSINESS, FORMERLY KNOWN AS A SHELTERED WORKSHOP, OR A PRIVATE BUSINESS
IN THE COMMUNITY, SHALL BE AFFORDED THE OPTION OF RECEIVING OTHER OFFICE
SERVICES, INCLUDING, BUT NOT LIMITED TO PATHWAY TO EMPLOYMENT AND COMMU-
NITY PREVOCATIONAL SERVICES THAT FOCUS ON:
(1) ASSESSMENT OF THE INDIVIDUAL'S SKILLS, INCLUDING BUT NOT LIMITED
TO HIS OR HER SOCIAL BEHAVIOR, ABILITY TO HANDLE STRESS, WILLINGNESS TO
WORK WITH OTHERS, ETC.; JOB PERFORMANCE AS JUDGED BY ATTENDANCE, PUNCTU-
ALITY, HYGIENE AND GROOMING, ETC.; COMMUNICATION SKILLS; WORK ETHIC,
TAKING INTO ACCOUNT SUCH FACTORS AS, MOTIVATION, INITIATIVE, FOCUS,
ETC.; INTERESTS, LIKES, DISLIKES, WANTS, DREAMS, AND OTHER FACTORS;
(2) ASSESSMENT OF THE INDIVIDUAL'S SITUATION: INCLUDING BUT NOT LIMIT-
ED TO TRANSPORTATION NEEDS, FAMILY SUPPORTS, PHYSICAL AND MENTAL HEALTH,
SAFETY, ETC.; AND
(3) CREATION OF OPPORTUNITIES TO EXPLORE DIFFERENT COMMUNITY AND
VOLUNTEER EXPERIENCES TO OBTAIN INFORMATION THAT WILL BE USED TO CREATE
A PERSON-CENTERED TRANSITION PLAN.
(F) DAY HABILITATION, COMMUNITY HABILITATION AND SELF-DIRECTION SHALL
BE AVAILABLE TO ASSIST INDIVIDUALS INTERESTED IN PARTICIPATING IN VOLUN-
TEER, RETIREMENT AND OTHER MEANINGFUL COMMUNITY ACTIVITIES.
(G) FOR PEOPLE WHO ARE OLDER AND INTERESTED IN RETIREMENT, CURRENT
RESOURCES SHALL BE USED TO CONNECT THEM TO RETIREMENT RELATED ACTIV-
ITIES. PROVIDERS OF SERVICES SHALL HAVE THE OPTION OF USING DAY HABILI-
TATION OR COMMUNITY HABILITATION FUNDING TO SUPPORT INDIVIDUALS WHO ARE
INTERESTED IN PARTICIPATING IN SENIOR CENTERS, COMMUNITY CENTERS AND
OTHER LOCAL ACTIVITIES FOR RETIREES.
(H) THE OFFICE SHALL ANNUALLY REQUIRE THE SERVICE PROVIDER IN CONJUNC-
TION WITH THE INDIVIDUAL AND THEIR PLANNING TEAM TO REVIEW EACH INDIVID-
UAL'S WORKSHOP TRANSITION PLAN TO ASSESS WHETHER HE OR SHE IS RECEIVING
THE APPROPRIATE SERVICES TO SUPPORT HIS OR HER EMPLOYMENT AND MEANINGFUL
ACTIVITY GOALS AS PART OF THE PERSON-CENTERED PLANNING PROCESS AND INDI-
VIDUALIZED SERVICE PLAN. ANY NECESSARY CHANGES IN SERVICE AUTHORIZATION
SHALL BE REVIEWED BY THE REGIONAL OFFICE AND APPROVED AS APPROPRIATE.
S 3. This act shall take effect immediately, provided that subdivision
(d) of section 13.41 of the mental hygiene law as added by section two
of this act shall expire and be deemed repealed on January 1, 2020.
PART R
S. 6407--B 72
Section 1. Subdivision 1 of section 206 of the public health law is
amended by adding a new paragraph (v) to read as follows:
(V) ESTABLISH AN OFFICE OF ACCOUNTABILITY WITHIN THE DEPARTMENT. THE
OFFICE OF ACCOUNTABILITY SHALL BE RESPONSIBLE FOR ENSURING ALL WORK-
GROUPS REQUIRED UNDER THIS CHAPTER ARE TIMELY CONVENED AND ALL REPORTS
REQUIRED UNDER THIS CHAPTER ARE TIMELY DISTRIBUTED. THE OFFICE SHALL
REVIEW AND REPORT TO THE LEGISLATURE BY JANUARY FIRST, TWO THOUSAND
SEVENTEEN, AND ANNUALLY THEREAFTER, ON THE FOLLOWING:
(1) THE DATE EACH STATUTORILY REQUIRED REPORT WAS DISTRIBUTED, AND TO
WHOM IT WAS DISTRIBUTED;
(2) ANY REPORTS THAT WERE REQUIRED BY LAW AND NOT PROVIDED, WITH AN
EXPLANATION OF WHY SUCH REPORT WAS NOT PROVIDED;
(3) RECOMMENDATIONS FOR STREAMLINING REPORTING REQUIREMENTS WHICH MAY
INCLUDE RECOMMENDED STATUTORY AMENDMENTS TO MAKE REPORT DEADLINES AND
RECIPIENTS MORE CONSISTENT, TO PROVIDE THE REPORTS IN ELECTRONIC FORMAT,
TO CONSOLIDATE ANY RELATED REPORTING REQUIREMENTS, OR TO REPEAL REPORT-
ING REQUIREMENTS NO LONGER DEEMED NECESSARY;
(4) ALL CURRENTLY ACTIVE WORKGROUPS, AD HOC WORKGROUPS, ADVISORY
COMMITTEES OR TASKFORCES THE DEPARTMENT IS RUNNING OR ENGAGED IN EITHER
DIRECTLY OR IN COMBINATION WITH OTHER AGENCIES OR DEPARTMENTS AND THE
STATUS OF EACH SUCH GROUP; AND
(5) ANY STATUTORILY REQUIRED WORKGROUP THAT HAS NOT MET WITHIN THE
LAST YEAR, WITH AN EXPLANATION OF WHY THIS GROUP IS INACTIVE, WHICH MAY
INCLUDE A RECOMMENDATION TO REPEAL THE WORKGROUP IF THE PURPOSE OF THE
GROUP HAVE BEEN FULFILLED.
THIS REPORT MAY BE PROVIDED ELECTRONICALLY AND SHALL BE PROVIDED TO THE
TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE
SENATE STANDING COMMITTEE ON HEALTH, AND THE CHAIR OF THE ASSEMBLY
HEALTH COMMITTEE.
S 2. The opening paragraph of subdivision 2-b of section 97-yy of the
state finance law, as amended by chapter 453 of the laws of 2015, is
amended to read as follows:
[On or before the first day of February each year, the] THE commis-
sioner of health shall provide a written report to the temporary presi-
dent of the senate, speaker of the assembly, chair of the senate finance
committee, chair of the assembly ways and means committee, chair of the
senate committee on health, chair of the assembly health committee, the
state comptroller and the public, PERTAINING TO THE PRIOR YEAR ON OR
BEFORE OCTOBER FIRST ANNUALLY. Such report shall include how the monies
of the fund were utilized during the preceding calendar year, and shall
include:
S 3. The opening paragraph of paragraph (b) of subdivision 4 of
section 95-e of the state finance law, as amended by chapter 453 of the
laws of 2015, is amended to read as follows:
[On or before the first day of February each year, the] THE commis-
sioner of health shall provide a written report to the temporary presi-
dent of the senate, speaker of the assembly, chair of the senate finance
committee, chair of the assembly ways and means committee, chair of the
senate committee on health, chair of the assembly health committee, the
state comptroller and the public, PERTAINING TO THE PRIOR YEAR ON OR
BEFORE OCTOBER FIRST ANNUALLY. Such report shall include how monies of
the fund were utilized during the preceding calendar year and shall
include:
S 4. The opening paragraph of subdivision 2-b of section 89-e of the
state finance law, as amended by chapter 453 of the laws of 2015, is
amended to read as follows:
S. 6407--B 73
[On or before the first day of February each year, the] THE commis-
sioner of health shall provide a written report to the temporary presi-
dent of the senate, speaker of the assembly, chair of the senate finance
committee, chair of the assembly ways and means committee, chair of the
senate committee on health, chair of the assembly health committee, the
state comptroller and the public, PERTAINING TO THE PRIOR YEAR ON OR
BEFORE OCTOBER FIRST ANNUALLY. Such report shall include how the monies
of the fund were utilized during the preceding calendar year and shall
include:
S 5. Subdivision 5 of section 2815 of the public health law, as
amended by section 11 of part A of chapter 60 of the laws of 2014, is
amended to read as follows:
5. Loans from the restructuring pool shall be made pursuant to an
agreement with the participating borrower specifying the terms thereof,
including repayment terms. The authority shall record and account for
all such repayments, which shall be deposited in the restructuring pool.
The authority shall notify the chair of the senate finance committee,
the director of the division of budget, the chair of the assembly ways
and means committee, the chair of the senate committee on health, and
the chair of the assembly health committee, five days prior to the
making of a loan from the restructuring pool. The authority shall also
report [quarterly] ON OR BEFORE OCTOBER FIRST ANNUALLY to such chair-
persons on the transactions in the pool, including but not limited to
receipts or deposits to the pool, disbursements or loans made from the
pool, investment income, and the balance on hand as of the end of the
month for each such quarter.
S 6. Subdivision 9 of section 4310 of the public health law, as added
by section 27 of part A of chapter 60 of the laws of 2014, is amended to
read as follows:
9. An interagency work group, composed of the commissioner, the
commissioner of the department of motor vehicles, a chair of the board
of elections, or their designees, and such other individuals as may be
designated by the commissioner, shall be established to meet with the
contractor annually and as needed to review the status of the donate
life registry, to examine the steps that might be taken by state agen-
cies to enhance its performance and to make recommendations to the
contractor AND REPORT SUCH RECOMMENDATIONS TO THE TEMPORARY PRESIDENT OF
THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE STANDING
COMMITTEE ON HEALTH, AND CHAIR OF THE ASSEMBLY HEALTH COMMITTEE BY OCTO-
BER FIRST ANNUALLY.
S 7. Section 45-c of part A of chapter 56 of the laws of 2013, relat-
ing to the report on the transition of behavioral health services as a
managed care benefit in the medical assistance program, as amended by
section 16-a of part C of chapter 60 of the laws of 2014, is amended to
read as follows:
S 45-c. The commissioner of health in consultation with the commis-
sioners of the office of mental health and the office of alcoholism and
substance abuse services shall prepare a report on the transition of
behavioral health services as a managed care benefit in the medical
assistance program. Such report shall examine (i) the adequacy of
rates; (ii) the ability of managed care plans to arrange and manage
covered services for eligible enrollees; (iii) the ability of managed
care plans to provide an adequate network of providers to meet the needs
of enrollees; (iv) the use of evidence based tools or guidelines by
managed care plans when determining the appropriate level of care or
coverage for enrollees; (v) the ability of managed care plans to provide
S. 6407--B 74
eligible enrollees with both the appropriate amount and type of
services; (vi) the quality assurance mechanisms used by managed care
plans, including processes to ensure enrollee satisfaction; (vii) the
manner in which managed care plans address the cultural and linguistic
needs of enrollees; (viii) any other quality of care criteria deemed
appropriate by the commissioners to ensure the adequacy of rates, conti-
nuity of care and the quality of life, health, and safety of enrollees
during the transition of the behavioral health benefit; (ix) details
regarding the implementation of reinvestment allocation plans pursuant
to reductions of inpatient behavioral health services including, but not
limited, to the location and scope of service reductions resulting from
the reduction or closure of programs licensed pursuant to article 31 or
32 of the mental hygiene law and a description of services to be funded
pursuant to allocation plans; (x) detailed descriptions of the methodol-
ogy used to calculate the amount of savings resulting from the transi-
tion of individuals into managed care realized under subdivision 5 of
section 365-m of the social services law, and the manner in which the
reinvestment will address the service needs; (xi) details regarding the
implementation of the collaborative care clinical delivery model; (xii)
a description of, and rationale for, any waiver of existing regulations
or any promulgation of emergency regulations pursuant to the behavioral
health services transition authorized by sections 10 through 17 of part
C of [a] chapter 60 of the laws of 2014 [which amended this section],
relating to the implementation of the health and mental hygiene budget;
(xiii) implementation of infrastructure and organizational modifications
and investments in health information technology and training and tech-
nical assistance; and (xiv) details regarding the implementation of the
plan to transition adult and children's behavioral health providers and
services into managed care. The report shall be submitted on [an annual
basis] OR BEFORE OCTOBER FIRST ANNUALLY to the governor, the temporary
president of the senate, the speaker of the assembly, the minority lead-
er of the senate, the minority leader of the assembly, and the behav-
ioral health subcommittee of the Medicaid redesign team[, no later than
January first of each year].
S 8. Subdivision 14 of section 6831 of the education law, as added by
section 12 of part D of chapter 60 of the laws of 2014, is amended to
read as follows:
14. Reports. The commissioner, in consultation with the commissioner
of health, shall prepare and submit a report to the governor and the
legislature, due [eighteen months from the effective date of this
section,] ON OR BEFORE OCTOBER FIRST, TWO THOUSAND SIXTEEN evaluating
the effectiveness of the registration and oversight of outsourcing
facilities related to compounding.
S 9. Subdivision 4 of section 28 of part H of chapter 60 of the laws
of 2014, amending the insurance law, the public health law and the
financial services law relating to establishing protections to prevent
surprise medical bills including network adequacy requirements, claim
submission requirements, access to out-of-network care and prohibition
of excessive emergency charges, is amended to read as follows:
4. The workgroup shall report its findings and make recommendations
for legislation and regulations to the governor, the speaker of the
assembly, the senate majority leader, the chairs of the insurance and
health committees in both the assembly and the senate, and the super-
intendent of the department of financial services no later than [Janu-
ary] OCTOBER 1, 2016.
S. 6407--B 75
S 10. The opening paragraph of subparagraph (i) of paragraph (b) of
subdivision 18-a of section 206 of the public health law, as amended by
section 8 of part A of chapter 57 of the laws of 2015, is amended to
read as follows:
post on its website by September first, two thousand [fifteen] SIXTEEN
and quarterly thereafter, information on the uses of funding in support
of the Statewide Health Information Network of New York (SHIN-NY),
including how such funds may be used to:
S 11. Subparagraph (iii) of paragraph (e) of subdivision 7 of section
367-a of the social services law, as added by section 1 of part B of
chapter 57 of the laws of 2015, is amended to read as follows:
(iii) The commissioner shall submit a report to the temporary presi-
dent of the senate and the speaker of the assembly annually [by December
thirty-first] ON OR BEFORE OCTOBER FIRST. The report shall analyze the
adequacy of rates to managed care providers for drug expenditures
related to the classes under this paragraph.
S 12. Subdivisions 2 and 9 of section 369-gg of the social services
law, subdivision 2 as amended and subdivision 9 as added by section 28-a
of part B of chapter 57 of the laws of 2015, is amended to read as
follows:
2. Authorization. If it is in the financial interest of the state to
do so, the commissioner of health is authorized, with the approval of
the director of the budget, to establish a basic health program. The
commissioner's authority pursuant to this section is contingent upon
obtaining and maintaining all necessary approvals from the secretary of
health and human services to offer a basic health program in accordance
with 42 U.S.C. 18051. The commissioner may take any and all actions
necessary to obtain such approvals. Notwithstanding the foregoing,
[within ninety days of the effective date of the chapter of the laws of
two thousand fifteen which amended this subdivision] ON OR BEFORE JUNE
FIRST, TWO THOUSAND SIXTEEN, the commissioner shall submit a report to
the temporary president of the senate and the speaker of the assembly
detailing a contingency plan in the event eligibility rules or regu-
lations are modified or repealed; or in the event federal payment is
reduced from ninety five percent of the premium tax credits and cost-
sharing reductions pursuant to the patient protection and affordable
care act (P.L. 111-148). The contingency plan shall be implemented with-
in ninety days of the above stated events or the time period specified
in federal law.
9. Reporting. The commissioner shall submit a report to the temporary
president of the senate and the speaker of the assembly annually [by
December thirty-first] ON OR BEFORE OCTOBER FIRST. The report shall
include, at a minimum, an analysis of the basic health program and its
impact on the financial interest of the state; its impact on the health
benefit exchange including enrollment and premiums; its impact on the
number of uninsured individuals in the state; its impact on the Medicaid
global cap; and the demographics of basic health program enrollees
including age and immigration status.
S 13. Section 2 of part W of chapter 57 of the laws of 2015, requiring
the commissioner of health to convene a task force to evaluate and make
recommendations related to increasing the transparency and accountabil-
ity of the health care reform act resources fund, is amended to read as
follows:
S 2. HCRA modernization task force: the commissioner of health shall
convene a task force to evaluate and make recommendations regarding the
efficacy and transparency of the Health Care Reform Act resources fund
S. 6407--B 76
(HCRA fund) and to evaluate and modernize the provisions of law related
to the Health Care Reform Acts of 1996 and 2000 (HCRA). The task force
shall consist of the commissioner of health, or his or her designee,
employees of the department of health with expertise in health care
financing, the director of the division of budget, or his or her desig-
nee, an individual to be appointed by the temporary president of the
senate, an individual to be appointed by the speaker of the assembly,
and stakeholders impacted by charges and disbursements of HCRA and the
HCRA fund, including, but not limited to: representatives of health
plans, consumers, managed care plans, hospitals, health care practition-
ers, and other health care providers. The commissioner of health, or his
or her designee, shall chair the task force. The HCRA pool administrator
shall provide material support to the task force and submit documenta-
tion and analysis necessary for deliberations by such task force,
including, but not limited to, an accounting of revenues collected and
disbursements made through HCRA and the HCRA fund. The task force shall
consider and evaluate: the purposes for which the HCRA fund was estab-
lished and whether such purposes may be continually served by such fund;
the impact that any reduction or recalculation of indigent care and
disproportionate share payments pursuant to federal law may have on the
HCRA fund, and the cost that such reductions or recalculations will have
to the state; the extent to which provisions of law in the HCRA statutes
have become obsolete; the extent to which the Balanced Budget Act of
1997, Public Health Law 105-33, mandates a particular form of charges or
assessments under HCRA and the impact any proposed change would have on
the protections by such law; and any other purpose that would contribute
to the streamlining and modernization of HCRA and the HCRA fund. The
task force shall convene no later than June 30, 2015. The task force
shall report to the governor, the temporary president of the senate and
the speaker of the assembly its considerations, evaluations, and find-
ings and make recommendations of changes to any rule, regulation, law or
practice necessary to effectuate its conclusions. Such report shall be
submitted no later than [December 31, 2015] OCTOBER 1, 2016, at which
time such task force shall be disbanded and its work completed.
S 14. Section 47 of part B of chapter 57 of the laws of 2015, amending
the public health law relating to physician profiles, is amended to read
as follows:
S 47. Young adult special populations demonstration programs. The
commissioner of health shall establish up to three young adult special
populations demonstration programs to provide cost effective, necessary
services and enhanced quality of care for targeted populations in order
to demonstrate the effectiveness of the programs. Eligible individuals
shall have severe and chronic medical or health problems, or multiple
disabling conditions which may be combined with developmental disabili-
ties. The programs shall provide more appropriate settings and services
for these individuals, help prevent out of state placements and allow
repatriation back to their home communities. Eligible operator appli-
cants shall have demonstrated expertise in caring for the targeted popu-
lation including persons with severe and chronic medical or health prob-
lems or multiple disabling conditions and a record of providing quality
care.
Funds may include, but not be limited to, start up funds, capital
investments and enhanced rates.
Of the demonstrations:
S. 6407--B 77
(a) at least one shall be designed to serve persons aged twenty-one to
thirty-five years of age who are aging out of pediatric acute care
hospitals or pediatric nursing homes; and
(b) at least one shall be designed to serve persons aged twenty-one to
thirty-five years of age who have a developmental disability in addition
to their severe and chronic medical or health problems and are aging out
of pediatric acute care hospitals, pediatric nursing homes or children's
residential homes operated under the jurisdiction of the office for
persons with developmental disabilities.
The department of health shall be responsible for monitoring the qual-
ity and appropriateness and effectiveness of the demonstration programs,
and shall report to the legislature no later than [December 31, 2015]
OCTOBER 1, 2016 on what efforts it has undertaken toward the establish-
ment of these demonstration programs and shall report to the legislature
two years following the establishment of a demonstration program pursu-
ant to this section.
S 15. Paragraph (d) of subdivision 13 of section 2995-a of the public
health law, as amended by section 4 of part A of chapter 57 of the laws
of 2015, is amended to read as follows:
(d) Report. The department shall provide a report of its determi-
nations and recommendations under this subdivision to the governor and
legislature, and make such report publicly available, on or before
[January] OCTOBER first, two thousand sixteen. The department shall
report annually thereafter to the legislature on the status of the
physician profiles and any recommendations for additions, consolidations
or other changes deemed appropriate.
S 16. Subdivision 27 of section 2808 of the public health law, as
added by section 38 of part B of chapter 57 of the laws of 2015, is
amended to read as follows:
27. The commissioner is authorized to conduct an energy audit and/or
disaster preparedness review of residential health care facilities. Such
audit or review shall explore the energy efficiency and/or disaster
preparedness of the real property capital aspects of each facility and
develop a cost/benefit analysis of potential modifications for each
facility. Such audit or review shall serve as the basis for an energy
efficiency and/or disaster preparedness program to be developed by the
department in regulations. Participation in such audit or review shall
be a condition to participation in any such program developed as a
result thereof, and shall also be a condition to receipt of any funding
available under such program. Such program shall only be implemented if
it is in the best financial interests of the state, as determined by the
commissioner. At least [forty-five] THIRTY days prior to implementing
such program, the department shall report to the senate and assembly
health committees, the assembly ways and means committee and the senate
finance committee the results of the energy audit authorized herein and
the proposed eligibility criteria, funding sources, the manner in which
savings may be shared between the state and facilities and any other
information requested by such committees about such program prior to the
transmittal of the report.
S 17. Paragraph (d) of subdivision 18 of section 364-j of the social
services law, as added by section 55 of part B of chapter 57 of the laws
of 2015, is amended to read as follows:
(d) The department of health shall, ON OR BEFORE OCTOBER FIRST annual-
ly, provide to the temporary president of the senate and the speaker of
the assembly the annual Medicaid managed care operating reports submit-
S. 6407--B 78
ted to the department from managed care plans that contract with the
state to manage services provided under the Medicaid program.
S 18. The opening paragraph of subdivision 5 of section 3309 of the
public health law, as amended by chapter 42 of the laws of 2014, is
amended to read as follows:
The commissioner shall publish findings on statewide opioid overdose
data that reviews overdose death rates and other information to ascer-
tain changes in the cause and rates of fatal opioid overdoses. The
report [may be part of existing state mortality reports issued by the
department, and] shall be submitted ON OR BEFORE OCTOBER FIRST annually
to the governor, the temporary president of the senate, the speaker of
the assembly, and the chairs of the senate and assembly health commit-
tees. The report shall include, at a minimum, the following information:
S 19. Clause (E) of subparagraph (iv) of paragraph (e-2) of subdivi-
sion 4 of section 2807-c of the public health law, as added by section
47 of part C of chapter 60 of the laws of 2014, is amended to read as
follows:
(E) For facilities subject to the provisions of this subparagraph, the
department shall examine the feasibility of reimbursing such facilities
for services provided to children eligible for medical assistance on a
non-fee-for-service basis. For purposes of this clause, "non-fee-for-
service" shall be defined as an alternative payment method to bundle
certain services rendered by such facility, including inpatient, outpa-
tient, specialty outpatient and physician services, in amounts deter-
mined by the commissioner. The department shall examine:
(a) what services could be provided pursuant to the non-fee-for-ser-
vice basis;
(b) how to ensure, for children enrolled in Medicaid managed care,
that their health plans can continue to assist in the coordination of
their care, particularly upon discharge from inpatient, outpatient or
specialty outpatient services; and
(c) whether incentives should be incorporated for meeting quality
benchmarks or achieving efficiencies in the delivery and coordination of
care or whether other means should be considered to achieve these objec-
tives.
The department shall provide a report of its findings and recommenda-
tions to the governor and legislature no later than [March first, two
thousand fifteen] OCTOBER 1, 2016.
S 20. This act shall take effect immediately; provided, however, that:
(a) section nine of this act shall take effect on the same date and in
the same manner as part H of chapter 60 of the laws of 2014, takes
effect;
(b) the amendments to section 45-c of part A of chapter 56 of the laws
of 2013 made by section seven of this act shall not affect the repeal of
such section and shall be deemed repealed therewith;
(c) the amendments to paragraph (b) of subdivision 18-a of section 206
of the public health law made by section ten of this act shall not
affect the expiration and reversion of such paragraph and shall be
deemed to expire therewith;
(d) the amendments to paragraph (e) of subdivision 7 of section 367-a
of the social services law made by section eleven of this act shall not
affect the repeal of such paragraph and shall be deemed repealed there-
with;
(e) the amendments to subdivision 27 of section 2808 of the public
health law made by section sixteen of this act shall not affect the
repeal of such subdivision and shall be deemed repealed therewith; and
S. 6407--B 79
(f) the amendments to section 364-j of the social services law made by
section seventeen of this act shall not affect the repeal of such
section and shall be deemed repealed therewith.
PART S
Section 1. Section 48-a of part A of chapter 56 of the laws of 2013
amending chapter 59 of the laws of 2011 amending the public health law
and other laws relating to general hospital reimbursement for annual
rates relating to the cap on local Medicaid expenditures, as amended by
section 1 of part C of chapter 57 of the laws of 2015, is amended to
read as follows:
S 48-a. 1. Notwithstanding any contrary provision of law, the commis-
sioners of the office of alcoholism and substance abuse services and the
office of mental health are authorized, subject to the approval of the
director of the budget, to transfer to the commissioner of health state
funds to be utilized as the state share for the purpose of increasing
payments under the medicaid program to managed care organizations
licensed under article 44 of the public health law or under article 43
of the insurance law. Such managed care organizations shall utilize such
funds for the purpose of reimbursing providers licensed pursuant to
article 28 of the public health law or article 31 or 32 of the mental
hygiene law for ambulatory behavioral health services, as determined by
the commissioner of health, in consultation with the commissioner of
alcoholism and substance abuse services and the commissioner of the
office of mental health, provided to medicaid eligible outpatients. Such
reimbursement shall be in the form of fees for such services which are
equivalent to the payments established for such services under the ambu-
latory patient group (APG) rate-setting methodology as utilized by the
department of health, the office of alcoholism and substance abuse
services, or the office of mental health for rate-setting purposes;
provided, however, that the increase to such fees that shall result from
the provisions of this section shall not, in the aggregate and as deter-
mined by the commissioner of health, in consultation with the commis-
sioner of alcoholism and substance abuse services and the commissioner
of the office of mental health, be greater than the increased funds made
available pursuant to this section. The increase of such ambulatory
behavioral health fees to providers available under this section shall
be for all rate periods on and after the effective date of section [13]
1 of part C of chapter [60] 57 of the laws of [2014] 2015 through [June
30, 2017] SEPTEMBER 30, 2021 for patients in the city of New York, for
all rate periods on and after the effective date of section [13] 1 of
part C of chapter [60] 57 of the laws of [2014] 2015 through December
31, [2017] 2021 for patients outside the city of New York, and for all
rate periods on and after the effective date of such chapter through
December 31, [2017] 2021 for all services provided to persons under the
age of twenty-one; provided, however, that managed care organizations
and providers may negotiate different rates and methods of payment
during such periods described above, subject to the approval of the
department of health. The department of health shall consult with the
office of alcoholism and substance abuse services and the office of
mental health in determining whether such alternative rates shall be
approved. The commissioner of health may, in consultation with the
commissioner of alcoholism and substance abuse services and the commis-
sioner of the office of mental health, promulgate regulations, including
emergency regulations promulgated prior to October 1, 2015 to establish
S. 6407--B 80
rates for ambulatory behavioral health services, as are necessary to
implement the provisions of this section. Rates promulgated under this
section shall be included in the report required under section 45-c of
part A of this chapter.
2. Notwithstanding any contrary provision of law, the fees paid by
managed care organizations licensed under article 44 of the public
health law or under article 43 of the insurance law, to providers
licensed pursuant to article 28 of the public health law or article 31
or 32 of the mental hygiene law, for ambulatory behavioral health
services provided to patients enrolled in the child health insurance
program pursuant to title one-A of article 25 of the public health law,
shall be in the form of fees for such services which are equivalent to
the payments established for such services under the ambulatory patient
group (APG) rate-setting methodology. The commissioner of health shall
consult with the commissioner of alcoholism and substance abuse services
and the commissioner of the office of mental health in determining such
services and establishing such fees. Such ambulatory behavioral health
fees to providers available under this section shall be for all rate
periods on and after the effective date of this chapter through December
31, 2017, provided, however, that managed care organizations and provid-
ers may negotiate different rates and methods of payment during such
periods described above, subject to the approval of the department of
health. The department of health shall consult with the office of alco-
holism and substance abuse services and the office of mental health in
determining whether such alternative rates shall be approved. The
report required under section 16-a of part C of chapter 60 of the laws
of 2014 shall also include the population of patients enrolled in the
child health insurance program pursuant to title one-A of article 25 of
the public health law in its examination on the transition of behavioral
health services into managed care.
S 2. Section 1 of part H of chapter 111 of the laws of 2010 relating
to increasing Medicaid payments to providers through managed care organ-
izations and providing equivalent fees through an ambulatory patient
group methodology, as amended by section 2 of part C of chapter 57 of
the laws of 2015, is amended to read as follows:
Section 1. a. Notwithstanding any contrary provision of law, the
commissioners of mental health and alcoholism and substance abuse
services are authorized, subject to the approval of the director of the
budget, to transfer to the commissioner of health state funds to be
utilized as the state share for the purpose of increasing payments under
the medicaid program to managed care organizations licensed under arti-
cle 44 of the public health law or under article 43 of the insurance
law. Such managed care organizations shall utilize such funds for the
purpose of reimbursing providers licensed pursuant to article 28 of the
public health law, or pursuant to article 31 or article 32 of the mental
hygiene law for ambulatory behavioral health services, as determined by
the commissioner of health in consultation with the commissioner of
mental health and commissioner of alcoholism and substance abuse
services, provided to medicaid eligible outpatients. Such reimbursement
shall be in the form of fees for such services which are equivalent to
the payments established for such services under the ambulatory patient
group (APG) rate-setting methodology as utilized by the department of
health or by the office of mental health or office of alcoholism and
substance abuse services for rate-setting purposes; provided, however,
that the increase to such fees that shall result from the provisions of
this section shall not, in the aggregate and as determined by the
S. 6407--B 81
commissioner of health in consultation with the commissioners of mental
health and alcoholism and substance abuse services, be greater than the
increased funds made available pursuant to this section. The increase of
such behavioral health fees to providers available under this section
shall be for all rate periods on and after the effective date of section
[15] 2 of part C of chapter [60] 57 of the laws of [2014] 2015 through
[June 30, 2017] SEPTEMBER 30, 2021 for patients in the city of New York,
for all rate periods on and after the effective date of section [15] 2
of part C of chapter [60] 57 of the laws of [2014] 2015 through December
31, [2017] 2021 for patients outside the city of New York, and for all
rate periods on and after the effective date of section [15] 2 of part C
of chapter [60] 57 of the laws of [2014] 2015 through December 31,
[2017] 2021 for all services provided to persons under the age of twen-
ty-one; provided, however, that managed care organizations and providers
may negotiate different rates and methods of payment during such periods
described, subject to the approval of the department of health. The
department of health shall consult with the office of alcoholism and
substance abuse services and the office of mental health in determining
whether such alternative rates shall be approved. The commissioner of
health may, in consultation with the commissioners of mental health and
alcoholism and substance abuse services, promulgate regulations, includ-
ing emergency regulations promulgated prior to October 1, 2013 that
establish rates for behavioral health services, as are necessary to
implement the provisions of this section. Rates promulgated under this
section shall be included in the report required under section 45-c of
part A of chapter 56 of the laws of 2013.
b. Notwithstanding any contrary provision of law, the fees paid by
managed care organizations licensed under article 44 of the public
health law or under article 43 of the insurance law, to providers
licensed pursuant to article 28 of the public health law or article 31
or 32 of the mental hygiene law, for ambulatory behavioral health
services provided to patients enrolled in the child health insurance
program pursuant to title one-A of article 25 of the public health law,
shall be in the form of fees for such services which are equivalent to
the payments established for such services under the ambulatory patient
group (APG) rate-setting methodology. The commissioner of health shall
consult with the commissioner of alcoholism and substance abuse services
and the commissioner of the office of mental health in determining such
services and establishing such fees. Such ambulatory behavioral health
fees to providers available under this section shall be for all rate
periods on and after the effective date of this chapter through December
31, 2017, provided, however, that managed care organizations and provid-
ers may negotiate different rates and methods of payment during such
periods described above, subject to the approval of the department of
health. The department of health shall consult with the office of alco-
holism and substance abuse services and the office of mental health in
determining whether such alternative rates shall be approved. The
report required under section 16-a of part C of chapter 60 of the laws
of 2014 shall also include the population of patients enrolled in the
child health insurance program pursuant to title one-A of article 25 of
the public health law in its examination on the transition of behavioral
health services into managed care.
S 3. Notwithstanding any inconsistent provision of law, rule or regu-
lation, for purposes of implementing the provisions of the public health
law and the social services law, references to titles XIX and XXI of the
federal social security act in the public health law and the social
S. 6407--B 82
services law shall be deemed to include and also to mean any successor
titles thereto under the federal social security act.
S 4. Notwithstanding any inconsistent provision of law, rule or regu-
lation, the effectiveness of the provisions of sections 2807 and 3614 of
the public health law, section 18 of chapter 2 of the laws of 1988, and
18 NYCRR 505.14(h), as they relate to time frames for notice, approval
or certification of rates of payment, are hereby suspended and without
force or effect for purposes of implementing the provisions of this act.
S 5. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair or invalidate the remainder thereof, but shall be confined in its
operation to the clause, sentence, paragraph, subdivision, section or
part thereof directly involved in the controversy in which such judgment
shall have been rendered. It is hereby declared to be the intent of the
legislature that this act would have been enacted even if such invalid
provisions had not been included herein.
S 6. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016. Provided,
however that:
1. any rules or regulations necessary to implement the provisions of
this act may be promulgated and any procedures, forms, or instructions
necessary for such implementation may be adopted and issued on or after
the date this act shall have become a law;
2. this act shall not be construed to alter, change, affect, impair or
defeat any rights, obligations, duties or interests accrued, incurred or
conferred prior to the effective date of this act;
3. the commissioner of health and the superintendent of the department
of financial services and any appropriate council may take any steps
necessary to implement this act prior to its effective date;
4. notwithstanding any inconsistent provision of the state administra-
tive procedure act or any other provision of law, rule or regulation,
the commissioner of health and the superintendent of the department of
financial services and any appropriate council is authorized to adopt or
amend or promulgate on an emergency basis any regulation he or she or
such council determines necessary to implement any provision of this act
on its effective date;
5. the provisions of this act shall become effective notwithstanding
the failure of the commissioner of health or the superintendent of the
department of financial services or any council to adopt or amend or
promulgate regulations implementing this act; and
6. the amendments to section 48-a of part A of chapter 56 of the laws
of 2013 made by section one of this act and the amendments to section 1
of part H of chapter 111 of the laws of 2010 made by section two of this
act shall not affect the expiration of such sections and shall be deemed
to expire therewith.
PART T
Section 1. The mental hygiene law is amended by adding a new section
13.43 to read as follows:
S 13.43 DIRECT SUPPORT PROFESSIONAL CREDENTIAL PILOT PROGRAM.
(A) THE OFFICE SHALL CREATE A DIRECT SUPPORT PROFESSIONAL CREDENTIAL
PILOT PROGRAM TO ASSIST, ATTRACT AND RETAIN INDIVIDUALS INTO THE FIELD
OF DIRECT SUPPORT, ADVANCE DIRECT SUPPORT AS A CAREER, AND PROFESSIONAL-
IZE THE FIELD TO PROMOTE WORKFORCE RECRUITMENT AND RETENTION EFFORTS,
S. 6407--B 83
ADVANCE SKILLS AND COMPETENCIES, AND FURTHER ENSURE THE HEALTH, SAFETY
AND WELL-BEING OF INDIVIDUALS BEING SERVED.
(B) THERE IS HEREBY CREATED THE DIRECT SUPPORT PROFESSIONAL CREDENTIAL
PILOT PROGRAM WITHIN THE OFFICE TO ASSIST INDIVIDUALS IN THE FIELD IN
OBTAINING A CREDENTIAL IN THEIR FIELD OF EXPERTISE.
(1) SUCH PILOT PROGRAM SHALL BE ADMINISTERED BY THE OFFICE FOR THREE
YEARS. THE PILOT PROGRAM SHALL INCLUDE STATE-OPERATED FACILITIES AND
NOT-FOR-PROFIT PROVIDERS LICENSED, CERTIFIED OR FUNDED BY THE OFFICE.
THE PURPOSE OF THE PILOT PROGRAM SHALL BE TO ASSESS HOW THE ESTABLISH-
MENT OF A STATE ACCREDITED DIRECT SUPPORT PROFESSIONAL CREDENTIAL:
(A) PROMOTES RECRUITMENT AND RETENTION EFFORTS IN THE DEVELOPMENTAL
DISABILITIES FIELD, NOTABLY THE DIRECT SUPPORT PROFESSIONAL POSITION;
(B) ENHANCES COMPETENCE IN THE DEVELOPMENTAL DISABILITIES FIELD;
(C) YIELDS QUALITY SUPPORTS AND SERVICES TO INDIVIDUALS WITH DEVELOP-
MENTAL DISABILITIES; AND
(D) ADVANCES THE HEALTH AND SAFETY REQUIREMENTS SET FORTH BY THE
STATE.
(2) THE OFFICE, IN ADMINISTERING THE PILOT PROGRAM SHALL CONSIDER, BUT
NOT BE LIMITED TO, THE FOLLOWING:
(A) BEST PRACTICES LEARNING INITIATIVES, INCLUDING THE UNIVERSITY OF
MINNESOTA COLLEGE OF DIRECT SUPPORT AND NEW YORK STATE DIRECT SUPPORT
PROFESSIONAL COMPETENCIES AND CODE OF ETHICS;
(B) NATIONAL DIRECT SUPPORT PROFESSIONAL COMPETENCIES OR CREDENTIALING
BASED STANDARDS AND TRAININGS;
(C) FACILITATING DIRECT SUPPORT PROFESSIONALS PORTFOLIO DEVELOPMENT;
(D) THE ROLE AND VALUE OF SKILL MENTORS;
(E) CREATING A CAREER LADDER;
(F) USING HYBRID INSTRUCTIONAL MODEL THAT PROVIDES FOR LEARNING
CONTENT BOTH ONSITE AND ONLINE; AND
(G) ALLOWING FOR ADVANCED CREDENTIALING PROGRAMS AFTER YEAR ONE.
(3) FOR THE PURPOSES OF THIS SECTION, "DIRECT SUPPORT PROFESSIONAL
CREDENTIAL" MEANS A DOCUMENT ISSUED TO AN INDIVIDUAL BY A RECOGNIZED
ACCREDITING BODY ATTESTING THAT SUCH INDIVIDUAL HAS MET THE PROFESSIONAL
REQUIREMENTS OF THE CREDENTIALING PROGRAM BY THE OFFICE.
(4) THE OFFICE, BY DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, SHALL
TRANSMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE
SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE COMMITTEE, AND
THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE A REPORT DETAILING
THE PROGRESS OF SUCH PILOT PROGRAM, INCLUDING, BUT NOT LIMITED TO:
(A) THE RATE OF RECRUITMENT AND RETENTION FOR DIRECT SUPPORT PROFES-
SIONALS OF PROVIDERS PARTICIPATING IN THE PILOT PROGRAM COMPARED TO THE
RATE FOR NON-PARTICIPATING PROVIDERS, INCLUDING BUT NOT LIMITED TO THE
IMPACT ON VACANCIES AND TURNOVER RATES;
(B) THE NUMBER OF DIRECT SUPPORT PROFESSIONALS CREDENTIALED; AND
(C) THE ENHANCEMENT OF QUALITY SUPPORTS AND SERVICES TO INDIVIDUALS
WITH DEVELOPMENTAL DISABILITIES.
S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.
PART U
Section 1. The section heading of section 2805-i of the public health
law, as amended by chapter 504 of the laws of 1994, is amended to read
as follows:
Treatment AND REPORTING of sexual offense victims and maintenance of
evidence in a sexual offense.
S. 6407--B 84
S 2. Subdivision 1 of section 2805-i of the public health law is
amended by adding a new paragraph (d) to read as follows:
(D) REPORTING QUARTERLY TO THE DEPARTMENT ON THE DISPOSITION OR TRANS-
FER OF ALL SEXUAL OFFENSE EVIDENCE KITS. THE REPORT SHALL DETAIL, AT A
MINIMUM, HOW MANY SUCH KITS UNDER THE HOSPITAL'S CARE WERE TRANSFERRED
TO LAW ENFORCEMENT OR FORENSIC LABORATORIES, TO WHOM THEY WERE TRANS-
FERRED AND THE DATE UPON WHICH THEY WERE TRANSFERRED.
S 3. The executive law is amended by adding two new sections 837-s and
837-t to read as follows:
S 837-S. PROCESSING OF SEXUAL OFFENSE EVIDENCE KITS. 1. THE FOLLOWING
REQUIREMENTS SHALL APPLY TO ALL SEXUAL OFFENSE EVIDENCE KITS COLLECTED
AND SURRENDERED TO POLICE AGENCIES PURSUANT TO SECTION TWENTY-EIGHT
HUNDRED FIVE-I OF THE PUBLIC HEALTH LAW:
(A) ALL SEXUAL OFFENSE EVIDENCE KITS SURRENDERED TO POLICE AGENCIES
SHALL BE SUBMITTED TO A FORENSIC LABORATORY DESIGNATED BY THE DIVISION
FOR ANALYSIS WITHIN TEN DAYS OF RECEIPT;
(B) THE FORENSIC LABORATORY RECEIVING SEXUAL OFFENSE EVIDENCE KITS
SHALL DEVELOP COMBINED DNA INDEX SYSTEM (CODIS) ELIGIBLE PROFILES FROM
THE EVIDENCE RECEIVED AND REPORT THE RESULTS TO THE SUBMITTING POLICE
AGENCY AND LOCAL DISTRICT ATTORNEY WITHIN NINETY DAYS OF RECEIPT;
(C) ALL SEXUAL OFFENSE EVIDENCE KITS RECEIVED BY POLICE AGENCIES PRIOR
TO THE EFFECTIVE DATE OF THIS SECTION SHALL BE SUBMITTED TO A FORENSIC
LABORATORY WITHIN ONE HUNDRED EIGHTY DAYS OF SUCH EFFECTIVE DATE, AND
SUCH LABORATORIES SHALL DEVELOP COMBINED DNA INDEX SYSTEM (CODIS) ELIGI-
BLE PROFILES FROM SUCH EVIDENCE WITHIN ONE HUNDRED TWENTY DAYS OF
RECEIPT; AND
(D) ALL POLICE AGENCIES SHALL REPORT TO THE DIVISION QUARTERLY ON ALL
SEXUAL OFFENSE EVIDENCE KITS IN THEIR POSSESSION. THE FIRST REPORT,
WHICH SHALL BE SUBMITTED NO LATER THAN NINETY DAYS AFTER THE EFFECTIVE
DATE OF THIS SECTION, AND REPORTS FILED THEREAFTER SHALL INCLUDE AT A
MINIMUM THE DATES ON WHICH THE SEXUAL OFFENSE EVIDENCE KITS WERE
RECEIVED PURSUANT TO THE PUBLIC HEALTH LAW, TRANSMITTED TO A FORENSIC
LABORATORY AND THE DATES ON WHICH THE RESULTS WERE REPORTED BY THE LABO-
RATORY FOR EACH OF THE SEXUAL OFFENSE EVIDENCE KITS THEY RECEIVED.
2. THE FAILURE OF A PUBLIC SERVANT TO FOLLOW SUCH PROCEDURE SHALL NOT
CONSTITUTE A LEGAL BASIS TO SUPPRESS EVIDENCE.
3. THE DIVISION SHALL ENSURE THAT ALL POLICE AGENCIES ARE EDUCATED AND
AWARE OF THE REQUIREMENTS ESTABLISHED UNDER THIS SECTION.
S 837-T. SECURE TRANSPORT OF SEXUAL OFFENSE EVIDENCE KITS. THE DIVI-
SION, IN CONJUNCTION WITH THE DIVISION OF STATE POLICE AND MUNICIPAL
POLICE AGENCIES, SHALL DEVELOP A SYSTEM TO COORDINATE THE TRANSPORTATION
OF SEXUAL OFFENSE EVIDENCE KITS TO AND FROM LABORATORIES ON A REGULARLY
SCHEDULED BASIS, CONSISTENT WITH THE REQUIREMENTS ESTABLISHED IN SECTION
EIGHT HUNDRED THIRTY-SEVEN-S OF THIS ARTICLE, WHICH SHALL REDUCE DUPLI-
CATION AND COSTS ASSOCIATED WITH EACH POLICE AGENCY MAINTAINING THE
CHAIN OF CUSTODY OF EVIDENCE WHILE TRANSPORTING SUCH EVIDENCE KITS IN A
TIMELY MANNER.
S 4. This act shall take effect immediately.
PART V
Section 1. Subdivisions 3, 4 and 5 of section 281 of the public health
law, subdivision 3 as amended by chapter 13 of the laws of 2015, subdi-
visions 4 and 5 as added by section 2 of part B of chapter 447 of the
laws of 2012, are amended and a new subdivision 7 is added to read as
follows:
S. 6407--B 85
3. On or before December thirty-first, two thousand twelve, the
commissioner shall promulgate regulations, in consultation with the
commissioner of education, establishing standards for electronic
prescriptions. Notwithstanding any other provision of this section or
any other law to the contrary, effective three years subsequent to the
date on which such regulations are promulgated, no person shall issue
any prescription in this state unless such prescription is made by elec-
tronic prescription from the person issuing the prescription to a phar-
macy in accordance with such regulatory standards, except for
prescriptions: (a) issued by veterinarians; (b) issued in circumstances
where electronic prescribing is not available due to temporary techno-
logical or electrical failure, as set forth in regulation; (c) issued by
practitioners who have received a waiver or a renewal thereof for a
specified period determined by the commissioner, not to exceed one year,
from the requirement to use electronic prescribing, pursuant to a proc-
ess established in regulation by the commissioner, in consultation with
the commissioner of education, due to economic hardship, technological
limitations that are not reasonably within the control of the practi-
tioner, or other exceptional circumstance demonstrated by the practi-
tioner; (d) issued by a practitioner under circumstances where, notwith-
standing the practitioner's present ability to make an electronic
prescription as required by this subdivision, such practitioner reason-
ably determines that it would be impractical for the patient to obtain
substances prescribed by electronic prescription in a timely manner, and
such delay would adversely impact the patient's medical condition,
provided that if such prescription is for a controlled substance, the
quantity of controlled substances does not exceed a five day supply if
the controlled substance were used in accordance with the directions for
use; [or] (e) issued by a practitioner to be dispensed by a pharmacy
located outside the state, as set forth in regulation; OR (F) ISSUED BY
A PRACTITIONER WHO HAS MADE A CERTIFICATION TO THE DEPARTMENT UNDER
SUBDIVISION SEVEN OF THIS SECTION.
4. In the case of a prescription for a controlled substance issued by
a practitioner under paragraph (b) of subdivision three of this section,
the practitioner shall [file information about the issuance of such
prescription with the department as soon as practicable, as set forth in
regulation] MAINTAIN INFORMATION IN THEIR RECORDS REGARDING THE ISSUANCE
OF SUCH PRESCRIPTION.
5. In the case of a prescription for a controlled substance issued by
a practitioner under paragraph (d) or (e) of subdivision three of this
section, the practitioner shall, upon issuing such prescription, [file
information about the issuance of such prescription with the department
by electronic means, as set forth in regulation] MAINTAIN INFORMATION IN
THEIR RECORDS REGARDING THE ISSUANCE OF SUCH PRESCRIPTION.
7. A PRACTITIONER SHALL NOT BE REQUIRED TO ISSUE PRESCRIPTIONS ELEC-
TRONICALLY AS OTHERWISE REQUIRED BY THIS SECTION IF HE OR SHE CERTIFIES
TO THE DEPARTMENT THAT HE OR SHE WILL NOT ISSUE MORE THAN TWENTY-FIVE
PRESCRIPTIONS OVER EACH SUCCESSIVE TWELVE MONTH PERIOD FOLLOWING THE
DATE OF THE CERTIFICATION. A PRACTITIONER MAY REVOKE SUCH CERTIFICATION
AT ANY TIME IF THEY INTEND TO ISSUE MORE THAN TWENTY-FIVE PRESCRIPTIONS
OVER A TWELVE MONTH PERIOD FOLLOWING THE DATE OF CERTIFICATION. A PRAC-
TITIONER MAY MAKE A CERTIFICATION UNDER THIS SUBDIVISION REGARDLESS OF
WHETHER HE OR SHE HAS PREVIOUSLY RECEIVED A WAIVER UNDER PARAGRAPH (C)
OF SUBDIVISION THREE OF THIS SECTION.
S 2. Subdivisions 10, 11 and 12 of section 6810 of the education law,
subdivision 10 as amended by chapter 13 of the laws of 2015, subdivi-
S. 6407--B 86
sions 11 and 12 as added by section 3 of part B of chapter 447 of the
laws of 2012, are amended and a new subdivision 15 is added to read as
follows:
10. Notwithstanding any other provision of this section or any other
law to the contrary, effective three years subsequent to the date on
which regulations establishing standards for electronic prescriptions
are promulgated by the commissioner of health, in consultation with the
commissioner pursuant to subdivision three of section two hundred eight-
y-one of the public health law, no practitioner shall issue any
prescription in this state, unless such prescription is made by elec-
tronic prescription from the practitioner to a pharmacy, except for
prescriptions: (a) issued by veterinarians; (b) issued or dispensed in
circumstances where electronic prescribing is not available due to
temporary technological or electrical failure, as set forth in regu-
lation; (c) issued by practitioners who have received a waiver or a
renewal thereof for a specified period determined by the commissioner of
health, not to exceed one year, from the requirement to use electronic
prescribing, pursuant to a process established in regulation by the
commissioner of health, in consultation with the commissioner due to
economic hardship, technological limitations that are not reasonably
within the control of the practitioner, or other exceptional circum-
stance demonstrated by the practitioner; (d) issued by a practitioner
under circumstances where, notwithstanding the practitioner's present
ability to make an electronic prescription as required by this subdivi-
sion, such practitioner reasonably determines that it would be impracti-
cal for the patient to obtain substances prescribed by electronic
prescription in a timely manner, and such delay would adversely impact
the patient's medical condition, provided that if such prescription is
for a controlled substance, the quantity that does not exceed a five day
supply if the controlled substance was used in accordance with the
directions for use; [or] (e) issued by a practitioner to be dispensed by
a pharmacy located outside the state, as set forth in regulation; OR (F)
ISSUED AS AN ORAL PRESCRIPTION UNDER SUBDIVISION FIFTEEN OF THIS
SECTION.
11. In the case of a prescription issued by a practitioner under para-
graph (b) of subdivision ten of this section, the practitioner shall be
required to [file information about the issuance of such prescription
with the department of health as soon as practicable, as set forth in
regulation] MAINTAIN INFORMATION IN THEIR RECORDS REGARDING THE ISSUANCE
OF SUCH PRESCRIPTION.
12. In the case of a prescription issued by a practitioner under para-
graph (d) or (e) of subdivision ten of this section, the practitioner
shall, upon issuing such prescription, [file information about the issu-
ance of such prescription with the department of health by electronic
means, as set forth in regulation] MAINTAIN INFORMATION IN THEIR RECORDS
REGARDING THE ISSUANCE OF SUCH PRESCRIPTION.
15. A PRACTITIONER SHALL NOT BE REQUIRED TO ISSUE PRESCRIPTIONS ELEC-
TRONICALLY AS OTHERWISE REQUIRED BY THIS SECTION IF HE OR SHE CERTIFIES
TO THE DEPARTMENT THAT HE OR SHE WILL NOT ISSUE MORE THAN TWENTY-FIVE
PRESCRIPTIONS OVER EACH SUCCESSIVE TWELVE MONTH PERIOD FOLLOWING THE
DATE OF THE CERTIFICATION. A PRACTITIONER MAY REVOKE SUCH CERTIFICATION
AT ANY TIME IF THEY INTEND TO ISSUE MORE THAN TWENTY-FIVE PRESCRIPTIONS
OVER A TWELVE MONTH PERIOD FOLLOWING THE DATE OF CERTIFICATION. A PRAC-
TITIONER MAY MAKE A CERTIFICATION UNDER THIS SUBDIVISION REGARDLESS OF
WHETHER HE OR SHE HAS PREVIOUSLY RECEIVED A WAIVER UNDER PARAGRAPH (C)
OF SUBDIVISION TEN OF THIS SECTION.
S. 6407--B 87
S 3. Paragraphs (d) and (e) of subdivision 3 of section 281 of the
public health law, as amended by chapter 13 of the laws of 2015, are
amended and a new paragraph (f) is added to read as follows:
(d) issued by a practitioner under circumstances where, notwithstand-
ing the practitioner's present ability to make an electronic
prescription as required by this subdivision, such practitioner reason-
ably determines that it would be impractical for the patient to obtain
substances prescribed by electronic prescription in a timely manner, and
such delay would adversely impact the patient's medical condition,
provided that if such prescription is for a controlled substance, the
quantity of controlled substances does not exceed a five day supply if
the controlled substance were used in accordance with the directions for
use; [or]
(e) issued by a practitioner to be dispensed by a pharmacy located
outside the state, as set forth in regulation[.]; OR
(F) ISSUED AS AN ORAL PRESCRIPTION UNDER PARAGRAPH (B) OF SUBDIVISION
FOUR OF SECTION SIXTY-EIGHT HUNDRED TEN OF THE EDUCATION LAW.
S 4. Paragraphs (d) and (e) of subdivision 10 of section 6810 of the
education law, as amended by chapter 13 of the laws of 2015, are amended
and a new paragraph (f) is added to read as follows:
(d) issued by a practitioner under circumstances where, notwithstand-
ing the practitioner's present ability to make an electronic
prescription as required by this subdivision, such practitioner reason-
ably determines that it would be impractical for the patient to obtain
substances prescribed by electronic prescription in a timely manner, and
such delay would adversely impact the patient's medical condition,
provided that if such prescription is for a controlled substance, the
quantity that does not exceed a five day supply if the controlled
substance was used in accordance with the directions for use; [or]
(e) issued by a practitioner to be dispensed by a pharmacy located
outside the state, as set forth in regulation[.]; OR
(F) ISSUED AS AN ORAL PRESCRIPTION UNDER PARAGRAPH (B) OF SUBDIVISION
FOUR OF THIS SECTION.
S 5. Section 2807-m of the public health law is amended by adding a
new subdivision 12 to read as follows:
12. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, APPLICATIONS
FOR PHYSICIAN LOAN REPAYMENT AND PHYSICIAN PRACTICE SUPPORT, SUBMITTED
PURSUANT TO PARAGRAPHS (D) AND (E) OF SUBDIVISION FIVE-A OF THIS SECTION
AND SUBDIVISION TEN OF THIS SECTION, ON OR AFTER APRIL FIRST, TWO THOU-
SAND SIXTEEN, SHALL BE SUBJECT TO THE FOLLOWING CHANGES:
(A) FOR THE PERIOD APRIL FIRST, TWO THOUSAND SIXTEEN THROUGH MARCH
THIRTY-FIRST, TWO THOUSAND SEVENTEEN, TWELVE MILLION SIXTY-FIVE THOUSAND
DOLLARS SHALL BE SET ASIDE AND RESERVED BY THE COMMISSIONER FROM THE
REGIONAL POOLS ESTABLISHED IN ACCORDANCE WITH SUBDIVISION TWO OF THIS
SECTION AND SHALL BE AVAILABLE FOR PURPOSES OF BOTH NEW AWARDS FOR
PHYSICIAN LOAN REPAYMENT AND NEW AWARDS FOR PHYSICIAN PRACTICE SUPPORT,
BASED ON APPLICATIONS SUBMITTED IN ACCORDANCE WITH THIS SUBDIVISION.
NEITHER OF THE AWARD PROGRAMS SHALL BE LIMITED TO A SPECIFIC FUNDING
AMOUNT WITHIN THE TOTAL AMOUNT MADE AVAILABLE PURSUANT TO THIS PARA-
GRAPH.
(B) AN APPLICANT MAY APPLY FOR AN AWARD FOR EITHER PHYSICIAN LOAN
REPAYMENT OR PHYSICIAN PRACTICE SUPPORT, BUT NOT BOTH.
(C) AN APPLICANT SHALL AGREE TO PRACTICE FOR THREE YEARS IN AN UNDER-
SERVED AREA AND EACH AWARD SHALL PROVIDE FORTY THOUSAND DOLLARS FOR EACH
OF THE THREE YEARS.
S. 6407--B 88
(D) REFERENCES IN PARAGRAPHS (B) THROUGH (E) OF SUBDIVISION TEN OF
THIS SECTION TO PARAGRAPH (A) OF SUBDIVISION TEN OF THIS SECTION SHALL
INSTEAD BE REFERENCES TO THE THREE YEAR PHYSICIAN LOAN REPAYMENT AWARDS
MADE UNDER THIS SUBDIVISION.
(E) THE FUNDING ALLOCATION AND DISTRIBUTION PROVIDED FOR IN PARAGRAPHS
(D) AND (E) OF SUBDIVISION FIVE-A OF THIS SECTION SHALL APPLY TO THE
COMBINED FUNDING AMOUNT PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVI-
SION.
(F) AWARDS SHALL BE MADE ANNUALLY AND TIMED TO BE OF USE FOR JOB
OFFERS MADE TO APPLICANTS.
S 6. Subdivision 4 of section 461-s of the social services law, as
added by section 6 of part A of chapter 57 of the laws of 2015, is
amended to read as follows:
4. EQUAL program funds shall not be expended for a facility's daily
operating expenses, including employee salaries or benefits[, or for
expenses incurred retrospectively]. EQUAL PROGRAM FUNDS MAY BE USED FOR
EXPENSES INCURRED AT ANY TIME DURING THE FISCAL YEAR FOR WHICH THE FUNDS
WERE APPROPRIATED, PROVIDED THAT, CONSISTENT WITH SUBDIVISION THREE OF
THIS SECTION, THE RESIDENTS' COUNCIL APPROVES SUCH EXPENDITURE PRIOR TO
THE EXPENDITURE BEING INCURRED. EQUAL program funds may be used for
expenditures related to corrective action as required by an inspection
report, provided such expenditure is consistent with subdivision three
of this section.
S 7. Health care facility infrastructure development demonstration
program. (a) The commissioner of health, in collaboration with the pres-
ident of the dormitory authority of the state of New York, shall examine
the efficacy of establishing public-private partnerships for a health
care facility infrastructure development demonstration program designed
to effectuate capital projects that facilitate health care transforma-
tion, including mergers, consolidations, acquisitions, and restructuring
activities that are part of an overall transformation plan intended to
create a financially sustainable system of care. In gathering data, the
commissioner shall at least examine:
(i) the availability of qualified private partners;
(ii) the fiscal viability of such partnerships;
(iii) willingness of providers to participate;
(iv) examples of such partnerships within the health care industry in
general and the outcomes of such partnerships;
(v) challenges with establishing such partnerships; and
(vi) for the purposes of such a demonstration, the benefits to: the
state; a municipality in which such a project could be established;
quality of care; and the long term sustainability of the state's health
care system.
(b) The commissioner of health shall develop recommendations for the
state related to establishing such a demonstration and include them in a
report to be issued to the governor, the temporary president of the
senate and the speaker of the assembly within one year following the
effective date of this act.
S 8. Section 2801-a of the public health law is amended by adding a
new subdivision 17 to read as follows:
17. (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH A PILOT PROGRAM TO
ASSIST IN RESTRUCTURING HEALTH CARE DELIVERY SYSTEMS BY ALLOWING FOR
INCREASED CAPITAL INVESTMENT. PURSUANT TO THE PILOT PROGRAM, THE PUBLIC
HEALTH AND HEALTH PLANNING COUNCIL SHALL APPROVE THE ESTABLISHMENT, IN
ACCORDANCE WITH THE PROVISIONS OF PARAGRAPHS (F), (G) AND (H) OF THIS
SUBDIVISION AND SUBDIVISION THREE OF THIS SECTION, OF NO MORE THAN TEN
S. 6407--B 89
BUSINESS CORPORATIONS FORMED UNDER THE BUSINESS CORPORATION LAW. SUCH
BUSINESS CORPORATIONS SHALL AFFILIATE, THE EXTENT OF THE AFFILIATION TO
BE DETERMINED BY THE COMMISSIONER, WITH AT LEAST ONE ACADEMIC MEDICAL
INSTITUTION OR TEACHING HOSPITAL APPROVED BY THE COMMISSIONER. A BUSI-
NESS CORPORATION SHALL NOT BE ELIGIBLE TO PARTICIPATE IN THIS PROGRAM IF
ANY OF ITS STOCK, OR THAT OF ANY OF ITS DIRECT OR INDIRECT OWNERS, IS OR
WILL BE TRADED ON A PUBLIC STOCK EXCHANGE OR ON AN OVER-THE-COUNTER
MARKET.
(B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, BUSINESS
CORPORATIONS ESTABLISHED PURSUANT TO THIS SUBDIVISION SHALL BE DEEMED
ELIGIBLE TO PARTICIPATE IN DEBT FINANCING PROVIDED BY THE DORMITORY
AUTHORITY OF THE STATE OF NEW YORK, LOCAL DEVELOPMENT CORPORATIONS AND
ECONOMIC DEVELOPMENT CORPORATIONS.
(C) THE FOLLOWING PROVISIONS OF THIS CHAPTER SHALL NOT APPLY TO BUSI-
NESS CORPORATIONS ESTABLISHED PURSUANT TO THIS SUBDIVISION: (I) PARA-
GRAPH (B) OF SUBDIVISION THREE OF THIS SECTION, RELATING TO STOCKHOLD-
ERS, OTHER THAN PRINCIPAL STOCKHOLDERS; (II) PARAGRAPH (C) OF
SUBDIVISION FOUR OF THIS SECTION, RELATING TO THE DISPOSITION OF STOCK
OR VOTING RIGHTS; (III) PARAGRAPHS (D) AND (E) OF SUBDIVISION FOUR OF
THIS SECTION, RELATING TO THE OWNERSHIP OF STOCK; AND (IV) PARAGRAPH (A)
OF SUBDIVISION THREE OF SECTION FOUR THOUSAND FOUR OF THIS CHAPTER,
RELATING TO THE OWNERSHIP OF STOCK. NOTWITHSTANDING THE FOREGOING, THE
PUBLIC HEALTH AND HEALTH PLANNING COUNCIL MAY REQUIRE THE DISCLOSURE OF
THE IDENTITY OF STOCKHOLDERS.
(D) THE CORPORATE POWERS AND PURPOSES OF A BUSINESS CORPORATION ESTAB-
LISHED AS AN OPERATOR PURSUANT TO THIS SUBDIVISION SHALL BE LIMITED TO
THE OWNERSHIP AND OPERATION, OR OPERATION, OF A HOSPITAL OR HOSPITALS
SPECIFICALLY NAMED AND THE LOCATION OR LOCATIONS OF WHICH ARE SPECIF-
ICALLY DESIGNATED BY STREET ADDRESS, CITY, TOWN, VILLAGE OR LOCALITY AND
COUNTY; PROVIDED, HOWEVER, THAT THE CORPORATE POWERS AND PURPOSES MAY
ALSO INCLUDE THE OWNERSHIP AND OPERATION, OR OPERATION, OF A CERTIFIED
HOME HEALTH AGENCY OR LICENSED HOME CARE SERVICES AGENCY OR AGENCIES AS
DEFINED IN ARTICLE THIRTY-SIX OF THIS CHAPTER OR A HOSPICE OR HOSPICES
AS DEFINED IN ARTICLE FORTY OF THIS CHAPTER, IF THE CORPORATION HAS
RECEIVED ALL APPROVALS REQUIRED UNDER SUCH LAW TO OWN AND OPERATE, OR
OPERATE, SUCH HOME CARE SERVICES AGENCY OR AGENCIES OR HOSPICE OR
HOSPICES. SUCH CORPORATE POWERS AND PURPOSES SHALL NOT BE MODIFIED,
AMENDED OR DELETED WITHOUT THE PRIOR APPROVAL OF THE COMMISSIONER.
(E)(1) IN DISCHARGING THE DUTIES OF THEIR RESPECTIVE POSITIONS, THE
BOARD OF DIRECTORS, COMMITTEES OF THE BOARD AND INDIVIDUAL DIRECTORS AND
OFFICERS OF A BUSINESS CORPORATION ESTABLISHED PURSUANT TO THIS SUBDIVI-
SION SHALL CONSIDER THE EFFECTS OF ANY ACTION UPON:
(A) THE ABILITY OF THE BUSINESS CORPORATION TO ACCOMPLISH ITS PURPOSE;
(B) THE SHAREHOLDERS OF THE BUSINESS CORPORATION;
(C) THE EMPLOYEES AND WORKFORCE OF THE HOSPITAL OR HOSPITALS;
(D) THE INTERESTS OF PATIENTS OF THE HOSPITAL OR HOSPITALS;
(E) COMMUNITY AND SOCIETAL CONSIDERATIONS, INCLUDING THOSE OF ANY
COMMUNITY IN WHICH FACILITIES OF THE HOSPITAL OR HOSPITALS ARE LOCATED;
AND
(F) THE SHORT-TERM AND LONG-TERM INTERESTS OF THE BUSINESS CORPO-
RATION, INCLUDING BENEFITS THAT MAY ACCRUE TO THE BUSINESS CORPORATION
FROM ITS LONG-TERM PLANS.
(2) THE CONSIDERATION OF INTERESTS AND FACTORS IN THE MANNER REQUIRED
BY SUBPARAGRAPH ONE OF THIS PARAGRAPH:
S. 6407--B 90
(A) SHALL NOT CONSTITUTE A VIOLATION OF THE PROVISIONS OF SECTION
SEVEN HUNDRED FIFTEEN OR SEVEN HUNDRED SEVENTEEN OF THE BUSINESS CORPO-
RATION LAW; AND
(B) IS IN ADDITION TO THE ABILITY OF DIRECTORS TO CONSIDER INTERESTS
AND FACTORS AS PROVIDED IN SECTION SEVEN HUNDRED SEVENTEEN OF THE BUSI-
NESS CORPORATION LAW.
(F) WHILE ANY DECISION TO APPROVE A BUSINESS CORPORATION UNDER THIS
SECTION MUST WEIGH AND BALANCE A NUMBER OF FACTORS, IN DETERMINING
WHETHER TO APPROVE A BUSINESS CORPORATION UNDER THIS SECTION, THE PUBLIC
HEALTH AND HEALTH PLANNING COUNCIL, IN CONSULTATION WITH THE COMMISSION-
ER, SHALL CONSIDER THE EXTENT TO WHICH THE BUSINESS CORPORATION:
(1) PROVIDES FOR EITHER EQUAL OR MAJORITY GOVERNANCE RIGHTS OF THE
NOT-FOR-PROFIT HOSPITAL PARTNER, REGARDLESS OF EQUITY STAKES, THROUGH
WEIGHTED CLASS VOTING STRUCTURE OR OTHERWISE;
(2) INCORPORATES A REPRESENTATIVE GOVERNANCE MODEL THAT:
(A) CLEARLY DELINEATES AUTHORITY AND RESPONSIBILITY FOR THE HOSPITAL'S
OPERATIONS; AND
(B) DEFINES MECHANISMS FOR APPROVAL OF DESIGNATED SHAREHOLDERS OR
INVESTORS;
(3) IS INCORPORATED AS A BENEFIT CORPORATION UNDER THE BUSINESS CORPO-
RATION LAW;
(4) COMMITS TO MAINTAINING OR ENHANCING EXISTING LEVELS OF SERVICES,
CHARITY CARE AND CORE COMMUNITY BENEFITS;
(5) IDENTIFIES AN ACTIONABLE STRATEGY TO MONITOR AND MAINTAIN OR
IMPROVE QUALITY OF CARE;
(6) EXPLAINS THE LEVEL OF CAPITAL COMMITMENT AND THE MECHANISM OR
MECHANISMS FOR INFUSING CAPITAL INTO THE NOT-FOR-PROFIT HOSPITAL PART-
NER;
(7) EXPLAINS HOW IT WILL RETAIN THE WORKFORCE, EITHER IN EXISTING JOBS
OR THROUGH RETRAINING, AND ADDRESSES OBLIGATIONS OWED TO EMPLOYEE BENE-
FIT PLANS AND PENSIONS;
(8) WILL CREATE A FOUNDATION TO ADDRESS THE PUBLIC HEALTH NEEDS OF THE
COMMUNITY; AND
(9) IDENTIFIES HOW PROFIT DISTRIBUTIONS SHALL BE MADE IN A WAY TO
ENSURE THAT THE COMMUNITY'S ACCESS TO QUALITY CARE AND CORE COMMUNITY
BENEFITS ARE NOT COMPROMISED AND ACCESS TO CAPITAL IS NOT COMPROMISED.
NONE OF THE FOREGOING FACTORS SHALL BE DISPOSITIVE IN THE APPROVAL OR
DISAPPROVAL OF THE BUSINESS CORPORATION.
(G) NO BUSINESS CORPORATION SHALL BE APPROVED UNDER THIS SECTION THAT
FAILS TO ATTEST THAT IT WILL PROVIDE THE NOT-FOR-PROFIT HOSPITAL PARTNER
WITH THE EXCLUSIVE AUTHORITY OVER FUNCTIONS RELATING TO ITS EXEMPT
STATUS.
(H) THE BOARD OF DIRECTORS OF A BUSINESS CORPORATION ESTABLISHED
PURSUANT TO THIS SUBDIVISION SHALL BE DEEMED A "GOVERNING BODY" FOR THE
PURPOSES OF SECTION TWENTY-EIGHT HUNDRED THREE-L OF THIS ARTICLE AND
SHALL COMPLY WITH THE PROVISIONS OF SUCH SECTION, REGARDLESS OF THE
CORPORATION'S PROFIT-MAKING STATUS.
(I) A SALE, LEASE, CONVEYANCE, EXCHANGE, TRANSFER, OR OTHER DISPOSI-
TION OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF THE BUSINESS CORPO-
RATION SHALL NOT BE EFFECTIVE UNLESS THE TRANSACTION IS APPROVED BY THE
COMMISSIONER.
NO SUCH TRANSACTION MAY OCCUR WITHIN THREE YEARS OF THE COMMISSIONER'S
APPROVAL OF THE BUSINESS CORPORATION'S PARTICIPATION IN THE DEMON-
STRATION PROJECT. IN APPROVING SUCH A TRANSACTION, THE COMMISSIONER
SHALL CONSIDER, AMONG OTHER THINGS, WHETHER THE TRANSACTION:
S. 6407--B 91
(1) IMPOSES SAFEGUARDS TO PROTECT QUALITY AND ACCESS TO CORE COMMUNITY
SERVICES DURING THE TRANSITION TO THE NEW INVESTOR;
(2) REQUIRES THE SUBSEQUENT INVESTOR TO GUARANTEE ALL OBLIGATIONS,
INCLUDING THOSE DESCRIBED IN SUBPARAGRAPH SEVEN OF PARAGRAPH (F) OF THIS
SUBDIVISION;
(3) WILL MAINTAIN THE HOSPITAL GOVERNANCE STRUCTURE; AND
(4) IMPOSES MINIMUM CAPITALIZATION CRITERIA POST-TRANSACTION.
(J) NO LATER THAN THREE YEARS AFTER THE ESTABLISHMENT OF A BUSINESS
CORPORATION UNDER THIS SUBDIVISION, THE COMMISSIONER SHALL PROVIDE THE
GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE
ASSEMBLY WITH A WRITTEN EVALUATION OF THE PILOT PROGRAM. SUCH EVALUATION
SHALL ADDRESS THE OVERALL EFFECTIVENESS OF THE PROGRAM IN ALLOWING FOR
ACCESS TO CAPITAL INVESTMENT AND THE IMPACT SUCH ACCESS MAY HAVE ON THE
QUALITY OF CARE PROVIDED BY HOSPITALS OPERATED BY BUSINESS CORPORATIONS
ESTABLISHED UNDER THIS SUBDIVISION.
S 9. Paragraph (b) of subdivision 2 of section 1676 of the public
authorities law is amended by adding a new undesignated paragraph to
read as follows:
SUCH BUSINESS CORPORATIONS AS ARE ESTABLISHED PURSUANT TO SUBDIVISION
SEVENTEEN OF SECTION TWENTY-EIGHT HUNDRED ONE-A OF THE PUBLIC HEALTH LAW
FOR THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION, REHABILITATION AND
IMPROVEMENT, OR OTHERWISE PROVIDING, FURNISHING AND EQUIPPING OF A
HOSPITAL OR HOSPITALS.
S 10. Subdivision 1 of section 1680 of the public authorities law is
amended by adding a new undesignated paragraph to read as follows:
SUCH BUSINESS CORPORATIONS AS ARE ESTABLISHED PURSUANT TO SUBDIVISION
SEVENTEEN OF SECTION TWENTY-EIGHT HUNDRED ONE-A OF THE PUBLIC HEALTH LAW
FOR THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION, REHABILITATION AND
IMPROVEMENT, OR OTHERWISE PROVIDING, FURNISHING AND EQUIPPING OF A
HOSPITAL OR HOSPITALS.
S 11. Subdivision 5 of section 2557 of the public health law is
REPEALED.
S 12. The public health law is amended by adding a new section 2557-a
to read as follows:
S 2557-A. COMPTROLLER; FISCAL AGENT. THE COMPTROLLER IS AUTHORIZED TO
ACT AS THE FISCAL AGENT FOR THE DEPARTMENT AND MUNICIPALITIES WITH
RESPECT TO FISCAL MANAGEMENT AND PAYMENT OF EARLY INTERVENTION CLAIMS.
MUNICIPALITIES SHALL GRANT SUFFICIENT AUTHORITY TO THE COMPTROLLER TO
ACT ON THEIR BEHALF. MUNICIPALITIES, AND INDIVIDUAL AND AGENCY PROVIDERS
AS DEFINED BY THE COMMISSIONER IN REGULATION SHALL UTILIZE SUCH FISCAL
AGENT FOR PAYMENT OF EARLY INTERVENTION CLAIMS AS DETERMINED BY THE
DEPARTMENT AND SHALL PROVIDE SUCH INFORMATION AND DOCUMENTATION AS
REQUIRED BY THE DEPARTMENT AND NECESSARY FOR THE FISCAL AGENT TO CARRY
OUT ITS DUTIES. IN THE EVENT THAT THE COMPTROLLER DOES NOT ACT AS THE
FISCAL AGENT, THE DEPARTMENT SHALL ACT AS THE FISCAL AGENT WITH RESPECT
TO FISCAL MANAGEMENT AND PAYMENT OF EARLY INTERVENTION CLAIMS.
S 13. Section 605 of the public health law is amended by adding a new
subdivision 4 to read as follows:
4. UPON RECEIPT OF THE FINAL CLAIM FROM ALL MUNICIPALITIES, OR AFTER
JUNE FIFTEENTH IMMEDIATELY FOLLOWING CONCLUSION OF THE STATE'S FISCAL
YEAR, THE COMMISSIONER SHALL CALCULATE THE AMOUNTS CLAIMED BY EACH
CLAIMANT DURING THE ENTIRE CALENDAR YEAR AND SHALL DISTRIBUTE ANY
BALANCE REMAINING IN THE TOTAL ALLOCATED FOR PAYMENT OF STATE AID FOR
PUBLIC HEALTH WORK IN PROPORTION TO THE RELATIONSHIP WHICH EACH CLAIM-
ANT'S TOTAL EXPENDITURES BEARS TO THE TOTAL OF ALL CLAIMANTS, EXCEPT
S. 6407--B 92
THAT NO CLAIMANT SHALL RECEIVE MORE THAN FIFTY PERCENT OF ITS TOTAL
REIMBURSABLE EXPENSE.
S 14. Section 616 of the public health law is amended by adding a new
subdivision 3 to read as follows:
3. ADMINISTRATIVE LIMITATIONS ON STATE AID IMPOSED BY THE DEPARTMENT
SHALL NOT BE IMPLEMENTED WITHOUT ONE YEAR OF ADVANCE NOTICE TO MUNICI-
PALITIES.
S 15. Section 621 of the public health law, as amended by chapter 469
of the laws of 2012, is amended to read as follows:
S 621. State aid; public health emergencies. If the state commissioner
or a county health department or part-county department of health or
municipality, with the approval of the state commissioner, determines
that there is an imminent threat to public health, the department shall
reimburse counties or municipalities at ONE HUNDRED PER CENTUM FOR THE
FIRST YEAR'S COST AND AT fifty per centum IN SUBSEQUENT YEARS THAT THE
EMERGENCY DECLARATION REMAINS IN FORCE for the cost of emergency meas-
ures as approved by the department and subject to the approval of the
director of the budget[, except that aerial]. AERIAL spraying for
mosquitoes on state land shall be reimbursed at one hundred per centum,
within amounts appropriated IN THE CURRENT OR SUBSEQUENT FISCAL YEAR.
Such funds shall be made available from funds appropriated for public
health emergencies, only to those counties or municipalities, which have
expended all other state aid which may be available for related activ-
ities and have developed measures to adequately address the emergency.
Reimbursement is conditioned upon availability of appropriated funds, IN
THE CURRENT OR SUBSEQUENT FISCAL YEAR. For purposes of this section,
"municipality" means a health department of a city that is not located
in a county or part-county health district or a county in which the
legislature has the powers and duties of a board of health of a county
or part-county health district and cities with a population of over one
million persons.
S 16. This act shall take effect immediately; provided, however, that
if this act becomes a law after March 27, 2016, section three and four
of this act shall be deemed to have been in full force and effect on and
after such date.
PART W
Section 1. The state comptroller is hereby authorized and directed to
loan money in accordance with the provisions set forth in subdivision 5
of section 4 of the state finance law to the following funds and/or
accounts:
1. Proprietary vocational school supervision account (20452).
2. Local government records management account (20501).
3. Child health plus program account (20810).
4. EPIC premium account (20818).
5. Education - New (20901).
6. VLT - Sound basic education fund (20904).
7. Sewage treatment program management and administration fund
(21000).
8. Hazardous bulk storage account (21061).
9. Federal grants indirect cost recovery account (21065).
10. Low level radioactive waste account (21066).
11. Recreation account (21067).
12. Public safety recovery account (21077).
13. Environmental regulatory account (21081).
S. 6407--B 93
14. Natural resource account (21082).
15. Mined land reclamation program account (21084).
16. Great lakes restoration initiative account (21087).
17. Environmental protection and oil spill compensation fund (21200).
18. Public transportation systems account (21401).
19. Metropolitan mass transportation (21402).
20. Operating permit program account (21451).
21. Mobile source account (21452).
22. Statewide planning and research cooperative system account
(21902).
23. Mental hygiene program fund account (21907).
24. Mental hygiene patient income account (21909).
25. Financial control board account (21911).
26. Regulation of racing account (21912).
27. New York Metropolitan Transportation Council account (21913).
28. State university dormitory income reimbursable account (21937).
29. Criminal justice improvement account (21945).
30. Environmental laboratory reference fee account (21959).
31. Clinical laboratory reference system assessment account (21962).
32. Indirect cost recovery account (21978).
33. High school equivalency program account (21979).
34. Multi-agency training account (21989).
35. Interstate reciprocity for post-secondary distance education
account.
36. Bell jar collection account (22003).
37. Industry and utility service account (22004).
38. Real property disposition account (22006).
39. Parking account (22007).
40. Asbestos safety training program account (22009).
41. Batavia school for the blind account (22032).
42. Investment services account (22034).
43. Surplus property account (22036).
44. Financial oversight account (22039).
45. Regulation of Indian gaming account (22046).
46. Rome school for the deaf account (22053).
47. Seized assets account (22054).
48. Administrative adjudication account (22055).
49. Federal salary sharing account (22056).
50. New York City assessment account (22062).
51. Cultural education account (22063).
52. Local services account (22078).
53. DHCR mortgage servicing account (22085).
54. Department of motor vehicles compulsory insurance account (22087).
55. Housing indirect cost recovery account (22090).
56. DHCR-HCA application fee account (22100).
57. Low income housing monitoring account (22130).
58. Corporation administration account (22135).
59. Montrose veteran's home account (22144).
60. Deferred compensation administration account (22151).
61. Rent revenue other New York City account (22156).
62. Rent revenue account (22158).
63. Tax revenue arrearage account (22168).
64. Highway use tax administration account.
65. State university general income offset account (22654).
66. Lake George park trust fund account (22751).
67. State police motor vehicle law enforcement account (22802).
S. 6407--B 94
68. Highway safety program account (23001).
69. EFC drinking water program account (23101).
70. DOH drinking water program account (23102).
71. NYCCC operating offset account (23151).
72. Commercial gaming revenue account (23701).
73. Commercial gaming regulation account (23702).
74. Highway and bridge capital account (30051).
75. State university residence hall rehabilitation fund (30100).
76. State parks infrastructure account (30351).
77. Clean water/clean air implementation fund (30500).
78. Hazardous waste remedial cleanup account (31506).
79. Youth facilities improvement account (31701).
80. Housing assistance fund (31800).
81. Housing program fund (31850).
82. Highway facility purpose account (31951).
83. Information technology capital financing account (32215).
84. New York racing account (32213).
85. Mental hygiene facilities capital improvement fund (32300).
86. Correctional facilities capital improvement fund (32350).
87. New York State Storm Recovery Capital Fund (33000).
88. OGS convention center account (50318).
89. Empire Plaza Gift Shop (50327)
90. Centralized services fund (55000).
91. Archives records management account (55052).
92. Federal single audit account (55053).
93. Civil service EHS occupational health program account (55056).
94. Banking services account (55057).
95. Cultural resources survey account (55058).
96. Automation & printing chargeback account (55060).
97. OFT NYT account (55061).
98. Data center account (55062).
99. Intrusion detection account (55066).
100. Domestic violence grant account (55067).
101. Centralized technology services account (55069).
102. Labor contact center account (55071).
103. Human services contact center account (55072).
104. Tax contact center account (55073).
105. Policing the NYS thruway account.
106. Executive direction internal audit account (55251).
107. CIO Information technology centralized services account (55252).
108. Health insurance internal service account (55300).
109. Civil service employee benefits division administrative account
(55301).
110. Correctional industries revolving fund (55350).
111. Employees health insurance account (60201).
112. Medicaid management information system escrow fund (60900).
S 1-a. The state comptroller is hereby authorized and directed to loan
money in accordance with the provisions set forth in subdivision 5 of
section 4 of the state finance law to any account within the following
federal funds, provided the comptroller has made a determination that
sufficient federal grant award authority is available to reimburse such
loans:
1. Federal USDA-food and nutrition services fund (25000).
2. Federal health and human services fund (25100).
3. Federal education fund (25200).
4. Federal block grant fund (25250).
S. 6407--B 95
5. Federal miscellaneous operating grants fund (25300).
6. Federal unemployment insurance administration fund (25900).
7. Federal unemployment insurance occupational training fund (25950).
8. Federal emergency employment act fund (26000).
9. Federal capital projects fund (31350).
S 2. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, on
or before March 31, 2017, and with respect to item 5 under the miscella-
neous category set forth in this section, up to and after March 31,
2017, up to the unencumbered balance or the following amounts:
Economic Development and Public Authorities:
1. $175,000 from the miscellaneous special revenue fund, underground
facilities safety training account (22172), to the general fund.
2. An amount up to the unencumbered balance from the miscellaneous
special revenue fund, business and licensing services account (21977),
to the general fund.
3. $14,810,000 from the miscellaneous special revenue fund, code
enforcement account (21904), to the general fund.
4. $3,000,000 from the general fund to the miscellaneous special
revenue fund, tax revenue arrearage account (22168).
Education:
1. $2,320,000,000 from the general fund to the state lottery fund,
education account (20901), as reimbursement for disbursements made from
such fund for supplemental aid to education pursuant to section 92-c of
the state finance law that are in excess of the amounts deposited in
such fund for such purposes pursuant to section 1612 of the tax law.
2. $986,000,000 from the general fund to the state lottery fund, VLT
education account (20904), as reimbursement for disbursements made from
such fund for supplemental aid to education pursuant to section 92-c of
the state finance law that are in excess of the amounts deposited in
such fund for such purposes pursuant to section 1612 of the tax law.
3. Moneys from the state lottery fund up to an amount deposited in
such fund pursuant to section 1612 of the tax law in excess of the
current year appropriation for supplemental aid to education pursuant to
section 92-c of the state finance law.
4. Up to $137,700,000 from the moneys deposited in commercial gaming
revenue account (23701) to the general fund as reimbursement for
disbursements made from the general fund for supplemental aid to educa-
tion during the prior fiscal year due to the unencumbered balance of the
commercial gaming revenue account during the prior fiscal year being
less than required to fully fund payments of general support for public
schools, pursuant to Chapter 61 of the laws of 2015.
5. $300,000 from the local government records management improvement
fund (20500) to the archives partnership trust fund (20350).
6. $900,000 from the general fund to the miscellaneous special revenue
fund, Batavia school for the blind account (22032).
7. $900,000 from the general fund to the miscellaneous special revenue
fund, Rome school for the deaf account (22053).
8. $343,400,000 from the state university dormitory income fund
(40350) to the miscellaneous special revenue fund, state university
dormitory income reimbursable account (21937).
9. $24,000,000 from any of the state education department special
revenue and internal service funds to the miscellaneous special revenue
fund, indirect cost recovery account (21978).
S. 6407--B 96
10. $8,318,000 from the general fund to the state university income
fund, state university income offset account (22654), for the state's
share of repayment of the STIP loan.
11. $40,000,000 from the state university income fund, state universi-
ty hospitals income reimbursable account (22656) to the general fund for
hospital debt service for the period April 1, 2015 through March 31,
2016.
12. An amount up to $14,251,000 from the general fund to the state
university income fund, state university general revenue account
(22653).
Environmental Affairs:
1. $16,000,000 from any of the department of environmental conserva-
tion's special revenue federal funds to the environmental conservation
special revenue fund, federal indirect recovery account (21065).
2. $2,000,000 from any of the department of environmental conserva-
tion's special revenue federal funds to the conservation fund as neces-
sary to avoid diversion of conservation funds.
3. $3,000,000 from any of the office of parks, recreation and historic
preservation capital projects federal funds and special revenue federal
funds to the miscellaneous special revenue fund, federal grant indirect
cost recovery account (22188).
4. $1,000,000 from any of the office of parks, recreation and historic
preservation special revenue federal funds to the miscellaneous special
revenue fund, I love NY water account (21930).
5. $146,000,000 from the general fund to the environmental protection
fund, environmental protection fund transfer account (30451).
6. $9,700,000 from the general fund to the hazardous waste remedial
fund, hazardous waste oversight and assistance account (31505).
Family Assistance:
1. $10,000,000 from any of the office of children and family services,
office of temporary and disability assistance, or department of health
special revenue federal funds and the general fund, in accordance with
agreements with social services districts, to the miscellaneous special
revenue fund, office of human resources development state match account
(21967).
2. $4,000,000 from any of the office of children and family services
or office of temporary and disability assistance special revenue federal
funds to the miscellaneous special revenue fund, family preservation and
support services and family violence services account (22082).
3. $18,670,000 from any of the office of children and family services,
office of temporary and disability assistance, or department of health
special revenue federal funds and any other miscellaneous revenues
generated from the operation of office of children and family services
programs to the general fund.
4. $140,000,000 from any of the office of temporary and disability
assistance or department of health special revenue funds to the general
fund.
5. $2,500,000 from any of the office of temporary and disability
assistance special revenue federal funds to the miscellaneous special
revenue fund, office of temporary and disability assistance program
account (21980).
6. $21,000,000 from any of the office of children and family services,
office of temporary and disability assistance, department of labor, and
department of health special revenue federal funds to the office of
children and family services miscellaneous special revenue fund, multi-
agency training contract account (21989).
S. 6407--B 97
7. $65,000,000 from the miscellaneous special revenue fund, youth
facility per diem account (22186), to the general fund.
8. $621,850 from the general fund to the combined gifts, grants, and
bequests fund, WB Hoyt Memorial account (20128).
9. $3,100,000 from the miscellaneous special revenue fund, state
central registry (22028), to the general fund.
10. $1,000,000 from the general fund to the housing program fund
(31850).
General Government:
1. $1,566,000 from the miscellaneous special revenue fund, examination
and miscellaneous revenue account (22065) to the general fund.
2. $12,500,000 from the general fund to the health insurance revolving
fund (55300).
3. $192,400,000 from the health insurance reserve receipts fund
(60550) to the general fund.
4. $150,000 from the general fund to the not-for-profit revolving loan
fund (20650).
5. $150,000 from the not-for-profit revolving loan fund (20650) to the
general fund.
6. $3,000,000 from the miscellaneous special revenue fund, surplus
property account (22036), to the general fund.
7. $19,000,000 from the miscellaneous special revenue fund, revenue
arrearage account (22024), to the general fund.
8. $1,826,000 from the miscellaneous special revenue fund, revenue
arrearage account (22024), to the miscellaneous special revenue fund,
authority budget office account (22138).
9. $1,000,000 from the miscellaneous special revenue fund, parking
services account (22007), to the general fund, for the purpose of reim-
bursing the costs of debt service related to state parking facilities.
10. $21,789,000 from the general fund to the centralized services
fund, COPS account (55013).
11. $2,360,000 from the general fund to the agencies internal service
fund, central technology services account (55069), for the purpose of
enterprise technology projects.
12. $15,000,000 from the miscellaneous special revenue fund, workers'
compensation account (21995), to the miscellaneous capital projects
fund, workers' compensation board IT business process design fund.
Health:
1. $33,710,000 from the miscellaneous special revenue fund, quality of
care account (21915), to the general fund.
2. A transfer from the general fund to the combined gifts, grants and
bequests fund, breast cancer research and education account (20155), up
to an amount equal to the monies collected and deposited into that
account in the previous fiscal year.
3. A transfer from the general fund to the combined gifts, grants and
bequests fund, prostate cancer research, detection, and education
account (20183), up to an amount equal to the moneys collected and
deposited into that account in the previous fiscal year.
4. A transfer from the general fund to the combined gifts, grants and
bequests fund, Alzheimer's disease research and assistance account
(20143), up to an amount equal to the moneys collected and deposited
into that account in the previous fiscal year.
5. $30,295,000 from the HCRA resources fund (20800) to the miscella-
neous special revenue fund, empire state stem cell trust fund account
(22161).
S. 6407--B 98
6. $7,000,000 from the miscellaneous special revenue fund, certificate
of need account (21920), to the miscellaneous capital projects fund,
healthcare IT capital subfund (32216).
7. $1,000,000 from the miscellaneous special revenue fund, adminis-
tration program account (21982), to the miscellaneous capital projects
fund, healthcare IT capital account (32216).
8. $1,000,000 from the miscellaneous special revenue fund, vital
records account (22103), to the miscellaneous capital projects fund,
healthcare IT capital account (32216).
9. $55,500,000 from the HCRA resources fund (20800) to the capital
projects fund (30000).
10. $3,700,000 from the miscellaneous New York state agency fund,
medical assistance account to the general fund.
11. $4,886,000 from the general fund to the medical marihuana trust
fund, health operation and oversight account (23755).
12. $1,086,000 from the miscellaneous special revenue fund, certif-
icate of need account (21920), to the general fund.
13. $1,000,000 from the miscellaneous special revenue fund, profes-
sional medical conduct account (22088), to the miscellaneous capital
projects fund, healthcare IT capital account (32216).
Labor:
1. $400,000 from the miscellaneous special revenue fund, DOL fee and
penalty account (21923), to the child performer's protection fund, child
performer protection account (20401).
2. $8,400,000 from the miscellaneous special revenue fund, DOL fee and
penalty account (21923), to the general fund.
3. $3,300,000 from the unemployment insurance interest and penalty
fund, unemployment insurance special interest and penalty account
(23601), to the general fund.
Mental Hygiene:
1. $10,000,000 from the miscellaneous special revenue fund, mental
hygiene patient income account (21909), to the miscellaneous special
revenue fund, federal salary sharing account (22056).
2. $1,936,681,000 from the general fund to the miscellaneous special
revenue fund, mental hygiene patient income account (21909).
3. $1,563,769,000 from the general fund to the miscellaneous special
revenue fund, mental hygiene program fund account (21907).
4. $100,000,000 from the miscellaneous special revenue fund, mental
hygiene program fund account (21907), to the general fund.
5. $100,000,000 from the miscellaneous special revenue fund, mental
hygiene patient income account (21909), to the general fund.
6. $5,000,000 from the chemical dependence service fund, substance
abuse services fund account (22700), to the miscellaneous capital
projects fund, chemical dependence service capital account.
Public Protection:
1. $1,350,000 from the miscellaneous special revenue fund, emergency
management account (21944), to the general fund.
2. $3,300,000 from the general fund to the miscellaneous special
revenue fund, recruitment incentive account (22171).
3. $10,500,000 from the general fund to the correctional industries
revolving fund, correctional industries internal service account
(55350).
4. $3,000,000 from the federal miscellaneous operating grants fund,
DMNA damage account (25324), to the general fund.
5. $6,300,000 from the general fund to the miscellaneous special
revenue fund, crimes against revenue program account (22015).
S. 6407--B 99
6. $8,600,000 from the miscellaneous special revenue fund, criminal
justice improvement account (21945), to the general fund.
7. $106,000,000 from the state police motor vehicle law enforcement
and motor vehicle theft and insurance fraud prevention fund, state
police motor vehicle enforcement account (22802), to the general fund
for state operation expenses of the division of state police.
8. $53,500,000 from the general fund to the correctional facilities
capital improvement fund (32350).
9. $5,000,000 from the general fund to the dedicated highway and
bridge trust fund (30050) for the purpose of work zone safety activities
provided by the division of state police for the department of transpor-
tation.
10. $10,000,000 from the miscellaneous special revenue fund, statewide
public safety communications account (22123), to the capital projects
fund (30000).
11. $2,900,000 from the miscellaneous special revenue fund, legal
services assistance account (22096), to the general fund.
12. $300,000 from the state police motor vehicle law enforcement and
motor vehicle theft and insurance fraud prevention fund, motor vehicle
theft and insurance fraud account (22801), to the general fund.
13. $1,000,000 from the general fund to the agencies internal service
fund, center for employment opportunities NWP account.
Transportation:
1. $17,672,000 from the federal miscellaneous operating grants fund to
the miscellaneous special revenue fund, New York Metropolitan Transpor-
tation Council account (21913).
2. $20,147,000 from the federal capital projects fund to the miscella-
neous special revenue fund, New York Metropolitan Transportation Council
account (21913).
3. $1,240,000 from the miscellaneous special revenue fund, compulsory
insurance account (22087), to the dedicated highway and bridge trust
fund (30050).
4. $15,046,384 from the general fund to the mass transportation oper-
ating assistance fund, public transportation systems operating assist-
ance account (21401), of which $12,000,000 constitutes the base need for
operations.
5. $810,000,000 from the general fund to the dedicated highway and
bridge trust fund (30050).
6. $936,000 from the miscellaneous special revenue fund, accident
prevention course program account (22094), to the dedicated highway and
bridge trust fund (30050).
7. $1,234,000 from the miscellaneous special revenue fund, motorcycle
safety account (21976), to the dedicated highway and bridge trust fund
(30050).
8. $309,250,000 from the general fund to the MTA financial assistance
fund, mobility tax trust account (23651).
9. $5,000,000 from the miscellaneous special revenue fund, transporta-
tion regulation account (22067) to the dedicated highway and bridge
trust fund (30050), for disbursements made from such fund for motor
carrier safety that are in excess of the amounts deposited in the dedi-
cated highway and bridge trust fund (30050) for such purpose pursuant to
section 94 of the transportation law.
10. $34,000 from the miscellaneous special revenue fund, seized assets
account (21906), to the dedicated highway and bridge trust fund (30050).
Miscellaneous:
S. 6407--B 100
1. $250,000,000 from the general fund to any funds or accounts for the
purpose of reimbursing certain outstanding accounts receivable balances.
2. $500,000,000 from the general fund to the debt reduction reserve
fund (40000).
3. $450,000,000 from the New York state storm recovery capital fund
(33000) to the revenue bond tax fund (40152).
4. $15,500,000 from the general fund, community projects account GG
(10256), to the general fund, state purposes account (10050).
5. $1,820,000,000 from the general fund to the dedicated infrastruc-
ture investment fund.
S 3. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, on or before March 31, 2017:
1. Upon request of the commissioner of environmental conservation, up
to $11,410,000 from revenues credited to any of the department of envi-
ronmental conservation special revenue funds, including $3,293,400 from
the environmental protection and oil spill compensation fund (21200),
and $1,783,600 from the conservation fund (21150), to the environmental
conservation special revenue fund, indirect charges account (21060).
2. Upon request of the commissioner of agriculture and markets, up to
$3,000,000 from any special revenue fund or enterprise fund within the
department of agriculture and markets to the general fund, to pay appro-
priate administrative expenses.
3. Upon request of the commissioner of agriculture and markets, up to
$2,000,000 from the state exposition special fund, state fair receipts
account (50051) to the miscellaneous capital projects fund, state fair
capital improvement account (32208).
4. Upon request of the commissioner of the division of housing and
community renewal, up to $6,221,000 from revenues credited to any divi-
sion of housing and community renewal federal or miscellaneous special
revenue fund to the miscellaneous special revenue fund, housing indirect
cost recovery account (22090).
5. Upon request of the commissioner of the division of housing and
community renewal, up to $5,500,000 may be transferred from any miscel-
laneous special revenue fund account, to any miscellaneous special
revenue fund.
6. Upon request of the commissioner of health up to $5,000,000 from
revenues credited to any of the department of health's special revenue
funds, to the miscellaneous special revenue fund, administration account
(21982).
S 4. On or before March 31, 2017, the comptroller is hereby authorized
and directed to deposit earnings that would otherwise accrue to the
general fund that are attributable to the operation of section 98-a of
the state finance law, to the agencies internal service fund, banking
services account (55057), for the purpose of meeting direct payments
from such account.
S 5. Notwithstanding any law to the contrary, upon the direction of
the director of the budget and upon requisition by the state university
of New York, the dormitory authority of the state of New York is
directed to transfer, up to $22,000,000 in revenues generated from the
sale of notes or bonds, to the state university of New York for
reimbursement of bondable equipment for further transfer to the state's
general fund.
S 6. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget and
S. 6407--B 101
upon consultation with the state university chancellor or his or her
designee, on or before March 31, 2017, up to $16,000,000 from the state
university income fund general revenue account (22653) to the state
general fund for debt service costs related to campus supported capital
project costs for the NY-SUNY 2020 challenge grant program at the
University at Buffalo.
S 7. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget and
upon consultation with the state university chancellor or his or her
designee, on or before March 31, 2017, up to $6,500,000 from the state
university income fund general revenue account (22653) to the state
general fund for debt service costs related to campus supported capital
project costs for the NY-SUNY 2020 challenge grant program at the
University at Albany.
S 8. Notwithstanding any law to the contrary, the state university
chancellor or his or her designee is authorized and directed to transfer
estimated tuition revenue balances from the state university collection
fund (61000) to the state university income fund, state university
general revenue offset account (22655) on or before March 31, 2017.
S 9. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, up
to $87,764,000 from the general fund to the state university income
fund, state university hospitals income reimbursable account (22656)
during the period July 1, 2016 through June 30, 2017 to reflect ongoing
state subsidy of SUNY hospitals and to pay costs attributable to the
SUNY hospitals' state agency status.
S 10. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, up
to $1,059,428,300 from the general fund to the state university income
fund, state university general revenue offset account (22655) during the
period of July 1, 2016 through June 30, 2017 to support operations at
the state university.
S 11. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the state university chancel-
lor or his or her designee, up to $55,000,000 from the state university
income fund, state university hospitals income reimbursable account
(22656), for services and expenses of hospital operations and capital
expenditures at the state university hospitals; and the state university
income fund, Long Island veterans' home account (22652) to the state
university capital projects fund (32400) on or before June 30, 2017.
S 12. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller, after consultation
with the state university chancellor or his or her designee, is hereby
authorized and directed to transfer moneys, in the first instance, from
the state university collection fund, Stony Brook hospital collection
account (61006), Brooklyn hospital collection account (61007), and Syra-
cuse hospital collection account (61008) to the state university income
fund, state university hospitals income reimbursable account (22656) in
the event insufficient funds are available in the state university
income fund, state university hospitals income reimbursable account
(22656) to permit the full transfer of moneys authorized for transfer,
to the general fund for payment of debt service related to the SUNY
S. 6407--B 102
hospitals. Notwithstanding any law to the contrary, the comptroller is
also hereby authorized and directed, after consultation with the state
university chancellor or his or her designee, to transfer moneys from
the state university income fund to the state university income fund,
state university hospitals income reimbursable account (22656) in the
event insufficient funds are available in the state university income
fund, state university hospitals income reimbursable account (22656) to
pay hospital operating costs or to permit the full transfer of moneys
authorized for transfer, to the general fund for payment of debt service
related to the SUNY hospitals on or before March 31, 2017.
S 13. Notwithstanding any law to the contrary, upon the direction of
the director of the budget and the chancellor of the state university of
New York or his or her designee, and in accordance with section 4 of the
state finance law, the comptroller is hereby authorized and directed to
transfer monies from the state university dormitory income fund (40350)
to the state university residence hall rehabilitation fund (30100), and
from the state university residence hall rehabilitation fund (30100) to
the state university dormitory income fund (40350), in a net amount not
to exceed $80 million.
S 14. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer monies, upon request of the director of the
budget, on or before March 31, 2017, from and to any of the following
accounts: the miscellaneous special revenue fund, patient income account
(21909), the miscellaneous special revenue fund, mental hygiene program
fund account (21907), the miscellaneous special revenue fund, federal
salary sharing account (22056), or the general fund in any combination,
the aggregate of which shall not exceed $350 million.
S 15. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, at the request of the director of the budget,
up to $750 million from the unencumbered balance of any special revenue
fund or account, agency fund or account, internal service fund or
account, enterprise fund or account, or any combination of such funds
and accounts, to the general fund. The amounts transferred pursuant to
this authorization shall be in addition to any other transfers expressly
authorized in the 2016-17 budget. Transfers from federal funds, debt
service funds, capital projects funds, the community projects fund, or
funds that would result in the loss of eligibility for federal benefits
or federal funds pursuant to federal law, rule, or regulation as assent-
ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws of
1951 are not permitted pursuant to this authorization.
S 16. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, at the request of the director of the budget,
up to $100 million from any non-general fund or account, or combination
of funds and accounts, to the miscellaneous special revenue fund, tech-
nology financing account (22207) or the miscellaneous capital projects
fund, information technology capital financing account (32215), for the
purpose of consolidating technology procurement and services. The
amounts transferred to the miscellaneous special revenue fund, technolo-
gy financing account (22207) pursuant to this authorization shall be
equal to or less than the amount of such monies intended to support
information technology costs which are attributable, according to a
plan, to such account made in pursuance to an appropriation by law.
Transfers to the technology financing account shall be completed from
S. 6407--B 103
amounts collected by non-general funds or accounts pursuant to a fund
deposit schedule or permanent statute, and shall be transferred to the
technology financing account pursuant to a schedule agreed upon by the
affected agency commissioner. Transfers from funds that would result in
the loss of eligibility for federal benefits or federal funds pursuant
to federal law, rule, or regulation as assented to in chapter 683 of the
laws of 1938 and chapter 700 of the laws of 1951 are not permitted
pursuant to this authorization.
S 16-a. Notwithstanding any law to the contrary, and in accordance
with section 4 of the state finance law, the comptroller is hereby
authorized and directed to transfer, at the request of the director of
the budget, up to 27 million dollars ($27,000,000) from the unencumbered
balance of any special revenue fund or account, or combination of funds
and accounts, to the community projects fund. The amounts transferred
pursuant to this authorization shall be in addition to any other trans-
fers expressly authorized in the 2014-15 budget. Transfers from federal
funds, debt services funds, capital projects funds, or funds that would
result in the loss of eligibility for federal benefits or federal funds
pursuant to federal law, rule, or regulation as assented to in chapter
683 of the laws of 1938 and chapter 700 of the laws of 1951 are not
permitted pursuant to this authorization. The director of the budget
shall (a) have received a request in writing from one or both houses of
the legislature, and (b) notify both houses of the legislature in writ-
ing prior to initiating transfers pursuant to this authorization. The
comptroller shall provide the director of the budget, the chair of the
senate finance committee, and the chair of the assembly ways and means
committee with an accurate accounting and report of any transfers that
occur pursuant to this section on or before the fifteenth day of the
following month in which such transfers occur.
S 17. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, at the request of the director of the budget,
up to $350 million from any non-general fund or account, or combination
of funds and accounts, to the general fund for the purpose of consol-
idating technology procurement and services. The amounts transferred
pursuant to this authorization shall be equal to or less than the amount
of such monies intended to support information technology costs which
are attributable, according to a plan, to such account made in pursuance
to an appropriation by law. Transfers to the general fund shall be
completed from amounts collected by non-general funds or accounts pursu-
ant to a fund deposit schedule. Transfers from funds that would result
in the loss of eligibility for federal benefits or federal funds pursu-
ant to federal law, rule, or regulation as assented to in chapter 683 of
the laws of 1938 and chapter 700 of the laws of 1951 are not permitted
pursuant to this authorization.
S 18. Notwithstanding any provision of law to the contrary, as deemed
feasible and advisable by its trustees, the power authority of the state
of New York is authorized and directed to transfer to the state treasury
to the credit of the general fund $90,000,000 for the state fiscal year
commencing April 1, 2016, the proceeds of which will be utilized to
support energy-related state activities.
S 19. Notwithstanding any provision of law, rule or regulation to the
contrary, the New York State energy research and development authority
is authorized and directed to make a contribution to the state treasury
to the credit of the general fund in the amount of $23,000,000 from
proceeds collected by the authority from the auction or sale of carbon
S. 6407--B 104
dioxide emission allowances allocated by the department of environmental
conservation on or before March 31, 2017.
S 20. Notwithstanding any provision of law, rule or regulation to the
contrary, the New York state energy research and development authority
is authorized and directed to transfer to the state university income
fund general revenue account (22653), in an amount not to exceed
$15,000,000 for the state fiscal year commencing April 1, 2016 from the
proceeds collected by the authority from the auction or sale of carbon
dioxide emission allowances allocated by the department of environmental
conservation, which amount shall be utilized to support the Clean Energy
Workforce Opportunity Program, to expand and develop clean energy educa-
tion and workforce training programs; provided further, that up to
$5,000,000 of such amount shall be available to support Clean Energy
Workforce Opportunity Program initiatives at state university of New
York community colleges.
S 21. Subdivision 5 of section 97-rrr of the state finance law, as
amended by section 21 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
5. Notwithstanding the provisions of section one hundred seventy-one-a
of the tax law, as separately amended by chapters four hundred eighty-
one and four hundred eighty-four of the laws of nineteen hundred eight-
y-one, and notwithstanding the provisions of chapter ninety-four of the
laws of two thousand eleven, or any other provisions of law to the
contrary, during the fiscal year beginning April first, two thousand
[fifteen] SIXTEEN, the state comptroller is hereby authorized and
directed to deposit to the fund created pursuant to this section from
amounts collected pursuant to article twenty-two of the tax law and
pursuant to a schedule submitted by the director of the budget, up to
[$3,382,279,000] $3,381,844,000, as may be certified in such schedule as
necessary to meet the purposes of such fund for the fiscal year begin-
ning April first, two thousand [fifteen] SIXTEEN.
S 22. Intentionally Omitted.
S 23. The opening paragraph of section 2 and section 47 of part I of
chapter 60 of the laws of 2015, providing for the administration of
certain funds and accounts related to the 2015-16 budget, are amended to
read as follows:
Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, on
or before March 31, 2016, AND WITH RESPECT TO ITEM 5 UNDER THE MISCELLA-
NEOUS CATEGORY SET FORTH IN THIS SECTION, UP TO AND AFTER MARCH 31,
2016, up to the unencumbered balance or the following amounts:
S 47. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2015; provided,
however, [that] WITH THE EXCEPTION OF ITEM 5 OF THE MISCELLANEOUS CATE-
GORY SET FORTH WITHIN SECTION TWO OF THIS ACT, the provisions of
sections one through eight and sections thirteen through twenty of this
act shall expire March 31, 2016, when upon such date the provisions of
such sections shall be deemed repealed.
S 24. Subdivision 6 of section 4 of the state finance law, as amended
by section 22 of part I of chapter 55 of the laws of 2014, is amended to
read as follows:
6. Notwithstanding any law to the contrary, at the beginning of the
state fiscal year, the state comptroller is hereby authorized and
directed to receive for deposit to the credit of a fund and/or an
account such monies as are identified by the director of the budget as
S. 6407--B 105
having been intended for such deposit to support disbursements from such
fund and/or account made in pursuance of an appropriation by law. As
soon as practicable upon enactment of the budget, the director of the
budget shall, but not less than three days following preliminary
submission to the chairs of the senate finance committee and the assem-
bly ways and means committee, file with the state comptroller an iden-
tification of specific monies to be so deposited. Any subsequent change
regarding the monies to be so deposited shall be filed by the director
of the budget, as soon as practicable, but not less than three days
following preliminary submission to the chairs of the senate finance
committee and the assembly ways and means committee.
All monies identified by the director of the budget to be deposited to
the credit of a fund and/or account shall be consistent with the intent
of the budget for the then current state fiscal year as enacted by the
legislature.
[The provisions of this subdivision shall expire on March thirty-
first, two thousand sixteen.]
S 25. Subdivision 4 of section 40 of the state finance law, as amended
by section 23 of part I of chapter 55 of the laws of 2014, is amended to
read as follows:
4. Every appropriation made from a fund or account to a department or
agency shall be available for the payment of prior years' liabilities in
such fund or account for fringe benefits, indirect costs, and telecommu-
nications expenses and expenses for other centralized services fund
programs without limit. Every appropriation shall also be available for
the payment of prior years' liabilities other than those indicated
above, but only to the extent of one-half of one percent of the total
amount appropriated to a department or agency in such fund or account.
[The provisions of this subdivision shall expire March thirty-first,
two thousand sixteen.]
S 26. Subparagraph (i) of paragraph (a) of subdivision 3 of section
92-cc of the state finance law, as added by chapter 1 of the laws of
2007, is amended to read as follows:
(i) Economic downturn. The commissioner of labor shall calculate and
publish, on or before the fifteenth day of each month, a composite index
of business cycle indicators. Such index shall be calculated using
monthly data on New York state PRIVATE SECTOR employment, [total] AVER-
AGE WEEKLY HOURS OF manufacturing [hours worked] WORKERS, and THE unem-
ployment RATE prepared by the department of labor or its successor agen-
cy, and total sales tax [collected net of law changes] COLLECTIONS
ADJUSTED FOR INFLATION, prepared by the department of taxation and
finance or its successor agency. Such index shall be [constructed in
accordance with the procedures for calculating composite indexes issued
by the conference board or its successor organization, and] adjusted for
seasonal variations in accordance with the procedures issued by the
[census bureau of the] United States [department of commerce] CENSUS
BUREAU or its successor agency. If the composite index declines for five
consecutive months, the commissioner of labor shall notify the governor,
the speaker of the assembly, the temporary president of the senate, and
the minority leaders of the assembly and the senate. Upon such notifica-
tion, the director of the budget may authorize and direct the comp-
troller to transfer from the rainy day reserve fund to the general fund
such amounts as the director of the budget deems necessary to meet the
requirements of the state financial plan. The authority to transfer
funds under the provisions of this subdivision shall lapse when the
composite index shall have increased for five consecutive months or
S. 6407--B 106
twelve months from the original notification of the commissioner of
labor, whichever occurs earlier. Provided, however, that for every addi-
tional and consecutive monthly decline succeeding the five month decline
so noted by the commissioner of labor, the twelve month lapse date shall
be extended by one additional month; or
S 27. Paragraph (a) of subdivision 3 of section 93-b of the state
finance law, as added by section 1 of part H of chapter 60 of the laws
of 2015, is amended to read as follows:
(a) Economic downturn. Notwithstanding any law to the contrary, for
the purpose of this section, the commissioner of labor shall calculate
and publish, on or before the fifteenth day of each month, a composite
index of business cycle indicators. Such index shall be calculated using
monthly data on New York state PRIVATE SECTOR employment, [total] AVER-
AGE WEEKLY HOURS OF manufacturing [hours worked] WORKERS, and THE unem-
ployment RATE prepared by the department of labor or its successor agen-
cy, and total sales tax [collected net of law changes] COLLECTIONS
ADJUSTED FOR INFLATION, prepared by the department of taxation and
finance or its successor agency. Such index shall be [constructed in
accordance with the procedures for calculating composite indexes issued
by the conference board or its successor organization, and] adjusted for
seasonal variations in accordance with the procedures issued by the
[census bureau of the] United States [department of commerce] CENSUS
BUREAU or its successor agency. If the composite index declines for five
consecutive months, the commissioner of labor shall notify the governor,
the speaker of the assembly, the temporary president of the senate, and
the minority leaders of the assembly and the senate. Upon such notifica-
tion, the director of the budget may authorize and direct the comp-
troller to transfer from the dedicated infrastructure investment fund to
the general fund such amounts as the director of the budget deems neces-
sary to meet the requirements of the state financial plan. The authority
to transfer funds under the provisions of this paragraph shall lapse
when the composite index shall have increased for five consecutive
months or twelve months from the original notification of the commis-
sioner of labor, whichever occurs earlier. Provided, however, that for
every additional and consecutive monthly decline succeeding the five
month decline so noted by the commissioner of labor, the twelve month
lapse date shall be extended by one additional month.
S 28. Notwithstanding any other law, rule, or regulation to the
contrary, the state comptroller is hereby authorized and directed to use
any balance remaining in the mental health services fund debt service
appropriation, after payment by the state comptroller of all obligations
required pursuant to any lease, sublease, or other financing arrangement
between the dormitory authority of the state of New York as successor to
the New York state medical care facilities finance agency, and the
facilities development corporation pursuant to chapter 83 of the laws of
1995 and the department of mental hygiene for the purpose of making
payments to the dormitory authority of the state of New York for the
amount of the earnings for the investment of monies deposited in the
mental health services fund that such agency determines will or may have
to be rebated to the federal government pursuant to the provisions of
the internal revenue code of 1986, as amended, in order to enable such
agency to maintain the exemption from federal income taxation on the
interest paid to the holders of such agency's mental services facilities
improvement revenue bonds. Annually on or before each June 30th, such
agency shall certify to the state comptroller its determination of the
amounts received in the mental health services fund as a result of the
S. 6407--B 107
investment of monies deposited therein that will or may have to be
rebated to the federal government pursuant to the provisions of the
internal revenue code of 1986, as amended.
S 29. Subdivision 1 of section 47 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban development corpo-
ration act, as amended by section 25 of part I of chapter 60 of the laws
of 2015, is amended to read as follows:
1. Notwithstanding the provisions of any other law to the contrary,
the dormitory authority and the corporation are hereby authorized to
issue bonds or notes in one or more series for the purpose of funding
project costs for the office of information technology services, depart-
ment of law, and other state costs associated with such capital
projects. The aggregate principal amount of bonds authorized to be
issued pursuant to this section shall not exceed [two] THREE hundred
[sixty-nine] SIXTY-FOUR million [one] EIGHT hundred forty thousand
dollars, excluding bonds issued to fund one or more debt service reserve
funds, to pay costs of issuance of such bonds, and bonds or notes issued
to refund or otherwise repay such bonds or notes previously issued. Such
bonds and notes of the dormitory authority and the corporation shall not
be a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
the state to the dormitory authority and the corporation for principal,
interest, and related expenses pursuant to a service contract and such
bonds and notes shall contain on the face thereof a statement to such
effect. Except for purposes of complying with the internal revenue code,
any interest income earned on bond proceeds shall only be used to pay
debt service on such bonds.
S 30. Subdivision 1 of section 16 of part D of chapter 389 of the laws
of 1997, relating to the financing of the correctional facilities
improvement fund and the youth facility improvement fund, as amended by
section 27 of part I of chapter 60 of the laws of 2015, is amended to
read as follows:
1. Subject to the provisions of chapter 59 of the laws of 2000, but
notwithstanding the provisions of section 18 of section 1 of chapter 174
of the laws of 1968, the New York state urban development corporation is
hereby authorized to issue bonds, notes and other obligations in an
aggregate principal amount not to exceed seven billion [one] FOUR
hundred [sixty-three] TWENTY-FOUR million [three] NINE hundred [sixty-
nine] NINETY-NINE thousand dollars [$7,163,369,000] $7,424,999,000, and
shall include all bonds, notes and other obligations issued pursuant to
chapter 56 of the laws of 1983, as amended or supplemented. The proceeds
of such bonds, notes or other obligations shall be paid to the state,
for deposit in the correctional facilities capital improvement fund to
pay for all or any portion of the amount or amounts paid by the state
from appropriations or reappropriations made to the department of
corrections and community supervision from the correctional facilities
capital improvement fund for capital projects. The aggregate amount of
bonds, notes or other obligations authorized to be issued pursuant to
this section shall exclude bonds, notes or other obligations issued to
refund or otherwise repay bonds, notes or other obligations theretofore
issued, the proceeds of which were paid to the state for all or a
portion of the amounts expended by the state from appropriations or
reappropriations made to the department of corrections and community
supervision; provided, however, that upon any such refunding or repay-
ment the total aggregate principal amount of outstanding bonds, notes or
other obligations may be greater than seven billion [one] FOUR hundred
S. 6407--B 108
[sixty-three] TWENTY-FOUR million [three] NINE hundred [sixty-nine]
NINETY-NINE thousand dollars [$7,163,369,000] $7,424,999,000, only if
the present value of the aggregate debt service of the refunding or
repayment bonds, notes or other obligations to be issued shall not
exceed the present value of the aggregate debt service of the bonds,
notes or other obligations so to be refunded or repaid. For the purposes
hereof, the present value of the aggregate debt service of the refunding
or repayment bonds, notes or other obligations and of the aggregate debt
service of the bonds, notes or other obligations so refunded or repaid,
shall be calculated by utilizing the effective interest rate of the
refunding or repayment bonds, notes or other obligations, which shall be
that rate arrived at by doubling the semi-annual interest rate
(compounded semi-annually) necessary to discount the debt service
payments on the refunding or repayment bonds, notes or other obligations
from the payment dates thereof to the date of issue of the refunding or
repayment bonds, notes or other obligations and to the price bid includ-
ing estimated accrued interest or proceeds received by the corporation
including estimated accrued interest from the sale thereof.
S 31. Paragraph (a) of subdivision 2 of section 47-e of the private
housing finance law, as amended by section 28 of part I of chapter 60 of
the laws of 2015, is amended to read as follows:
(a) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, in order to enhance and encourage the promotion of housing
programs and thereby achieve the stated purposes and objectives of such
housing programs, the agency shall have the power and is hereby author-
ized from time to time to issue negotiable housing program bonds and
notes in such principal amount as shall be necessary to provide suffi-
cient funds for the repayment of amounts disbursed (and not previously
reimbursed) pursuant to law or any prior year making capital appropri-
ations or reappropriations for the purposes of the housing program;
provided, however, that the agency may issue such bonds and notes in an
aggregate principal amount not exceeding [three] FOUR billion [one] SIX
hundred [fifty-three] NINETY-SEVEN million [seven] FOUR hundred [nine-
ty-nine] SEVENTY-FOUR thousand dollars, plus a principal amount of bonds
issued to fund the debt service reserve fund in accordance with the debt
service reserve fund requirement established by the agency and to fund
any other reserves that the agency reasonably deems necessary for the
security or marketability of such bonds and to provide for the payment
of fees and other charges and expenses, including underwriters'
discount, trustee and rating agency fees, bond insurance, credit
enhancement and liquidity enhancement related to the issuance of such
bonds and notes. No reserve fund securing the housing program bonds
shall be entitled or eligible to receive state funds apportioned or
appropriated to maintain or restore such reserve fund at or to a partic-
ular level, except to the extent of any deficiency resulting directly or
indirectly from a failure of the state to appropriate or pay the agreed
amount under any of the contracts provided for in subdivision four of
this section.
S 32. Subdivision (b) of section 11 of chapter 329 of the laws of
1991, amending the state finance law and other laws relating to the
establishment of the dedicated highway and bridge trust fund, as amended
by section 29 of part I of chapter 60 of the laws of 2015, is amended to
read as follows:
(b) Any service contract or contracts for projects authorized pursuant
to sections 10-c, 10-f, 10-g and 80-b of the highway law and section
14-k of the transportation law, and entered into pursuant to subdivision
S. 6407--B 109
(a) of this section, shall provide for state commitments to provide
annually to the thruway authority a sum or sums, upon such terms and
conditions as shall be deemed appropriate by the director of the budget,
to fund, or fund the debt service requirements of any bonds or any obli-
gations of the thruway authority issued to fund or to reimburse the
state for funding such projects having a cost not in excess of
[$8,658,881,000] $9,147,234,000 cumulatively by the end of fiscal year
[2015-16] 2016-17.
S 33. Subdivision 1 of section 1689-i of the public authorities law,
as amended by section 30 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
1. The dormitory authority is authorized to issue bonds, at the
request of the commissioner of education, to finance eligible library
construction projects pursuant to section two hundred seventy-three-a of
the education law, in amounts certified by such commissioner not to
exceed a total principal amount of one hundred [forty] SIXTY-FOUR
million dollars.
S 34. Subdivision (a) of section 27 of part Y of chapter 61 of the
laws of 2005, providing for the administration of certain funds and
accounts related to the 2005-2006 budget, as amended by section 31 of
part I of chapter 60 of the laws of 2015, is amended to read as follows:
(a) Subject to the provisions of chapter 59 of the laws of 2000, but
notwithstanding any provisions of law to the contrary, the urban devel-
opment corporation is hereby authorized to issue bonds or notes in one
or more series in an aggregate principal amount not to exceed
[$155,600,000] $167,600,000, excluding bonds issued to finance one or
more debt service reserve funds, to pay costs of issuance of such bonds,
and bonds or notes issued to refund or otherwise repay such bonds or
notes previously issued, for the purpose of financing capital projects
including IT initiatives for the division of state police, debt service
and leases; and to reimburse the state general fund for disbursements
made therefor. Such bonds and notes of such authorized issuer shall not
be a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
the state to such authorized issuer for debt service and related
expenses pursuant to any service contract executed pursuant to subdivi-
sion (b) of this section and such bonds and notes shall contain on the
face thereof a statement to such effect. Except for purposes of comply-
ing with the internal revenue code, any interest income earned on bond
proceeds shall only be used to pay debt service on such bonds.
S 35. Section 44 of section 1 of chapter 174 of the laws of 1968,
constituting the New York state urban development corporation act, as
amended by section 32 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
S 44. Issuance of certain bonds or notes. 1. Notwithstanding the
provisions of any other law to the contrary, the dormitory authority and
the corporation are hereby authorized to issue bonds or notes in one or
more series for the purpose of funding project costs for the regional
economic development council initiative, the economic transformation
program, state university of New York college for nanoscale and science
engineering, projects within the city of Buffalo or surrounding envi-
rons, the New York works economic development fund, projects for the
retention of professional football in western New York, the empire state
economic development fund, the clarkson-trudeau partnership, the New
York genome center, the cornell university college of veterinary medi-
cine, the olympic regional development authority, a project at nano
S. 6407--B 110
Utica, onondaga county revitalization projects, Binghamton university
school of pharmacy, New York power electronics manufacturing consortium,
regional infrastructure projects, A COMMERCIALIZATION CENTER IN CHAUTAU-
QUA COUNTY, AN INDUSTRIAL SCALE RESEARCH AND DEVELOPMENT FACILITY IN
CLINTON COUNTY, UPSTATE REVITALIZATION INITIATIVE PROJECTS, MARKET NEW
YORK PROJECTS, and other state costs associated with such projects. The
aggregate principal amount of bonds authorized to be issued pursuant to
this section shall not exceed [two] THREE billion [eight] NINE hundred
[eighty-eight] TWENTY-FOUR million two hundred fifty-seven thousand
dollars, excluding bonds issued to fund one or more debt service reserve
funds, to pay costs of issuance of such bonds, and bonds or notes issued
to refund or otherwise repay such bonds or notes previously issued. Such
bonds and notes of the dormitory authority and the corporation shall not
be a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
the state to the dormitory authority and the corporation for principal,
interest, and related expenses pursuant to a service contract and such
bonds and notes shall contain on the face thereof a statement to such
effect. Except for purposes of complying with the internal revenue code,
any interest income earned on bond proceeds shall only be used to pay
debt service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the corporation in undertak-
ing the financing for project costs for the regional economic develop-
ment council initiative, the economic transformation program, state
university of New York college for nanoscale and science engineering,
projects within the city of Buffalo or surrounding environs, the New
York works economic development fund, projects for the retention of
professional football in western New York, the empire state economic
development fund, the clarkson-trudeau partnership, the New York genome
center, the cornell university college of veterinary medicine, the olym-
pic regional development authority, a project at nano Utica, onondaga
county revitalization projects, Binghamton university school of pharma-
cy, New York power electronics manufacturing consortium, regional
infrastructure projects, A COMMERCIALIZATION CENTER IN CHAUTAUQUA COUN-
TY, AN INDUSTRIAL SCALE RESEARCH AND DEVELOPMENT FACILITY IN CLINTON
COUNTY, UPSTATE REVITALIZATION INITIATIVE PROJECTS, MARKET NEW YORK
PROJECTS, and other state costs associated with such projects, the
director of the budget is hereby authorized to enter into one or more
service contracts with the dormitory authority and the corporation, none
of which shall exceed thirty years in duration, upon such terms and
conditions as the director of the budget and the dormitory authority and
the corporation agree, so as to annually provide to the dormitory
authority and the corporation, in the aggregate, a sum not to exceed the
principal, interest, and related expenses required for such bonds and
notes. Any service contract entered into pursuant to this section shall
provide that the obligation of the state to pay the amount therein
provided shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed executory
only to the extent of monies available and that no liability shall be
incurred by the state beyond the monies available for such purpose,
subject to annual appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned and pledged
by the dormitory authority and the corporation as security for its bonds
and notes, as authorized by this section.
S. 6407--B 111
S 36. Subdivision 3 of section 1285-p of the public authorities law,
as amended by section 33 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
3. The maximum amount of bonds that may be issued for the purpose of
financing environmental infrastructure projects authorized by this
section shall be [one] TWO billion [seven hundred seventy-five] ONE
HUNDRED FIFTEEN million seven hundred sixty thousand dollars, exclusive
of bonds issued to fund any debt service reserve funds, pay costs of
issuance of such bonds, and bonds or notes issued to refund or otherwise
repay bonds or notes previously issued. Such bonds and notes of the
corporation shall not be a debt of the state, and the state shall not be
liable thereon, nor shall they be payable out of any funds other than
those appropriated by the state to the corporation for debt service and
related expenses pursuant to any service contracts executed pursuant to
subdivision one of this section, and such bonds and notes shall contain
on the face thereof a statement to such effect.
S 37. Subdivision 1 of section 45 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban development corpo-
ration act, as amended by section 34 of part I of chapter 60 of the laws
of 2015, is amended to read as follows:
1. Notwithstanding the provisions of any other law to the contrary,
the urban development corporation of the state of New York is hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the implementation of a NY-SUNY and NY-CUNY
2020 challenge grant program subject to the approval of a NY-SUNY and
NY-CUNY 2020 plan or plans by the governor and either the chancellor of
the state university of New York or the chancellor of the city universi-
ty of New York, as applicable. The aggregate principal amount of bonds
authorized to be issued pursuant to this section shall not exceed
[$440,000,000] $550,000,000, excluding bonds issued to fund one or more
debt service reserve funds, to pay costs of issuance of such bonds, and
bonds or notes issued to refund or otherwise repay such bonds or notes
previously issued. Such bonds and notes of the corporation shall not be
a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
the state to the corporation for principal, interest, and related
expenses pursuant to a service contract and such bonds and notes shall
contain on the face thereof a statement to such effect. Except for
purposes of complying with the internal revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
S 38. Subdivision (a) of section 48 of part K of chapter 81 of the
laws of 2002, providing for the administration of certain funds and
accounts related to the 2002-2003 budget, as amended by section 35 of
part I of chapter 60 of the laws of 2015, is amended to read as follows:
(a) Subject to the provisions of chapter 59 of the laws of 2000 but
notwithstanding the provisions of section 18 of the urban development
corporation act, the corporation is hereby authorized to issue bonds or
notes in one or more series in an aggregate principal amount not to
exceed $197,000,000 excluding bonds issued to fund one or more debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or notes issued to refund or otherwise repay such bonds or notes previ-
ously issued, for the purpose of financing capital costs related to
homeland security and training facilities for the division of state
police, the division of military and naval affairs, and any other state
agency, including the reimbursement of any disbursements made from the
S. 6407--B 112
state capital projects fund, and is hereby authorized to issue bonds or
notes in one or more series in an aggregate principal amount not to
exceed [$469,800,000] $509,600,000, excluding bonds issued to fund one
or more debt service reserve funds, to pay costs of issuance of such
bonds, and bonds or notes issued to refund or otherwise repay such bonds
or notes previously issued, for the purpose of financing improvements to
State office buildings and other facilities located statewide, including
the reimbursement of any disbursements made from the state capital
projects fund. Such bonds and notes of the corporation shall not be a
debt of the state, and the state shall not be liable thereon, nor shall
they be payable out of any funds other than those appropriated by the
state to the corporation for debt service and related expenses pursuant
to any service contracts executed pursuant to subdivision (b) of this
section, and such bonds and notes shall contain on the face thereof a
statement to such effect.
S 39. Subdivision 1 of section 386-b of the public authorities law, as
amended by section 36 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
1. Notwithstanding any other provision of law to the contrary, the
authority, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of financing peace bridge projects and capital costs of
state and local highways, parkways, bridges, the New York state thruway,
Indian reservation roads, and facilities, and transportation infrastruc-
ture projects including aviation projects, non-MTA mass transit
projects, and rail service preservation projects, including work appur-
tenant and ancillary thereto. The aggregate principal amount of bonds
authorized to be issued pursuant to this section shall not exceed [one]
TWO billion [six hundred ninety] SEVEN HUNDRED TWENTY-FIVE million
dollars [$1,690,000,000] $2,725,000,000, excluding bonds issued to fund
one or more debt service reserve funds, to pay costs of issuance of such
bonds, and to refund or otherwise repay such bonds or notes previously
issued. Such bonds and notes of the authority, the dormitory authority
and the urban development corporation shall not be a debt of the state,
and the state shall not be liable thereon, nor shall they be payable out
of any funds other than those appropriated by the state to the authori-
ty, the dormitory authority and the urban development corporation for
principal, interest, and related expenses pursuant to a service contract
and such bonds and notes shall contain on the face thereof a statement
to such effect. Except for purposes of complying with the internal
revenue code, any interest income earned on bond proceeds shall only be
used to pay debt service on such bonds.
S 40. Paragraph (c) of subdivision 19 of section 1680 of the public
authorities law, as amended by section 37 of part I of chapter 60 of the
laws of 2015, is amended to read as follows:
(c) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, the dormitory authority shall not issue any bonds for state
university educational facilities purposes if the principal amount of
bonds to be issued when added to the aggregate principal amount of bonds
issued by the dormitory authority on and after July first, nineteen
hundred eighty-eight for state university educational facilities will
exceed eleven billion [two] EIGHT hundred [twenty-eight] FIVE million
SEVEN HUNDRED EIGHTY-FOUR THOUSAND FIVE HUNDRED FORTY dollars; provided,
however, that bonds issued or to be issued shall be excluded from such
limitation if: (1) such bonds are issued to refund state university
construction bonds and state university construction notes previously
S. 6407--B 113
issued by the housing finance agency; or (2) such bonds are issued to
refund bonds of the authority or other obligations issued for state
university educational facilities purposes and the present value of the
aggregate debt service on the refunding bonds does not exceed the pres-
ent value of the aggregate debt service on the bonds refunded thereby;
provided, further that upon certification by the director of the budget
that the issuance of refunding bonds or other obligations issued between
April first, nineteen hundred ninety-two and March thirty-first, nine-
teen hundred ninety-three will generate long term economic benefits to
the state, as assessed on a present value basis, such issuance will be
deemed to have met the present value test noted above. For purposes of
this subdivision, the present value of the aggregate debt service of the
refunding bonds and the aggregate debt service of the bonds refunded,
shall be calculated by utilizing the true interest cost of the refunding
bonds, which shall be that rate arrived at by doubling the semi-annual
interest rate (compounded semi-annually) necessary to discount the debt
service payments on the refunding bonds from the payment dates thereof
to the date of issue of the refunding bonds to the purchase price of the
refunding bonds, including interest accrued thereon prior to the issu-
ance thereof. The maturity of such bonds, other than bonds issued to
refund outstanding bonds, shall not exceed the weighted average economic
life, as certified by the state university construction fund, of the
facilities in connection with which the bonds are issued, and in any
case not later than the earlier of thirty years or the expiration of the
term of any lease, sublease or other agreement relating thereto;
provided that no note, including renewals thereof, shall mature later
than five years after the date of issuance of such note. The legislature
reserves the right to amend or repeal such limit, and the state of New
York, the dormitory authority, the state university of New York, and the
state university construction fund are prohibited from covenanting or
making any other agreements with or for the benefit of bondholders which
might in any way affect such right.
S 41. Paragraph (c) of subdivision 14 of section 1680 of the public
authorities law, as amended by section 38 of part I of chapter 60 of the
laws of 2015, is amended to read as follows:
(c) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, (i) the dormitory authority shall not deliver a series of
bonds for city university community college facilities, except to refund
or to be substituted for or in lieu of other bonds in relation to city
university community college facilities pursuant to a resolution of the
dormitory authority adopted before July first, nineteen hundred eighty-
five or any resolution supplemental thereto, if the principal amount of
bonds so to be issued when added to all principal amounts of bonds
previously issued by the dormitory authority for city university commu-
nity college facilities, except to refund or to be substituted in lieu
of other bonds in relation to city university community college facili-
ties will exceed the sum of four hundred twenty-five million dollars and
(ii) the dormitory authority shall not deliver a series of bonds issued
for city university facilities, including community college facilities,
pursuant to a resolution of the dormitory authority adopted on or after
July first, nineteen hundred eighty-five, except to refund or to be
substituted for or in lieu of other bonds in relation to city university
facilities and except for bonds issued pursuant to a resolution supple-
mental to a resolution of the dormitory authority adopted prior to July
first, nineteen hundred eighty-five, if the principal amount of bonds so
to be issued when added to the principal amount of bonds previously
S. 6407--B 114
issued pursuant to any such resolution, except bonds issued to refund or
to be substituted for or in lieu of other bonds in relation to city
university facilities, will exceed seven billion [three] SIX hundred
[ninety-two] SIXTEEN million [seven] FOUR hundred [fifty-three] ELEVEN
thousand dollars. The legislature reserves the right to amend or repeal
such limit, and the state of New York, the dormitory authority, the city
university, and the fund are prohibited from covenanting or making any
other agreements with or for the benefit of bondholders which might in
any way affect such right.
S 42. Subdivision 10-a of section 1680 of the public authorities law,
as amended by section 39 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
10-a. Subject to the provisions of chapter fifty-nine of the laws of
two thousand, but notwithstanding any other provision of the law to the
contrary, the maximum amount of bonds and notes to be issued after March
thirty-first, two thousand two, on behalf of the state, in relation to
any locally sponsored community college, shall be eight hundred [thir-
ty-eight] SIXTY-ONE million four hundred [fifty-eight] FIFTY-FOUR thou-
sand dollars. Such amount shall be exclusive of bonds and notes issued
to fund any reserve fund or funds, costs of issuance and to refund any
outstanding bonds and notes, issued on behalf of the state, relating to
a locally sponsored community college.
S 43. Subdivision 1 of section 17 of part D of chapter 389 of the laws
of 1997, relating to the financing of the correctional facilities
improvement fund and the youth facility improvement fund, as amended by
section 41 of part I of chapter 60 of the laws of 2015, is amended to
read as follows:
1. Subject to the provisions of chapter 59 of the laws of 2000, but
notwithstanding the provisions of section 18 of section 1 of chapter 174
of the laws of 1968, the New York state urban development corporation is
hereby authorized to issue bonds, notes and other obligations in an
aggregate principal amount not to exceed six hundred [eleven] FORTY-SEV-
EN million [two hundred fifteen] SIXTY-FIVE thousand dollars
[($611,215,000)] ($647,065,000), which authorization increases the
aggregate principal amount of bonds, notes and other obligations author-
ized by section 40 of chapter 309 of the laws of 1996, and shall include
all bonds, notes and other obligations issued pursuant to chapter 211 of
the laws of 1990, as amended or supplemented. The proceeds of such
bonds, notes or other obligations shall be paid to the state, for depos-
it in the youth facilities improvement fund, to pay for all or any
portion of the amount or amounts paid by the state from appropriations
or reappropriations made to the office of children and family services
from the youth facilities improvement fund for capital projects. The
aggregate amount of bonds, notes and other obligations authorized to be
issued pursuant to this section shall exclude bonds, notes or other
obligations issued to refund or otherwise repay bonds, notes or other
obligations theretofore issued, the proceeds of which were paid to the
state for all or a portion of the amounts expended by the state from
appropriations or reappropriations made to the office of children and
family services; provided, however, that upon any such refunding or
repayment the total aggregate principal amount of outstanding bonds,
notes or other obligations may be greater than six hundred [eleven]
FORTY-SEVEN million [two hundred fifteen] SIXTY-FIVE thousand dollars
[($611,215,000)] ($647,065,000), only if the present value of the aggre-
gate debt service of the refunding or repayment bonds, notes or other
obligations to be issued shall not exceed the present value of the
S. 6407--B 115
aggregate debt service of the bonds, notes or other obligations so to be
refunded or repaid. For the purposes hereof, the present value of the
aggregate debt service of the refunding or repayment bonds, notes or
other obligations and of the aggregate debt service of the bonds, notes
or other obligations so refunded or repaid, shall be calculated by
utilizing the effective interest rate of the refunding or repayment
bonds, notes or other obligations, which shall be that rate arrived at
by doubling the semi-annual interest rate (compounded semi-annually)
necessary to discount the debt service payments on the refunding or
repayment bonds, notes or other obligations from the payment dates ther-
eof to the date of issue of the refunding or repayment bonds, notes or
other obligations and to the price bid including estimated accrued
interest or proceeds received by the corporation including estimated
accrued interest from the sale thereof.
S 44. Paragraph b of subdivision 2 of section 9-a of section 1 of
chapter 392 of the laws of 1973, constituting the New York state medical
care facilities finance agency act, as amended by section 42 of part I
of chapter 60 of the laws of 2015, is amended to read as follows:
b. The agency shall have power and is hereby authorized from time to
time to issue negotiable bonds and notes in conformity with applicable
provisions of the uniform commercial code in such principal amount as,
in the opinion of the agency, shall be necessary, after taking into
account other moneys which may be available for the purpose, to provide
sufficient funds to the facilities development corporation, or any
successor agency, for the financing or refinancing of or for the design,
construction, acquisition, reconstruction, rehabilitation or improvement
of mental health services facilities pursuant to paragraph a of this
subdivision, the payment of interest on mental health services improve-
ment bonds and mental health services improvement notes issued for such
purposes, the establishment of reserves to secure such bonds and notes,
the cost or premium of bond insurance or the costs of any financial
mechanisms which may be used to reduce the debt service that would be
payable by the agency on its mental health services facilities improve-
ment bonds and notes and all other expenditures of the agency incident
to and necessary or convenient to providing the facilities development
corporation, or any successor agency, with funds for the financing or
refinancing of or for any such design, construction, acquisition, recon-
struction, rehabilitation or improvement and for the refunding of mental
hygiene improvement bonds issued pursuant to section 47-b of the private
housing finance law; provided, however, that the agency shall not issue
mental health services facilities improvement bonds and mental health
services facilities improvement notes in an aggregate principal amount
exceeding [seven] EIGHT billion [seven hundred twenty-two] TWENTY-ONE
million eight hundred fifteen thousand dollars, excluding mental health
services facilities improvement bonds and mental health services facili-
ties improvement notes issued to refund outstanding mental health
services facilities improvement bonds and mental health services facili-
ties improvement notes; provided, however, that upon any such refunding
or repayment of mental health services facilities improvement bonds
and/or mental health services facilities improvement notes the total
aggregate principal amount of outstanding mental health services facili-
ties improvement bonds and mental health facilities improvement notes
may be greater than [seven] EIGHT billion [seven hundred twenty-two]
TWENTY-ONE million eight hundred fifteen thousand dollars only if,
except as hereinafter provided with respect to mental health services
facilities bonds and mental health services facilities notes issued to
S. 6407--B 116
refund mental hygiene improvement bonds authorized to be issued pursuant
to the provisions of section 47-b of the private housing finance law,
the present value of the aggregate debt service of the refunding or
repayment bonds to be issued shall not exceed the present value of the
aggregate debt service of the bonds to be refunded or repaid. For
purposes hereof, the present values of the aggregate debt service of the
refunding or repayment bonds, notes or other obligations and of the
aggregate debt service of the bonds, notes or other obligations so
refunded or repaid, shall be calculated by utilizing the effective
interest rate of the refunding or repayment bonds, notes or other obli-
gations, which shall be that rate arrived at by doubling the semi-annual
interest rate (compounded semi-annually) necessary to discount the debt
service payments on the refunding or repayment bonds, notes or other
obligations from the payment dates thereof to the date of issue of the
refunding or repayment bonds, notes or other obligations and to the
price bid including estimated accrued interest or proceeds received by
the authority including estimated accrued interest from the sale there-
of. Such bonds, other than bonds issued to refund outstanding bonds,
shall be scheduled to mature over a term not to exceed the average
useful life, as certified by the facilities development corporation, of
the projects for which the bonds are issued, and in any case shall not
exceed thirty years and the maximum maturity of notes or any renewals
thereof shall not exceed five years from the date of the original issue
of such notes. Notwithstanding the provisions of this section, the agen-
cy shall have the power and is hereby authorized to issue mental health
services facilities improvement bonds and/or mental health services
facilities improvement notes to refund outstanding mental hygiene
improvement bonds authorized to be issued pursuant to the provisions of
section 47-b of the private housing finance law and the amount of bonds
issued or outstanding for such purposes shall not be included for
purposes of determining the amount of bonds issued pursuant to this
section. The director of the budget shall allocate the aggregate princi-
pal authorized to be issued by the agency among the office of mental
health, office for people with developmental disabilities, and the
office of alcoholism and substance abuse services, in consultation with
their respective commissioners to finance bondable appropriations previ-
ously approved by the legislature.
S 45. Paragraph (b) of subdivision 3 of section 1 and clause (B) of
subparagraph (iii) of paragraph (j) of subdivision 4 of section 1 of
part D of chapter 63 of the laws of 2005 relating to the composition and
responsibilities of the New York state higher education capital matching
grant board, as amended by section 43 of part I of chapter 60 of the
laws of 2015, is amended to read as follows:
(b) Within amounts appropriated therefor, the board is hereby author-
ized and directed to award matching capital grants totaling [210] 240
million dollars. Each college shall be eligible for a grant award amount
as determined by the calculations pursuant to subdivision five of this
section. In addition, such colleges shall be eligible to compete for
additional funds pursuant to paragraph (h) of subdivision four of this
section.
(B) The dormitory authority shall not issue any bonds or notes in an
amount in excess of [210] 240 million dollars for the purposes of this
section; excluding bonds or notes issued to fund one or more debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or notes issued to refund or otherwise repay such bonds or notes previ-
ously issued. Except for purposes of complying with the internal revenue
S. 6407--B 117
code, any interest on bond proceeds shall only be used to pay debt
service on such bonds.
S 45-a. Subdivision 1 of section 1680-r of the public authorities law,
as amended by section 40 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
1. Notwithstanding the provisions of any other law to the contrary,
the dormitory authority and the urban development corporation are hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the capital restructuring financing program
for health care and related facilities licensed pursuant to the public
health law or the mental hygiene law and other state costs associated
with such capital projects and the health care facility transformation
program. The aggregate principal amount of bonds authorized to be issued
pursuant to this section shall not exceed two billion [two] FIVE hundred
million dollars, excluding bonds issued to fund one or more debt service
reserve funds, to pay costs of issuance of such bonds, and bonds or
notes issued to refund or otherwise repay such bonds or notes previously
issued. Such bonds and notes of the dormitory authority and the urban
development corporation shall not be a debt of the state, and the state
shall not be liable thereon, nor shall they be payable out of any funds
other than those appropriated by the state to the dormitory authority
and the urban development corporation for principal, interest, and
related expenses pursuant to a service contract and such bonds and notes
shall contain on the face thereof a statement to such effect. Except for
purposes of complying with the internal revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
S 46. Notwithstanding any other provision of law to the contrary, from
the taxes, interest and penalties collected or received by the commis-
sioner of taxation and finance in respect of the tax imposed by the city
of New York pursuant to the authority of section 1210, 1211, 1212 or
1212-A of the tax law,the comptroller shall pay, as directed in writing
by the director of the budget, the sum of $16,666,667 on or before the
twelfth day of each month from such taxes, penalties and interest
collected or received by such commissioner during the previous month to
(i) any issuers of state-related debt for the purposes of paying princi-
pal, interest, and related expenses, or for retiring or defeasing bonds
previously issued, including any accrued interest or other expenses
related thereto, for any state-related bonding program or programs, or
to (ii) a governmental fund or funds of the state treasury. The comp-
troller shall make the first payment to issuers of state-related debt or
the government funds on the twelfth day of May, 2016 from the taxes,
penalties and interest collected or received during April 2016 and the
last payment on or before the twelfth day of April, 2019 from the taxes,
penalties and interest collected or received during March 2019.
Provided, however, that in no event shall such payments exceed
$200,000,000 in any state fiscal year; and provided further that such
payments shall not reduce the reasonable costs of such commissioner
under paragraph (b) of section 1261 of the tax law.
S 47. The civil practice law and rules is amended by adding a new
section 5519-a to read as follows:
S 5519-A. STAY OF ENFORCEMENT FOR TOBACCO PRODUCT MASTER SETTLEMENT
AGREEMENT PARTICIPATING OR NON-PARTICIPATING MANUFACTURERS OR THEIR
SUCCESSORS OR AFFILIATES. (A) IN CIVIL LITIGATION UNDER ANY LEGAL THEORY
INVOLVING A PARTICIPATING MANUFACTURER OR A NON-PARTICIPATING MANUFAC-
TURER, AS THOSE TERMS ARE DEFINED IN THE MASTER SETTLEMENT AGREEMENT, OR
S. 6407--B 118
ANY OF THEIR SUCCESSORS OR AFFILIATES, THE UNDERTAKING REQUIRED DURING
THE PENDENCY OF ALL APPEALS OR DISCRETIONARY REVIEWS BY ANY APPELLATE
COURTS IN ORDER TO STAY THE EXECUTION OF ANY JUDGMENT OR ORDER GRANTING
LEGAL, EQUITABLE OR OTHER RELIEF DURING THE ENTIRE COURSE OF APPELLATE
REVIEW, INCLUDING REVIEW BY THE UNITED STATES SUPREME COURT, SHALL BE
SET PURSUANT TO THE APPLICABLE PROVISIONS OF LAW OR COURT RULES;
PROVIDED, HOWEVER THAT THE TOTAL UNDERTAKING REQUIRED OF ALL APPELLANTS
COLLECTIVELY SHALL NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS, REGARD-
LESS OF THE VALUE OF THE JUDGMENT APPEALED.
(B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
UPON PROOF BY A PREPONDERANCE OF THE EVIDENCE, BY AN APPELLEE, THAT AN
APPELLANT IS DISSIPATING ASSETS OUTSIDE THE COURSE OF ORDINARY BUSINESS
TO AVOID PAYMENT OF A JUDGMENT, A COURT MAY REQUIRE THE APPELLANT TO
POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT OF THE JUDGMENT.
S 48. Notwithstanding any provision of law, rule or regulation to the
contrary, the New York state energy research and development authority
is authorized and directed to expend an amount not to exceed one hundred
million dollars from proceeds collected by such authority from the
auction at sale of carbon dioxide emission allowances allocated by the
department of environmental conservation on or before March 31, 2017 for
the state fiscal year commencing April 1, 2016, which amount shall be
utilized to effectuate an expedited program, pending a final order and
determination by the public service commission in case 15-E-0302, that
would provide financial support for the benefit of the electric system
to maintain the viability of certain nuclear power plants that can
demonstrate the lack of financial viability absent additional financial
support.
S 49. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016; provided,
however, with the exception of item 5 of the miscellaneous category set
forth within section two of this act: (a) the provisions of sections
one through eight, and sections twelve through twenty of this act shall
expire March 31, 2017, when upon such date the provisions of such
sections shall be deemed repealed; (b) the provisions of section forty-
six of this act shall expire upon the last payment made by the comp-
troller pursuant to section forty-six of this act when upon such date
the provisions of such section shall be deemed repealed; provided that
the state comptroller shall notify the legislative bill drafting commis-
sion upon the occurrence of the last payment provided for in section
forty-six of this act in order that the commission may maintain an accu-
rate and timely effective database of the official text of the laws of
the state of New York in furtherance of effectuating the provisions of
section 44 of the legislative law and section 70-b of the public offi-
cers law; and (c) section forty-seven of this act shall take effect on
the thirtieth day after it shall have become a law, and shall apply to
any cause of action pending on or filed on or after such effective date.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S. 6407--B 119
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through W of this act shall be
as specifically set forth in the last section of such Parts.