S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6964
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 15, 2021
                                ___________
 
 Introduced  by  M.  of  A.  GOTTFRIED  --  read once and referred to the
   Committee on Health
 
 AN ACT to amend the public health law, in relation to the scope  of  the
   temporary  operator  law;  and to amend chapter 56 of the laws of 2013
   amending the public health law relating to the general  public  health
   work  program, in relation to making the temporary operator provisions
   permanent
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 2806-a of the public health law,
 as added by section 50 of part E of chapter 56  of  the  laws  of  2013,
 paragraph  (g) as added by section 7 of part K of chapter 57 of the laws
 of 2015, is amended to read as follows:
   1. For the purposes of this section:
   (a) "adult care facility" shall mean an adult home or enriched housing
 program licensed pursuant to article seven of the social services law or
 an assisted living residence licensed pursuant to article forty-six-B of
 this chapter;
   (b) "established operator" shall mean the operator of [an adult  care]
 A  facility[,  a  general  hospital or a diagnostic and treatment center
 that has been established and issued an operating  certificate  as  such
 pursuant to this article];
   (c)  "facility"  shall  mean (i) a [general] hospital [or a diagnostic
 and treatment center that has been issued an  operating  certificate  as
 such pursuant to this article]; or (ii) an adult care facility;
   (d) "temporary operator" shall mean any person or entity that:
   (i)  agrees  to  operate  a  facility on a temporary basis in the best
 interests of its residents or patients and the community served  by  the
 facility; and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10679-01-1

              

 A. 6964                             2
 
   (ii) has demonstrated that he or she has the character, competence and
 financial  ability to operate the facility in compliance with applicable
 standards;
   (e)  "serious  financial instability" shall include but not be limited
 to defaulting or violating key covenants of loans,  or  missed  mortgage
 payments,  or general untimely payment of obligations, including but not
 limited to employee benefit fund, payroll  tax,  and  insurance  premium
 obligations,  or  failure  to  maintain  required  debt service coverage
 ratios or, as applicable, factors that have triggered a written event of
 default notice to the department by the dormitory authority of the state
 of New York; and
   (f)  "extraordinary  financial  assistance"  shall  mean  state  funds
 provided  to  a facility upon such facility's request for the purpose of
 assisting the facility to address serious  financial  instability.  Such
 funds  may  be  derived  from  existing  programs within the department,
 special appropriations, or other funds.
   (g) "improper delegation of  management  authority  by  the  governing
 authority  or  operator" of a [general hospital] FACILITY shall include,
 but not be limited to, the delegation to an entity  that  has  not  been
 established  as  an  operator  of the [general hospital] FACILITY of (i)
 authority to hire or fire the  administrator  or  other  key  management
 employees;  (ii) maintenance and control of the books and records; (iii)
 authority over the disposition of assets and the  incurring  of  liabil-
 ities  on  behalf of the facility; and (iv) the adoption and enforcement
 of policies regarding the operation of the facility.  The  criteria  set
 forth  in  this paragraph shall not be the sole determining factors, but
 indicators to be considered with such other factors that may  be  perti-
 nent  in particular instances. Professional expertise shall be exercised
 in the utilization of the criteria. All of the listed indicia  need  not
 be present in a given instance for there to be an improper delegation of
 authority.
   §  2.  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, as amended by section 7 of part E of chapter
 57 of the laws of 2019, is amended to read as follows:
   (c) section fifty of this act shall take effect immediately [and shall
 expire nine years after it becomes law];
   § 3. This act shall take effect immediately.