NY State Senate Bill 2023-S9599A

Senate Bill S9599A

2023-2024 Legislative Session

Authorizes increased equity withdrawals by certain non-public residential health care facilities

download bill text pdf

Current Bill Status - In Senate Committee Health Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 03, 2024	print number 9599a
Jun 03, 2024	amend and recommit to health
May 16, 2024	referred to health

Bill Amendments

Original

A (Active)

2023-S9599 - Details

See Assembly Version of this Bill:: A10262
Current Committee:: Senate Health
Law Section:: Public Health Law
Laws Affected:: Amd §§2808 & 2895-b, Pub Health L; add §99-ss, St Fin L

2023-S9599 - Summary

Authorizes increased equity withdrawals by certain non-public residential health care facilities; establishes the nursing home worker recruitment and safety fund.

2023-S9599 - Sponsor Memo

                                 
BILL NUMBER: S9599

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the public health law, in relation to equity withdrawals
by non-public residential health care facilities; and to amend the state
finance law, in relation to establishing the nursing home worker
recruitment and safety fund

 
PURPOSE OR GENERAL IDEA OF BILL:

To allow certain owners of residential health care facilities to with-
draw equity or transfer assets, which in the aggregate exceed five
percent of the facilities total reported annual revenue, for patient
care service. This will be based on the facilities' most recently avail-
able reported data to the Department of Health. Such withdrawal will be
allowed without prior written notification to the Commissioner of the
Department of Health. The qualifying facilities must have been compliant
with the minimum staffing requirements over the two immediately preced-
ing quarters.

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends paragraphs (b) and (c) of subdivision 5 of section
280B of the public health law to add a new subparagraph (ii) to increase
the level of equity allowed to be transferred or withdrawn for certain
compliant facilities.

Section two adds a new subdivision five to section 2895-b of the public
health law to provide direction to the Commissioner of the Department of
Health on the deposit of any fines and civil penalties pursuant to this
section into a new nursing home worker recruitment and safety fund.

Section three adds a new section 99-ss to the state finance law entitled
the "nursing home worker recruitment and safety fund."

Section four provides for an immediate effective date.

 
JUSTIFICATION:

The proposed bill will incentivize compliance with the residential
healthcare facilities minimum staffing requirements for certain facili-
ties.

Specifically, the amendments would: (i) address inconsistencies relating
to administrative expense limitations on nursing homes; (ii) incentivize
compliance with minimum staffing requirements; and (iii) create a dedi-
cated fund to receive civil penalties issued to nursing homes for mini-
mum staffing noncompliance in order to support nursing home worker
recruitment and safety.

The recently adopted "70/40" law (Public Health Law section 2828) limits
nursing home margins to 5% of the amount in which total operating reven-
ue exceeds total operating expenses. In contrast, however, Paragraphs
Section 2808 (5) (b) and (c) of the Public Health Law regulate equity
withdrawals specifically by setting a 3% cap on withdrawals. As a
result, there exists a misalignment between policies, with equity with-

drawals capped at 3% annually while the 70/40/5 rule facility caps
profits at 5% annually. This legislation aligns both standards.

This bill also establishes a nursing home worker recruitment and safety
fund in the state finance law. This fund will receive any fines or civil
penalties taken under section twenty-eight hundred ninety five-b of the
public health

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the state

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S9599 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9599
 
                             I N  S E N A T E
 
                               May 16, 2024
                                ___________
 
 Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Health
 
 AN ACT to amend the public health law, in relation to equity withdrawals
   by non-public residential health care facilities;  and  to  amend  the
   state finance law, in relation to establishing the nursing home worker
   recruitment and safety fund

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs (b) and (c) of subdivision 5 of section 2808  of
 the public health law, as amended by section 36 of part B of chapter 109
 of the laws of 2010, are amended to read as follows:
   (b) On and after April first, two thousand ten, no non-public residen-
 tial  health  care facility may withdraw equity or transfer assets which
 in the aggregate exceed:
   (I) three percent of such facility's total reported annual revenue for
 patient care services, based on the facility's most  recently  available
 reported  data,  without prior written notification to the commissioner;
 OR
   (II) IN THE CASE OF A RESIDENTIAL HEALTH CARE FACILITY WHICH, OVER THE
 TWO IMMEDIATELY PRECEDING SUCCESSIVE QUARTERS, HAS BEEN  COMPLIANT  WITH
 THE  MINIMUM  STAFFING  LEVEL REQUIREMENTS PRESCRIBED BY SECTION TWENTY-
 EIGHT HUNDRED NINETY-FIVE-B OF THIS CHAPTER, FIVE PERCENT OF SUCH FACIL-
 ITY'S TOTAL REPORTED ANNUAL REVENUE FOR PATIENT CARE SERVICES, BASED  ON
 THE  FACILITY'S  MOST  RECENTLY  AVAILABLE  REPORTED DATA, WITHOUT PRIOR
 WRITTEN NOTIFICATION TO THE COMMISSIONER.  Notification shall be made in
 a form acceptable to the department by certified or registered mail.
   (c) Notwithstanding any inconsistent provision of this subdivision, on
 and after April first,  two  thousand  ten,  no  non-public  residential
 health  care facility, whether operated as a for-profit facility or as a
 not-for-profit facility, may withdraw equity or transfer assets which in
 the aggregate exceed:
   (I) three percent of such facility's total reported annual revenue for
 patient care services, based on the facility's most  recently  available
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15278-01-4

 S. 9599                             2
 
 reported  data,  without the prior written approval of the commissioner;
 OR
   (II) IN THE CASE OF A RESIDENTIAL HEALTH CARE FACILITY WHICH, OVER THE
 TWO  IMMEDIATELY  PRECEDING SUCCESSIVE QUARTERS, HAS BEEN COMPLIANT WITH
 THE MINIMUM STAFFING LEVEL REQUIREMENTS PRESCRIBED  BY  SECTION  TWENTY-
 EIGHT HUNDRED NINETY-FIVE-B OF THIS CHAPTER, FIVE PERCENT OF SUCH FACIL-
 ITY'S  TOTAL REPORTED ANNUAL REVENUE FOR PATIENT CARE SERVICES, BASED ON
 THE FACILITY'S MOST RECENTLY  AVAILABLE  REPORTED  DATA,  WITHOUT  PRIOR
 WRITTEN NOTIFICATION TO THE COMMISSIONER.  The commissioner shall make a
 determination to approve or disapprove a request for withdrawal of equi-
 ty or assets under this subdivision within sixty days of the date of the
 receipt  of  a written request from the facility. Requests shall be made
 in a form acceptable to the department by certified or registered  mail.
 In  reviewing  such requests the commissioner shall consider the facili-
 ty's overall financial condition, any indications of financial distress,
 whether the facility is delinquent in any payment owed  to  the  depart-
 ment,  whether  the  facility  has  been cited for immediate jeopardy or
 substandard quality of care, and such other factors as the  commissioner
 deems  appropriate. In addition to any other remedy or penalty available
 under this chapter, and after opportunity for a hearing, the commission-
 er may require replacement of the withdrawn equity  or  assets  and  may
 impose  a penalty for violation of the provisions of this subdivision in
 an amount not to exceed ten percent  of  any  amount  withdrawn  without
 prior approval.
   §  2.  Section  2895-b of the public health law is amended by adding a
 new subdivision 5 to read as follows:
   5. FINES AND CIVIL PENALTIES. ALL FINES AND CIVIL PENALTIES  COLLECTED
 BY  THE  COMMISSIONER PURSUANT TO THIS SECTION SHALL BE DEPOSITED INTO A
 NURSING HOME WORKER RECRUITMENT AND SAFETY FUND ESTABLISHED PURSUANT  TO
 SECTION NINETY-NINE-SS OF THE STATE FINANCE LAW WHICH SHALL BE ALLOCATED
 BY THE COMMISSIONER IN A MANNER WHICH IS DESIGNED TO ENHANCE THE QUALITY
 OF  EMPLOYMENT FOR RESIDENTIAL HEALTH CARE FACILITY EMPLOYEES AND ASSIST
 IN THE RECRUITMENT AND SAFETY OF RESIDENTIAL HEALTH CARE FACILITY STAFF.
   § 3. The state finance law is amended by adding a new section 99-ss to
 read as follows:
   § 99-SS. NURSING HOME WORKER RECRUITMENT AND SAFETY FUND. 1.  THERE IS
 HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF  TAXATION
 AND  FINANCE  AND  THE  COMPTROLLER,  A  SPECIAL FUND TO BE KNOWN AS THE
 "NURSING HOME WORKER RECRUITMENT AND SAFETY FUND".
   2. MONEY ALLOCATED TO THE NURSING HOME WORKER RECRUITMENT  AND  SAFETY
 FUND  SHALL  BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER
 FUNDS IN THE CUSTODY OF THE STATE COMPTROLLER.
   3. SUCH FUND SHALL CONSIST OF ALL FINES AND CIVIL  PENALTIES  RECEIVED
 BY THE DEPARTMENT OF HEALTH, PURSUANT TO THE PROVISIONS OF SECTION TWEN-
 TY-EIGHT  HUNDRED  NINETY-FIVE-B  OF THE PUBLIC HEALTH LAW AND ALL OTHER
 MONEYS APPROPRIATED, CREDITED, OR TRANSFERRED  THERETO  FROM  ANY  OTHER
 FUND  OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION SHALL
 PREVENT THE STATE FROM RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR  THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE  FUND  ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE COMPTROLLER ON
 MONEYS ON DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME  PART  OF
 SUCH FUND.
   4.  MONEYS  IN  SUCH  FUND SHALL BE EXPENDED ONLY TO PROVIDE GRANTS TO
 ENHANCE THE QUALITY OF EMPLOYMENT FOR RESIDENTIAL HEALTH  CARE  FACILITY
 EMPLOYEES AND ASSIST IN THE RECRUITMENT AND SAFETY OF RESIDENTIAL HEALTH
 CARE FACILITY STAFF.
 S. 9599                             3
 
   5.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS APPROVED OR CERTIFIED BY THE COMMISSIONER OF
 HEALTH, OR BY AN OFFICER OR EMPLOYEE OF THE DEPARTMENT OF HEALTH  DESIG-
 NATED BY THE COMMISSIONER.
   § 4. This act shall take effect immediately.

2023-S9599A (ACTIVE) - Details

See Assembly Version of this Bill:: A10262
Current Committee:: Senate Health
Law Section:: Public Health Law
Laws Affected:: Amd §§2808 & 2895-b, Pub Health L; add §99-ss, St Fin L

2023-S9599A (ACTIVE) - Summary

Authorizes increased equity withdrawals by certain non-public residential health care facilities; establishes the nursing home worker recruitment and safety fund.

2023-S9599A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9599A

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the public health law, in relation to equity withdrawals
by non-public residential health care facilities; and to amend the state
finance law, in relation to establishing the nursing home worker
recruitment and safety fund

 
PURPOSE OR GENERAL IDEA OF BILL:

To allow certain owners of residential health care facilities to with-
draw equity or transfer assets, which in the aggregate exceed five
percent of the facilities total reported annual revenue, for patient
care service. This will be based on the facilities' most recently avail-
able reported data to the Department of Health. Such withdrawal will be
allowed without prior written notification to the Commissioner of the
Department of Health. The qualifying facilities must have been compliant
with the minimum staffing requirements over the two immediately preced-
ing quarters.

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends paragraphs (b) and (c) of subdivision 5 of section
280B of the public health law to add a new subparagraph (ii) to increase
the level of equity allowed to be transferred or withdrawn for certain
compliant facilities.

Section two adds a new subdivision five to section 2895-b of the public
health law to provide direction to the Commissioner of Health (COH) on
the deposit of any fines and civil penalties pursuant to this section
into a new nursing home worker recruitment and safety fund. The funding
would be distributed as grants by the COH.

Section three adds a new section 99-ss to the state finance law entitled
the "nursing home worker recruitment and safety fund."

Section four provides for an immediate effective date.

 
JUSTIFICATION:

The proposed bill will incentivize compliance with the residential
healthcare facilities minimum staffing requirements for certain facili-
ties.

Specifically, the amendments would: (i) address inconsistencies relating
to administrative expense limitations on nursing homes; (ii) incentivize
compliance with minimum staffing requirements; and (iii) create a dedi-
cated fund to receive civil penalties issued to nursing homes for mini-
mum staffing noncompliance in order to support nursing home worker
recruitment and safety.

The recently adopted "70/40" law (Public Health Law section 2828) limits
nursing home margins to 5% of the amount in which total operating reven-
ue exceeds total operating expenses. In contrast, however, Paragraphs
Section 2808 (5) (b) and (c) of the Public Health Law regulate equity
withdrawals specifically by setting a 3% cap on withdrawals. As a
result, there exists a misalignment between policies, with equity with-
drawals capped at 3% annually while the 70/40/5 rule facility caps
profits at 5% annually. This legislation aligns both standards.

This bill also establishes a nursing home worker recruitment and safety
fund in the state finance law. This fund will receive any fines or civil
penalties taken under section twenty-eight hundred ninety five-b of the
public health

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the state

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S9599A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9599--A
 
                             I N  S E N A T E
 
                               May 16, 2024
                                ___________
 
 Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Health  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the public health law, in relation to equity withdrawals
   by  non-public  residential  health  care facilities; and to amend the
   state finance law, in relation to establishing the nursing home worker
   recruitment and safety fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraphs (b) and (c) of subdivision 5 of section 2808 of
 the public health law, as amended by section 36 of part B of chapter 109
 of the laws of 2010, are amended to read as follows:
   (b) On and after April first, two thousand ten, no non-public residen-
 tial health care facility may withdraw equity or transfer  assets  which
 in the aggregate exceed:
   (I) three percent of such facility's total reported annual revenue for
 patient  care  services, based on the facility's most recently available
 reported data, without prior written notification to  the  commissioner;
 OR
   (II) IN THE CASE OF A RESIDENTIAL HEALTH CARE FACILITY WHICH, OVER THE
 TWO  IMMEDIATELY  PRECEDING SUCCESSIVE QUARTERS, HAS BEEN COMPLIANT WITH
 THE MINIMUM STAFFING LEVEL REQUIREMENTS PRESCRIBED  BY  SECTION  TWENTY-
 EIGHT HUNDRED NINETY-FIVE-B OF THIS CHAPTER, FIVE PERCENT OF SUCH FACIL-
 ITY'S  TOTAL REPORTED ANNUAL REVENUE FOR PATIENT CARE SERVICES, BASED ON
 THE FACILITY'S MOST RECENTLY  AVAILABLE  REPORTED  DATA,  WITHOUT  PRIOR
 WRITTEN NOTIFICATION TO THE COMMISSIONER.  Notification shall be made in
 a form acceptable to the department by certified or registered mail.
   (c) Notwithstanding any inconsistent provision of this subdivision, on
 and  after  April  first,  two  thousand  ten, no non-public residential
 health care facility, whether operated as a for-profit facility or as  a
 not-for-profit facility, may withdraw equity or transfer assets which in
 the aggregate exceed:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15278-02-4

 S. 9599--A                          2
 
   (I) three percent of such facility's total reported annual revenue for
 patient  care  services, based on the facility's most recently available
 reported data, without the prior written approval of  the  commissioner;
 OR
   (II) IN THE CASE OF A RESIDENTIAL HEALTH CARE FACILITY WHICH, OVER THE
 TWO  IMMEDIATELY  PRECEDING SUCCESSIVE QUARTERS, HAS BEEN COMPLIANT WITH
 THE MINIMUM STAFFING LEVEL REQUIREMENTS PRESCRIBED  BY  SECTION  TWENTY-
 EIGHT HUNDRED NINETY-FIVE-B OF THIS CHAPTER, FIVE PERCENT OF SUCH FACIL-
 ITY'S  TOTAL REPORTED ANNUAL REVENUE FOR PATIENT CARE SERVICES, BASED ON
 THE FACILITY'S MOST RECENTLY  AVAILABLE  REPORTED  DATA,  WITHOUT  PRIOR
 WRITTEN NOTIFICATION TO THE COMMISSIONER.  The commissioner shall make a
 determination to approve or disapprove a request for withdrawal of equi-
 ty or assets under this subdivision within sixty days of the date of the
 receipt  of  a written request from the facility. Requests shall be made
 in a form acceptable to the department by certified or registered  mail.
 In  reviewing  such requests the commissioner shall consider the facili-
 ty's overall financial condition, any indications of financial distress,
 whether the facility is delinquent in any payment owed  to  the  depart-
 ment,  whether  the  facility  has  been cited for immediate jeopardy or
 substandard quality of care, and such other factors as the  commissioner
 deems  appropriate. In addition to any other remedy or penalty available
 under this chapter, and after opportunity for a hearing, the commission-
 er may require replacement of the withdrawn equity  or  assets  and  may
 impose  a penalty for violation of the provisions of this subdivision in
 an amount not to exceed ten percent  of  any  amount  withdrawn  without
 prior approval.
   §  2.  Section  2895-b of the public health law is amended by adding a
 new subdivision 5 to read as follows:
   5. FINES AND CIVIL  PENALTIES.  (A)  ALL  FINES  AND  CIVIL  PENALTIES
 COLLECTED BY THE COMMISSIONER PURSUANT TO THIS SECTION SHALL BE DEPOSIT-
 ED  INTO  A  NURSING HOME WORKER RECRUITMENT AND SAFETY FUND ESTABLISHED
 PURSUANT TO SECTION NINETY-NINE-SS OF THE STATE FINANCE LAW  TO  ENHANCE
 THE QUALITY OF EMPLOYMENT FOR RESIDENTIAL HEALTH CARE FACILITY EMPLOYEES
 AND  ASSIST  IN  THE  RECRUITMENT  AND SAFETY OF RESIDENTIAL HEALTH CARE
 FACILITY STAFF.
   (B) THE COMMISSIONER SHALL DISTRIBUTE MONIES MADE AVAILABLE  FOR  THIS
 PURPOSE  UNDER  THIS  SUBDIVISION IN THE FORM OF GRANTS TO PROVIDERS. IN
 DETERMINING THE FUNDING FOR PROVIDERS, THE COMMISSIONER  SHALL  CONSIDER
 CRITERIA INCLUDING, BUT NOT LIMITED TO, THE OVERALL CENSUS OF A FACILITY
 AND  THE  RATE  REGION  THE FACILITY IS LOCATED WITHIN. THE COMMISSIONER
 SHALL PROMULGATE THE RULES AND REGULATIONS  NECESSARY  FOR  IMPLEMENTING
 THE PROGRAM.
   § 3. The state finance law is amended by adding a new section 99-ss to
 read as follows:
   § 99-SS. NURSING HOME WORKER RECRUITMENT AND SAFETY FUND. 1.  THERE IS
 HEREBY  ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION
 AND FINANCE AND THE COMPTROLLER, A SPECIAL  FUND  TO  BE  KNOWN  AS  THE
 "NURSING HOME WORKER RECRUITMENT AND SAFETY FUND".
   2.  MONEY  ALLOCATED TO THE NURSING HOME WORKER RECRUITMENT AND SAFETY
 FUND SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH  ANY  OTHER
 FUNDS IN THE CUSTODY OF THE STATE COMPTROLLER.
   3.  SUCH  FUND SHALL CONSIST OF ALL FINES AND CIVIL PENALTIES RECEIVED
 BY THE DEPARTMENT OF HEALTH, PURSUANT TO THE PROVISIONS OF SECTION TWEN-
 TY-EIGHT HUNDRED NINETY-FIVE-B OF THE PUBLIC HEALTH LAW  AND  ALL  OTHER
 MONEYS  APPROPRIATED,  CREDITED,  OR  TRANSFERRED THERETO FROM ANY OTHER
 FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION  SHALL
 S. 9599--A                          3
 
 PREVENT  THE  STATE  FROM  RECEIVING  GRANTS,  GIFTS OR BEQUESTS FOR THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE  COMPTROLLER  ON
 MONEYS  ON  DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME PART OF
 SUCH FUND.
   4. MONEYS IN SUCH FUND SHALL BE EXPENDED ONLY  TO  PROVIDE  GRANTS  TO
 ENHANCE  THE  QUALITY OF EMPLOYMENT FOR RESIDENTIAL HEALTH CARE FACILITY
 EMPLOYEES AND ASSIST IN THE RECRUITMENT AND SAFETY OF RESIDENTIAL HEALTH
 CARE FACILITY STAFF.
   5. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE COMPTROLLER ON VOUCHERS APPROVED OR CERTIFIED BY THE COMMISSIONER OF
 HEALTH,  OR BY AN OFFICER OR EMPLOYEE OF THE DEPARTMENT OF HEALTH DESIG-
 NATED BY THE COMMISSIONER.
   § 4. This act shall take effect immediately.

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