S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5703
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 20, 2025
                                ___________
 
 Introduced by M. of A. SAYEGH, HEVESI, EICHENSTEIN, WEPRIN, RAMOS, DAVI-
   LA, HYNDMAN -- read once and referred to the Committee on Health
 
 AN ACT to amend the social services law, in relation to certain authori-
   zations to fiscal intermediaries
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (b) of subdivision 4-a of section  365-f  of  the
 social services law, as amended by section 2 of part HH of chapter 57 of
 the laws of 2024, is amended to read as follows:
   (b)  [Notwithstanding  section  one  hundred  sixty-three of the state
 finance law, section one hundred twelve of the  state  finance  law,  or
 section  one  hundred  forty-two  of  the  economic  development law the
 commissioner shall enter into a contract under this subdivision with  an
 eligible  contractor  that  submits  an  offer for a contract, provided,
 however, that:
   (i) the department shall post on its website:
   (A) a  description  of  the  proposed  statewide  fiscal  intermediary
 services  to  be provided pursuant to a contract in accordance with this
 subdivision;
   (B) the criteria for selection of the statewide  fiscal  intermediary,
 which shall include at a minimum that the eligible contractor is capable
 of  performing  statewide fiscal intermediary services with demonstrated
 cultural and language competencies specific to the population of consum-
 ers and those of the available workforce, has experience  serving  indi-
 viduals  with  disabilities, and as of April first, two thousand twenty-
 four is providing services as a fiscal intermediary on a statewide basis
 with at least one other state;
   (C)  the  manner  by  which  prospective  contractors  may  seek  such
 selection, which may include submission by electronic means;
   (ii)  all  offers  that are received from prospective contractors in a
 timely fashion and that meet the criteria set forth  in  clause  (B)  of

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05945-01-5
              

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 subparagraph  (i) of this paragraph shall be reviewed by the commission-
 er; and
   (iii)  the  commissioner  shall  award such contract to the contractor
 that meets the criteria for selection and  offers  the  best  value  for
 providing  the  services required pursuant to this section and the needs
 of consumers.] THE COMMISSIONER SHALL PROVIDE AUTHORIZATIONS UNDER  THIS
 SUBDIVISION  TO  ALL  FISCAL INTERMEDIARIES THAT TIMELY SUBMIT A REQUEST
 FOR AUTHORIZATION PRIOR TO JANUARY FIRST, TWO THOUSAND  TWENTY-SIX,  AND
 MEET THE REQUIREMENTS OF THIS SECTION.  NO ENTITY SHALL PROVIDE, DIRECT-
 LY  OR  THROUGH  CONTRACT,  FISCAL  INTERMEDIARY SERVICES WITHOUT HAVING
 RECEIVED AN AUTHORIZATION AS A FISCAL INTERMEDIARY ISSUED BY THE COMMIS-
 SIONER IN ACCORDANCE WITH  THIS  SUBDIVISION,  OR  THAT  HAS  A  PENDING
 AUTHORIZATION  TIMELY  SUBMITTED  AND  CURRENTLY  IN PROCESSING, REVIEW,
 APPEAL, OR LEGAL CHALLENGE.
   (I) AN APPLICATION FOR AUTHORIZATION AS A FISCAL INTERMEDIARY SHALL BE
 FILED WITH THE COMMISSIONER, TOGETHER WITH SUCH OTHER FORMS AND INFORMA-
 TION AS SHALL BE PRESCRIBED BY, OR ACCEPTABLE TO THE COMMISSIONER.  SUCH
 INFORMATION SHALL CONSIST OF THE FOLLOWING:
   (A) THE NAME  AND  EMPLOYER  IDENTIFICATION  NUMBER,  OF  THE  ENTITY,
 INCLUDING  ANY  SUBSIDIARY  CORPORATIONS,  IF APPLICABLE, AND   ANY NAME
 UNDER WHICH THE ENTITY DOES BUSINESS;
   (B) ALL ADDRESSES AT WHICH THE ORGANIZATION OPERATES;
   (C) THE NAMES, TITLES AND CONTACT  INFORMATION  OF  ALL  OFFICERS  AND
 DIRECTORS  IN  A  NOT-FOR-PROFIT  COMPANY  OR BUSINESS, OR MANAGERS IN A
 LIMITED LIABILITY COMPANY, AS WELL AS THE NAME AND EMPLOYMENT HISTORY OF
 THE INDIVIDUAL ULTIMATELY ACCOUNTABLE FOR OPERATION OF THE FISCAL INTER-
 MEDIARY; AND FOR A NOT-FOR-PROFIT ENTITY, THE NUMBER OF  DIRECTOR  POSI-
 TIONS SET BY THE COMPANY'S BY-LAWS, AND HOW MANY ARE CURRENTLY FILLED;
   (D)  A  HISTORY  OF  THE  ORGANIZATION,  ALONG WITH AN OVERVIEW OF THE
 ORGANIZATION AND ALL SERVICES IT  OFFERS,  INCLUDING  ANY  RELATIONSHIPS
 WITH  OUTSIDE  AGENCIES THAT MAY INFLUENCE IN ANY WAY THE ABILITY OF THE
 ORGANIZATION TO PROVIDE FISCAL INTERMEDIARY SERVICES CONSISTENT WITH THE
 MANNER DESCRIBED IN ITS APPLICATION;
   (E) ALL POLICIES AND PROCEDURES OF THE FISCAL INTERMEDIARY,  INCLUDING
 ANY CONTRACTS OR OTHER DOCUMENTS USED IN COMMUNICATIONS WITH CONSUMERS;
   (F) PLANS TO SOLICIT AND CONSIDER INPUT FROM THE FISCAL INTERMEDIARY'S
 CONSUMERS, STAFF, PERSONAL ASSISTANTS AND OTHER INTERESTED PARTIES WHICH
 MAY  BE CHARGED WITH ROLES INCLUDING, BUT NOT LIMITED TO, QUALITY ASSUR-
 ANCE REVIEW, REFERRAL, PROGRAM MONITORING OR DEVELOPMENT OR ESTABLISHING
 AND RESPONDING TO COMMUNITY NEEDS; SUCH INPUT MAY BE IN THE  FORM  OF  A
 BOARD OF DIRECTORS, COMMITTEE, SURVEY, OR OTHER MECHANISM, PROVIDED THAT
 THE  MAJORITY  OF  INPUT  OBTAINED  AS PART OF THIS PROCESS MUST BE FROM
 INDIVIDUAL CONSUMERS AND CONSUMER ADVOCATES OF THE FISCAL INTERMEDIARY;
   (G) THE ORGANIZATION'S PLAN TO ADDRESS  THE  NEEDS  OF  CONSUMERS  AND
 THEIR  PERSONAL  ASSISTANTS IN A TIMELY MANNER, REGARDLESS OF WHERE THEY
 LIVE, INCLUDING, BUT NOT LIMITED TO,  INPUT  FROM  CONSUMERS,  OBTAINING
 PHYSICALS AND OTHER HEALTH INFORMATION FROM PERSONAL ASSISTANTS, OBTAIN-
 ING TIME RECORDS FOR PAYROLL, AND TIMELY PROCESSING OF PAYROLL; AND
   (H)  A  WRITTEN SWORN STATEMENT BY AN OFFICER OF THE ENTITY DISCLOSING
 ANY PENDING LITIGATION, UNSATISFIED JUDGMENTS OR PENALTIES,  CONVICTIONS
 FOR FRAUD OR SANCTIONS IMPOSED BY GOVERNMENT AUTHORITIES.
   (II) THE ENTITY SHALL REASONABLY PROMPTLY NOTIFY THE DEPARTMENT OF ANY
 CHANGE  IN THE INFORMATION SUBMITTED TO THE DEPARTMENT FOR AUTHORIZATION
 UNDER THIS SUBDIVISION.
   (III) THE COMMISSIONER SHALL NOT WITHHOLD APPROVAL OF ANY  APPLICATION
 FOR AUTHORIZATION THAT DEMONSTRATES THE FISCAL INTERMEDIARY'S ABILITY TO
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 PROVIDE  FISCAL  INTERMEDIARY  SERVICES,  IN  ACCORDANCE WITH THE MANNER
 REQUIRED BY THIS SUBDIVISION AND THE RULES  AND  REGULATIONS  HEREUNDER.
 ALL SUCH APPLICATIONS SHALL BE APPROVED BY THE COMMISSIONER.
   (IV)  IF  THE COMMISSIONER DENIES AN APPLICATION FOR AUTHORIZATION, HE
 OR SHE SHALL INCLUDE A NARRATIVE EXPLANATION OF THE  REASON  OR  REASONS
 FOR  ITS  DENIAL  AND PROVIDE THE FISCAL INTERMEDIARY WITH SIXTY DAYS TO
 SUBMIT ADDITIONAL INFORMATION FOR RECONSIDERATION BY THE COMMISSIONER.
   (V) THE COMMISSIONER SHALL CONSIDER AND EVALUATE ANY RESPONSE RECEIVED
 BY THE FISCAL INTERMEDIARY BEFORE REACHING A FINAL DETERMINATION,  WHICH
 LIKEWISE  SHALL BE ACCOMPANIED BY A NARRATIVE EXPLANATION, IF THE APPLI-
 CATION IS STILL DENIED.
   (VI) ALL ORDERS OR DETERMINATIONS  UNDER  THIS  SUBDIVISION  SHALL  BE
 SUBJECT  TO  REVIEW  AS  PROVIDED  IN ARTICLE SEVENTY-EIGHT OF THE CIVIL
 PRACTICE LAW AND RULES.
   § 2. Subparagraphs (i) and (ii) of paragraph (a) of subdivision 4-a of
 section 365-f of the social services law, as amended  by  section  1  of
 part  HH  of  chapter  57  of  the  laws of 2024, are amended to read as
 follows:
   (i) "Statewide fiscal intermediary"  means  an  entity  that  provides
 fiscal  intermediary  services  and  has  a  contract for providing such
 services with [the department of health  and  is  selected  through  the
 procurement process described in paragraph (b) of this subdivision.]:
   (A)  A  LOCAL  DEPARTMENT OF SOCIAL SERVICES; AN ORGANIZATION LICENSED
 UNDER ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW; OR
   (B) AN ACCOUNTABLE CARE ORGANIZATION CERTIFIED UNDER  ARTICLE  TWENTY-
 NINE-E  OF  THE  PUBLIC  HEALTH  LAW  OR  AN  INTEGRATED DELIVERY SYSTEM
 COMPOSED PRIMARILY OF HEALTH CARE PROVIDERS RECOGNIZED BY THE DEPARTMENT
 AS A PERFORMING PROVIDER SYSTEM UNDER THE DELIVERY SYSTEM REFORM  INCEN-
 TIVE PAYMENT PROGRAM.
   (ii)   Fiscal   intermediary  services  shall  include  the  following
 services, performed on behalf of the consumer to facilitate the  consum-
 er's role as the employer:
   (A) wage and benefit processing for consumer directed personal assist-
 ants;
   (B) processing all income tax and other required wage withholdings;
   (C)  complying with workers' compensation, disability and unemployment
 requirements;
   (D) maintaining personnel records for each consumer directed  personal
 assistant,  including  time  records  and other documentation needed for
 wages and benefit processing and a copy  of  the  medical  documentation
 required pursuant to regulations established by the commissioner;
   (E) ensuring that the health status of each consumer directed personal
 assistant  is assessed prior to service delivery pursuant to regulations
 issued by the commissioner;
   (F) maintaining records of service authorizations or reauthorizations;
   (G) monitoring the consumer's or, if applicable, the designated repre-
 sentative's continuing ability to fulfill  the  consumer's  responsibil-
 ities under the program and promptly notifying the authorizing entity of
 any  circumstance  that may affect the consumer's or, if applicable, the
 designated representative's ability to fulfill such responsibilities;
   (H) complying with regulations established by the commissioner  speci-
 fying  the  responsibilities of fiscal intermediaries providing services
 under this title;
   (I) entering into a department approved  memorandum  of  understanding
 with  the  consumer  that  describes the parties' responsibilities under
 this program[; and
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   (J) other related responsibilities which may include, as determined by
 the commissioner, assisting consumers to perform the consumers'  respon-
 sibilities  under  this  section  and department regulations in a manner
 that does not infringe upon the consumer's responsibilities and self-di-
 rection].
   §  3.  Paragraph (c) of subdivision 4-d of section 365-f of the social
 services law, as added by section 7 of part G of chapter 57 of the  laws
 of 2019, is amended to read as follows:
   (c)  Where  a  fiscal  intermediary is suspending or ceasing operation
 pursuant to an order under subdivision four-b of this section,  [or  has
 failed  to submit an offer for a contract, or has been denied a contract
 under this section,] all the provisions of this subdivision shall  apply
 except  subparagraph (i) of paragraph (a) of this subdivision, notice of
 which to all parties shall be provided by the department as appropriate.
   § 4. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2025.