S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1223
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 8, 2025
                                ___________
 
 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  expanding  the
   scope of the temporary operator program
 
   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
   (ii) has demonstrated that [he or she has] THEY  HAVE  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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03486-01-5
              

 S. 1223                             2
 
 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. This act shall take effect immediately; provided  the  amendments
 to  section  2806-a of the public health law made by section one of this
 act shall not affect the repeal of such  section  and  shall  be  deemed
 repealed therewith.