Bill Text: NY A03184 | 2017-2018 | General Assembly | Introduced
Bill Title: Directs the out-of-state placement committee to develop a residential bed plan and authorizes the dormitory authority to finance new facilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - referred to social services [A03184 Detail]
Download: New_York-2017-A03184-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3184 2017-2018 Regular Sessions IN ASSEMBLY January 27, 2017 ___________ Introduced by M. of A. DenDEKKER -- read once and referred to the Committee on Social Services AN ACT to amend the social services law and the public authorities law, in relation to directing the out-of-state placement committee to develop a residential bed plan and in relation to authorizing the dormitory authority to finance new facilities The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 483-d of the social services law is amended by 2 adding a new subdivision 7-a to read as follows: 3 7-a. Residential bed plan. (a) The out-of-state placement committee 4 members shall develop a residential bed plan that includes recommenda- 5 tions to address current and future programmatic and physical plant 6 needs for renovated and new in-state capacity at residential schools and 7 residential facilities, including but not limited to: residential insti- 8 tutions for children, as defined in subdivision forty-four of section 9 sixteen hundred seventy-six of the public authorities law and any other 10 office of children and family services licensed facility; and community 11 residences, as defined in subdivision twenty-eight of section 1.03 of 12 the mental hygiene law. 13 (i) The committee, in consultation with the division of the budget, 14 shall develop a residential bed plan that will be based on agency data 15 regarding children currently in need of residential services and the 16 projected future need for such services, and current physical state and 17 capacity of residential schools and residential facilities. Each member 18 agency that places children or has oversight responsibility for the 19 placement of children in residential schools or residential facilities 20 will provide this data to the committee. 21 (ii) The committee shall forward the plan to the governor, the majori- 22 ty leader of the senate, the speaker of the assembly, the minority lead- 23 er of the senate, and the minority leader of the assembly, as soon as EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08452-01-7A. 3184 2 1 practicable, but no later than the annual progress report required 2 pursuant to subdivision seven of this section, with annual updates on 3 its progress in meeting the plan's goals to be included thereafter in 4 such report. 5 (b) In accordance with the residential bed plan developed by the 6 committee and in consultation with the division of the budget, individ- 7 ual committee member agencies shall issue a request for proposals to 8 providers of not-for-profit residential schools or residential facili- 9 ties within the state for the construction of new residential schools 10 and residential facilities and the renovation or rehabilitation of 11 existing residential schools and residential facilities. 12 (c) Notwithstanding any other provision of law to the contrary, 13 members of the committee shall authorize or seek authorization for 14 creation of a reimbursement factor for approved capital costs for new 15 facilities and renovation or rehabilitation of existing facilities with- 16 in the existing rate methodologies of such member agency, including any 17 special rate methodologies established for the dormitory authority 18 financed programs, upon its determination and with the concurrence of 19 the members of the committee, that the construction or rehabilitation of 20 such residential school or residential facility is desirable and in 21 keeping with the residential bed plan. 22 (d) Notwithstanding any other provision of law to the contrary, the 23 dormitory authority is hereby authorized to provide financing of the 24 costs related to the construction of new facilities and the renovation 25 or rehabilitation of existing residential schools and residential facil- 26 ities, pursuant to the plan developed in accordance with paragraph (a) 27 of this subdivision. 28 (e) Nothing contained in this subdivision shall require that the 29 dormitory authority be the sole or only financier of such new facilities 30 or renovation or rehabilitation of existing facilities. 31 § 2. Paragraph (b) of subdivision 2 of section 1676 of the public 32 authorities law is amended by adding a new undesignated paragraph to 33 read as follows: 34 Any residential school or residential facility as defined in subdivi- 35 sion forty-six of this section for the financing, refinancing, design, 36 replacement (including acquisition and construction), reconstruction, 37 rehabilitation, improvement, renovation, and equipping of residential 38 schools or residential facilities. 39 § 3. Section 1676 of the public authorities law is amended by adding a 40 new subdivision 46 to read as follows: 41 46. The term "residential facility" or "residential school" shall mean 42 a not-for-profit corporation that is licensed or certified by a state 43 agency or department to operate a residential school or a residential 44 facility for children placed by state and local agencies or departments, 45 including but not limited to, the committee on special education of a 46 school district or local social services district. 47 § 4. Subdivision l of section 1680 of the public authorities law is 48 amended by adding a new undesignated paragraph to read as follows: 49 Any residential school or residential facility as defined in subdivi- 50 sion forty-six of section sixteen hundred seventy-six of this title for 51 the financing, refinancing, design, replacement (including acquisition 52 and construction), reconstruction, rehabilitation, improvement, reno- 53 vation and equipping of such residential schools and residential facili- 54 ties that have been approved in accordance with subdivision seven-a of 55 section four hundred eighty-three-d of the social services law and thatA. 3184 3 1 are consistent with the residential bed plan advanced in accordance with 2 such subdivision. 3 § 5. Section 1680 of the public authorities law is amended by adding a 4 new subdivision 41 to read as follows: 5 41. a. Any lease, sublease or other agreement by and between the 6 authority and a not-for-profit corporation operating a residential 7 school or residential facility shall, in addition to any other 8 provisions deemed necessary by the authority, contain the following: 9 (1) a requirement that such not-for-profit corporation establish an 10 account with a bank or trust company acceptable to the authority into 11 which the not-for-profit corporation shall deposit, or cause to be 12 deposited, all amounts received by such not-for-profit corporation from 13 any school district, social services district, or any other payor on 14 account of the residential and educational services provided by such 15 not-for-profit corporation. The not-for-profit corporation shall grant 16 to the authority a security interest in such account and the moneys on 17 deposit therein shall be subject to withdrawal by the not-for-profit 18 corporation only after payment of amounts then due to the authority as 19 provided in such lease, sublease or other agreement; 20 (2) a requirement that the not-for-profit corporation grant to the 21 authority either a mortgage on the real property used by such not-for- 22 profit corporation to provide residential and educational services or 23 such other interest in real property as is acceptable to the authority; 24 (3) a requirement that the not-for-profit corporation continue to 25 operate a residential school or residential facility for children placed 26 by state and local agencies and departments (including but not limited 27 to the committee on special education of a school district or a local 28 social services district) for the term of the lease, sublease or other 29 agreement and in the event such not-for-profit corporation fails to do 30 so, provide for the transfer and operation of the residential programs 31 or educational programs to a replacement not-for-profit operator that is 32 qualified to provide such services and that has assumed the obligations 33 of such not-for-profit corporation pursuant to such agreement; 34 (4) all state and local officers are hereby authorized and required to 35 pay all funds payable to a residential school or residential facility on 36 account of the residential and educational services provided by such 37 not-for-profit corporation into the account established pursuant to 38 subparagraph one of this paragraph. In the event of the failure of the 39 applicable payor to make a maintenance rate payment (or other similar 40 rate component established by the state agency or department which 41 licensed or certified the residential school or residential facility) to 42 the not-for-profit corporation for residential care and educational 43 services provided to a child in the residential school or residential 44 facility, the state comptroller shall withhold state reimbursement to 45 the applicable payor in an amount equal to the unpaid obligation for the 46 capital financing add-on rate (or other similar rate component estab- 47 lished by the state agency or department which licensed or certified the 48 residential school or residential facility) and pay over such sum to the 49 authority or its trustee upon certification of the commissioner of the 50 office of children and family services, the education department or any 51 other state governmental payor, as applicable; and 52 (5) a requirement that the not-for-profit corporation pay to the 53 authority the amount required to pay the principal of and interest on 54 obligations of the authority issued in relation to providing such resi- 55 dential schools and residential facilities and all incidental expenses 56 of the authority incurred in relation thereto.A. 3184 4 1 b. The authority shall not enter into any agreement authorized by 2 paragraph a of this subdivision unless and until the state agency or 3 department which certified the residential school or residential facili- 4 ty, together with the director of the division of the budget, have 5 approved in writing the project to be financed with the proceeds of 6 bonds issued by the authority. 7 c. The authority shall not issue any bonds or notes in excess of thir- 8 ty million dollars for the purpose of financing the costs related to 9 residential schools or residential facilities as defined in subdivision 10 forty-six of section sixteen hundred seventy-six of this title, which 11 bonds and notes shall be in addition to any bonds or notes which the 12 authority may issue pursuant to subdivision forty of this section. In 13 calculating the amount of bonds or notes issued or outstanding pursuant 14 to this subdivision, the following shall be excluded therefrom: (1) the 15 principal amount of bonds or notes issued to fund one or more debt 16 service reserve funds; (2) the principal amount of bonds or notes issued 17 to pay the costs of issuance of such bonds or to provide for the payment 18 of interest on the bonds during construction; and (3) the principal 19 amount of bonds or notes issued to refund or otherwise repay such bonds 20 and bonds or notes previously issued. Except for purposes of complying 21 with the internal revenue code, any interest income earned on bond 22 proceeds shall only be used to pay debt service on such bonds or notes. 23 § 6. The social services law is amended by adding a new section 462-c 24 to read as follows: 25 § 462-c. Standards of payment. 1. (a) The office of children and fami- 26 ly services shall establish, subject to consultation with the appropri- 27 ate state agencies, the approval of the director of the budget and 28 federal approval, standards of payment for the capital costs of approved 29 projects for residential schools or residential facilities which enter 30 into a lease, sublease or other agreement with the dormitory authority 31 pursuant to subdivision forty-one of section sixteen hundred eighty of 32 the public authorities law. The maintenance rate established by the 33 commissioner of the office of children and family services for such 34 residential schools or residential facilities shall be established in 35 two parts, one part of which will be the capital financing add-on rate, 36 which shall be the cost per child of the annual payment pursuant to such 37 lease, sublease or other agreement. The applicable social services 38 district, school district or other payor responsible for the maintenance 39 cost of a child placed in such residential school or residential facili- 40 ty, shall agree to pay and is responsible for paying the not-for-profit 41 corporation operating the residential school or the residential facility 42 one hundred percent of the capital financing add-on rate for each such 43 child placed in such institution. To the extent permissible under feder- 44 al law and regulation, the capital financing add-on rate shall not be 45 subject to any cost screens, caps or parameters limiting or reducing the 46 amount of such cost required by this section. 47 (b) The expenditures made by the applicable payor for the capital 48 financing add-on rate for children placed in a residential school or 49 residential facility which has a lease, sublease or other agreement with 50 the authority pursuant to subdivision forty-one of section sixteen 51 hundred eighty of the public authorities law, shall be subject to state 52 reimbursement in accordance with subdivision five of section three 53 hundred ninety-eight-a of this chapter and article eighty-nine of the 54 education law, as applicable. 55 § 7. Subdivision l of section 462 of the social services law is 56 amended by adding a new paragraph (g) to read as follows:A. 3184 5 1 (g) No residential school or residential facility as defined in subdi- 2 vision forty-six of section sixteen hundred seventy-six of the public 3 authorities law shall enter into a lease, sub-lease or other agreement 4 with the authority pursuant to subdivision forty-one of section sixteen 5 hundred eighty of the public authorities law unless and until: 6 (i) the office of children and family services, the director of the 7 division of the budget and any other state agency which licenses, certi- 8 fies or issues operating certificates to such residential school or 9 residential facility first determines that the project is consistent 10 with the residential bed plan developed pursuant to subdivision seven-a 11 of section four hundred eighty-three-d of this chapter and approves the 12 project cost on the basis that such costs are reasonable, necessary and 13 cost effective based upon the application of cost per square foot guide- 14 lines and any other standards applicable to the type of program or to 15 the clinically-required needs of a specialized group of children to be 16 served by the project; and 17 (ii) the office of children and family services or such other state 18 agency which licenses, certifies or issues operating certificates to 19 such residential schools or residential facilities approves the plans 20 and specifications of the facilities to be replaced, reconstructed, 21 rehabilitated, improved, renovated, or otherwise provided for, furnished 22 or equipped. 23 § 8. This act shall take effect immediately.
