Bill Text: NY A06964 | 2021-2022 | General Assembly | Introduced

New York Assembly Bill 6964 (Prior Session Legislation)

Introduced

Bill Title: Expands the scope of the temporary operator law permitting the commissioner of health to appoint an operator if a facility experiences serious financial instability or conditions that seriously endanger the life, health or safety of residents or patients; makes such provisions permanent.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2022-01-05 - ordered to third reading cal.228 [A06964 Detail]

Download: New_York-2021-A06964-Introduced.html




                STATE OF NEW YORK
        ________________________________________________________________________

                                          6964

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                     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:

     1    Section  1.  Subdivision 1 of section 2806-a of the public health law,
     2  as added by section 50 of part E of chapter 56  of  the  laws  of  2013,
     3  paragraph  (g) as added by section 7 of part K of chapter 57 of the laws
     4  of 2015, is amended to read as follows:
     5    1. For the purposes of this section:
     6    (a) "adult care facility" shall mean an adult home or enriched housing
     7  program licensed pursuant to article seven of the social services law or
     8  an assisted living residence licensed pursuant to article forty-six-B of
     9  this chapter;
    10    (b) "established operator" shall mean the operator of [an adult  care]
    11  a  facility[,  a  general  hospital or a diagnostic and treatment center
    12  that has been established and issued an operating  certificate  as  such
    13  pursuant to this article];
    14    (c)  "facility"  shall  mean (i) a [general] hospital [or a diagnostic
    15  and treatment center that has been issued an  operating  certificate  as
    16  such pursuant to this article]; or (ii) an adult care facility;
    17    (d) "temporary operator" shall mean any person or entity that:
    18    (i)  agrees  to  operate  a  facility on a temporary basis in the best
    19  interests of its residents or patients and the community served  by  the
    20  facility; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10679-01-1
        A. 6964                             2

     1    (ii) has demonstrated that he or she has the character, competence and
     2  financial  ability to operate the facility in compliance with applicable
     3  standards;
     4    (e)  "serious  financial instability" shall include but not be limited
     5  to defaulting or violating key covenants of loans,  or  missed  mortgage
     6  payments,  or general untimely payment of obligations, including but not
     7  limited to employee benefit fund, payroll  tax,  and  insurance  premium
     8  obligations,  or  failure  to  maintain  required  debt service coverage
     9  ratios or, as applicable, factors that have triggered a written event of
    10  default notice to the department by the dormitory authority of the state
    11  of New York; and
    12    (f)  "extraordinary  financial  assistance"  shall  mean  state  funds
    13  provided  to  a facility upon such facility's request for the purpose of
    14  assisting the facility to address serious  financial  instability.  Such
    15  funds  may  be  derived  from  existing  programs within the department,
    16  special appropriations, or other funds.
    17    (g) "improper delegation of  management  authority  by  the  governing
    18  authority  or  operator" of a [general hospital] facility shall include,
    19  but not be limited to, the delegation to an entity  that  has  not  been
    20  established  as  an  operator  of the [general hospital] facility of (i)
    21  authority to hire or fire the  administrator  or  other  key  management
    22  employees;  (ii) maintenance and control of the books and records; (iii)
    23  authority over the disposition of assets and the  incurring  of  liabil-
    24  ities  on  behalf of the facility; and (iv) the adoption and enforcement
    25  of policies regarding the operation of the facility.  The  criteria  set
    26  forth  in  this paragraph shall not be the sole determining factors, but
    27  indicators to be considered with such other factors that may  be  perti-
    28  nent  in particular instances. Professional expertise shall be exercised
    29  in the utilization of the criteria. All of the listed indicia  need  not
    30  be present in a given instance for there to be an improper delegation of
    31  authority.
    32    §  2.  Subdivision  (c)  of section 122 of part E of chapter 56 of the
    33  laws of 2013 amending the public health  law  relating  to  the  general
    34  public health work program, as amended by section 7 of part E of chapter
    35  57 of the laws of 2019, is amended to read as follows:
    36    (c) section fifty of this act shall take effect immediately [and shall
    37  expire nine years after it becomes law];
    38    § 3. This act shall take effect immediately.