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.