S T A T E O F N E W Y O R K
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10640--A
I N A S S E M B L Y
April 13, 2010
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Introduced by M. of A. RUSSELL, SCHROEDER -- read once and referred to
the Committee on Health -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the public health law, in relation to approval of hospi-
tal construction
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The opening paragraph and subdivision 1 of section 2802 of
the public health law, the opening paragraph as added by chapter 795 of
the laws of 1965 and subdivision 1 as amended by chapter 470 of the laws
of 1976, are amended to read as follows:
The APPROVAL OF construction of a hospital, whether public or private,
incorporated or not incorporated, shall [require the prior approval of
the commissioner] BE IN ACCORDANCE WITH REGULATIONS ADOPTED BY THE COUN-
CIL AND APPROVED BY THE COMMISSIONER, SUBJECT TO THE FOLLOWING.
1. [An application for such construction shall be filed with the
department, together with such other forms and information as shall be
prescribed by, or acceptable to, the department. Thereafter the depart-
ment shall forward a copy of the application and accompanying documents
to the state hospital review and planning council and the health systems
agency having geographical jurisdiction of the area where the hospital
is located] THE FOLLOWING TYPES OF PROJECTS BY A HOSPITAL POSSESSING A
VALID OPERATING CERTIFICATE SHALL NOT REQUIRE APPROVAL FOR:
(A) ANY PROPOSAL FOR REPAIR OR MAINTENANCE, INCLUDING ROUTINE
PURCHASES AND THE ACQUISITION OF MINOR EQUIPMENT UNDERTAKEN IN THE
COURSE OF A MEDICAL FACILITY'S INVENTORY CONTROL FUNCTIONS IF THE TOTAL
PROJECT COST DOES NOT EXCEED, AT A MINIMUM, TEN MILLION DOLLARS AND
FURTHER PROVIDED THAT SUCH PROPOSAL WILL NOT RESULT IN INCREASED COSTS
OR EXPENSES OTHER THAN FOR LEASE COSTS, AMORTIZATION, DEPRECIATION,
INTEREST, OR RETURN OF OR ON EQUITY;
(B) ONE FOR ONE EQUIPMENT REPLACEMENTS REGARDLESS OF COST, PROVIDED
THAT A WRITTEN NOTICE HAS BEEN SUBMITTED TO THE DEPARTMENT ACCOMPANIED
TOGETHER WITH, WHERE APPROPRIATE, A WRITTEN CERTIFICATION THAT THE
PROJECT MEETS THE APPLICABLE STATUTES, CODES AND REGULATIONS SPECIFIED
IN THE CERTIFICATION STATEMENT;
(C) NON-CLINICAL INFRASTRUCTURE PROPOSALS REGARDLESS OF COST INCLUD-
ING, BUT NOT LIMITED TO, REPLACEMENT OF HEATING, VENTILATING AND AIR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16561-07-0
A. 10640--A 2
CONDITIONING SYSTEMS, ROOFS, FIRE ALARM AND CALL BELL SYSTEMS, PARKING
LOTS, AND ELEVATORS; AND CORRECTION OF CITED DEFICIENCIES, PROVIDED THAT
A WRITTEN NOTICE HAS BEEN SUBMITTED TO THE DEPARTMENT TOGETHER WITH,
WHERE APPROPRIATE, A WRITTEN CERTIFICATION THAT THE PROJECT MEETS THE
APPLICABLE STATUTES, CODES AND REGULATIONS SPECIFIED IN THE CERTIF-
ICATION STATEMENT;
(D) HEALTH INFORMATION TECHNOLOGY PROJECTS REGARDLESS OF COST; AND
(E) OTHER PROJECTS AS SPECIFIED IN REGULATIONS ADOPTED BY THE COUNCIL
AND APPROVED BY THE COMMISSIONER.
S 2. Subdivision 2 of section 2802 of the public health law, as
amended by chapter 609 of the laws of 1982, is amended to read as
follows:
2. The commissioner shall [not] act upon an application for
construction of a hospital [until the state hospital review and planning
council and the health systems agency have had a reasonable time to
submit their recommendations, and unless] WITHOUT THE RECOMMENDATION OF
THE STATE HOSPITAL REVIEW AND PLANNING COUNCIL AND THE HEALTH SYSTEMS
AGENCY UNLESS THE APPLICATION INVOLVES: THE ADDITION OF BEDS, OR THE
CONVERSION OF BEDS TO A LEVEL OF CARE FOR WHICH A GENERAL HOSPITAL IS
NOT ALREADY A CERTIFIED PROVIDER, REGARDLESS OF COST; ANY PROPOSAL FOR
THE ADDITION, MODIFICATION OR CHANGE IN THE METHOD OF DELIVERY OF
SPECIALIZED SERVICES OR FOR THE MODIFICATION OR CHANGE IN THE DELIVERY
OF MATERNITY SERVICES, PURSUANT TO REGULATIONS ADOPTED BY THE COUNCIL
AND APPROVED BY THE COMMISSIONER; OR A CLINICAL PROJECT WHERE TOTAL
PROJECT COSTS EXCEED, AT A MINIMUM, TWENTY-FIVE MILLION DOLLARS. THE
COMMISSIONER SHALL NOT ACT UPON AN APPLICATION FOR CONSTRUCTION OF A
HOSPITAL UNLESS [(a)] the applicant has obtained all approvals and
consents required by law for its incorporation or establishment (includ-
ing the approval of the public health council pursuant to the provisions
of this article) [provided, however, that the commissioner may act upon
an application for construction by an applicant possessing a valid oper-
ating certificate when the application qualifies for review without the
recommendation of the council pursuant to regulations adopted by the
council and approved by the commissioner; and (b) the commissioner is
satisfied as to the public need for the construction, at the time and
place and under the circumstances proposed, provided however that, in
the case of an application by a hospital established or operated by an
organization defined in subdivision one of section four hundred eighty-
two-a of the social services law, the needs of the members of the reli-
gious denomination concerned, for care or treatment in accordance with
their religious or ethical convictions, shall be deemed to be public
need]. AN APPLICATION FOR CONSTRUCTION SHALL BE FILED WITH THE DEPART-
MENT, TOGETHER WITH SUCH OTHER FORMS AND INFORMATION AS SHALL BE
PRESCRIBED BY, OR ACCEPTABLE TO, THE DEPARTMENT. THE DEPARTMENT SHALL
MAKE A DETERMINATION IN WRITING WITHIN THIRTY DAYS OF RECEIPT OF AN
APPLICATION AS TO WHETHER THE APPLICATION IS COMPLETE. IF AN APPLICATION
IS DETERMINED TO BE INCOMPLETE, THE DEPARTMENT SHALL SPECIFY THE
REASONS. ONCE THE APPLICANT SUBMITS ADDITIONAL INFORMATION, THE DEPART-
MENT SHALL MAKE A DETERMINATION IN WRITING WITHIN SIXTY DAYS OF RECEIPT
OF THAT INFORMATION AS TO WHETHER THE APPLICATION IS THEN COMPLETE. THE
COMMISSIONER SHALL ACT UPON AN APPLICATION FOR CONSTRUCTION OF A HOSPI-
TAL WITHIN NINETY DAYS OF RECEIPT BY THE DEPARTMENT OF A COMPLETE APPLI-
CATION OR SUCH APPLICATION SHALL BE DEEMED APPROVED; PROVIDED HOWEVER,
IF SUCH APPLICATION REQUIRES THE RECOMMENDATION OF THE COUNCIL, THE
APPLICATION SHALL BE ACTED ON WITHIN ONE HUNDRED FIFTY DAYS OF RECEIPT
BY THE DEPARTMENT OF A COMPLETE APPLICATION OR SUCH APPLICATION SHALL BE
A. 10640--A 3
DEEMED APPROVED. THE DEPARTMENT MAY EXTEND THE REVIEW PERIOD UP TO AN
ADDITIONAL THIRTY DAYS FOR GOOD CAUSE AS DEFINED IN REGULATIONS ADOPTED
BY THE COUNCIL AND APPROVED BY THE COMMISSIONER. A REVIEW SCHEDULE MAY
BE EXTENDED BEYOND THESE TIME FRAMES ONLY WITH THE CONSENT OF THE APPLI-
CANT AND THE DEPARTMENT. AN APPLICATION SHALL NOT BE APPROVED UNLESS THE
COMMISSIONER IS SATISFIED AS TO THE PUBLIC NEED FOR THE CONSTRUCTION, AT
THE TIME AND PLACE AND UNDER THE CIRCUMSTANCES PROPOSED, PROVIDED HOWEV-
ER THAT, IN THE CASE OF AN APPLICATION BY A HOSPITAL ESTABLISHED OR
OPERATED BY AN ORGANIZATION DEFINED IN SUBDIVISION ONE OF SECTION ONE
HUNDRED SEVENTY-TWO-A OF THE EXECUTIVE LAW, THE NEEDS OF THE MEMBERS OF
THE RELIGIOUS DENOMINATION CONCERNED, FOR CARE OR TREATMENT IN ACCORD-
ANCE WITH THEIR RELIGIOUS OR ETHICAL CONVICTIONS, SHALL BE DEEMED TO BE
PUBLIC NEED. A COMPLETE APPLICATION MAY BE DENIED ONLY ON THE BASIS OF
THE CRITERIA SET FORTH IN THIS SUBDIVISION AND REGULATIONS THERETO. IF
AN APPLICATION IS DENIED, THE APPLICANT SHALL BE NOTIFIED IN WRITING AND
ADVISED OF THE BASIS FOR THE ACTION.
S 3. Subdivision 2-b of section 2802 of the public health law, as
added by chapter 731 of the laws of 1993, is amended and a new subdivi-
sion 2-c is added to read as follows:
2-b. [Beginning on January first, nineteen hundred ninety-four, and
each year thereafter, a complete application received between January
first and June thirtieth of each year shall be reviewed by the appropri-
ate health systems agency and the department and presented to the state
hospital review and planning council for its consideration prior to June
thirtieth of the following year and a complete application received
between July first and December thirty-first of each year shall be
reviewed by the appropriate health systems agency and the department and
presented to the state hospital review and planning council for consid-
eration prior to December thirty-first of the following year] REGU-
LATIONS ADOPTED BY THE COUNCIL AND APPROVED BY THE COMMISSIONER IN
ACCORDANCE WITH THIS SUBDIVISION MAY PROVIDE FOR HIGHER MINIMUM DOLLAR
THRESHOLDS THAN PROVIDED FOR IN PARAGRAPH (A) OF SUBDIVISION ONE AND
SUBDIVISION TWO OF THIS SECTION AND SHALL, WITH REGARD TO ONE FOR ONE
EQUIPMENT REPLACEMENTS PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF
THIS SECTION, SPECIFY THAT SUCH REPLACEMENTS INCLUDE REPLACEMENT OF A
PIECE OF EQUIPMENT WITH ANOTHER PIECE OF EQUIPMENT USED FOR SUBSTANTIAL-
LY SIMILAR PURPOSES BUT EMPLOYING ADVANCED TECHNOLOGY.
2-C. THE COMMISSIONER SHALL NOT REQUIRE PRE-OPENING CERTIFICATIONS
AND/OR SURVEYS FOR CONSTRUCTION PROJECTS APPROVED IN ACCORDANCE WITH
THIS SUBDIVISION AS LONG AS APPROPRIATE CERTIFICATION STATEMENTS OF
COMPLIANCE ARE SUBMITTED TO THE DEPARTMENT. THE DEPARTMENT SHALL ASSESS
COMPLIANCE DURING THE DEPARTMENT'S NEXT SURVEY OF THE HOSPITAL. IF AT
THAT TIME A PROJECT IS FOUND TO BE NON-COMPLIANT, THE HOSPITAL SHALL
HAVE A REASONABLE AMOUNT OF TIME TO BRING THE PROJECT INTO COMPLIANCE
AND THE HOSPITAL SHALL NOT BE PENALIZED FOR SUCH NON-COMPLIANCE IF THE
HOSPITAL'S CERTIFICATION STATEMENT WAS MADE IN GOOD FAITH.
S 4. Subdivision 4 of section 2802 of the public health law, as added
by chapter 795 of the laws of 1965, is amended to read as follows:
4. No government agency shall construct any hospital without [securing
the written approval of the commissioner in accordance with the] MEETING
THE applicable requirements and procedures of the preceding subdivi-
sions.
S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.