BILL NUMBER:A9205

TITLE OF BILL:  An act to repeal paragraph (c) of subdivision 5 of
section 2808 of the public health law, relating to rates of payment of
residential health care facilities and the withdrawal of equity and the
transfer of assets of such facilities

PURPOSE OR GENERAL IDEA OF BILL:
To repeal a recently enacted provision of the law that prohibits owners
of nursing homes from withdrawing equity from a from a nursing home
facility without first obtaining approval from the Commissioner of
Health in all cases where the amount of such withdrawal exceeds three
percent of the total Medicaid revenues received by such facility during
the previous calendar year.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Repeals the recently enacted Public Health Law section 2808
(5) (c) which was added pursuant to Chapter 58 of the Laws of 2009

JUSTIFICATION:
Operators of nursing homes often need to pay quarterly estimates of
their state and federal income taxes or make other payments to satisfy
existing tax or other obligations. The Commissioner should not be in the
position of refusing an operator the right to withdraw their own money
to pay taxes or other obligations or to be forced to wait for as long as
sixty days before obtaining such approval to withdraw equity. The