S T A T E O F N E W Y O R K
________________________________________________________________________
9830
I N A S S E M B L Y
April 13, 2012
___________
Introduced by M. of A. TENNEY -- read once and referred to the Committee
on Ways and Means
AN ACT to amend chapter 57 of the laws of 2006, relating to establishing
a cost of living adjustment for designated human services programs, in
relation to foregoing such adjustment during the 2012-2013 state
fiscal year; and in relation to directing limits on state reimburse-
ment for executive compensation and administrative costs; to amend the
public health law, in relation to prescription drug coverage for
minors being treated in residential settings or juvenile detention
centers upon their release from such settings; and to amend the public
health law, in relation to establishing the supportive housing devel-
opment reinvestment program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 4 of part C of chapter 57 of the laws of 2006,
relating to establishing a cost of living adjustment for designated
human services programs, as amended by section 2 of part F of chapter 59
of the laws of 2011, is amended to read as follows:
S 4. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2006; provided
section one of this act shall expire and be deemed repealed April 1,
[2015] 2012; provided, further, that sections two and three of this act
shall expire and be deemed repealed December 31, 2009.
S 2. Notwithstanding any other provision of law to the contrary,
effective April 1, 2013 and annually thereafter, state agencies includ-
ing, but not limited to, the office for people with developmental disa-
bilities, office of mental health, office of alcoholism and substance
abuse services, office of children and family services, office of tempo-
rary and disability assistance, department of health, office for the
aging, division of criminal justice services, office of victim services,
and state education department that operate, license, certify, or fund
providers of services shall develop and calculate annual adjustments to
established payments to providers of such services, based on factors to
be determined by the commissioner of the agency. Such adjustments shall
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14451-01-2
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be based on performance metrics to be developed by the commissioners of
such agencies which shall include, but not be limited to the following
to the extent practicable: the actual costs of providing such services,
the percentages of administrative costs, the determination and levels of
executive compensation, and such other criteria as such commissioners
may determine. Such annual adjustments shall be subject to any necessary
federal approvals and restrictions. The amount of any annual adjustment
and the metrics used to determine such adjustment shall be subject to
the review and approval by vote of both houses of the state legislature.
S 3. Notwithstanding any other provision of law to the contrary,
commencing on April 1, 2012, the commissioner or director of each state
agency subject to section two of this act shall have the authority,
subject to approval by both houses of the state legislature, to promul-
gate regulations or to address by other means the extent and nature of a
provider's administrative costs and executive compensation which shall
be eligible to be reimbursed with state financial assistance or state-
authorized payments for operating expenses. Each agency shall require
that providers of services that receive reimbursements directly or indi-
rectly from such agency must comply with the following restrictions:
(a) No less than seventy-five percent of the state financial assist-
ance or state-authorized payments for operating expenses shall be
directed to provide direct care or services rather than to support the
costs of administration, as these terms are defined by the applicable
state agency in implementing these requirements. This percentage shall
increase by five percent each year until it shall, no later than April
1, 2015, remain at no less than eighty-five percent thereafter.
(b) To the extent practicable, reimbursement shall not be provided for
compensation paid or given to any executive by such provider in an
amount greater than $199,000 per annum; provided, however, that the
commissioner of each state agency shall have discretion to adjust this
figure annually based on appropriate factors subject to the approval of
both houses of the state legislature. The applicable state agency shall
define these terms as necessary in implementing these requirements. A
provider's failure to comply with the requirements established by the
applicable state agency and the legislature may, at the discretion of
the commissioner of each state agency, form the basis for termination or
non-renewal of the agency's contract with or continued support of the
provider. Upon a showing of good cause, a provider may be granted a
waiver from compliance with these requirements in whole or in part
subject to the approval of the applicable state agency and both houses
of the state legislature.
S 4. Section 272 of the public health law is amended by adding a new
subdivision 12 to read as follows:
12. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, ANY
PHYSICIAN TREATING A MINOR AS DEFINED IN SECTION TWENTY-NINE HUNDRED
SIXTY-ONE OF THIS CHAPTER, RELEASED FROM A RESIDENTIAL SETTING OR JUVE-
NILE DETENTION CENTER SHALL BE ALLOWED TO CHOOSE THE DRUG OR DRUGS MOST
APPROPRIATE FOR THE PATIENT'S TREATMENT REGARDLESS OF WHETHER SUCH DRUG
IS A PREFERRED DRUG OR NOT. THE PHYSICIAN'S CHOICE OF DRUG SHALL BE
HONORED AND REIMBURSED FOR A PERIOD NOT TO EXCEED THREE HUNDRED
SIXTY-FIVE DAYS AFTER THE MINOR'S RELEASE FROM A RESIDENTIAL SETTING OR
JUVENILE DETENTION CENTER.
S 5. The public health law is amended by adding a new section 2823 to
read as follows:
S 2823. SUPPORTIVE HOUSING DEVELOPMENT REINVESTMENT PROGRAM. 1.
NOTWITHSTANDING SECTIONS ONE HUNDRED TWELVE AND ONE HUNDRED SIXTY-THREE
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OF THE STATE FINANCE LAW OR SECTIONS ONE HUNDRED FORTY-TWO AND ONE
HUNDRED FORTY-THREE OF THE ECONOMIC DEVELOPMENT LAW OR ANY OTHER CONTRA-
RY PROVISION OF LAW, REINVESTMENT FUNDS FOR SUPPORTIVE HOUSING FOR
VULNERABLE POPULATIONS SHALL BE ALLOCATED ANNUALLY BY THE COMMISSIONER
AND THE COMMISSIONERS OF THE OFFICE OF CHILDREN AND FAMILY SERVICES AND
THE OFFICE OF MENTAL HEALTH BASED UPON THE FOLLOWING CRITERIA:
(A) THE EFFICIENCY AND EFFECTIVENESS OF THE USE OF FUNDING FOR THE
DEVELOPMENT OF ADEQUATE AND ACCESSIBLE HOUSING TO SUPPORT VULNERABLE
PERSONS IN THE COMMUNITY AND TO ENSURE ACCESS TO SUPPORTS NECESSARY TO
MAXIMIZE EXPECTED OUTCOMES; AND
(B) OTHER RELEVANT FACTORS RELATING TO THE MAINTENANCE OF EXISTING
SUPPORTIVE HOUSING AND THE DEVELOPMENT OF NEW SUPPORTIVE HOUSING AND
ASSOCIATED SERVICES.
2. AMOUNTS PROVIDED PURSUANT TO THIS SECTION SHALL BE USED ONLY TO
FUND HOUSING DEVELOPMENT ACTIVITIES AND OTHER GENERAL PROGRAMMATIC
ACTIVITIES TO HELP ENSURE A STABLE SYSTEM OF SUPPORTIVE HOUSING FOR
VULNERABLE PERSONS IN THE COMMUNITY.
3. SUCH COMMISSIONERS ARE AUTHORIZED AND EMPOWERED TO MAKE INSPECTIONS
AND EXAMINE RECORDS OF ANY ENTITY FUNDED PURSUANT TO SUBDIVISION TWO OF
THIS SECTION. SUCH EXAMINATION SHALL INCLUDE ALL MEDICAL, SERVICE AND
FINANCIAL RECORDS, RECEIPTS, DISBURSEMENTS, CONTRACTS, LOANS AND OTHER
MONEYS RELATING TO THE FINANCIAL OPERATION OF THE PROVIDER.
4. THE AMOUNT OF SUPPORTIVE HOUSING DEVELOPMENT REINVESTMENT FUNDS FOR
SUCH AGENCIES SHALL BE ITEMIZED IN THE ANNUAL BUDGET IN AN AMOUNT DETER-
MINED BY SUCH COMMISSIONERS, SUBJECT TO THE APPROVAL OF THE DIRECTOR OF
THE BUDGET. THIS AMOUNT SHALL INCLUDE THE AMOUNT OF GENERAL FUND
SAVINGS DIRECTLY RELATED TO INPATIENT HOSPITAL AND NURSING HOME BED
DECERTIFICATION AND/OR FACILITY CLOSURE. THE METHODOLOGIES USED TO
CALCULATE THE SAVINGS SHALL BE DEVELOPED BY SUCH COMMISSIONERS AND THE
DIRECTOR OF THE BUDGET. IN NO EVENT SHALL THE FULL ANNUAL VALUE OF
SUPPORTIVE HOUSING DEVELOPMENT REINVESTMENT PROGRAMS ATTRIBUTABLE TO
INPATIENT HOSPITAL AND NURSING HOME BED DECERTIFICATION AND/OR FACILITY
CLOSURE EXCEED THE TWELVE MONTH VALUE OF THE DEPARTMENT OF HEALTH GENER-
AL FUND REDUCTIONS RESULTING FROM SUCH DECERTIFICATION AND/OR FACILITY
CLOSURE.
5. THE ANNUAL SUPPORTIVE HOUSING DEVELOPMENT REINVESTMENT APPROPRI-
ATION SHALL REFLECT A PROPORTION OF THE AMOUNT OF GENERAL FUND SAVINGS
RESULTING FROM SUBDIVISION FOUR OF THIS SECTION. WITHIN ANY FISCAL YEAR
WHERE APPROPRIATION INCREASES ARE RECOMMENDED FOR THE SUPPORTIVE HOUSING
DEVELOPMENT REINVESTMENT PROGRAM, INSOFAR AS PROJECTED BED DECERTIF-
ICATION AND/OR FACILITY CLOSURES DO NOT OCCUR AS ESTIMATED, AND GENERAL
FUND SAVINGS DO NOT RESULT, THEN THE REINVESTMENT APPROPRIATIONS MAY BE
REDUCED IN THE NEXT YEAR'S ANNUAL BUDGET ITEMIZATION.
6. AMOUNTS MADE AVAILABLE TO THE SUPPORTIVE HOUSING DEVELOPMENT REIN-
VESTMENT PROGRAM OF SUCH AGENCIES SHALL BE SUBJECT TO ANNUAL APPROPRI-
ATIONS THEREFOR.
7. NO PROVISION IN THIS SECTION SHALL CREATE OR BE DEEMED TO CREATE
ANY RIGHT, INTEREST OR ENTITLEMENT TO SERVICES OR FUNDS THAT ARE SUBJECT
TO THIS SECTION, OR TO ANY OTHER SERVICES OR FUNDS, WHETHER TO INDIVID-
UALS, LOCALITIES, PROVIDERS OR OTHERS, INDIVIDUALLY OR COLLECTIVELY.
8. ALL APPROPRIATIONS FOR SUPPORTIVE HOUSING DEVELOPMENT SHALL BE
ADJUSTED IN THE FOLLOWING FISCAL YEAR TO REFLECT THE VARIANCE BETWEEN
THE INITIAL AND REVISED ESTIMATES OF BED DECERTIFICATION AND/OR FACILITY
CLOSURE.
9. SUCH COMMISSIONERS SHALL PROMULGATE REGULATIONS, AND MAY PROMULGATE
EMERGENCY REGULATIONS, TO EFFECTUATE THE PROVISIONS OF THIS SECTION.
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S 6. This act shall take effect immediately; provided, however, that
the amendments to section 272 of the public health law made by section
four of this act shall not affect the repeal of such section and shall
be deemed repealed therewith.