senate Bill S1548

2011-2012 Legislative Session

Enacts the New York state community health care investment fund act

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to finance
Jan 10, 2011 referred to finance

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S1548 - Bill Details

Current Committee:
Law Section:
State Finance Law
Laws Affected:
Add §§99-t & 99-u, St Fin L; add §22, Pub Health L; add §44, Lab L
Versions Introduced in 2009-2010 Legislative Session:
S86

S1548 - Bill Texts

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Enacts the New York state community health care investment fund act; creates two new funds in the state finance law to be known as the New York state community health care investment fund and the New York state health care entrepreneurial stimulus fund; establishes the New York state community health care investment fund council consisting of 13 members to oversee the New York state health care community investment funds, establish the RFP process, award grants and issue an annual report.

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BILL NUMBER:S1548

TITLE OF BILL: An act to amend the public officers law, in relation to
the definition of a "public body"

PURPOSE OR GENERAL IDEA OF BILL: This bill will require that entities
with two or more members created by executive order of the governor are
subject to the Open Meetings Law.

SUMMARY OF PROVISIONS:

Section one of the bill amends subdivision two of section 102 of the
public officers law to require that entities consisting of two or more
members created by executive order of the Governor are included in the
definition of a "public body" and therefore subject to the provisions of
the Open Meetings Law. Section two of the bill provides the effective
date.

JUSTIFICATION: Executive Order #3 from January 1, 2007, states, "It is
essential to the maintenance of a democratic society that the public
business be performed in an open and public manner; and the citizens of
this State be fully aware of and able to observe the performances of
public officials and attend and listen to the deliberations and deci-
sions that go into the making of public policy; and the people must be
able to remain informed if they are to retain control over those who are
their public servants; and the Open Meetings Law requires every meeting
of a public body shall be open to the general public." The above refer-
enced Executive Order was endorsed by former Governor Eliot Spitzer in
an effort to achieve openness and transparency in access to the govern-
mental decision-making process. Notwithstanding this stated policy, the
Commission on Local Government Efficiency and Competitiveness, created
by the former Governor Spitzer under Executive Order #11 on April 23,
2007, has operated and conducted its business behind closed doors,
excluding interested parties who have attempted to attend its sessions.
For example, two representatives of the Nassau County Village Officials
Association were asked to leave the January 23, 2008 meeting of t he
Commission and, according to press reports, were told by a senior advi-
sor to the Governor that the Commission's meetings were not subject to
the State's Open Meetings Law, In addition, they were directed to an
opinion furnished by the Governor's Counsel's Office. The Counsel's
opinion was based on a 22 year-old State Supreme Court case, not
reviewed at the appellate level, involving an advisory commission on
liability insurance. The trial court held that because the advisory
commission lacked power to transact public business, and had no direct
impact on the func- tioning of the government of the state, it was not
subject to the Open Meetings Law. Irrespective of that court case, the
issue is not whether the proceedings of a major advisory commission must
be open to the public, but whether it should be open to the public.
Clearly, the work of the Commission on Local Government Efficiency and
Competitiveness is very significant and important, and is likely to have
profound effects on the functioning of government. This commission and

others similarly formed and tasked must and should be open to public
scrutiny.

LEGISLATIVE HISTORY: 2011-12: Referred to Investigations & Government
Operations 2009-10: Referred to Investigations & Government Operations
A.11085, 2008 Referred to Rules. Same as S.7424A, 2008 passed senate.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1548

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 10, 2011
                               ___________

Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the state finance law, the public  health  law  and  the
  labor  law,  in  relation  to  enacting  the "New York state community
  health care investment fund act"

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Short  title. This act shall be known and may be cited as
the "New York state community health care investment fund act".
  S 2. Legislative intent. The  legislature  hereby  declares  that  the
provision  of health care in New York state must be affordable, accessi-
ble, and address the multi-faceted needs of its diverse population, from
pre-conception planning through the end of life.  The  legislature  also
finds  that  many  constituencies  play an important role in the state's
health care  infrastructure:    consumers,  health  care  professionals,
communities of faith, state and local governments, businesses, insurance
companies,  community  based  organizations,  home care agencies, school
based health clinics, nursing homes, and hospitals.
  Health care in New York state also faces  many  challenges.  New  York
state  is home to world class medical institutions and research centers.
According to the United Health Foundation 2006 America Health  Rankings,
New  York state has the 4th highest per capita spending on public health
in the nation, a low rate of motor vehicle deaths  and  a  low  rate  of
cancer  deaths.  The  health care challenges in New York state include a
high incidence of infectious disease, limited access to adequate  prena-
tal  care,  and a low high school graduation rate. Twenty percent of the
state's children under 18 years of age live in poverty. Furthermore, the
state's overall rank among the rest of  the  country  decreased  between
2005  and 2006, from 26th place to 29th place. Despite a high per capita
spending on health ($316 per person) almost three million of  its  resi-
dents do not have health insurance. Not surprisingly, health disparities

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05860-01-1

S. 1548                             2

persist  in  low-income  cities  and  neighborhoods and where racial and
ethnic minorities comprise a majority of the population. According to  a
report  released  in 2004 by the New York city departments of health and
mental  health,  "more  than 4,000 deaths would be prevented if the all-
cause mortality rate in the poorest neighborhoods were  lowered  to  the
rate in the wealthiest neighborhoods."
  Against  this  backdrop  of  high  public health spending, significant
health care disparities experienced by ethnic and racial minorities  and
approximately  three  million  uninsured  people  in New York state, HMO
profits in New York state have soared in recent years  while  costs  for
members have risen and reimbursement for health care providers has fall-
en.  Premium  increases  statewide  have increased about 20 percent, and
revenues have risen from $14.5 billion in 2001 to $17.4 billion in 2005.
In fact, premium rate increases outpaced medical payments from  2001  to
2005  by over $1 billion as New York's HMOs' profits climbed 93 percent,
from $672 million to  $1.3  billion.  HMOs'  administrative  and  claims
adjustment  costs  went  up by 24 percent from 2001 to 2005, and average
revenue per member increased an average of 8.6 percent annually.  During
the  same  period,  enrollments declined 14 percent, provider reimburse-
ments trended downward  from  85.3  percent  of  every  dollar  to  81.7
percent, and out of pocket costs for members increased by 7.7 percent.
  The  legislature additionally finds that HMOs that conduct business in
New York state have a responsibility toward improving the health  status
of the residents of this state and should assist in providing revenue to
support critical community health and economic development needs.
  Definitions.   For the purposes of this act, the following terms shall
have the following meanings:
  1. New York state stimulus health care investment fund  and  New  York
state  health  care  entrepreneurial  stimulus  fund  refer to the funds
established pursuant to section three of this act.
  2. New York state community health care investment fund council refers
to the council established pursuant to section five of this act.
  3. New York state community health care investment fund grant  program
refers  to the grant program established pursuant to section six of this
act.
  4. New York state entrepreneurial stimulus  investment  grant  program
refers to the program established pursuant to section seven of this act.
  S  3. The state finance law is amended by adding two new sections 99-t
and 99-u to read as follows:
  S 99-T. NEW YORK STATE COMMUNITY HEALTH  CARE  INVESTMENT  FUND.    1.
THERE  IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND
THE COMMISSIONER OF HEALTH A FUND TO BE KNOWN  AS  THE  NEW  YORK  STATE
COMMUNITY HEALTH CARE INVESTMENT FUND.
  2.  SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR THE PURPOSE
OF SUCH FUND, ALL OTHER MONEYS CREDITED  OR  TRANSFERRED  TO  SUCH  FUND
PURSUANT  TO  LAW, ALL MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION
OR ANY OTHER LAW TO BE PAID INTO OR  CREDITED  TO  SUCH  FUND,  AND  ALL
MONEYS RECEIVED BY THE FUND OR DONATED TO IT.
  3.  MONEYS OF SUCH FUND SHALL BE AVAILABLE FOR APPROPRIATION AND ALLO-
CATION TO THE DEPARTMENT OF HEALTH FOR  PURPOSES  OF  DISTRIBUTING  SUCH
MONEYS TO QUALIFIED ENTITIES OF THE NEW YORK STATE COMMUNITY HEALTH CARE
INVESTMENT FUND GRANT PROGRAM. FUNDS COLLECTED PURSUANT TO SECTION TWEN-
TY-TWO  OF  THE  PUBLIC  HEALTH LAW SHALL BE USED FOR ONE OR MORE OF THE
FOLLOWING:
  (A) PROJECTS THAT ADDRESS THE SIX CLINICAL INDICATORS  AS  ESTABLISHED
BY  THE  FEDERAL  CENTER  FOR DISEASE CONTROL'S GOAL TO ELIMINATE HEALTH

S. 1548                             3

DISPARITIES:  INFANT MORTALITY; CANCER SCREENING AND MANAGEMENT; CARDIO-
VASCULAR DISEASE; DIABETES; HIV INFECTION/AIDS; AND IMMUNIZATIONS.
  (B)  PROJECTS  THAT IMPROVE THE CULTURAL COMPETENCE OF THE HEALTH CARE
WORKFORCE.
  (C) PROJECTS THAT COLLECT  DATA  REGARDING  (I)  ETHNIC  AND  MINORITY
REPRESENTATION  IN  THE  NEW  YORK  STATE HEALTH CARE WORKFORCE AND (II)
ETHNIC AND RACIAL MINORITIES SERVED IN HOSPITALS AND NURSING HOMES.
  (D) PROJECTS THAT CONDUCT SURVEYS ON RACIAL AND ETHNIC HEALTH DISPARI-
TIES.
  (E) SCHOLARSHIPS TO RECRUIT AND TRAIN RACIAL AND ETHNIC MINORITIES  IN
THE HEALTH CARE PROFESSIONS.
  (F) PROJECTS THAT ADDRESS UNMET HEALTH CARE NEEDS IN RURAL AREAS.
  4.  MONEYS  SHALL  BE  PAID  OUT ON THE AUDIT AND WARRANT OF THE COMP-
TROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE COMMISSIONER OF HEALTH.
  S 99-U. NEW YORK STATE HEALTH CARE ENTREPRENEURIAL STIMULUS FUND.   1.
THERE  IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND
THE COMMISSIONER OF LABOR A FUND TO BE  KNOWN  AS  THE  NEW  YORK  STATE
HEALTH CARE ENTREPRENEURIAL STIMULUS FUND.
  2.  SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR THE PURPOSE
OF SUCH FUND, ALL OTHER MONEYS CREDITED  OR  TRANSFERRED  TO  SUCH  FUND
PURSUANT  TO  LAW, ALL MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION
OR ANY OTHER LAW TO BE PAID INTO OR  CREDITED  TO  SUCH  FUND,  AND  ALL
MONEYS RECEIVED BY THE FUND OR DONATED TO IT.
  3.  MONEYS OF SUCH FUND SHALL BE AVAILABLE FOR APPROPRIATION AND ALLO-
CATION TO THE DEPARTMENT OF LABOR  FOR  PURPOSES  OF  DISTRIBUTING  SUCH
MONEYS  TO QUALIFIED PERSONS OR ENTITIES OF THE NEW YORK STATE ENTREPRE-
NEURIAL STIMULUS INVESTMENT GRANT PROGRAM. FUNDS COLLECTED  PURSUANT  TO
SECTION FORTY-FOUR OF THE LABOR LAW SHALL BE USED FOR ONE OR MORE OF THE
FOLLOWING:
  GRANTS  TO  NEW  INDIVIDUAL  ENTREPRENEURS IN THE STATE AND TO PERSONS
QUALIFYING FOR UNEMPLOYMENT INSURANCE IN THE STATE, TO ASSIST WITH THEIR
FIRST-YEAR COSTS OF PURCHASING  HEALTH  INSURANCE,  INCLUDING,  BUT  NOT
LIMITED  TO, PARTICIPATION IN THE HEALTHY NEW YORK OR FAMILY HEALTH PLUS
PROGRAMS, ESTABLISHED PURSUANT TO SECTIONS FOUR THOUSAND  THREE  HUNDRED
TWENTY-SIX AND FOUR THOUSAND THREE HUNDRED TWENTY-SEVEN OF THE INSURANCE
LAW.
  4.  MONEYS  SHALL  BE  PAID  OUT ON THE AUDIT AND WARRANT OF THE COMP-
TROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE COMMISSIONER OF LABOR.
  S 4. Any health  maintenance  organization,  company  or  corporation,
certified under article 44 of the public health law or licensed pursuant
to the insurance law shall be subject to the following provisions:
  1.  On  or  before  each  April first, the superintendent of insurance
shall collect from the entities covered by this section all  moneys  for
deposit  into  the  New York state community health care investment fund
and the New York state health care entrepreneurial stimulus fund.
  2. The total amount paid by all entities covered by this section shall
equal:
  a. in 2013 the sum of $35,000,000 for deposit into the New York  state
community  health  care  investment  fund and the sum of $35,000,000 for
deposit into the New York state  health  care  entrepreneurial  stimulus
fund;
  b. beginning in 2014, and each year thereafter, the total amount to be
collected  for  deposit  into  the  New York state community health care
investment fund shall equal the total of the prior  year  deposits  into
the  New  York state community health care investment fund multiplied by

S. 1548                             4

the sum of one plus any positive percent  change  in  the  total  annual
profits of all companies and corporations covered by this section;
  c. beginning in 2014, and each year thereafter, the total amount to be
collected for deposit into the New York state health care entrepreneuri-
al  stimulus  fund shall equal the total of the prior year deposits into
the New York state health care entrepreneurial stimulus fund  multiplied
by  the  sum of one plus any positive percent change in the total annual
profits of all companies and corporations covered by this section;
  3. The amount paid by each company  or  corporation  covered  by  this
section  shall equal their net income divided by the total net income of
all companies and corporations covered by this section, rounded to  four
decimal  places,  multiplied  by the total amount calculated pursuant to
paragraphs a, b and c of subdivision two of this section.
  4. For any company or corporation with a net income of less than zero,
their amount shall be calculated based on their net income in  the  last
year  that  it  was greater than zero. The superintendent shall have the
authority to grant waivers from this section when  deemed  necessary  to
prevent  an  undue  burden,  provided that no company or corporation may
receive a full or partial waiver in any two successive years.
  5. Every  not-for-profit  health  maintenance  organization  shall  be
excluded from the provisions of this section.
  S 5. The New York state community health care investment fund council.
1.  There is hereby established the New York state community health care
investment fund council consisting of 13 members. The  purpose  of  such
council  is  to oversee the New York state health care community invest-
ment funds, establish the RFP process, award grants and issue an  annual
report.  The  members  of  such council shall consist of representatives
from the insurance industry, health care institutions and providers, and
consumer and advocacy groups.  The  members  of  the  council  shall  be
appointed  in  the  following  manner:  six  state agency heads or their
representatives: one from the department of health; one from the  office
for the aging; one from the office of mental health; one from the office
for people with developmental disabilities; one from the office of alco-
holism and substance abuse services; one from the office of children and
family services; and three members by the governor and one by the speak-
er of the assembly, one by the temporary president of the senate; one by
the  minority  leader of the assembly; and one by the minority leader of
the senate.
  2. The New York state community health care  investment  fund  council
shall issue an annual report to the governor and legislature. Such annu-
al  report  shall  include,  but  not  be limited to, the following: the
dollar amount of HMO investments; the amount of award money granted; the
names of the groups awarded grants; and a description  of  the  projects
for which the grants were awarded.
  3.  No  member shall receive any compensation for his or her services,
but shall be reimbursed for their actual and necessary expenses, includ-
ing travel expenses, incurred in the performance of their duties.
  S 6. The public health law is amended by adding a new  section  22  to
read as follows:
  S  22.  NEW  YORK  STATE  COMMUNITY  HEALTH CARE INVESTMENT FUND GRANT
PROGRAM. THE COMMISSIONER SHALL ESTABLISH THE NEW YORK  STATE  COMMUNITY
HEALTH  CARE  INVESTMENT FUND GRANT PROGRAM WHICH SHALL INCLUDE, BUT NOT
BE LIMITED TO THE FOLLOWING:
  1. PROJECTS THAT ADDRESS THE SIX CLINICAL INDICATORS AS ESTABLISHED BY
THE FEDERAL CENTER  FOR  DISEASE  CONTROL'S  GOAL  TO  ELIMINATE  HEALTH

S. 1548                             5

DISPARITIES:  INFANT MORTALITY; CANCER SCREENING AND MANAGEMENT; CARDIO-
VASCULAR DISEASE; DIABETES; HIV INFECTION/AIDS; AND IMMUNIZATIONS;
  2.  PROJECTS  THAT  IMPROVE THE CULTURAL COMPETENCE OF THE HEALTH CARE
WORKFORCE;
  3. PROJECTS THAT COLLECT DATA REGARDING ETHNIC AND MINORITY  REPRESEN-
TATION IN THE NEW YORK STATE HEALTH CARE WORKFORCE AND ETHNIC AND RACIAL
MINORITIES SERVED IN HOSPITALS AND NURSING HOMES;
  4.  PROJECTS THAT CONDUCT SURVEYS ON RACIAL AND ETHNIC HEALTH DISPARI-
TIES;
  5. SCHOLARSHIPS TO RECRUIT AND TRAIN RACIAL AND ETHNIC  MINORITIES  IN
THE HEALTH CARE PROFESSIONS; AND
  6. PROJECTS THAT ADDRESS UNMET HEALTH CARE NEEDS IN RURAL AREAS.
  S  7.  The  labor law is amended by adding a new section 44 to read as
follows:
  S  44.  NEW  YORK  STATE  ENTREPRENEURIAL  STIMULUS  INVESTMENT  GRANT
PROGRAM.    1.  THE COMMISSIONER SHALL ESTABLISH WITHIN THE DEPARTMENT A
NEW YORK STATE ENTREPRENEURIAL STIMULUS INVESTMENT  GRANT  PROGRAM.  THE
PURPOSE  OF  THE  PROGRAM  IS  TO  ENCOURAGE STATE RESIDENTS TO DIRECTLY
PARTICIPATE IN THE ECONOMY OF THE STATE  BY  ESTABLISHING  NEW  BUSINESS
ENTERPRISES.
  2.  THE COMMISSIONER SHALL ESTABLISH RULES AND REGULATIONS FOR IDENTI-
FYING  QUALIFYING  INDIVIDUALS,  PROCEDURES  FOR  OUTREACH,   CERTIFYING
PROGRAM  PARTICIPATION,  AND  FOR THE APPLICATION AND AWARDING OF GRANTS
FROM THE NEW YORK STATE ENTREPRENEURIAL STIMULUS FUND.
  S 8. This act shall take effect immediately.

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