senate Bill S6256D

Signed By Governor
2011-2012 Legislative Session

Enacts into law major components of legislation necessary to implement the health and mental hygiene budget for the 2012-2013 state fiscal plan

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Archive: Last Bill Status Via A9056 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 30, 2012 signed chap.56
delivered to governor
returned to assembly
passed senate
3rd reading cal.484
substituted for s6256d
Mar 30, 2012 substituted by a9056d
motion to amend lost - roll call vote
Mar 29, 2012 ordered to third reading cal.484
Mar 27, 2012 print number 6256d
amend (t) and recommit to finance
Mar 11, 2012 print number 6256c
amend (t) and recommit to finance
Feb 17, 2012 print number 6256b
amend (t) and recommit to finance
Feb 10, 2012 print number 6256a
amend and recommit to finance
Jan 17, 2012 referred to finance

Votes

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Bill Amendments

Original
A
B
C
D (Active)
Original
A
B
C
D (Active)

S6256 - Bill Details

See Assembly Version of this Bill:
A9056D
Law Section:
Budget Bills
Laws Affected:
Amd Various Laws, generally

S6256 - Bill Texts

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Relates to evaluations or services under the early intervention program for infants and toddlers with disabilities and their families, state aid reimbursement to municipalities for respite services, and service coordination; repeals subdivision 7 of section 2551 and subdivision 4 of section 2557 of the public health law, relating to administering early intervention services; requires that each municipality be responsible for providing early intervention services; requires health maintenance organizations to include coverage for otherwise covered services that are part of an early intervention program; relates to payment for early intervention services; repeals subsection (e) of section 3235-a of the insurance law relating to claims for early intervention program services; relates to special education services and programs for preschool children with handicapping conditions; and repeals subdivision 18 of section 4403 of the education law, relating to the power of the education department to approve the provision of early intervention services (Part A); relates to funding and operations of the Roswell Park Cancer Institute (Part B); establishes the supportive housing development reinvestment program; relates to applicability of the assisted living program; includes podiatry services and lactation services under the term medical assistance; relates to comprehensive HIV special needs plan, in relation to HEAL-NY, and in relation to the EQUAL program; relates to education, outreach services and facilitated enrollment activities for certain aged, blind and disabled persons; expands prenatal care programs, establishes the primary care service corps practitioner loan repayment program, authorizes moneys in the medical indemnity fund to be invested in obligations of the United States or the state or obligations where the principal and interest are guaranteed by the United States or the state and moneys distributed as non-Medicaid grants to non-major public academic medical centers; relates to the powers of the dormitory authority; directs a workgroup on medically fragile children; relates to notice requirement for preferred drug program, payment to the commissioner of health by third-party payors, audit of payments to the commissioner of health, electronic submission of reports by hospitals, and changing the definition of eligible applicant; relates to medical assistance where relative is absent or refuses or fails to provide necessary care; relates to third-party payor's election to make payments; relates to reserved bed days; relates to the personal care services worker recruitment and retention program; relates to the tobacco control and insurance initiatives pool distributions; relates to certain public school districts and state operated/state supported schools; relates to the licensure of home care services agencies; relates to managed care programs; relates to the distribution of the professional education pools; relates to the powers and duties of the dormitory authority of the state of New York relative to the establishment of subsidiaries for certain purposes, in relation to the effectiveness thereof; relates to costs incurred in excess of revenues by general hospitals in providing services in eligible programs to uninsured patients and patients eligible for Medicaid assistance; relates to the effectiveness of known and projected department of health state funds Medicaid expenditures; relates to certain payments with regard to local governments; relates to Medicaid reimbursement; and repeals certain provisions of the public health law relating thereto (Part D); relates to an administrative cap on reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof; relates to general hospital reimbursement for annual rates, in relation to the cap on local Medicaid expenditures; relates to the department assumption of program administration for medical assistance; and provides for the repeal of certain provisions of the social services law upon expiration thereof (Part F); relates to the regulations for computing hospital inpatient rates and to the effectiveness of the preferred drug program (Part G); establishes a cost of living adjustment for designated human services programs, in relation to foregoing such adjustment during the 2012-2013 state fiscal year (Part H); relates to the office for people with developmental disabilities and the creation of developmental disabilities regional offices and state operations offices; and provides for the repeal of certain provisions upon expiration thereof (Part J); extends certain provisions relating to comprehensive psychiatric emergency programs (Part K); permits the commissioners of the department of health, the office of mental health, the office of alcoholism and substance abuse services and the office for people with developmental disabilities the regulatory flexibility to more efficiently and effectively integrate health and behavioral health services (Part L); authorizes contracts for the provision of special education and related services for certain patients hospitalized in hospitals operated by the office of mental health and provides for the repeal of such provisions upon expiration thereof (Part M); relates to the statewide comprehensive services plan for people with mental disabilities and in relation to the local planning process; and repeals certain provisions of the mental hygiene law relating thereto (Part N); relates to the closure and the reduction in size of certain facilities serving persons with mental illness; and provides for the repeal of such provisions upon expiration thereof (Part O); amends procedures under the sex offender management and treatment act (Part P); provides for outpatient capacity restoration of felony defendants at article 28 hospitals (Part Q); relates to the effectiveness of provisions related to the recovery of exempt income by the office of mental health for community residences and family-based treatment programs (Part R); relates to the excess medical malpractice liability coverage pool (Part S); and relates to the program for elderly pharmaceutical insurance coverage; and repeals certain provisions of such law relating thereto (Part T).

view sponsor memo
BILL NUMBER:S6256

TITLE OF BILL:
An act
to amend
the public health law, in relation to requiring the use of network
providers for evaluations or services under the early intervention
program, state aid reimbursement to municipalities for respite services,
and service coordination; to repeal subdivision 7 of section 2551
and subdivision 4 of section 2557
of the
public health law, relating to administering early intervention
services; to amend the public health law, in relation to requiring that
each municipality be responsible for providing early intervention
services; to amend the public health law, in relation to removing the
authorization of the commissioner of health
to collect data from counties on early intervention
programs for the purpose of improving efficiency, cost effectiveness and
quality; to amend the public health law, in relation to requiring health
maintenance organizations to include coverage for otherwise covered
services that are part of an early intervention program; to amend the
insurance law, in relation to payment for early intervention services;
to amend the education law, in relation to special education services
and programs for preschool children with handicapping conditions;
and
to repeal subdivision 18 of section 4403 of the education law, relating
to the power of the education department to approve the provision of
early intervention services
(Part A);
to amend the public authorities law, in relation to funding and
operations of the Roswell Park Cancer Institute
(Part B);
to amend the public health law, in relation to establishment of an
electronic death registration system
(Part C);
to amend the public health law, in relation to establishing the
supportive housing development reinvestment program; to amend the social
services law, in relation to applicability of the assisted living
program; to amend the social services law, in relation to including
podiatry services and lactation services under the term medical
assistance; to amend the public health law and education law, in
relation to medical prescriptions for limited English proficient
individuals;
to amend the social services law, in relation to education, outreach
services and facilitated enrollment activities for certain aged, blind
and disabled persons;
to amend the public health law, in relation to including
certain violations by a pharmacy as professional misconduct; expanding
prenatal care programs, establishing the primary care service corps
practitioner loan repayment program, requiring changes in directors of
not-for-profit corporations that operate hospitals to be approved by the
department, authorizing the commissioner of health to temporarily

suspend or limit hospital operating certificates, revoking of hospital
operating certificates, appointment and duties of temporary operators of
a general hospital or diagnostic and treatment center, authorizing
moneys in the medical indemnity fund to be invested in obligations of
the United States or the state or obligations where the principal
and interest are guaranteed by the United States or the state
and moneys distributed as non-Medicaid
grants to non-major public academic medical centers; to amend the social
services law, in relation to prescriptions of opioid analgesics and brand
name drugs covered by medical assistance; to amend the public health
law, in relation to notice requirement for preferred drug program,
payment to the commissioner of health by third-party payors, audit of
payments to the commissioner of health, electronic submission of reports
by hospitals, and changing the definition of eligible applicant; to amend
the social services law,
in relation to medical assistance where relative is absent or refuses or
fails to provide necessary care; to amend the public health law, in
relation to third-party payor's election to make payments;
to amend the elder law, in relation to the elderly pharmaceutical
insurance coverage program; to amend the public health law, in relation
to reserved bed days; to amend the social services law, in relation to
the personal care services worker recruitment and retention program; to
amend the public health law, in relation to the tobacco control and
insurance initiatives pool distributions; to amend the social services
law, in relation to certain public school districts and state
operated/state supported schools; to amend the public health law, in
relation to the licensure of home care services agencies; to amend the
social services law, in relation to managed care programs; to amend the
public health law, in relation to the distribution of the professional
education pools; to amend chapter 584 of the laws of 2011, amending the
public authorities law, relating to the powers and duties of the
dormitory authority of the state of New York relative to the
establishment of subsidiaries for certain purposes, in relation to the
effectiveness thereof; to amend chapter 119 of the laws of 1997
relating to authorizing the department of health to establish certain
payments to general hospitals, in relation to costs incurred in
excess of revenues by general hospitals in providing
services in eligible
programs
to uninsured patients and patients eligible for Medicaid assistance; to
amend subdivision 1 of section 92 of part H of chapter 59 of the laws of
2011, relating to known and projected department of health state funds
Medicaid expenditures, in relation to the effectiveness thereof; to
amend section 90 of part H of chapter 59 of the laws of 2011, relating
to types of appropriations exempt from certain reductions, in relation
to certain payments with regard to local governments;
to amend section 1 of part C of chapter 58 of the laws of 2005, relating
to authorizing reimbursements for expenditures made by or on behalf of
social services districts for medical assistance for needy persons and
the administration thereof, in relation to Medicaid reimbursement;
and to repeal
certain provisions of the public health law, the social services law

and the elder law relating thereto
(Part D);
to amend the public authorities law
and the public officers law, in
relation to the establishment of the New York
Health Benefit Exchange
(Part E);
to amend chapter 58 of the laws of 2005 authorizing reimbursements for
expenditures made by or on behalf of social services districts for
medical assistance for needy persons and the administration thereof, in
relation to an administrative cap on such program; to amend chapter 59
of the laws of 2011, amending the public health law and other laws
relating to general hospital reimbursement for annual rates, in
relation to the cap on local Medicaid expenditures; and
to amend the social
services law, in relation to the department assumption of program
administration for medical assistance
(Part F);
to amend the public health law, in relation to regulations for
computing hospital inpatient rates and to amend
chapter 58 of the laws of 2005 relating to the preferred drug
program, in relation to the effectiveness thereof
(Part G);
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 reimbursement for executive compensation and
administrative costs
(Part H);
in relation to contracts by the office for people with developmental
disabilities made under section 1115 of the federal social security act
(Part I);
to amend the mental hygiene law, the public health law, the general
municipal law, the education law, the social services law, and the
surrogate's court procedure act,
in relation to the office for people
with developmental disabilities and
the creation of developmental
disabilities regional offices and
state operations offices
(Part J);
to amend chapter 723 of the laws of 1989 amending the mental hygiene law
and other laws relating to comprehensive psychiatric emergency programs,
in relation to extending the repeal of certain provisions thereof
(Part K);
to permit the commissioners of
the department of
health, the office of
mental health, the office of
alcoholism
and substance abuse services and

the office for people
with developmental
disabilities the regulatory
flexibility to more efficiently and
effectively integrate health and
behavioral health services
(Part L);
to permit the office of mental health
and the state education department to enter into
an agreement for purposes of providing
education programming for patients residing
in hospitals operated by the office of
mental health who are between the ages of
five and twenty-one;
and providing for the repeal of such provisions upon
expiration thereof
(Part M);
to amend the mental
hygiene law and the public health law,
in relation
to the statewide
comprehensive services
plan for people with
mental disabilities and in
relation to the local
planning process;
and to repeal certain provisions of the mental hygiene
law relating thereto
(Part N);
to amend the mental hygiene law, in
relation to the closure and the
reduction in size of certain
facilities serving persons with
mental illness
(Part O);
to amend the mental hygiene law, in
relation to amending procedures
under the sex offender management
and treatment act, and to amend the
penal law, in relation to providing
criminal
penalties for certain violations of
orders of commitment and strict and
intensive supervision and
treatment
(Part P);
to amend the criminal procedure
law, in relation
to providing
for outpatient
capacity restoration of felony
defendants, or restoration at

psychiatric units of jails or
article 28 hospitals
(Part Q); and
to amend
chapter 111 of the laws of 2010 relating to the recovery of exempt
income by the office of mental health for community residences and
family-based treatment programs, in relation to the effectiveness
thereof
(Part R)

PURPOSE: This bill contains provisions needed to
implement the Health
and Mental Hygiene portions of the 2012-13 Executive Budget.

This memorandum describes Parts A through R of the bill which are
described wholly within the parts listed below.

Part A - Reform the Early Intervention Program.

Purpose:

This bill would reform the Early Intervention (EI) program by
implementing a series of initiatives that would enhance the program's
ability to identify and serve infants and toddlers with developmental
disabilities and protect vital services while providing almost a $100
million in local savings over five years by reducing fiscal and
administrative burdens on local governments.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

The EI program is the statewide system of early intervention services
for infants and toddlers with disabilities and their families.
Children are eligible for a comprehensive array of therapeutic and
support services if they are under three years of age and have a
confirmed disability or developmental delay in physical, cognitive,
communication, social-emotional, or adaptive development. The program
is financed by a combination of federal, state and local funding.

This bill would implement a series of programmatic modifications to
enhance the program's ability to identify and serve infants and
toddlers with developmental disabilities while providing tens of
millions in mandate relief by significantly reducing fiscal and
administrative burdens on local governments. The changes would create
efficiencies that would allow resources to be focused on direct care
for children in the EI program. Specifically, the bill would:

*transfer the responsibility for paying provider claims from the
counties to a statewide fiscal intermediary, relieving the counties
of this administrative burden;

*eliminate the authorization for municipalities to contract with
providers, granting that authorization instead to DOH, but reserving
to municipalities the ability to monitor service delivery and seek
new service coordinators or providers as necessary;

*require that EI evaluators and qualified professionals that provide
services covered in the program, belong to the provider networks of
third party insurers and require that such networks be adequate; and

*permit DOH the flexibility to increase the State aid percentage for
El services as
well as eliminate the current lag on payment of claims from counties.
Collectively, these changes would bring administrative and fiscal
relief to local governments.

The bill would also require service coordinators, with parental
consent, to provide notice to the Office for People with
Developmental Disabilities (OPWDD) if a child appears eligible for
OPWDD services, which will help eligible children with disabilities
obtain earlier access to certain home and community based service
waivers in addition to or in lieu of EI services if appropriate. This
could potentially avoid an unnecessary transition between programs at
a later time.

Section 1 of the bill would amend Public Health Law (PHL) § 2554 to
provide that in order to be selected by parents to evaluate their
child's eligibility for EI services, an evaluator must belong to the
provider network of the parents' HMO or other insurer, if any.
Additionally, the bill would require that the service coordinator
notify OPWDD if a child is potentially eligible for OPWDD services.

Section 2 of the bill would amend PHL § 2545 to allow a representative
of a covered child's third party payor, including HMOs, Medicaid, and
Child Health Plus (CHP), to attend the meeting at which the
Individualized Family Service Plan (IFSP) is developed.

Section 2-a of the bill would amend PHL § 2545 to require that the EI
service coordinator implement the IFSP in a timely manner but no
later than 30 days after the projected dates for the initiation of
the services. This codifies an existing requirement imposed by DOH in
guidance.

Section 3 of the bill would add new PHL § 2545-a to require children
with third party insurance to select a provider approved by DOH and
within the insurer's network, except in certain circumstances. This
would apply to children referred to the program on or after January
1, 2013.

Section 4 of the bill would amend PHL § 2547 to permit the State to
increase the percentage of State aid reimbursement to municipalities
for EI respite services at the
discretion of DOH and with the approval of the Division of the Budget

(DOB), pursuant to an amendment to PHL § 2557 made by section 9-a of
the bill.

Section 5 of the bill would amend PHL § 2548 to shift the
responsibility for notifying the Committee on Preschool Special
Education in the child's school district of the potential transition
of the child to the preschool special education system from the
municipality's EI official to the service coordinator.

Section 6 of the bill would amend PHL § 2550 to clarify that approved
providers may be required to enter into an agreement with DOH
regarding evaluations, service coordination and EI services. All
approved evaluators and EI providers would be required to maintain
contracts with a sufficient number of insurers.

Section 7 of the bill would repeal PHL § 2551, subd. 7 to remove the
authority of the State Education Department (SED) to approve
providers for the EI program who are already approved through SED to
provide services in the Preschool Special Education Program.

Section 8 of the bill would amend PHL § 2552 to remove the
authorization for municipalities to contract with EI providers. This
section also would require the service coordinator to provide
performance reports to municipalities so that municipalities may make
recommendations to switch providers or service coordinators if
performance standards are not being achieved.

Section 9 of the bill would amend PHL § 2557 to structure the payment
process for children without third party payor insurance.

Section 9-a of the bill would amend PHL § 2557 to remove municipality
reporting requirements to the State regarding claiming activities.
Further, the section would authorize DOH to contract with a fiscal
agent for the payment of claims and sets forth an expedited bidding
process by which DOH would use to procure the fiscal intermediary. In
addition, DOH would be permitted to increase the reimbursement
percentage to municipalities as well as the timeliness of the payment
of claims, with the approval of DOB.

Section 10 of the bill would amend PHL § 2558 to allow the State to
increase the percentage of State aid reimbursement to municipalities
for EI services with the approval of DOB.

Section 11 of the bill would amend PHL § 2559 to require providers to
directly bill third party payors through use of a fiscal agent
retained by DOH. Additionally, this section would require that the
rates paid by insurers be negotiated between the insurer and the
provider unless it is necessary to utilize an out-of-network
provider, in which case payment is at the State established rate.

Section 12 of the bill would amend PHL § 2510 to require coverage of
EI services by CHP as defined by the Commissioner of Health.

Section 13 of the bill is intentionally omitted.

Section 14 of the bill would amend PHL § 4403 to require third party
payors to make available an adequate number of network providers
qualified to perform EI services consistent with the needs of the EI
program enrollment. Additionally, this section would require that
third party payors make the list of network providers publicly
available and update such list quarterly.

Section 15 of the bill would amend PHL § 4406 to prohibit third party
payors from denying valid insurance claims solely on the basis that
the service was provided under El. Additionally, covered EI services
would not be counted toward an established maximum annual or lifetime
monetary limit, but will be subject to an insurer's policy or visit
limitations. Insurance providers must provide municipalities and
service coordinators with information on the extent of benefits
within 15 days. This section also would require insurers to accept
claims submitted by the fiscal agent on a provider's behalf.

Section 16 of the bill is intentionally omitted.

Section 17 of the bill would amend Insurance Law § 3235-a to require
that insurers who utilize a network maintain an adequate network of
approved EI providers. The section further would authorize insurers
to negotiate rates for payments to providers. Payments to
out-of-network providers would be required to be paid in accordance
with rates established by DOH. Additionally, insurance providers
would be required to provide municipalities and service coordinators
with information on the extent of benefits within 15 days.

Section 18 of the bill would repeal Education Law § 4403, subd. 18 to
remove SED's authority to approve providers for the EI program which
are already approved by SED to provide services in the Preschool
Special Education Program, consistent with the changes made by
section 7 of the bill.

Section 19 of the bill would amend Education Law § 4410 to shift the
responsibility for notifying the Committee on Preschool Special
Education in the child's school district of the potential transition
of the child to the preschool special education system from the EI
official to the service coordinator, consistent with section 5 of the
bill.

Sections 20, 21 and 22 are intentionally omitted.

Section 23 of the bill sets forth the effective dates of the bill.

Budget Implications:

These reforms are intended to reduce the fiscal and administrative
burden on local governments and generate $99 million in cumulative
local savings over a five year period.

Effective Date:

This bill takes effect January 1, 2013, except that sections 2-a, 4-5,
7-8, 9a, 10, 18 and 19 would take effect April 1, 2013.

Part B - Establish requirements for continued State funding to Roswell
Park Cancer Institute.

Purpose:

This bill would require Roswell Park Cancer Institute (RPCI), as a
condition of receiving ongoing State funds, to take the necessary
steps to become operationally and fiscally independent from the
Department of Health.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would amend Public Authorities Law § 3555 to require RPCI,
as a condition of receiving State funding authorized under the Health
Care Reform Act (Public Health Law § 2807) and the Health Care
Efficiency and Affordability Law for New Yorkers (Public Health Law
2818), to take all necessary steps to become financially and
operationally independent from the Department of Health by March 31,
2014. These actions would include entering into cooperative
agreements with health care, academic or other entities located
within the same geographical region as RPCI, which will: (1) promote
the continued financial viability of RPCI; (2) protect and promote
the health of the patients served by its health facilities; and (3)
to the extent possible, contribute to the economic revitalization of
the Buffalo region. Further, the bill would authorize the
Commissioner of Health to establish benchmarks, monitor progress and,
if necessary, intercede to ensure compliance with established goals
and timelines.

Budget Implications:

The 2012-13 Executive Budget provides up to $102 million for RPCI.
This bill is necessary to secure the long-term fiscal stability of
RPCI and promote regional collaborations.

Effective Date:

This bill takes effect April 1, 2012.

Part C - Implement Electronic Death Registration System to modernize
the process of issuing burial or funeral permits outside of City of
New York.

Purpose:

This bill would require the Department of Health (DOH) to establish
and oversee the Electronic Death Registration System (EDRS) for
counties outside New York City and clarify procedures related to
handling death records electronically.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

Section 1 of the bill would add a new Public Health Law (PHL) § 4148
to authorize the Department of Health (DOH) to design, implement, and
maintain the EDRS for counties outside of the City of New York (which
already operates its own EDRS). As set forth in legislative findings
included in the new section, it is necessary to update and modernize
the State's system of filing and maintaining information and
documents related to the registration of death. Establishment of the
EDRS would promote accuracy and provide for more timely transmission
of documentation, promoting efficiency in the operations of DOH and
of all parties with statutory responsibilities related to the
registration of death. Licensed funeral directors and undertakers,
who rely upon prompt access to certificates of death, have expressed
their interest in partnering with DOH to support the establishment of
such system through a contribution tendered for each burial and
removal permit issued to a licensed funeral director or undertaker.
The new section would effectuate such partnership.

Section 2 of the bill would amend PHL § 4100-a to provide that a
"certified copy" includes an electronically produced print of an
original certificate, to add sub-registrars as certifiers, and to
define "electronic death registration system."

Section 3 of the bill would amend PHL § 4140 to permit death
certificates to be filed in electronic format.

Section 4 of the bill would amend PHL § 4141-a to require death
registration of individuals who die in a hospital to be made using
the EDRS on or after January 1, 2014.

Section 5 of the bill would amend PHL § 4142 to require funeral
directors and undertakers to file death certificates and related
information through the EDRS on or after January 1, 2014.

Section 6 of the bill would amend PHL § 4144 to require use of an
electronic death certificate to obtain permission for the
transportation of dead bodies where verbal permission was once the
only permissible way to transport.

Section 7 of the bill would amend PHL § 4161 to require the use of the
EDRS to record fetal deaths.

Section 8 of the bill would amend PHL § 4171(3) to permit death
certificates to be completed using the EDRS.

Budget Implications:

Enactment of this bill is necessary to obtain revenue of $2.2 million
in 2012-13 and $2.9 million annually to support the EDRS that will be
overseen by DOH.

Effective Date:

This bill takes effect immediately.

Part D - Make statutory changes necessary to implement Medicaid
Redesign Team recommendations, including those advanced through Phase
Two workgroups and technical refinements to previous recommendations.

Purpose:
This bill would make statutory changes necessary to implement
proposals made by the Medicaid Redesign Team (MRT), based on the
recommendations of various work groups convened by the MRT in the
second phase of its work. The bill also would amend certain statutory
provisions related to MRT initiatives enacted as part of the 2011-12
budget and make other technical changes to statutory provisions
governing the Medicaid program.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

Section 1 of the bill would add a new Public Health Law (PHL) § 2823
to allow for the re-investment of Medicaid savings from hospital and
nursing home closures or bed de-certifications to expand supportive
housing and related services.

Sections 2 and 3 of the bill would amend Social Services Law (SSL)
461-I to allow assisted living programs to contract with multiple long
term home health care programs, certified home health agencies and/or
other qualified providers.

Section 4 of the bill would repeal SSL § 461-1(3)(i) to eliminate
authority to establish assisted living program beds following the
decertification of an equal or greater number of nursing home beds.

Section 5 of the bill is intentionally omitted.

Sections 6 and 7 of the bill would amend SSL § 365-a to provide that
coverage under the Medicaid program includes podiatry visits for
adults with diabetes mellitus, services provided by certified
lactation consultants to pregnant and postpartum women, harm
reduction counseling and services to minimize adverse health
consequences associated with drug use, and services to promote care
coordination and integration for individuals with hepatitis C, and to
maintain appropriate access to enteral formula for HIV related
illnesses.

Sections 8 and 9 of the bill are intentionally omitted.

Sections 10 through 18 of the bill would amend PHL §§ 3332, 3333,
3334, 3337 and 3338, amend Education Law §§ 6804 and 6810, add new
PHL Article 33-B, and amend Education Law § 6509 to require that
certain pharmacies provide translation or other language services to
individuals with limited English proficiency.

Section 19 of the bill would amend PHL § 2522 to require coordination
of service delivery by community based organizations among providers
and plans using health information technology and uniform screening
criteria for perinatal risk.

Sections 20 and 21 of the bill are intentionally omitted.

Section 22 of the bill would amend SSL § 366 to authorize the
Commissioner of Health (Commissioner) to contract with one or more
entities to engage in education and outreach and enrollment
assistance for aged, blind and disabled Medicaid applicants.

Section 23 of the bill would add new PHL Article 9-B to establish the
Primary Care Service Corps Loan Repayment Program for non-physician
practitioners who agree to practice full-time in an underserved area
of the State.

Section 24 through 26 of the bill would amend PHL §§ 2801-a and 2806
to authorize the Commissioner to: (1) temporarily suspend or limit an
operating certificate of a not-for-profit corporation participating in
the Medicaid program due to repeated violations of PHL § 2806, the
indictment on felony charges of any member of the corporation's board
of directors, or notice from the Attorney General of an action to
remove a member of the corporation's board of directors; (2) preserve
access to services within the community by temporarily appointing
members of the board of directors during the term of the suspension,
as necessary; and (3) revoke the operating certificate of an entity
participating in the Medicaid program if a member of the board of the
directors has been convicted of a class A, B or C felony in order to
ensure the effectiveness of the governing board of the facility.

Section 27 of the bill would amend the PHL by adding a new § 2806-a
which would allow the Commissioner to establish a temporary operator
of an adult care facility, a general hospital or diagnostic and
treatment center on a temporary basis to preserve the best interests
of the residents or patients and community served by the facility
when a statement of deficiencies has been issued by the Department of
Health (DOH) for that
facility and upon a determination by the Commissioner that significant
management failures exist in the facility.

Section 28 of the bill would amend Chapter 584 of the Laws of 2011,
2, to extend the authority of the Dormitory Authority of the State of
New York to establish one or more subsidiaries for purpose of

limiting the potential liability of the Authority when exercising its
powers and duties in pursuit of remedies against a borrower that has
defaulted.

Section 29 of the bill would amend PHL § 2999-i to allow monies of the
Medical Indemnity Fund that are not required for immediate use to be
invested in obligations of or guaranteed by the United States, with
the proceeds of any such investments retained by the Fund.

Section 30 of the bill would amend PHL § 2803 to eliminate the
requirement that hospitals submit and DOH audit information related
to certain hospital medical staff, which is audited by the federal
government.

Section 31 of the bill would amend PHL § 2802 to eliminate the
requirement that providers issue written notice to DOH for repair or
maintenance projects under $6 million.

Section 32 would amend Chapter 119 of Laws of 1997, § 1, to authorize
DOH to establish certain disproportionate share payments to Article
28 hospitals based on uninsured and Medicaid losses to conform to
guidance received from the federal Centers for Medicare and Medicaid
Services.

Section 33 through 33-g of the bill would amend Elder Law §§ 241, 242,
243, 245, 247, 249 and 253 to replace references to the EPIC panel,
which no longer exists, with references to the Commissioner and
modify federally established benchmark premiums.

Section 34 of the bill would amend PHL § 2808 to eliminate the
requirement that in order for a nursing home to receive bed
reservation payments at least 50 percent of its eligible residents
must be enrolled in a Medicare Advantage Plan. This section also
authorizes the Commissioner to promulgate regulations establishing
rates for bed reservation payments for residents over 21 years of age
which achieve aggregate savings of at least $40 million.

Sections 35 through 35-c of the bill would amend SSL § 367-q and PHL
2807-v to clarify that allocations for home care workforce
recruitment and retention funds shall be made "up to" the amounts
specified in the existing language.

Section 36 of the bill would amend SSL § 365-a to allow DOH to deny
prior authorization when the existing limit of four opioids
prescribed within 30 days is exceeded if, upon reasonable opportunity
for the prescriber to present a justification, DOH determines the
prescription is not medically necessary.

Sections 37 and 38 of the bill would amend SSL §§ 368-d and 368-e to
expand beyond New York City the local school districts and social
services districts with which the State will share a certain level of

savings realized as a result of the use of certified public
expenditures in relation to school supportive health services.

Section 39 of the bill would amend SSL § 365-a to allow mandatory
generic authorization requirements for drugs subject to the Preferred
Drug Program.

Section 40 of the bill would amend PHL § 272 to simplify the
information that must be made available on DOH's website regarding
meetings of the Pharmacy and Therapeutics Committee.

Section 41 of the bill would amend SSL § 367-a to limit the Medicaid
co-insurance for Medicare covered Part B services when the total
co-insurance amount would exceed the amount Medicaid would have paid
using a Medicaid rate for all qualified individuals, not just persons
who are dually eligible for Medicaid and Medicare.

Section 42 of the bill would amend PHL § 2818 to allow diagnostic and
treatment centers access to funds under the Health Care Efficiency
and Affordability Law for New Yorkers (HEAL-NY) program for the
purpose of facilitating closures, mergers or restructuring of such
facilities.

Sections 43 through 46 of the bill would amend PHL §§ 2807-j, 2807-t,
2807-d and 2807-c to clarify the existing six-year statute of
limitations on audits under the Health Care Reform Act (HCRA) and
limit the time for providers to make amendments to their cost reports
to the same six-year period.

Section 47 of the bill would amend PHL § 2807 to extend the
Commissioner's regulations limiting reimbursement for potentially
preventable conditions and complications to outpatient settings.

Sections 48 through 48-c of the bill would amend PHL § 2807 to require
electronic reporting and certification of reports by providers for
the health facility cash assessment program and hospital quality
contributions.

Section 49 of the bill would amend PHL § 3605 to permit licensed home
care service agencies who contract with local districts to
temporarily serve Medicaid recipients who transition to
fee-for-service from managed care or managed long-term care.

Section 50 of the bill would amend SSL § 365-f to require managed care
plans and managed long-term care plans to offer the consumer directed
personal care program to their enrollees.

Section 51 of the bill would amend SSL § 364-j to require counties
operating a mandatory Medicaid managed care program to use the
enrollment broker.

Sections 52 through 55 of the bill would amend PHL § 4403-f to
eliminate the requirement that an applicant to operate managed
long-term care plans be a hospital, licensed or certified home care
agency, health maintenance organization or not-for-profit organization
with a history of providing or coordinating health care and long-term
care services to elderly and disabled persons.

Section 56 of the bill would amend SSL § 366 to prohibit a spouse or
parent from refusing to contribute any available income or assets
towards the costs of health care services being provided to a spouse
or family member to reduce unnecessary Medicaid financing of
long-term care services.

Section 57 of the bill would amend Chapter 59 of the Laws of 2011,
Part H, § 92, to extend for one year the authorization for the
Commissioner to implement a Medicaid Savings Allocation Plan to
maintain spending within the Medicaid Spending Cap. In addition, this
section would allow the Director of Budget to modify the Medicaid
Spending Cap to reflect reductions in local district claiming for
Medicaid administration, consistent with the phased takeover by the
State of local government Medicaid administration.

Section 58 of the bill would amend Chapter 59 of the Laws of 2011,
Part H, § 90, to eliminate the unintended local government impact
associated with the across-the-board reduction in the Early
Intervention Program payments, avoiding a duplicative rate reduction
on such payments.

Section 59 of the bill would amend PHL § 2807 to modify the timing of
election revocations to be effective on a monthly rather than a
quarterly basis.

Section 60 of the bill would amend PHL § 2807-m to authorize the
Commissioner of Health to promulgate regulations relating to grants
awarded through DOH's Empire Center for Research and Investigation
Program (ECRIP) for periods on and after April 1, 2013.

Section 61 of the bill would amend Chapter 58 of the Laws of 2005,
Part C, § 1, to clarify that local governments cannot claim for
overburden expenses incurred prior to January 1, 2006, when the
"local cap" statute that limited local contributions to Medicaid
expenditures took effect. This is necessary to address adverse court
decisions that have resulted in State costs paid to local districts
for pre-cap periods, which conflict with the original intent of the
local cap statute.

Sections 62 through 65 of the bill set forth provisions pertaining to
statutory references, time frames for notice, severability and
effective dates.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 budget
and the State's multi-year Financial Plan because it ensures overall
Medicaid spending within DOH
remains within capped levels, which are indexed to the ten-year
rolling average of the medical component of the consumer price index
(CPI) as proscribed in current statute.

Effective Date:

This bill takes effect April 1, 2012, except that sections 10 through
18 and section 60 would take effect April 1, 2013.

Part E - Establish the New York Health Benefit Exchange to serve as a
marketplace for the purchase and sale of qualified health plans in
the State of New York.

Purpose:

This bill would establish the New York Health Benefit Exchange
("Exchange), a public benefit corporation that will serve as a
marketplace for the purchase and sale of qualified health plans in
the State of New York, in accordance with the federal health care
reform law.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

The Patient Protection and Affordable Care Act, Pub. L. 111-148, and
the Health Care and Education Reconciliation Act, Pub. L. 111-152,
collectively referred to as the "Affordable Care Act" ("ACA"),
requires each state to either establish a state American Health
Benefit Exchange or participate in a regional exchange, through which
individuals and small groups will be able to purchase health
insurance in the form of a qualified health benefit plan. If the
state does neither, its residents will be required to participate in
a federal Health Benefit Exchange.

The purpose of this legislation is to establish a single Exchange in
New York - a centralized, customer-service oriented marketplace where
individuals and small groups will be able to purchase qualified
health plans, receive eligibility and subsidy determinations, and be
enrolled in a range of coverage options, including public health
coverage programs - operated by a governmental entity with the
flexibility to meet the ambitious deadlines set by the ACA.

Section 1 of the bill would provide that the bill, upon enactment,
would be known as the "New York Health Benefit Exchange Act."

Section 2 of the bill would add new Public Authorities Law ("PAL")
Article 10-E to establish the Exchange as a public benefit
corporation managed by a Board of Directors. Seven of the nine
members of the Board will have expertise in relevant areas, including

individual health care coverage, small employer health care coverage,
health benefits administration, health care finance, public or
private health care delivery
systems, and purchasing health plan coverage. The remaining members -
the Superintendent and the Commissioner - will serve as ex officio,
voting members of the Board.

The Board will consult with five Regional Advisory Committees,
comprised of 25 representatives of stakeholders from sectors that
will be impacted by the operation of the Exchange, including health
plan consumer advocates, small business consumer representatives,
health care providers, agents, brokers, insurers and labor
organizations. The Committees will provide advice and recommendations
to the Board reflecting findings about regional variations regarding
the availability of health insurance coverage and other issues deemed
necessary by the Committees and the Board.

The Exchange will make available qualified health plans, including
certain qualified dental plans, to qualified individuals and
employers beginning on or before January 1, 2014 (to take effect no
earlier than such date). Under this legislation, the Exchange will
implement procedures for the certification, recertification and
decertification of health plans as qualified health plans. The
Exchange will also assign ratings to qualified health plans in
accordance with the ACA.

The bill also provides certain protections meant to assist individuals
in using the Exchange. For example, the bill provides that the
Exchange will operate a toll-free telephone line to assist consumers
and an Internet website containing standardized comparative
information on qualified health plans. The website will feature a
calculator allowing individuals to determine the actual cost of
coverage. The bill also requires the Exchange to establish a program
to award grants to entities to serve as "navigators" to help educate
consumers and facilitate enrollment.

In addition, the Exchange will include a Small Business Health Options
Program ("SHOP"), which will assist small employers in facilitating
the enrollment of their employees in qualified health plans offered
in the group market. Until January 1, 2016, a "small employer" will
be defined as an employer with an average of less than 50 employees.
On January 1, 2016, the term will apply to employers with an average
of up to 100 employers. Under this bill, and as permitted under
federal law, the Exchange will consider whether to expand the
definition before 2016.

The bill also recognizes that there are additional decisions that need
to be made and implemented by certain dates, many of which will
require the introduction and enactment of additional legislation, and
establishes a framework for such decisions to be made. Specifically,
the bill requires the Exchange to conduct a study, arrange for a
study to be conducted, or rely on existing studies on several of

these discussion points, and mandates that the Exchange submit its
recommendations on each such issue to the Governor and the leaders of
the Legislature by specified dates.

Section 3 of the bill would add new POL § 17(1)(x) to include
employees of the Exchange in the list of state employees entitled to
representation by the Attorney General in civil litigation.

Section 4 of the bill would add new POL § 19(1)(j) to include
employees of the Exchange in the list of state employees entitled to
indemnification of damages awarded in a judgment or settlement.

Section 5 of the bill would provide for severability of the bill in
the event any part of it is deemed unenforceable.

Section 6 of the bill would provide that in the event the United
States Supreme Court finds the ACA unconstitutional or the United
States Congress repeals the ACA, the Legislature will convene within
180 days of such decision or repeals to consider legislative options.

Section 7 of the bill would provide that the bill would take effect
immediately, and clarifies that the Department of Health or the
Department of Financial Services would be authorized to continue
administering federal grants already received.

Budget Implications:

Enactment of this bill will not require State funding during the
upcoming fiscal years. While the ACA requires each Exchange to be
"self-sustaining" by January 1, 2015, federal funds will support the
planning, implementation and operation of the Exchange through
December 2014. New York was selected to receive funding under an
Early Innovator Grant ($27 million) and an Exchange Planning Grant
($1 million), designed to help the state design and implement the
necessary information technology ("IT") infrastructure needed to
operate its Exchange. In addition, New York was awarded a Level 1
Establishment Grant, which makes a year's worth of funding available
to states that have made some progress under their Exchange Planning
Grant.

Level 2 Establishment Grants will provide funding through December 31,
2014 to applicants that are further along in the establishment of an
Exchange, and are dependent on having a governance structure and the
legal authority to operate the Exchange. With the enactment of this
legislation, assuming other applicable criteria are met, New York
will qualify to apply for such grant.

Effective Date

This bill takes effect immediately.

Part F - Provide additional relief to counties by reducing growth in
local Medicaid expenditures for all counties and New York City and
implement a phased-takeover of local government administration of
the Medicaid program.

Purpose:

This bill would provide significant mandate relief to local
governments by the State assuming the growth in the local share of
Medicaid expenditures for all counties and New York City. In
addition, this bill would begin a phased State takeover of local
government administration of the Medicaid program and proposes a cap
on State reimbursement of local governments for Medicaid
administration at fiscal year 2011- 2012 levels.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

Section 1 of the bill would amend §1 of Part C of Chapter 58 of the
Laws of 2005 to have the State assume, at a rate of one percent a
year commencing April 1, 2013, the current 3 percent annual rate of
growth in local Medicaid payments as follows:

*calendar year 2013, the State would assume the cost of one of the
three percent growth rate;

*calendar year 2014, the State would assume the cost of two of the
three percent growth rate; and,

*calendar year 2015, the State would assume the entire three percent
of the growth rate for each succeeding calendar year.

Section 2 of the bill would amend §1 of Part C of the Laws of 2005 to
eliminate the annual reconciliation of local government Medicaid
expenditures effective April 1, 2015.

Section 3 of the bill would amend §2 of Part C of Chapter 58 of the
Laws of 2005 to allow Monroe County to opt into the Local Medicaid
Cap in lieu of a sales tax intercept.

Section 4 of the bill would amend Part C of Chapter 58 of the Laws of
2005 to cap State reimbursement of local government Medicaid
administration expenses at fiscal year 2011-12 levels, based on each
county's relative share of Medicaid administration costs claimed in
calendar year 2011. However, local governments would be authorized to
continue to claim federal reimbursement above the administrative
expenses cap through March 31, 2013. This section of the bill would
also allow the State to further reduce the administrative cap to
account for the reduction in local government administrative
responsibilities, consistent with the State's assumption of the
administration of the Medicaid program.

Section 5 of the bill would amend §91 of Part H of Chapter 59 of the
Laws of 2011 to modify the Department of Health Medicaid State funds
Spending Cap to allow for increased State spending associated with
providing local government Medicaid relief.

Section 6 of the bill would add a new §365-n of the Social Services
Law to outline the process of transitioning Medicaid administration
to the State. Responsibilities transferred to the Department of
Health would include, but are not limited to, processing Medicaid
applications, making eligibility determinations and authorizing
benefits. The bill authorizes the Department of Health to transition
certain local district employees to the State to assist with these
additional responsibilities.

Section 7 of the bill would amend Social Service Law §369 to authorize
the Department of Health to assume sole responsibility for commencing
Medicaid recovery actions and proceedings.

Sections 8, 9, 10 and 11 of the bill set forth provisions pertaining
to statutory references, time frames for notice, severability and
effective dates.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget, as it authorizes the State to implement a cap on State
funding to local governments for Medicaid administration expenses
that will result in State Financial Plan savings of $28 million in
fiscal year 2012-13 and $68.4 million in fiscal year 2013-14.

Costs associated with reducing the local share of Medicaid
expenditures are $61.1 million in fiscal year 2013-14. The five-year
Financial Plan impact to the State associated with providing relief
to local districts is nearly $1.2 billion:

Effective Date:

This bill takes effect April 1, 2012.

Part G - Extend the authority for previously enacted Medicaid
initiatives.

Purpose:

This bill would maintain Financial Plan savings by continuing
previously enacted Medicaid initiatives.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

* Section 1 would amend Chapter 58 of the Laws of 2005, Part C, § 79,
extending

until June 15, 2019, the Preferred Drug Program, which promotes access
to
effective prescription drugs while ensuring patient safety and
reducing the costs of prescription drugs for Medicaid recipients.

* Section 2 would amend Public Health Law § 2807-c, extending until
March 31, 2013, certain hospital rate adjustments for potentially
preventable re-admissions and negative outcomes.

Budget Implications:

Enactment of this bill is necessary to implement the SFY 2012-13
Executive Budget because it ensures the continuation of previously
enacted State Financial Plan savings associated with these programs,
totaling $87.6 million annually.

Effective Date:

This bill takes effect April 1, 2012.

Part H - Repeal the Human Services Cost-of-Living Adjustment, and
provide authorization for future annual increases, and direct
agencies to establish limits on reimbursements for the costs of
executive compensation and administration.

Purpose:

This bill would repeal the Human Services Cost-of-Living Adjustment
(COLA), provide for future annual adjustments based on actual costs
and various performance metrics, and direct agencies to establish
limits on reimbursement of costs of administration and executive
compensation.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would repeal the COLA scheduled to take effect April 1,
2012, for designated Human Services programs under the auspices of
several State agencies (the Office for People with Developmental
Disabilities, the Office of Mental Health, the Office of Alcoholism
and Substance Abuse Services, the Department of Health, the State
Office for the Aging, and the Office of Children and Family Services).

The bill further provides that, effective April 1, 2013 and annually
thereafter, State agencies shall provide any annual adjustments based
on actual costs and performance and/or financial metrics determined
by the agencies and subject to the review and approval of the
Director of the Budget.

In addition, the bill would require state agencies to place limits on
the State's reimbursement of the providers' costs of administration
and executive compensation.

Budget Implications:

Repealing the Human Services COLA will result in State savings of $107
million in FY 2012-13.

Effective Date:

This bill would take effect on April 1, 2012.

Part I - Establish pilot programs in accordance with the "People First
1115 Waiver" application.

Purpose:

This bill would authorize the Office for People With Developmental
Disabilities to enter into contracts without the need for competitive
bids or a request for proposal in order to establish pilot programs
in accordance with the People First 1115 Waiver application.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would notwithstand Section 112 and Section 163 of the State
Finance Law, and Section 142 of the Economic Development Law, to
authorize OPWDD to enter into contracts without competitive bids or a
request for proposal related to pilot programs included in the People
First 1115 Waiver application.

This bill would enable OPWDD to promptly implement program changes,
under the discretion of the Commissioner, consistent with the
application submitted to the federal Centers for Medicare and
Medicaid Services (CMS) for the People First 1115 Waiver.

Budget Implications:

Without this bill, delays in implementation of pilot programs could
occur, resulting in federal Medicaid revenue loss.

Effective Date:

This bill takes effect immediately.

Part J - Streamline the organizational structure of the Office for
Persons with Developmental Disabilities to help improve management
oversight of services to individuals with developmental disabilities.

Purpose:

This bill would reorganize the Office for People With Developmental
Disabilities (OPWDD) to create Developmental Disabilities Regional
Offices and State Operations Offices that would oversee service
delivery in designated areas around the State. The State Operations

Offices would provide for the direct delivery of supports and
services in State operated programs. The Regional Offices will
oversee the administration of supports and services to individuals
being served in settings outside of State operated programs.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This is a new bill that is designed to streamline decision-making and
better align responsibilities to best serve individuals with
developmental disabilities. To that end, appointing authority for all
positions previously under the jurisdiction of the Developmental
Disabilities Services Offices (DDSO) would be moved to Central Office.

Section 1 of the bill would amend Mental Hygiene Law (MHL) § 13.17 to
create the Developmental Disabilities Regional Offices and State
Operations Offices and remove the list of DDSOs from the statute.

Section 2 of the bill would amend MHL §13.19 to expand the
Commissioner's authority to allow for the appointment of all OPWDD
employees.

Section 3 of the bill would amend the MHL §13.21 to remove the
appointing authority for employees of the DDSOs, which are being
restructured as State Operations Offices, and transfer this authority
to OPWDD Central Office.

Section 4 of the bill would amend MHL §13.33 to change wording from
DDSO to State Operations Office with regard to the Boards of Visitors
and to require at least one Board of Visitors in each State
Operations Office Region. It also makes technical amendments to
address the name change of the Commission on Quality of Care and
Advocacy for Persons with Disabilities.

Sections 5 through 14, 15, 17, & 18 of the bill represent technical
amendments necessary to reflect changes made to the listing of
facilities operated by OPWDD in Section 13.17 of the MHL advanced in
Section 1 of this bill, and to update references to the Office of
Mental Retardation and Developmental Disabilities (OMRDD) to reflect
the agency's new name, OPWDD.

Section 16 would amend MHL §13.34 to remove the reference to MHL
§13.17 and to define that the Boards of Visitors will be from the
catchment area of the State Operations Office that the member serves.

Section 19 of the bill would provide that where the phrase directors
of office facilities, directors of schools or director of facilities
is used elsewhere in the MHL in reference to a facility operated by
OPWDD it shall be substituted with directors of State Operations
Offices and where the phrase DDSO is used elsewhere in the MHL it
shall be substituted with State Operations Offices.

Section 20 of the bill would provide for an immediate effective date.

Budget Implications:

This bill will create workload efficiencies in OPWDD.

Effective Date:

This bill takes effect immediately.

Part K - Extend authorization for the Comprehensive Psychiatric
Emergency Program.

Purpose:

This bill would extend the authorization for the Comprehensive
Psychiatric Emergency Program (CPEP) for four years until July 1, 2016.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would extend until July 1, 2016, the authority of the
Commissioner of Mental Health to administer operating certificates
for a CPEP. The bill would also extend to July 1, 2016, sections 1, 2
and 4 through 20 of Chapter 723 of the Laws of 1989, which explain
the implementation and operation of the CPEP model.

The statutory authority for the CPEP, as established by Chapter 723 of
the Laws of 1989, as amended, currently expires on July 1, 2012.

Budget Implications:

Enactment of this bill is necessary to continue essential services to
at-risk individuals. This Executive Budget provides funding for the
continued operation of hospitals in New York State licensed to
provide these services in accordance with the CPEP model.

Effective Date:

This bill takes effect immediately.

Part L - Permit the Commissioners of the Department of Health, the
Office of Mental Health, the Office for People with Developmental
Disabilities and the Office of Alcoholism and Substance Abuse
Services to integrate health and behavioral health services.

Purpose:

This bill would grant the Department of Health (DOH), the Office of
Mental Health (OMH), the Office for People with Developmental
Disabilities (OPWDD) and the Office of Alcoholism and Substance Abuse

Services (OASAS) broad authority and flexibility in order to more
fully integrate health and behavioral health services.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would provide the Behavioral Health agencies and DOH the
authority to jointly establish operating, reporting and construction
requirements for service providers that can demonstrate experience
and competence in the delivery of health, mental health and alcohol
and substance abuse services to persons with developmental
disabilities. This bill would also clarify that providers that meet
standards established by the State are not required to be an
integrated provider. In addition, the bill would authorize the four
above State agencies to waive regulatory requirements or determine
that compliance with another agency's requirements is sufficient in
order to avoid duplication.

The authority granted to the commissioners of these agencies is
intended to complement and supplement the authority provided to the
commissioners pursuant to section 365-I of the Social Services Law
which established health homes for NYS Medicaid enrollees with
chronic conditions.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget because it facilitates the provision of integrated and
coordinated care, which will result in a more efficient use of
governmental resources.

Effective Date:

This bill takes effect immediately.

Part M - Establish a pilot program to restructure educational services
for children and youth residing in Office of Mental Health hospitals.

Purpose:

This bill would improve the educational offerings for children who
reside in Office of Mental Health (OMH) hospitals by authorizing an
agreement between OMH and the State Education Department (SED) to
establish pilot programs requiring local educational systems to
provide educational programming for such children.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would establish a pilot program to provide students residing
in OMH hospitals a more appropriate education that comports more
closely with the curriculum and related therapy services they would

receive in their home school districts. School districts and Board of
Cooperative Educational Services (BOCES) programs already provide
specialized programs as a matter of routine, and are better qualified
than OMH to assume this very critical function. Furthermore, since
the early 1980s, the Education Law has required local school
districts to be responsible for the education of students who were
placed by parents in private hospitals for psychiatric reasons.

Under the bill, OMH and SED will be authorized to enter into an
agreement to establish regulations on the provision of educational
programming for children residing in OMH hospitals by the school
districts or BOCES where the hospital is located. For children
residing in OMH facilities in New York City, this programming will
begin with the 2012-13 school year; for all other facilities, such
programming will begin with the 2013-14 school year. This pilot
program will run through the 2014-15 school year. SED is directed to
establish a State per pupil methodology for reimbursement of those
school districts or BOCES programs that assume the responsibility for
the education of youth who reside in OMH hospitals.

This bill will also authorize BOCES to provide educational services at
OMH hospitals when requested to do so by the school district where
the hospital is located. Additionally, OMH and SED will be required
to submit a joint report by February 1, 2015 recommending whether
this program should be extended.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget because it will ensure appropriate educational programming. It
is assumed that this proposal will be cost neutral as OMH shifts
funds to SED, but total fiscal implications have yet to be determined.

Effective Date:

This bill takes effect July 1, 2012, and shall expire and be deemed
repealed on June 30, 2015.

Part N - Create efficiencies in the Department of Mental Hygiene by:
creating a Behavioral Health Advisory Council to replace and assume
the responsibilities of the Office of Alcoholism and Substance Abuse
Services and the Office of Mental Health; consolidating the statewide
comprehensive planning process for OMH; and authorizing other
efficiency measures.

Purpose:

This bill would make efficiencies in the planning and delivery of
mental hygiene services by: (1) creating a Behavioral Health Services
Advisory Council (Council) to replace and assume the responsibilities
of existing bodies that advise the Office of Alcoholism and Substance
Abuse Services (OASAS) and the Office of Mental Health (OMH); (2)

consolidating the OASAS and OMH roles in the statewide comprehensive
planning process required under Mental Hygiene Law (MHL) § 5.07; and
(3) including area agencies on aging in the local community planning
process required under MHL § 41.06.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would create efficiencies in the operations of OMH and OASAS
to better serve New Yorkers with mental illnesses and substance abuse
disorders. Consolidating the two advisory councils that currently
serve these agencies and modifying the statewide comprehensive
planning process to allow for more collaborative planning would
assist in moving the agencies and the constituencies they serve
closer toward a more seamless system of delivering services.

Section 1 of the bill would add definitions to MHL § 1.03 that would
define "substance use disorder" and "substance use disorder services."

Section 2 of the bill would create a new MHL § 5.06 to establish the
Behavioral Health Services Advisory Council which would assume the
responsibilities of the OMH Mental Health Services Council and the
OASAS Advisory Council on Alcoholism and Substance Abuse Services.

Section 3 of the bill would amend MHL § 5.07 to provide a statewide
comprehensive planning process for mental hygiene services (including
those under the auspices of the Office of People with Developmental
Disabilities) that reflects the role of the newly formed Council and
permitting the flexibility for OMH and OASAS to collaborate in the
planning process.

Section 4 of the bill would repeal MHL § 7.05, which established the
Mental Health Services Council, OMH's advisory council.

Section 5 of the bill would make conforming amendments to MHL § 13.05
(c) with regard to the Developmental Disabilities Advisory Council.

Section 6 of the bill would repeal MHL § 19.05, which established the
Advisory Council on Alcoholism and Substance Abuse Services to advise
OASAS.

Section 7 of the bill would amend MHL § 41.16(c) to include area
agencies on aging in the comprehensive planning process required
under that section.

Section 8 of the bill would amend Public Health Law § 220 to refer to
the new Council instead of the Mental Health Services Council.

Section 9 of the bill sets forth its effective dates.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget because it will achieve savings due to increased efficiencies.

Effective Date:

Sections 1 through 6 of the bill takes effect 120 days after enactment
and the remaining provisions would take effect on April 1, 2012.

Part O - Ensure the efficient operation of hospitals by the Office of
Mental Health and the provision of appropriate community services.

Purpose:

This bill would set criteria that the Commissioner of Mental Health
(Commissioner) must consider in deciding whether to close or convert
wards or facilities and requires the Commissioner to give either 60
or 30 day notice before taking such actions to facilitate timely
placement of individuals in the most integrated settings. In
addition, this bill will restructure the New York City Children's
Psychiatric Centers (Bronx, Brooklyn, and Queens) to create a single
appointing authority named the New York City Children's Center.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would notwithstand the requirement in the Mental Hygiene Law
that one year notice be given before the Commissioner of Mental
Health may close, reduce or
transform wards or facilities that it operates, and the requirement
that all resources resulting from such transformations be part of
community reinvestment. This will allow the Commissioner the
flexibility to reduce inpatient capacity, to implement other
reductions and actions that are necessary for the cost-effective and
efficient operation of the State mental health system, and to ensure
that persons with mental illness can be served in the most integrated
settings, as is required by federal law.

These actions include, but are not limited to, the closure of the
inpatient program of Kingsboro Psychiatric Center consistent with the
recommendation in the November 2011 report of the Brooklyn Work Group
of the Medicaid Redesign Team ("At the Brink of Transformation:
Restructuring the Healthcare Delivery System in Brooklyn") and
reinvestment of resources to community services in Brooklyn and to
inpatient capacity at the South Beach Psychiatric Center in Staten
Island.

Further determinations regarding the closure of beds would be made by
the Commissioner based on ten criteria including, among other things:
the current and long term needs for services provided at the facility
within its catchment area; the availability of staff to provide such
services; any capital investments needed at the facility; the
proximity of the facility to other facilities that could accommodate

anticipated need; the relative quality of the services provided at
the facility; the obligations of the State to place persons with
mental disabilities in community settings rather than in
institutions; and the anticipated impact of the closure on access to
mental health services.

Implementation of these systemic efficiencies is consistent with the
State's goal and obligation to transform the locus of care from
inpatient settings to community-based settings.

This bill also will restructure the New York City Children's
Psychiatric Centers (Bronx, Brooklyn, and Queens) to create a single
appointing authority named the New York City Children's Center. The
locations of these psychiatric centers will not change, however there
will be a uniform leadership structure. This will improve program
flexibility and service delivery.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget and to provide the flexibility needed to meet the requirements
of Title II of the Americans with Disabilities Act, to serve
individuals in the most integrated setting possible.

Effective Date:

This bill takes effect April 1, 2012.

Part P - Amend various provisions of the Sex Offender Management and
Treatment Act.

Purpose:

This bill would amend the Sex Offender Management and Treatment Act
(SOMTA) to improve the care and treatment of sex offenders who are
civilly confined and to encourage sex offenders to participate in
treatment and to otherwise comply with conditions of confinement and
Strict and Intensive Supervision and Treatment (SIST). It also will
change the timing of required evaluations of civilly confined sex
offenders and will create a new crime to address assaults by sex
offenders at a Secure Treatment Facility (STF).

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would:

*Allow the Commissioner of Mental Health to enter into agreements for
the provision of care and treatment to persons confined under SOMTA,
or for the provision of appropriate security services, by individuals
who are neither Office of Mental Health (OMH) nor Office for People
with Developmental Disabilities personnel. This will provide

flexibility to ensure the delivery of the most appropriate and cost
effective services.

*Require after a judicial determination that there is probable cause
to believe that a sex offender requires civil management, that such
offender remain in the custody of the Department of Corrections and
Community Supervision until he or she reaches the maximum expiration
date of the sentence or is approved for release to parole
supervision. This will address problems that have arisen when such
offenders - who have not yet been found to be in need of civil
confinement - refuse to participate in sex offender treatment in STFs
and disrupt others' efforts to participate meaningfully in such
treatment programs.

*Encourage participation in treatment in an STF by providing that
failure to "meaningfully" participate in such treatment will
constitute a violation by the confined sex offender of the order of
confinement.

*Allow respondents and witnesses to appear in court by means of
video-teleconferencing (VTC) to reduce the amount of travel. A large
number of SOMTA respondent transports are for non-substantive
appearances (e.g., to advise the judge of the current status of the
proceeding, to arrange discovery/trial schedules, to exchange expert
reports). It is safer to allow VTC than to transport respondents
which will necessarily bring them into contact with the public.
Respondents will be authorized to object to the use of VTC if there are
"compelling circumstances, requiring the witness's personal presence"
at the court proceeding.

*Provide biennial rather than annual examinations of sex offenders
and petitions for discharge of a civilly committed sex offender.

*Authorize parole revocation when applicable and criminal penalties for
material violations of court-order conditions of SIST. The bill also
will amend the Penal Law to provide that a sex offender who
intentionally causes physical injury at an STF is guilty of assault
in the second degree, a class D felony. These changes will ensure
that staff and residents of STFs receive the same degree of
protection from violent sex offenders as prison officials, nurses and
other public officials who are assaulted while performing their
required duties.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget due to the associated savings of $4.7 million which will
increase thereafter as the committed population grows.

Effective Date:

This bill takes effect April 1, 2012.

Part Q - Provide for outpatient capacity restoration of felony
defendants, or restoration at psychiatric units of jails or Article
28 hospitals.

Purpose:

This bill would amend the Criminal Procedure Law to provide for
outpatient restoration of capacity of felony defendants, or
restoration at psychiatric units of jails or at Article 28 hospitals.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

Under current law, if a court determines that a defendant is an
incapacitated person, it must issue an order committing the defendant
to the custody of the Commissioner of Mental Health or the
Commissioner of Developmental Disabilities for care and treatment to
restore his or her capacity. The defendant is then held in a hospital
operated by the Office of Mental Health (OMH), a developmental center
operated by the Office for People with Developmental Disabilities
(OPWDD) or a general hospital licensed by the Department of Health
that contains an OMH-licensed psychiatric unit.

This bill would amend Criminal Procedure Law (CPL) section 730.10 by
adding a definition of "appropriate institution" to include not only
an OMH hospital, an OPWDD developmental center and a general
hospital, but also a local correctional facility that operates a
mental health unit. This amendment also would allow for an
incapacitated defendant committed to the jurisdiction of OMH or OPWDD
to receive care and treatment on an outpatient basis at an
appropriate institution.

Approximately 20 percent of defendants committed to OMH or OPWDD for
restoration of capacity under the CPL are deemed to be otherwise in
need of hospitalization. Accordingly, the great majority could be
restored in jail or in the community. Nationwide, 35 states provide
for outpatient restoration, and at least six authorize jail-based
restoration.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget due to the associated savings of $1.5 million (annualizing to
$3.0 M).

Effective Date:

This bill takes effect immediately.

Part R - Continue the fiscal periods for which the Office of Mental
Health is authorized to recover exempt income for community residence
and family based treatment programs.

Purpose:

This bill would extend the fiscal periods for which the Office of
Mental Health (OMH) is authorized to recover Medicaid exempt income
as authorized pursuant to legislation enacted in 2010. Exempt Income
is Medicaid income received in excess of budgeted amounts set forth
in the fiscal plans of OMH providers operating residential programs.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would extend the fiscal periods for OMH to recoup exempt
income from community residences and family-based treatment providers
licensed by OMH for specific time periods for programs located in
counties outside of the City of New York and for programs located
within the City of New York. It would allow for the continuation of
such recoveries from January 1, 2011 through December 31, 2013 for
programs located outside of the City of New York, and from July 1,
2011 through June 30, 2013 for programs located within the City of
New York.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget, because it avoids a potential loss of $3 million on an annual
basis.

Effective Date:

This bill takes effect immediately.

The provisions of this act shall take effect immediately, provided,
however, that the applicable effective date of each part of this act
shall be as specifically set forth in the last section of such part.

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

    S. 6256                                                  A. 9056

                      S E N A T E - A S S E M B L Y

                            January 17, 2012
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when printed to be committed to the Committee on Finance

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee on Ways and Means

AN  ACT to amend the public health law, in relation to requiring the use
  of network providers for  evaluations  or  services  under  the  early
  intervention  program,  state  aid reimbursement to municipalities for
  respite services, and service coordination; to repeal subdivision 7 of
  section 2551 and subdivision 4 of section 2557 of  the  public  health
  law,  relating  to administering early intervention services; to amend
  the public health law, in relation to requiring that each municipality
  be responsible for providing early intervention services; to amend the
  public health law, in relation to removing the  authorization  of  the
  commissioner  of  health to collect data from counties on early inter-
  vention programs for the purpose of improving efficiency, cost  effec-
  tiveness  and  quality; to amend the public health law, in relation to
  requiring health maintenance organizations  to  include  coverage  for
  otherwise  covered  services  that  are  part of an early intervention
  program; to amend the insurance law, in relation to payment for  early
  intervention  services;  to  amend  the  education law, in relation to
  special education services and programs for  preschool  children  with
  handicapping  conditions; and to repeal subdivision 18 of section 4403
  of the education law, relating to the power of the  education  depart-
  ment to approve the provision of early intervention services (Part A);
  to  amend the public authorities law, in relation to funding and oper-
  ations of the Roswell Park Cancer Institute (Part  B);  to  amend  the
  public health law, in relation to establishment of an electronic death
  registration  system  (Part  C);  to  amend  the public health law, in
  relation to establishing the supportive housing development  reinvest-
  ment  program; to amend the social services law, in relation to appli-
  cability of the assisted living program; to amend the social  services
  law, in relation to including podiatry services and lactation services
  under  the term medical assistance; to amend the public health law and
  education law,  in  relation  to  medical  prescriptions  for  limited

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12671-01-2

S. 6256                             2                            A. 9056

  English  proficient  individuals; to amend the social services law, in
  relation to education, outreach services  and  facilitated  enrollment
  activities  for certain aged, blind and disabled persons; to amend the
  public  health  law,  in relation to including certain violations by a
  pharmacy as professional misconduct; expanding prenatal care programs,
  establishing the primary care service corps practitioner  loan  repay-
  ment  program, requiring changes in directors of not-for-profit corpo-
  rations that operate hospitals  to  be  approved  by  the  department,
  authorizing the commissioner of health to temporarily suspend or limit
  hospital   operating  certificates,  revoking  of  hospital  operating
  certificates, appointment and  duties  of  temporary  operators  of  a
  general  hospital  or  diagnostic  and  treatment  center, authorizing
  moneys in the medical indemnity fund to be invested in obligations  of
  the  United States or the state or obligations where the principal and
  interest are guaranteed by the United States or the state  and  moneys
  distributed  as  non-Medicaid  grants  to  non-major  public  academic
  medical centers; to amend the social  services  law,  in  relation  to
  prescriptions  of  opioid  analgesics  and brand name drugs covered by
  medical assistance; to amend the public health  law,  in  relation  to
  notice  requirement for preferred drug program, payment to the commis-
  sioner of health by third-party  payors,  audit  of  payments  to  the
  commissioner of health, electronic submission of reports by hospitals,
  and changing the definition of eligible applicant; to amend the social
  services  law,  in  relation  to  medical assistance where relative is
  absent or refuses or fails to provide necessary care;   to  amend  the
  public health law, in relation to third-party payor's election to make
  payments;  to  amend the elder law, in relation to the elderly pharma-
  ceutical insurance coverage program; to amend the public  health  law,
  in relation to reserved bed days; to amend the social services law, in
  relation   to  the  personal  care  services  worker  recruitment  and
  retention program; to amend the public health law, in relation to  the
  tobacco control and insurance initiatives pool distributions; to amend
  the  social  services  law,  in  relation  to  certain  public  school
  districts and state operated/state supported  schools;  to  amend  the
  public  health law, in relation to the licensure of home care services
  agencies; to amend the social services law,  in  relation  to  managed
  care  programs;  to  amend  the  public health law, in relation to the
  distribution of the professional education pools; to amend chapter 584
  of the laws of 2011, amending the public authorities law, relating  to
  the  powers  and duties of the dormitory authority of the state of New
  York  relative  to  the  establishment  of  subsidiaries  for  certain
  purposes,  in  relation to the effectiveness thereof; to amend chapter
  119 of the laws of 1997 relating  to  authorizing  the  department  of
  health to establish certain payments to general hospitals, in relation
  to  costs  incurred  in  excess  of  revenues  by general hospitals in
  providing services in eligible  programs  to  uninsured  patients  and
  patients  eligible  for Medicaid assistance; to amend subdivision 1 of
  section 92 of part H of chapter 59 of the laws of  2011,  relating  to
  known and projected department of health state funds Medicaid expendi-
  tures,  in  relation to the effectiveness thereof; to amend section 90
  of part H of chapter 59 of the laws of  2011,  relating  to  types  of
  appropriations  exempt from certain reductions, in relation to certain
  payments with regard to local governments; to amend section 1 of  part
  C  of  chapter  58  of  the  laws  of  2005,  relating  to authorizing
  reimbursements for  expenditures  made  by  or  on  behalf  of  social
  services  districts  for  medical assistance for needy persons and the

S. 6256                             3                            A. 9056

  administration thereof, in relation to Medicaid reimbursement; and  to
  repeal  certain  provisions  of  the  public  health  law,  the social
  services law and the elder law relating thereto (Part D); to amend the
  public authorities law and the public officers law, in relation to the
  establishment  of  the  New  York Health Benefit Exchange (Part E); to
  amend chapter 58 of the laws of 2005  authorizing  reimbursements  for
  expenditures  made  by  or  on behalf of social services districts for
  medical assistance for needy persons and the  administration  thereof,
  in relation to an administrative cap on such program; to amend chapter
  59  of the laws of 2011, amending the public health law and other laws
  relating to  general  hospital  reimbursement  for  annual  rates,  in
  relation  to  the cap on local Medicaid expenditures; and to amend the
  social services law, in  relation  to  the  department  assumption  of
  program  administration  for medical assistance (Part F); to amend the
  public health law, in relation to regulations for  computing  hospital
  inpatient  rates  and to amend chapter 58 of the laws of 2005 relating
  to the preferred drug program, in relation to the effectiveness there-
  of (Part G); 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  reimbursement  for  executive  compensation  and administrative
  costs (Part H); in relation to contracts by the office for people with
  developmental disabilities made under  section  1115  of  the  federal
  social  security  act  (Part  I); to amend the mental hygiene law, the
  public health law, the general municipal law, the education  law,  the
  social  services  law,  and  the  surrogate's  court procedure act, in
  relation to the office for people with developmental disabilities  and
  the  creation of developmental disabilities regional offices and state
  operations offices (Part J); to amend chapter 723 of the laws of  1989
  amending  the mental hygiene law and other laws relating to comprehen-
  sive psychiatric emergency programs,  in  relation  to  extending  the
  repeal  of  certain provisions thereof (Part K); to permit the commis-
  sioners of the department of health, the office of mental health,  the
  office  of  alcoholism and substance abuse services and the office for
  people with developmental disabilities the regulatory  flexibility  to
  more  efficiently  and  effectively  integrate  health  and behavioral
  health services (Part L); to permit the office of  mental  health  and
  the state education department to enter into an agreement for purposes
  of  providing education programming for patients residing in hospitals
  operated by the office of mental health who are between  the  ages  of
  five  and  twenty-one; and providing for the repeal of such provisions
  upon expiration thereof (Part M); to amend the mental hygiene law  and
  the  public  health  law,  in  relation to the statewide comprehensive
  services plan for people with mental disabilities and in  relation  to
  the  local  planning  process; and to repeal certain provisions of the
  mental hygiene law relating thereto (Part  N);  to  amend  the  mental
  hygiene  law,  in relation to the closure and the reduction in size of
  certain facilities serving persons with mental illness  (Part  O);  to
  amend the mental hygiene law, in relation to amending procedures under
  the  sex offender management and treatment act, and to amend the penal
  law,  in  relation  to  providing  criminal  penalties   for   certain
  violations  of  orders  of  commitment and strict and intensive super-
  vision and treatment (Part P); to amend the criminal procedure law, in
  relation to providing for outpatient capacity  restoration  of  felony
  defendants, or restoration at psychiatric units of jails or article 28

S. 6256                             4                            A. 9056

  hospitals  (Part  Q);  and  to  amend  chapter 111 of the laws of 2010
  relating to the recovery of exempt income  by  the  office  of  mental
  health  for  community residences and family-based treatment programs,
  in relation to the effectiveness thereof (Part R)

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

  Section 1. This act enacts into law major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2012-2013
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through R. The effective date for each  particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of  this  act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding  section  of  the
Part  in  which  it  is  found. Section three of this act sets forth the
general effective date of this act.

                                 PART A

  Section 1.  Paragraph (a) of subdivision 2  of  section  2544  of  the
public  health  law,  as  added  by  chapter 428 of the laws of 1992, is
amended and a new paragraph (c) is added to read as follows:
  (a) [The] SUBJECT TO THE PROVISIONS  OF  SECTION  TWENTY-FIVE  HUNDRED
FORTY-FIVE-A  OF THIS TITLE, THE parent may select an evaluator from the
list of approved evaluators as described in section twenty-five  hundred
forty-two  of this title to conduct the evaluation. The parent or evalu-
ator shall immediately notify the early intervention  official  of  such
selection.    The evaluator may begin the evaluation no sooner than four
working days after such notification, unless otherwise approved  by  the
initial service coordinator.
  (C)  IF,  IN  CONSULTATION WITH THE EVALUATOR, THE SERVICE COORDINATOR
IDENTIFIES A CHILD THAT IS POTENTIALLY ELIGIBLE FOR PROGRAMS OR SERVICES
OFFERED BY OR UNDER THE AUSPICES OF THE OFFICE FOR PEOPLE WITH  DEVELOP-
MENTAL DISABILITIES, THE SERVICE COORDINATOR SHALL, WITH PARENT CONSENT,
NOTIFY  THE  OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES' REGIONAL
DEVELOPMENTAL DISABILITIES SERVICES OFFICE OF THE POTENTIAL  ELIGIBILITY
OF SUCH CHILD FOR SAID PROGRAMS OR SERVICES.
  S  2. Subdivision 1, the opening paragraph of subdivision 2 and subdi-
vision 7 of section 2545 of the public health law, as added  by  chapter
428 of the laws of 1992, are amended to read as follows:
  1. If the evaluator determines that the infant or toddler is an eligi-
ble child, the early intervention official shall convene a meeting, at a
time  and place convenient to the parent, consisting of the parent, such
official, the evaluator, A REPRESENTATIVE FROM THE  CHILD'S  INSURER  OR
HEALTH MAINTENANCE ORGANIZATION, WHICH SHALL INCLUDE THE MEDICAL ASSIST-
ANCE  PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTABLISHED IN TITLE
ONE-A OF THIS ARTICLE, OR ANY OTHER GOVERNMENTAL THIRD PARTY  PAYOR,  IF
THE  CHILD  HAS COVERAGE THROUGH AN INSURER OR HEALTH MAINTENANCE ORGAN-
IZATION AND THE REPRESENTATIVE IS AVAILABLE TO ATTEND THE MEETING ON THE
DATE AND TIME CHOSEN BY THE EARLY  INTERVENTION  OFFICIAL,  the  initial
service  coordinator and any other persons who the parent or the initial
service coordinator, with the parent's consent,  invite,  provided  that

S. 6256                             5                            A. 9056

such  meeting  shall be held no later than forty-five days from the date
that the early intervention official was first contacted  regarding  the
child,  except under exceptional circumstances prescribed by the commis-
sioner.  The  early  intervention  official,  at or prior to the time of
scheduling the meeting, shall inform the parent of the right  to  invite
any  person  to  the  meeting.    IF THE REPRESENTATIVE FROM THE CHILD'S
INSURER OR HEALTH MAINTENANCE ORGANIZATION IS NOT  AVAILABLE  TO  ATTEND
THE  MEETING  IN  PERSON ON THE DATE AND TIME CHOSEN BY THE EARLY INTER-
VENTION OFFICIAL, ARRANGEMENTS MAY  BE  MADE  FOR  THE  REPRESENTATIVE'S
INVOLVEMENT  IN  THE  MEETING BY PARTICIPATION IN A TELEPHONE CONFERENCE
CALL OR BY OTHER MEANS.
  The early intervention official, A  REPRESENTATIVE  FROM  THE  CHILD'S
INSURER  OR  HEALTH  MAINTENANCE  ORGANIZATION,  WHICH SHALL INCLUDE THE
MEDICAL ASSISTANCE PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM  ESTAB-
LISHED  IN  TITLE ONE-A OF THIS ARTICLE, OR ANY OTHER GOVERNMENTAL THIRD
PARTY PAYOR, IF THE CHILD HAS COVERAGE  THROUGH  AN  INSURER  OR  HEALTH
MAINTENANCE  ORGANIZATION  AND THE REPRESENTATIVE IS AVAILABLE TO ATTEND
THE MEETING ON THE DATE AND TIME CHOSEN BY THE EARLY INTERVENTION  OFFI-
CIAL, initial service coordinator, parent and evaluator shall develop an
IFSP  for  an  eligible  child  whose parents request services. The IFSP
shall be in writing and shall include, but not be limited to:
  7. The IFSP shall be reviewed at six  month  intervals  and  shall  be
evaluated  annually by the early intervention official, A REPRESENTATIVE
FROM THE CHILD'S INSURER OR HEALTH MAINTENANCE ORGANIZATION, WHICH SHALL
INCLUDE THE MEDICAL ASSISTANCE PROGRAM OR  THE  CHILD  HEALTH  INSURANCE
PROGRAM ESTABLISHED IN TITLE ONE-A OF THIS ARTICLE, OR ANY OTHER GOVERN-
MENTAL  THIRD  PARTY PAYOR, IF THE CHILD HAS COVERAGE THROUGH AN INSURER
OR HEALTH MAINTENANCE ORGANIZATION AND THE REPRESENTATIVE  IS  AVAILABLE
TO  PARTICIPATE  IN  THE REVIEW OR ATTEND ON THE DATE AND TIME CHOSEN BY
THE EARLY INTERVENTION OFFICIAL, THE service coordinator, the parent and
providers of services to the eligible child.  Upon request of a  parent,
the plan may be reviewed by such persons at more frequent intervals.  IF
THE REPRESENTATIVE FROM THE CHILD'S INSURER OR HEALTH MAINTENANCE ORGAN-
IZATION  IS  NOT  AVAILABLE  TO  PARTICIPATE  IN THE REVIEW OR ATTEND IN
PERSON ON THE DATE AND TIME CHOSEN BY THE EARLY  INTERVENTION  OFFICIAL,
ARRANGEMENTS MAY BE MADE FOR THE REPRESENTATIVE'S INVOLVEMENT BY PARTIC-
IPATION IN A TELEPHONE CONFERENCE CALL OR BY OTHER MEANS.
  S  2-a.  Section  2545 of the public health law is amended by adding a
new subdivision 10 to read as follows:
  10. THE SERVICE COORDINATOR SHALL ENSURE THAT THE IFSP, INCLUDING  ANY
AMENDMENTS THERETO, IS IMPLEMENTED IN A TIMELY MANNER BUT NOT LATER THAN
THIRTY  DAYS AFTER THE PROJECTED DATES FOR INITIATION OF THE SERVICES AS
SET FORTH IN THE PLAN.
  S 3. The public health law is amended by adding a new  section  2545-a
to read as follows:
  S  2545-A.  USE  OF  NETWORK PROVIDERS.   FOR CHILDREN REFERRED TO THE
EARLY INTERVENTION PROGRAM ON OR AFTER JANUARY FIRST, TWO THOUSAND THIR-
TEEN, IF A CHILD  HAS  COVERAGE  UNDER  AN  INSURANCE  POLICY,  PLAN  OR
CONTRACT,  INCLUDING  COVERAGE  AVAILABLE  UNDER  THE MEDICAL ASSISTANCE
PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTABLISHED IN TITLE ONE-A
OF THIS ARTICLE OR UNDER ANY OTHER GOVERNMENTAL THIRD PARTY  PAYOR,  AND
THE INSURANCE POLICY, PLAN OR CONTRACT PROVIDES COVERAGE FOR EVALUATIONS
OR  SERVICES  THAT  MAY  BE RENDERED TO THE CHILD UNDER THE EARLY INTER-
VENTION PROGRAM, THE SERVICE COORDINATOR, OR, IN ACCORDANCE WITH SECTION
TWENTY-FIVE HUNDRED FORTY-FOUR OF THIS TITLE, THE PARENT,  WITH  RESPECT
TO  EVALUATIONS,  SHALL SELECT A PROVIDER APPROVED BY THE DEPARTMENT AND

S. 6256                             6                            A. 9056

WITHIN THE INSURER'S OR HEALTH MAINTENANCE  ORGANIZATION'S  NETWORK,  IF
APPLICABLE,  FOR  THE PROVISION OF SUCH EVALUATION OR SERVICES, PROVIDED
HOWEVER THAT THIS SUBDIVISION SHALL NOT APPLY UNDER THE FOLLOWING CONDI-
TIONS:
  1.  THERE IS NO PROVIDER IN THE INSURER'S OR HEALTH MAINTENANCE ORGAN-
IZATION'S NETWORK THAT IS AVAILABLE OR APPROPRIATE TO RECEIVE THE REFER-
RAL AND TO CONDUCT THE EVALUATION OR TO BEGIN PROVIDING  SERVICES  IN  A
TIMELY MANNER IN ACCORDANCE WITH THE CHILD'S IFSP;
  2. INSURANCE OR HEALTH PLAN BENEFITS HAVE BEEN EXHAUSTED; OR
  3.  THE CHILD HAS A DEMONSTRATED NEED, AS DETERMINED BY THE INSURER OR
HEALTH MAINTENANCE ORGANIZATION, IF APPLICABLE,  FOR  AN  EVALUATION  OR
SERVICE  RENDERED  BY A PROVIDER WHO DOES NOT HOLD AN AGREEMENT WITH THE
CHILD'S INSURER OR HEALTH MAINTENANCE ORGANIZATION FOR THE PROVISION  OF
SUCH EVALUATION OR SERVICE.
  S  4.  Subdivision  2  of  section  2547  of the public health law, as
amended by chapter 231 of the laws  of  1993,  is  amended  to  read  as
follows:
  2.  In  addition  to respite services provided pursuant to subdivision
one of this section and subject to the  amounts  appropriated  therefor,
the  state  shall  reimburse  the  municipality  IN  ACCORDANCE WITH THE
PERCENTAGE OF STATE AID REIMBURSEMENT FOR APPROVED COSTS AS SET FORTH IN
SUBDIVISION TWO OF  SECTION  TWENTY-FIVE  HUNDRED  FIFTY-SEVEN  OF  THIS
TITLE,  for [fifty percent of] the costs of respite services provided to
eligible children and their families with  the  approval  of  the  early
intervention official.
  S  5.  Section 2548 of the public health law, as amended by section 20
of part H of chapter 686 of the laws of 2003,  is  amended  to  read  as
follows:
  S 2548. Transition plan. To the extent that a toddler with a disabili-
ty is thought to be eligible for services pursuant to section forty-four
hundred  ten  of  the  education  law, the [early intervention official]
SERVICE COORDINATOR shall notify in writing the committee  on  preschool
special  education  of  the  local  school district in which an eligible
child resides of the  potential  transition  of  such  child  and,  with
parental  consent,  arrange for a conference among the service coordina-
tor, the parent and  the  chairperson  of  the  preschool  committee  on
special  education  or  his  or her designee at least ninety days before
such child would be  eligible  for  services  under  section  forty-four
hundred  ten  of the education law to review the child's program options
and to establish a transition plan, if appropriate. If a parent does not
consent to a conference with the service coordinator and the chairperson
of the preschool committee on special education or his or  her  designee
to  determine  whether  the  child should be referred for services under
section forty-four hundred ten of the education law, and  the  child  is
not  determined  to  be  eligible  by the committee on preschool special
education for such services prior to the  child's  third  birthday,  the
child's eligibility for early intervention program services shall end at
the child's third birthday.
  S  6.  Subdivision  2  of  section  2550  of the public health law, as
amended by section 5 of part B3 of chapter 62 of the laws  of  2003,  is
amended to read as follows:
  2. In meeting the requirements of subdivision one of this section, the
lead  agency  shall  adopt  and  use proper methods of administering the
early intervention program, including:
  (a) establishing standards for evaluators,  service  coordinators  and
providers of early intervention services;

S. 6256                             7                            A. 9056

  (b) approving, and periodically re-approving evaluators, service coor-
dinators  and  providers of early intervention services who meet depart-
ment standards; PROVIDED HOWEVER THAT THE DEPARTMENT  MAY  REQUIRE  THAT
APPROVED  EVALUATORS, SERVICE COORDINATORS AND PROVIDERS OF EARLY INTER-
VENTION  SERVICES  ENTER INTO AGREEMENTS WITH THE DEPARTMENT IN ORDER TO
CONDUCT EVALUATIONS OR RENDER SERVICE COORDINATION OR EARLY INTERVENTION
SERVICES IN THE EARLY INTERVENTION PROGRAM. SUCH  AGREEMENTS  SHALL  SET
FORTH  THE  TERMS AND CONDITIONS OF PARTICIPATION IN THE PROGRAM. IF THE
DEPARTMENT REQUIRES THAT SUCH PROVIDERS ENTER INTO AGREEMENTS  WITH  THE
DEPARTMENT FOR PARTICIPATION IN THE PROGRAM, "APPROVAL" OR "APPROVED" AS
USED  IN THIS TITLE SHALL MEAN A PROVIDER WHO IS APPROVED BY THE DEPART-
MENT IN ACCORDANCE WITH DEPARTMENT REGULATIONS AND HAS ENTERED  INTO  AN
AGREEMENT  WITH THE DEPARTMENT FOR THE PROVISION OF EVALUATIONS, SERVICE
COORDINATION OR EARLY INTERVENTION SERVICES.
  A LESS-THAN-ARMS-LENGTH  RELATIONSHIP  SHALL  NOT  EXIST  BETWEEN  THE
SERVICE  COORDINATOR,  EVALUATOR  AND THE PROVIDER AUTHORIZED TO DELIVER
EARLY INTERVENTION SERVICES TO THE CHILD, UNLESS APPROVAL  OF  THE  LEAD
AGENCY,  IN  CONSULTATION  WITH  THE  EARLY  INTERVENTION  OFFICIAL,  IS
OBTAINED. PROVIDED FURTHER THAT, UNLESS AUTHORIZED BY THE  LEAD  AGENCY,
IN  CONSULTATION  WITH  THE  EARLY INTERVENTION OFFICIAL, UPON A FINDING
THAT IT HAS BEEN DEMONSTRATED THAT AN  APPROVED  PROVIDER  IS  THE  ONLY
APPROPRIATE  PROVIDER  AVAILABLE  TO RENDER THE SERVICES RECOMMENDED FOR
SUCH CHILD, THE SERVICE  COORDINATOR,  THE  EVALUATOR  SELECTED  BY  THE
PARENT  AND  THE PROVIDER RECOMMENDED TO DELIVER SERVICES TO SUCH CHILD,
AND ANY AGENCY  UNDER  WHICH  SUCH  SERVICE  COORDINATOR,  EVALUATOR  OR
PROVIDER  IS  EMPLOYED  BY OR UNDER CONTRACT WITH, SHALL NOT BE THE SAME
ENTITY.
  ALL APPROVED EVALUATORS AND PROVIDERS OF EARLY INTERVENTION  SERVICES,
HEREINAFTER  COLLECTIVELY  REFERRED  TO AS "PROVIDER" OR "PROVIDERS" FOR
PURPOSES OF THIS SUBPARAGRAPH, SHALL ESTABLISH AND MAINTAIN CONTRACTS OR
AGREEMENTS WITH A SUFFICIENT NUMBER OF INSURERS  OR  HEALTH  MAINTENANCE
ORGANIZATIONS,  INCLUDING  THE  MEDICAL  ASSISTANCE PROGRAM OR THE CHILD
HEALTH INSURANCE PROGRAM ESTABLISHED UNDER TITLE ONE-A OF THIS  ARTICLE,
AS  DETERMINED  NECESSARY  BY THE COMMISSIONER TO MEET INSURER OR HEALTH
MAINTENANCE ORGANIZATION NETWORK ADEQUACY; PROVIDED, HOWEVER,  THAT  THE
DEPARTMENT  MAY, IN ITS DISCRETION, APPROVE A PROVIDER WHO DOES NOT HAVE
A CONTRACT OR AGREEMENT WITH ONE OR MORE INSURERS OR HEALTH  MAINTENANCE
ORGANIZATIONS IF THE PROVIDER RENDERS A SERVICE THAT MEETS A UNIQUE NEED
FOR SUCH SERVICE UNDER THE EARLY INTERVENTION PROGRAM.  APPROVED PROVID-
ERS SHALL SUBMIT TO THE DEPARTMENT, INFORMATION AND DOCUMENTATION OF THE
INSURERS  AND  HEALTH MAINTENANCE ORGANIZATIONS, WITH WHICH THE PROVIDER
HOLDS AN AGREEMENT OR CONTRACT. A PROVIDER'S APPROVAL WITH  THE  DEPART-
MENT  TO DELIVER EVALUATIONS OR EARLY INTERVENTION SERVICES SHALL TERMI-
NATE IF THE PROVIDER FAILS TO PROVIDE SUCH INFORMATION OR  DOCUMENTATION
ACCEPTABLE  TO THE DEPARTMENT OF ITS CONTRACTS OR AGREEMENTS WITH INSUR-
ERS OR HEALTH MAINTENANCE ORGANIZATIONS AS REQUESTED BY THE DEPARTMENT;
  (c) [compiling  and  disseminating  to  the  municipalities  lists  of
approved  evaluators, service coordinators and providers of early inter-
vention services;
  (d)] monitoring of agencies, institutions and organizations under this
title and  agencies,  institutions  and  organizations  providing  early
intervention  services which are under the jurisdiction of a state early
intervention service agency;
  [(e)] (D) enforcing any obligations imposed on  those  agencies  under
this title or Part H of the federal individuals with disabilities educa-
tion act and its regulations;

S. 6256                             8                            A. 9056

  [(f)]  (E)  providing training and technical assistance to those agen-
cies, institutions and  organizations,  including  initial  and  ongoing
training  and technical assistance to municipalities to help enable them
to identify, locate  and  evaluate  eligible  children,  develop  IFSPs,
ensure the provision of appropriate early intervention services, promote
the  development of new services, where there is a demonstrated need for
such services and afford procedural safeguards to infants  and  toddlers
and their families;
  [(g)] (F) correcting deficiencies that are identified through monitor-
ing; and
  [(h)]  (G) in monitoring early intervention services, the commissioner
shall provide municipalities with the results of  any  review  of  early
intervention  services  undertaken  and shall provide the municipalities
with the opportunity to comment thereon.
  S 7. Subdivision 7 of  section  2551  of  the  public  health  law  is
REPEALED,  and subdivisions 8, 9 and 10 are renumbered subdivisions 7, 8
and 9.
  S 8.  Section 2552 of the public health law, as added by  chapter  428
of  the  laws of 1992, subdivisions 2 and 3 as amended by chapter 231 of
the laws of 1993, and subdivision 4 as added by section 6 of part B3  of
chapter 62 of the laws of 2003, is amended to read as follows:
  S 2552. Responsibility of municipality.  1. Each municipality shall be
responsible  for ensuring that the early intervention services contained
in an IFSP are provided to eligible  children  and  their  families  who
reside in such municipality [and may contract with approved providers of
early  intervention services for such purpose].  THE SERVICE COORDINATOR
SHALL REPORT, IN A MANNER AND FORMAT AS DETERMINED BY THE  MUNICIPALITY,
ON  THE DELIVERY OF SERVICES TO AN ELIGIBLE CHILD IN ACCORDANCE WITH THE
ELIGIBLE CHILD'S IFSP. A MUNICIPALITY MAY REQUEST THAT THE PARENT SELECT
A NEW SERVICE COORDINATOR OR REQUIRE THAT THE SERVICE COORDINATOR SELECT
A NEW PROVIDER OF SERVICES IF THE MUNICIPALITY FINDS  THAT  THE  SERVICE
COORDINATOR  HAS  NOT  BEEN  PERFORMING  HIS  OR HER RESPONSIBILITIES AS
REQUIRED BY THIS TITLE OR  THAT  SERVICES  HAVE  NOT  BEEN  PROVIDED  IN
ACCORDANCE WITH THE ELIGIBLE CHILD'S IFSP.
  2.  [After consultation with early intervention officials, the commis-
sioner shall develop procedures to permit a municipality to contract  or
otherwise  make  arrangements  with other municipalities for an eligible
child and the child's family to receive services from such other munici-
palities.
  3. The municipality shall monitor  claims  for  service  reimbursement
authorized  by this title and shall verify such claims prior to payment.
The municipality shall inform the commissioner of discrepancies in bill-
ing and when payment is to be denied or withheld by the municipality.
  4.] The early intervention official shall require an eligible  child's
parent  to  furnish  the  parents'  and eligible child's social security
numbers for the purpose of the department's and municipality's  adminis-
tration of the program.
  S  9.  Subdivision  1  of  section  2557  of the public health law, as
amended by section 4 of part C of chapter 1 of  the  laws  of  2002,  is
amended to read as follows:
  1.  The  approved  costs,  OTHER THAN THOSE REIMBURSABLE IN ACCORDANCE
WITH SECTION TWENTY-FIVE HUNDRED  FIFTY-NINE  OF  THIS  TITLE,  for  [an
eligible]  A  child  who  receives  an evaluation and early intervention
services pursuant to this title shall be a charge upon the  municipality
wherein the eligible child resides or, where the services are covered by
the  medical  assistance  program,  upon the social services district of

S. 6256                             9                            A. 9056

fiscal responsibility with respect to those eligible  children  who  are
also  eligible  for medical assistance. All approved costs shall be paid
in the first instance and at least quarterly by the appropriate  govern-
ing  body  or  officer  of  the municipality upon vouchers presented and
audited in the same manner as the case of other claims against the muni-
cipality. Notwithstanding the insurance law  or  regulations  thereunder
relating  to  the  permissible  exclusion of payments for services under
governmental programs, no such exclusion shall  apply  with  respect  to
payments  made pursuant to this title. Notwithstanding the insurance law
or any other law or agreement to the contrary, benefits under this title
shall be considered secondary to any [plan of insurance or state govern-
ment benefit program] INSURANCE POLICY, PLAN OR CONTRACT under which  an
eligible child may have coverage, INCLUDING COVERAGE AVAILABLE UNDER THE
MEDICAL  ASSISTANCE PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTAB-
LISHED IN TITLE ONE-A OF THIS ARTICLE, OR UNDER ANY  OTHER  GOVERNMENTAL
THIRD  PARTY  PAYOR.   Nothing in this section shall increase or enhance
coverages provided for within  an  insurance  contract  subject  to  the
provisions of this title.
  S  9-a.  Subdivision  4  of  section  2557 of the public health law is
REPEALED and subdivisions 2 and 5, subdivision 2 as added by chapter 428
of the laws of 1992 and subdivision 5 as added by section 7 of  part  B3
of chapter 62 of the laws of 2003, are amended to read as follows:
  2. The department shall reimburse the approved costs paid by a munici-
pality  for the purposes of this title, other than those reimbursable by
AN INSURER OR HEALTH MAINTENANCE  ORGANIZATION,  OR  GOVERNMENTAL  THIRD
PARTY  PAYOR INCLUDING the medical assistance program or [by third party
payors] THE CHILD HEALTH INSURANCE PROGRAM ESTABLISHED IN TITLE ONE-A OF
THIS ARTICLE, in an amount of fifty percent of the  amount  expended  in
accordance with the rules and regulations of the commissioner; PROVIDED,
HOWEVER,  THAT IN THE DISCRETION OF THE DEPARTMENT AND WITH THE APPROVAL
OF THE DIRECTOR OF THE DIVISION OF THE BUDGET, THE DEPARTMENT MAY  REIM-
BURSE  MUNICIPALITIES  IN  AN  AMOUNT  GREATER THAN FIFTY PERCENT OF THE
AMOUNT EXPENDED.  Such state reimbursement to the municipality shall not
be paid prior to April first of the year in which the approved costs are
paid by  the  municipality,  PROVIDED,  HOWEVER  THAT,  SUBJECT  TO  THE
APPROVAL  OF  THE  DIRECTOR  OF  THE BUDGET, THE DEPARTMENT MAY PAY SUCH
STATE AID REIMBURSEMENT TO THE MUNICIPALITY PRIOR TO SUCH DATE.
  5. [The  department  shall]  (A)  THE  COMMISSIONER,  IN  HIS  OR  HER
DISCRETION, IS AUTHORIZED TO contract with [an independent organization]
ONE  OR  MORE ENTITIES to act as the fiscal agent for the department AND
MUNICIPALITIES WITH RESPECT TO FISCAL MANAGEMENT AND  PAYMENT  OF  EARLY
INTERVENTION  CLAIMS. MUNICIPALITIES SHALL GRANT SUFFICIENT AUTHORITY TO
THE FISCAL AGENT TO ACT ON THEIR BEHALF. MUNICIPALITIES, AND  INDIVIDUAL
AND  AGENCY PROVIDERS AS DEFINED BY THE COMMISSIONER IN REGULATION SHALL
UTILIZE SUCH FISCAL AGENT FOR PAYMENT OF EARLY  INTERVENTION  CLAIMS  AS
DETERMINED  BY  THE  DEPARTMENT  AND  SHALL PROVIDE SUCH INFORMATION AND
DOCUMENTATION AS REQUIRED BY THE DEPARTMENT AND NECESSARY FOR THE FISCAL
AGENT TO CARRY OUT ITS DUTIES.
  (B) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTION ONE  HUNDRED
TWELVE OR ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, SECTIONS ONE
HUNDRED  FORTY-TWO  AND ONE HUNDRED FORTY-THREE OF THE ECONOMIC DEVELOP-
MENT LAW, OR ANY OTHER CONTRARY PROVISION OF LAW,  THE  COMMISSIONER  IS
AUTHORIZED  TO ENTER INTO A CONTRACT OR CONTRACTS UNDER PARAGRAPH (A) OF
THIS SUBDIVISION WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC-
ESS, PROVIDED, HOWEVER, THAT:

S. 6256                            10                            A. 9056

  (I) THE DEPARTMENT SHALL POST ON ITS WEBSITE, FOR A PERIOD OF NO  LESS
THAN THIRTY DAYS:
  (1)  A DESCRIPTION OF THE PROPOSED SERVICES TO BE PROVIDED PURSUANT TO
THE CONTRACT OR CONTRACTS;
  (2) THE CRITERIA FOR SELECTION OF A CONTRACTOR OR CONTRACTORS;
  (3) THE PERIOD OF TIME DURING WHICH A PROSPECTIVE CONTRACTOR MAY  SEEK
SELECTION,  WHICH  SHALL BE NO LESS THAN THIRTY DAYS AFTER SUCH INFORMA-
TION IS FIRST POSTED ON THE WEBSITE; AND
  (4) THE MANNER  BY  WHICH  A  PROSPECTIVE  CONTRACTOR  MAY  SEEK  SUCH
SELECTION, WHICH MAY INCLUDE SUBMISSION BY ELECTRONIC MEANS;
  (II)  ALL REASONABLE AND RESPONSIVE SUBMISSIONS THAT ARE RECEIVED FROM
PROSPECTIVE CONTRACTORS IN A TIMELY FASHION SHALL  BE  REVIEWED  BY  THE
COMMISSIONER; AND
  (III)  THE  COMMISSIONER  SHALL  SELECT SUCH CONTRACTOR OR CONTRACTORS
THAT, IN HIS OR HER DISCRETION, ARE BEST SUITED TO SERVE THE PURPOSES OF
THIS SECTION.
  (C) PARAGRAPH (B) OF THIS SUBDIVISION SHALL APPLY ONLY TO THE  INITIAL
CONTRACT OR CONTRACTS NECESSARY TO OBTAIN THE SERVICES OF A FISCAL AGENT
FOR  EARLY  INTERVENTION  PROGRAM FISCAL MANAGEMENT AND PAYMENT OF EARLY
INTERVENTION CLAIMS AND SHALL NOT APPLY TO SUBSEQUENT  CONTRACTS  NEEDED
TO  MAINTAIN  SUCH SERVICES, AS DETERMINED BY THE COMMISSIONER IN HIS OR
HER DISCRETION.  [A municipality may elect to utilize  the  services  of
such  organization  for early intervention program fiscal management and
claiming as determined by the commissioner or may select an  independent
agent to act as the fiscal agent for such municipality or may act as its
own fiscal agent.]
  S 10. Subdivision 4 of section 2558 of the public health law, as added
by chapter 428 of the laws of 1992, is amended to read as follows:
  4.  Local  contribution. The municipality of residence shall be finan-
cially responsible for the local contribution in  the  amount  of  fifty
percent  of the [approved costs] AMOUNT EXPENDED PROVIDED, HOWEVER, THAT
IN THE DISCRETION OF THE DEPARTMENT AND WITH THE APPROVAL OF THE  DIREC-
TOR OF THE DIVISION OF THE BUDGET, IN ACCORDANCE WITH SUBDIVISION TWO OF
SECTION  TWENTY-FIVE  HUNDRED  FIFTY-SEVEN OF THIS TITLE, THE DEPARTMENT
MAY REQUIRE THAT MUNICIPALITIES BE FINANCIALLY RESPONSIBLE FOR  A  LOCAL
CONTRIBUTION  IN  AN  AMOUNT  LESS  THAN  FIFTY  PERCENT  OF  THE AMOUNT
EXPENDED.  The commissioner shall certify to the comptroller the  amount
of  the  local  contribution owed by each municipality to the state. The
comptroller shall deduct the amount of  such  local  contribution  first
from  any  moneys  due  the municipality pursuant to section twenty-five
hundred fifty-six of this title and then from any other moneys due or to
become due to the municipality.
  S 11. Paragraphs (a), (c) and (d) of subdivision 3 of section 2559  of
the  public  health  law,  paragraph (a) as amended and paragraph (d) as
added by chapter 231 of the laws of 1993, subparagraphs (i) and (ii)  of
paragraph (a) as added by chapter 406 of the laws of 2011, and paragraph
(c)  as  added by chapter 428 of the laws of 1992 are amended to read as
follows:
  (a) Providers of EVALUATIONS AND early  intervention  services  [and],
INCLUDING  transportation services, HEREINAFTER COLLECTIVELY REFERRED TO
IN THIS SUBDIVISION AS "PROVIDER" OR "PROVIDERS",  shall  in  the  first
instance and where applicable, seek payment from all [third party payors
including  governmental agencies] INSURERS AND HEALTH MAINTENANCE ORGAN-
IZATIONS, INCLUDING THE MEDICAL ASSISTANCE PROGRAM AND THE CHILD  HEALTH
INSURANCE  PROGRAM  ESTABLISHED  IN  TITLE ONE-A OF THIS ARTICLE AND ANY
OTHER GOVERNMENTAL THIRD PARTY PAYORS prior to claiming payment  from  a

S. 6256                            11                            A. 9056

given  municipality  for EVALUATIONS CONDUCTED UNDER THE PROGRAM AND FOR
services rendered to eligible children, provided that, [for the  purpose
of  seeking  payment  from  the medical assistance program or from other
third  party  payors,  the  municipality shall be deemed the provider of
such early intervention services to the extent  that  the  provider  has
promptly furnished to the municipality adequate and complete information
necessary  to  support  the  municipality  billing, and provided further
that] the obligation to seek payment shall not apply to a  payment  from
[a  third  party  payor]  AN INSURER who is not prohibited from applying
such payment, and will apply such payment,  to  an  annual  or  lifetime
limit specified in the insured's policy.
  (i)  Parents  shall  provide [and] the municipality [shall obtain] AND
SERVICE COORDINATOR information on any  [plan  of  insurance]  INSURANCE
POLICY, PLAN OR CONTRACT under which an eligible child has coverage.
  (ii)  Parents shall provide the municipality AND THE SERVICE COORDINA-
TOR with a written referral from a primary care provider  as  documenta-
tion,  for  eligible  children, of the medical necessity of early inter-
vention services.
  (III) PROVIDERS SHALL UTILIZE THE DEPARTMENT'S FISCAL AGENT  AND  DATA
SYSTEM  FOR  CLAIMING PAYMENT FROM INSURERS OR HEALTH MAINTENANCE ORGAN-
IZATIONS FOR EVALUATIONS AND SERVICES RENDERED UNDER  THE  EARLY  INTER-
VENTION PROGRAM.
  (IV)  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, RULE OR REGU-
LATION, PAYMENTS MADE BY ANY INSURER OR HEALTH MAINTENANCE  ORGANIZATION
FOR  EVALUATIONS  AND  SERVICES  PROVIDED  UNDER  THE EARLY INTERVENTION
PROGRAM SHALL BE AT RATES  ESTABLISHED  UNDER  AN  AGREEMENT  NEGOTIATED
BETWEEN  THE  INSURER OR HEALTH MAINTENANCE ORGANIZATION, IF APPLICABLE,
PROVIDED, HOWEVER, THAT IF THE INSURER OR HEALTH  MAINTENANCE  ORGANIZA-
TION  MAINTAINS  A  NETWORK  OF PROVIDERS AND A CHILD HAS A DEMONSTRATED
NEED, AS DETERMINED BY THE INSURER OR HEALTH  MAINTENANCE  ORGANIZATION,
IF  APPLICABLE,  FOR AN EVALUATION OR SERVICE RENDERED BY A PROVIDER WHO
IS NOT WITHIN THE INSURER OR HEALTH MAINTENANCE ORGANIZATION'S  NETWORK,
PAYMENT  TO  SUCH  OUT OF NETWORK PROVIDER SHALL BE MADE AT RATES ESTAB-
LISHED BY THE COMMISSIONER IN ACCORDANCE WITH REGULATION.
  (V) PAYMENTS MADE BY ANY INSURER OR HEALTH MAINTENANCE  PROGRAM  SHALL
BE  CONSIDERED PAYMENTS IN FULL FOR SUCH SERVICES AND THE PROVIDER SHALL
NOT SEEK ADDITIONAL PAYMENT FROM THE MUNICIPALITY, CHILD, OR HIS OR  HER
PARENTS  FOR  ANY  PORTION OF THE COSTS OF SAID SERVICES. NOTHING HEREIN
SHALL PROHIBIT AN INSURER OR HEALTH MAINTENANCE ORGANIZATION FROM APPLY-
ING A COPAYMENT, COINSURANCE OR DEDUCTIBLE AS SET FORTH IN THE POLICY OR
PLAN.  PAYMENTS FOR COPAYMENTS, COINSURANCE OR DEDUCTIBLES SHALL BE MADE
IN ACCORDANCE WITH PARAGRAPH (B) OF THIS SUBDIVISION.
  (VI) WHEN PAYMENT UNDER AN INSURANCE POLICY, PLAN OR CONTRACT  IS  NOT
AVAILABLE  OR  HAS  BEEN  EXHAUSTED,  PROVIDERS  SHALL  SEEK PAYMENT FOR
SERVICES IN ACCORDANCE WITH SECTION TWENTY-FIVE HUNDRED  FIFTY-SEVEN  OF
THIS TITLE; PROVIDED, HOWEVER, THAT IF THE SERVICE PROVIDED IS A COVERED
BENEFIT  UNDER  THE POLICY, PLAN OR CONTRACT AND PAYMENT HAS BEEN DENIED
ON GROUNDS OTHER THAN THAT BENEFITS HAVE BEEN  EXHAUSTED,  THE  PROVIDER
SHALL  EXHAUST  ALL  APPEALS OF SAID DENIAL PRIOR TO CLAIMING PAYMENT TO
THE MUNICIPALITY FOR THE SERVICE IN ACCORDANCE WITH SECTION  TWENTY-FIVE
HUNDRED  FIFTY-SEVEN  OF  THIS TITLE. PROVIDERS SHALL NOT DISCONTINUE OR
DELAY SERVICES TO ELIGIBLE CHILDREN PENDING  PAYMENT  OF  THE  CLAIM  OR
DETERMINATIONS OF ANY APPEAL DENIALS.
  (c)  Payments  made for early intervention services under an insurance
policy or health benefit plan, INCLUDING PAYMENTS MADE  BY  THE  MEDICAL
ASSISTANCE  PROGRAM  OR  THE  CHILD HEALTH INSURANCE PROGRAM ESTABLISHED

S. 6256                            12                            A. 9056

UNDER TITLE ONE-A OF THIS ARTICLE  OR  OTHER  GOVERNMENTAL  THIRD  PARTY
PAYOR,  which  are provided as part of an IFSP pursuant to section twen-
ty-five hundred forty-five of this title shall not  be  applied  by  the
insurer  or  plan  administrator  against any maximum lifetime or annual
limits specified in the policy or  health  benefits  plan,  pursuant  to
section eleven of the chapter of the laws of nineteen hundred ninety-two
which added this title.
  [(d)  A  municipality,  or  its  designee, shall be subrogated, to the
extent of the expenditures by such municipality for  early  intervention
services furnished to persons eligible for benefits under this title, to
any  rights  such  person  may  have  or be entitled to from third party
reimbursement. The right of subrogation does not attach to benefits paid
or provided under any health insurance policy or  health  benefits  plan
prior to receipt of written notice of the exercise of subrogation rights
by the insurer or plan administrator providing such benefits.]
  S  12.  Subdivision  7  of  section  2510 of the public health law, as
amended by section 21 of part B of chapter 109 of the laws of  2010,  is
amended to read as follows:
  7.  "Covered  health care services" means: the services of physicians,
optometrists, nurses, nurse practitioners, midwives  and  other  related
professional  personnel  which  are  provided  on  an  outpatient basis,
including routine well-child visits; diagnosis and treatment of  illness
and injury; inpatient health care services; laboratory tests; diagnostic
x-rays;  prescription  and  non-prescription  drugs  and durable medical
equipment; radiation therapy; chemotherapy; hemodialysis; emergency room
services; hospice services; emergency,  preventive  and  routine  dental
care,  including  medically necessary orthodontia but excluding cosmetic
surgery;  emergency,  preventive  and  routine  vision  care,  including
eyeglasses;  speech  and hearing services; and, inpatient and outpatient
mental health, alcohol and substance abuse services as  defined  by  the
commissioner  in  consultation with the superintendent.  "COVERED HEALTH
CARE SERVICES" SHALL ALSO INCLUDE EARLY INTERVENTION  SERVICES  PROVIDED
PURSUANT  TO  TITLE  TWO-A  OF THIS ARTICLE UP TO THE SCOPE AND LEVEL OF
COVERAGE FOR THE SAME SERVICES PROVIDED PURSUANT TO THIS SUBDIVISION, AS
DEFINED BY THE COMMISSIONER. "Covered health care  services"  shall  not
include  drugs,  procedures  and  supplies for the treatment of erectile
dysfunction when provided to, or prescribed for use by, a person who  is
required  to register as a sex offender pursuant to article six-C of the
correction law, provided that any denial  of  coverage  of  such  drugs,
procedures  or  supplies  shall  provide  the  patient with the means of
obtaining additional information concerning  both  the  denial  and  the
means of challenging such denial.
  S 13. Intentionally omitted.
  S  14.  Paragraph  (b)  of subdivision 5 of section 4403 of the public
health law is relettered paragraph (c), paragraph (c), as added by chap-
ter 705 of the laws of 1996, is amended and a new paragraph (b) is added
to read as follows:
  (B) UPON THE EFFECTIVE DATE OF THIS PARAGRAPH AND AT THE TIME OF EVERY
THREE YEAR REVIEW BY THE COMMISSIONER AS SET FORTH IN PARAGRAPH  (A)  OF
THIS  SUBDIVISION,  AND  UPON APPLICATION FOR EXPANSION OF SERVICE AREA,
THE HEALTH MAINTENANCE ORGANIZATION SHALL DEMONSTRATE THAT IT  MAINTAINS
AN ADEQUATE NETWORK OF PROVIDERS WHO ARE APPROVED TO DELIVER EVALUATIONS
AND EARLY INTERVENTION PROGRAM SERVICES IN ACCORDANCE WITH TITLE II-A OF
ARTICLE  TWENTY-FIVE  OF THIS CHAPTER, BY SHOWING TO THE SATISFACTION OF
THE COMMISSIONER THAT (I) THERE ARE A  SUFFICIENT  NUMBER  OF  GEOGRAPH-
ICALLY ACCESSIBLE PARTICIPATING PROVIDERS; AND (II) THERE ARE SUFFICIENT

S. 6256                            13                            A. 9056

PROVIDERS IN EACH AREA OF SPECIALTY OF PRACTICE TO MEET THE NEEDS OF THE
ENROLLMENT POPULATION.
  [(c)] (D) Each organization shall report on an annual basis the number
of enrollees and the number of participating providers in each organiza-
tion.    EACH HEALTH MAINTENANCE ORGANIZATION SHALL MAKE PUBLICLY AVAIL-
ABLE AND UPDATE ON A QUARTERLY BASIS, THE NAMES OF PARTICIPATING PROVID-
ERS IN THE HEALTH MAINTENANCE ORGANIZATION'S NETWORK WHO ARE APPROVED TO
DELIVER EVALUATIONS AND EARLY INTERVENTION PROGRAM SERVICES  IN  ACCORD-
ANCE WITH TITLE II-A OF ARTICLE TWENTY-FIVE OF THIS CHAPTER.
  S 15. Section 4406 of the public health law is amended by adding a new
subdivision 6 to read as follows:
  6.  (A) NO SUBSCRIBER CONTRACT OR BENEFIT PACKAGE SHALL EXCLUDE COVER-
AGE FOR OTHERWISE COVERED SERVICES SOLELY ON THE BASIS THAT THE SERVICES
CONSTITUTE EARLY INTERVENTION PROGRAM SERVICES UNDER TITLE II-A OF ARTI-
CLE TWENTY-FIVE OF THIS CHAPTER.
  (B) WHERE A SUBSCRIBER CONTRACT OR BENEFIT PACKAGE  PROVIDES  COVERAGE
FOR  A SERVICE THAT IS PROVIDED UNDER THE EARLY INTERVENTION PROGRAM AND
IS OTHERWISE COVERED UNDER THE SUBSCRIBER CONTRACT OR  BENEFIT  PACKAGE,
SUCH  COVERAGE  SHALL NOT BE APPLIED AGAINST ANY MAXIMUM ANNUAL OR LIFE-
TIME MONETARY LIMITS SET FORTH IN SUCH SUBSCRIBER  CONTRACT  OR  BENEFIT
PACKAGE.  VISIT  LIMITATIONS  AND  OTHER  TERMS  AND  CONDITIONS  OF THE
SUBSCRIBER CONTRACT OR BENEFIT PACKAGE WILL CONTINUE TO APPLY  TO  EARLY
INTERVENTION  SERVICES.  HOWEVER, ANY VISITS USED FOR EARLY INTERVENTION
PROGRAM SERVICES SHALL NOT REDUCE THE NUMBER OF VISITS OTHERWISE  AVAIL-
ABLE  UNDER THE SUBSCRIBER CONTRACT OR BENEFIT PACKAGE FOR SUCH SERVICES
THAT ARE NOT PROVIDED UNDER THE EARLY INTERVENTION PROGRAM.
  (C) THE HEALTH MAINTENANCE ORGANIZATION SHALL PROVIDE THE MUNICIPALITY
AND SERVICE COORDINATOR WITH  INFORMATION  ON  THE  EXTENT  OF  BENEFITS
AVAILABLE TO AN ENROLLEE UNDER SUCH SUBSCRIBER CONTRACT OR BENEFIT PACK-
AGE WITHIN FIFTEEN DAYS OF THE HEALTH MAINTENANCE ORGANIZATION'S RECEIPT
OF WRITTEN REQUEST AND NOTICE AUTHORIZING SUCH RELEASE.
  (D)  NO  HEALTH  MAINTENANCE  ORGANIZATION  SHALL  REFUSE  TO  ISSUE A
SUBSCRIBER CONTRACT OR BENEFIT PACKAGE OR REFUSE TO RENEW  A  SUBSCRIBER
CONTRACT  OR BENEFIT PACKAGE SOLELY BECAUSE THE APPLICANT OR ENROLLEE IS
RECEIVING SERVICES UNDER THE EARLY INTERVENTION PROGRAM.
  (E) HEALTH MAINTENANCE ORGANIZATIONS SHALL ACCEPT CLAIMS SUBMITTED FOR
PAYMENT UNDER THE CONTRACT FROM  A  PROVIDER  THROUGH  THE  DEPARTMENT'S
FISCAL  AGENT  AND  DATA  SYSTEM  FOR  SUCH CLAIMING. HEALTH MAINTENANCE
ORGANIZATIONS SHALL, IN A MANNER AND FORMAT AS REQUIRED BY  THE  DEPART-
MENT,  PROVIDE  THE  DEPARTMENT WITH INFORMATION ON CLAIMS SUBMITTED FOR
EVALUATIONS AND EARLY INTERVENTION SERVICES PROVIDED TO  CHILDREN  UNDER
THE EARLY INTERVENTION PROGRAM AND DISPOSITION OF SUCH CLAIMS.
  (F)  WHERE  A SUBSCRIBER CONTRACT OR BENEFIT PACKAGE PROVIDES COVERAGE
FOR AN EVALUATION OR  SERVICE  PROVIDED  UNDER  THE  EARLY  INTERVENTION
PROGRAM,  REIMBURSEMENT FOR SUCH EVALUATION OR SERVICE SHALL BE AT RATES
NEGOTIATED BY THE HEALTH MAINTENANCE ORGANIZATION AND PROVIDER PROVIDED,
HOWEVER, THAT IF A CHILD HAS A DEMONSTRATED NEED, AS DETERMINED  BY  THE
HEALTH  MAINTENANCE  ORGANIZATION, FOR AN EVALUATION OR SERVICE RENDERED
BY A PROVIDER WHO DOES NOT HOLD AN AGREEMENT  WITH  THE  CHILD'S  HEALTH
MAINTENANCE  ORGANIZATION  FOR  THE  PROVISION  OF  SERVICES  TO COVERED
PERSONS, PAYMENT TO SUCH OUT OF NETWORK PROVIDER SHALL BE MADE AT  RATES
ESTABLISHED BY THE COMMISSIONER IN ACCORDANCE WITH REGULATION.
  (G)  HEALTH  MAINTENANCE ORGANIZATIONS SHALL ENSURE THAT THE TERMS AND
CONDITIONS CONTAINED IN SUBSCRIBER CONTRACTS OR BENEFIT PACKAGES  RELAT-
ING  TO  PROVISION  OF SERVICES TO CHILDREN UNDER THE EARLY INTERVENTION
PROGRAM COMPLIES WITH TITLE II-A OF ARTICLE TWENTY-FIVE OF THIS  CHAPTER

S. 6256                            14                            A. 9056

AND WITH STANDARDS SET FORTH IN PART C OF THE INDIVIDUALS WITH DISABILI-
TIES  EDUCATION  ACT,  AS  AMENDED  BY THE INDIVIDUALS WITH DISABILITIES
EDUCATION IMPROVEMENT ACT OF 2004.
  S 16.  Intentionally omitted.
  S  17. Subsections (c) and (e) of section 3235-a of the insurance law,
subsection (c) as amended and subsection (e) as added by chapter 406  of
the laws of 2011, are amended, and a new subsection (f) is added to read
as follows:
  (c)  [Any  right  of  subrogation  to benefits which a municipality is
entitled in accordance  with  paragraph  (d)  of  subdivision  three  of
section twenty-five hundred fifty-nine of the public health law shall be
valid  and  enforceable  to  the extent benefits are available under any
accident and health insurance policy. The right of subrogation does  not
attach  to  insurance  benefits  paid or provided under any accident and
health insurance policy prior to  receipt  by  the  insurer  of  written
notice  from  the  municipality.  Upon  the insurer's receipt of written
request and notice from the municipality that such right of  subrogation
has  been  granted to such municipality and that the insured has author-
ized the release of information to the municipality,  the]  THE  insurer
shall  provide the municipality AND SERVICE COORDINATOR with information
on the extent of benefits available to the  covered  person  under  such
policy  WITHIN  FIFTEEN DAYS OF THE INSURER'S RECEIPT OF WRITTEN REQUEST
AND NOTICE AUTHORIZING SUCH RELEASE.
  (e) [Written claim for early intervention program  services  shall  be
submitted  by  the  municipality  as  the  approved  provider within one
hundred fifty days from the date of service.] WHERE A POLICY OF ACCIDENT
AND HEALTH INSURANCE, INCLUDING A CONTRACT ISSUED  PURSUANT  TO  ARTICLE
FORTY-THREE OF THIS CHAPTER, UTILIZES A NETWORK OF PROVIDERS, THE INSUR-
ER SHALL DEMONSTRATE TO THE SUPERINTENDENT THAT IT MAINTAINS AN ADEQUATE
NETWORK  OF  PROVIDERS WHO ARE APPROVED TO DELIVER EVALUATIONS AND EARLY
INTERVENTION PROGRAM SERVICES IN ACCORDANCE WITH TITLE II-A  OF  ARTICLE
TWENTY-FIVE OF THE PUBLIC HEALTH LAW BY DOCUMENTING THAT (I) THERE ARE A
SUFFICIENT  NUMBER OF GEOGRAPHICALLY ACCESSIBLE PARTICIPATING PROVIDERS;
AND (II) THERE ARE SUFFICIENT PROVIDERS IN EACH  AREA  OF  SPECIALTY  OF
PRACTICE TO MEET THE NEEDS OF THE ENROLLMENT POPULATION.  WHERE A POLICY
OF  ACCIDENT  AND HEALTH INSURANCE, INCLUDING A CONTRACT ISSUED PURSUANT
TO ARTICLE FORTY-THREE OF THIS CHAPTER, PROVIDES COVERAGE FOR AN  EVALU-
ATION   OR  SERVICE  PROVIDED  UNDER  THE  EARLY  INTERVENTION  PROGRAM,
REIMBURSEMENT FOR SUCH EVALUATION OR SERVICE SHALL BE AT  RATES  NEGOTI-
ATED BY THE INSURER AND PROVIDER, IF APPLICABLE, PROVIDED, HOWEVER, THAT
IF A CHILD HAS A DEMONSTRATED NEED FOR AN EVALUATION OR SERVICE RENDERED
BY  A  PROVIDER  WHO DOES NOT HOLD AN AGREEMENT WITH THE CHILD'S INSURER
FOR THE PROVISION OF  SERVICES  TO  COVERED  PERSONS,  PAYMENT  TO  SUCH
PROVIDER  SHALL  BE  MADE  AT  RATES  ESTABLISHED BY THE COMMISSIONER OF
HEALTH IN ACCORDANCE WITH REGULATION.
  (F) NOTHING IN THIS SECTION SHALL BE DEEMED TO LIMIT  THE  SUPERINTEN-
DENT'S  AUTHORITY TO IMPOSE NETWORK ADEQUACY REQUIREMENTS ON INSURERS IN
GENERAL.
  S 18. Subdivision 18 of section 4403 of the education law is REPEALED.
  S 19. Paragraph f of subdivision 3 and the opening paragraph of  para-
graph  a  of  subdivision  9  of  section  4410 of the education law, as
amended by chapter 82 of the laws  of  1995,  are  amended  to  read  as
follows:
  f.  After  notification  by [an early intervention official] A SERVICE
COORDINATOR, as defined in section twenty-five hundred forty-one of  the
public  health  law,  that  a child receiving services pursuant to title

S. 6256                            15                            A. 9056

II-A of article twenty-five of the public health  law  potentially  will
transition  to  receiving services under this section and that a confer-
ence is to be convened to review the child's program options and  estab-
lish a transition plan, which conference must occur at least ninety days
before such child would be eligible for services under this section, the
chairperson of the committee on preschool special education of the local
school district or his or her designee in which such child resides shall
participate in the conference.
  Providers  of  special services or programs shall apply to the commis-
sioner for program approval on a form prescribed  by  the  commissioner;
such  application shall include, but not be limited to, a listing of the
services to be provided, the population to be served, a plan for provid-
ing services in the least restrictive environment and a  description  of
its  evaluation  component,  if  any.  [Providers  of early intervention
services seeking approval pursuant to subdivision seven of section twen-
ty-five hundred fifty-one of the public health law shall  apply  to  the
commissioner  for  such approval on a form prescribed by the commission-
er.] The commissioner shall approve programs in  accordance  with  regu-
lations  adopted  for  such  purpose  and shall periodically review such
programs at which time the commissioner shall provide  the  municipality
in  which  the  program  is  located or for which the municipality bears
fiscal responsibility an opportunity for comment within thirty  days  of
the  review. In collaboration with municipalities and representatives of
approved  programs,  the  commissioner  shall  develop  procedures   for
conducting  such reviews. Municipalities shall be allowed to participate
in such departmental review process. Such review shall be  conducted  by
individuals with appropriate experience as determined by the commission-
er and shall be conducted not more than once every three years.
  S 20. Intentionally omitted.
  S 21. Intentionally omitted.
  S 22. Intentionally omitted.
  S  23.  This act shall take effect January 1, 2013; provided, however,
that:
  1. the amendments to subdivision 7  of  section  2510  of  the  public
health law made by section twelve of this act shall not affect the expi-
ration of such subdivision and shall be deemed to expire therewith;
  2. the requirements contained in subparagraph (iv) of paragraph (a) of
subdivision  3  of  section  2559  of the public health law, as added by
section eleven of this act, paragraph (f) of subdivision  6  of  section
4406  of the public health law, as added by section fifteen of this act,
and subsection (e) of section 3235-a of the insurance law, as amended by
section seventeen of this act, as such  sections  pertain  to  requiring
that  an  insurer  or  health maintenance organization make payment to a
provider who is not within the insurer or health  maintenance  organiza-
tion's  network  at  rates  established by the commissioner of health in
accordance with regulation, if a  child  has  a  demonstrated  need,  as
determined  by the insurer or health maintenance organization, if appli-
cable, for an evaluation or service rendered by a provider  who  is  not
within  the  insurer or health maintenance organization's network, shall
apply only to policies, benefit packages and contracts issued,  renewed,
modified,  altered  or  amended  on  or after the effective date of such
sections of this act; and
  3. sections two-a, four, five, seven, eight, nine-a, ten, eighteen and
nineteen of this act shall take effect April 1, 2013.

                                 PART B

S. 6256                            16                            A. 9056

  Section 1. Subdivisions 9, 10 and 11 of section  3555  of  the  public
authorities  law, as added by chapter 5 of the laws of 1997, are amended
to read as follows:
  9. to determine the conditions under which a physician may be extended
the privilege of practicing within a health facility under the jurisdic-
tion of the corporation, to promulgate internal policies for the conduct
of  all  persons, physicians and allied health practitioners within such
facility, and to appoint and grant privileges to qualified and competent
clinical practitioners; [and]
  10. except as provided in this subdivision or as expressly limited  by
any  applicable  state  law  or regulation, and in support of the powers
granted by subdivisions five and six of this section,  to  form  and  to
participate  in  the formation of one or more corporations, and to exer-
cise and perform such purposes, powers, duties, functions or  activities
through  one  or more subsidiary corporations or other entities owned or
controlled wholly or in part by the corporation, which shall  be  formed
pursuant  to the business corporation law, the limited liability company
law, the not-for-profit corporation law, or  the  partnership  law;  any
such subsidiary may be authorized to act as a general or limited partner
in  a  partnership  or  as  a member of a limited liability company, and
enter into an arrangement calling for an initial and subsequent  payment
or  payments or contributions to capital by such subsidiary in consider-
ation of an interest in revenues or other contractual rights.  An entity
shall be deemed a subsidiary corporation whenever and  so  long  as  (a)
more than half of any voting shares or other membership interest of such
subsidiary are owned or held by the corporation or (b) a majority of the
directors,  trustees  or members of such subsidiary are designees of the
corporation[.];
  11. TO ACCEPT FUNDING FROM THE STATE  PURSUANT  TO  PARAGRAPH  (O)  OF
SUBDIVISION  ONE  OF  SECTION TWENTY-EIGHT HUNDRED SEVEN-V OF THE PUBLIC
HEALTH LAW OR PURSUANT TO SECTION TWENTY-EIGHT HUNDRED EIGHTEEN  OF  THE
PUBLIC HEALTH LAW, PROVIDED, HOWEVER, THAT AS A CONDITION FOR RECEIPT OF
SUCH  FUNDS THE CORPORATION IS REQUIRED TO TAKE ALL NECESSARY AND APPRO-
PRIATE STEPS AND ARRANGEMENTS, INCLUDING BUT NOT  LIMITED  TO,  ENTERING
INTO  AN  ARRANGEMENT  FOR  MERGER OR OTHER AFFILIATION WITH ONE OR MORE
HEALTH CARE,  ACADEMIC  OR  OTHER  ENTITIES,  LOCATED  WITHIN  THE  SAME
GEOGRAPHICAL REGION AS THE CORPORATION, FOR THE PURPOSE OF PROMOTING THE
CONTINUED FINANCIAL VIABILITY OF THE CORPORATION, PROTECTING AND PROMOT-
ING  THE  HEALTH OF THE PATIENTS SERVED BY ITS HEALTH FACILITIES AND, TO
THE EXTENT POSSIBLE, CONTRIBUTING TO THE ECONOMIC REVITALIZATION OF  THE
REGION BY BECOMING OPERATIONALLY AND FISCALLY INDEPENDENT OF THE DEPART-
MENT  OF  HEALTH BY NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND FOUR-
TEEN, AND PROVIDED FURTHER, HOWEVER, THAT  THE  COMMISSIONER  OF  HEALTH
SHALL  MONITOR  SUCH  STEPS AND ARRANGEMENTS, ESTABLISH GOALS AND BENCH-
MARKS FOR THE ACHIEVEMENT OF  SUCH  INDEPENDENCE,  INTERCEDE  AS  DEEMED
NECESSARY  AND  APPROPRIATE  AND  DELAY  OR  PRECLUDE  THE CORPORATION'S
RECEIPT OF SUCH FUNDS IN THE EVENT THE COMMISSIONER OF HEALTH DETERMINES
THAT SUCH GOALS AND BENCHMARKS HAVE NOT BEEN MET.
  12. No subsidiary of the corporation shall  own,  operate,  manage  or
control  the existing research, education, acute inpatient or outpatient
facilities and services now operated by the Roswell Park  Cancer  Insti-
tute.
  S 2. This act shall take effect April 1, 2012.

                                 PART C

S. 6256                            17                            A. 9056

  Section  1.  The  public health law is amended by adding a new section
4148 to read as follows:
  S 4148. ELECTRONIC DEATH REGISTRATION SYSTEM. 1. LEGISLATIVE FINDINGS.
THE  LEGISLATURE  FINDS THAT IT IS NECESSARY TO UPDATE AND MODERNIZE THE
STATE'S SYSTEM OF  FILING  AND  MAINTAINING  INFORMATION  AND  DOCUMENTS
RELATED  TO  THE REGISTRATION OF DEATH. AN ELECTRONIC DEATH REGISTRATION
SYSTEM WILL PROMOTE ACCURACY AND PROVIDE FOR MORE TIMELY TRANSMISSION OF
DOCUMENTATION, PROMOTING EFFICIENCY IN THE OPERATIONS OF THE DEPARTMENT,
WHICH OVERSEES THE DEATH REGISTRATION FILING PROCESS; LOCAL  REGISTRARS,
WHICH ACCEPT AND FILE CERTIFICATES OF DEATH AND ISSUE BURIAL AND FUNERAL
PERMITS;  HEALTH  CARE  INSTITUTIONS  AND  PRACTITIONERS,  CORONERS  AND
MEDICAL EXAMINERS, WHICH PREPARE CERTIFICATES  OF  DEATH;  AND  LICENSED
FUNERAL  DIRECTORS AND UNDERTAKERS, WHO REQUIRE PROMPT ACCESS TO CERTIF-
ICATES OF DEATH TO CONDUCT BURIALS AND FUNERALS  IN  A  TIMELY  FASHION.
LICENSED FUNERAL DIRECTORS AND UNDERTAKERS HAVE EXPRESSED THEIR INTEREST
IN  PARTNERING  WITH THE DEPARTMENT TO SUPPORT THE ESTABLISHMENT OF SUCH
SYSTEM THROUGH A CONTRIBUTION, TENDERED  FOR  EACH  BURIAL  AND  FUNERAL
PERMIT  ISSUED  TO  A  LICENSED  FUNERAL  DIRECTOR OR UNDERTAKER, IN THE
AMOUNT OF TWENTY DOLLARS.
  2. THE DEPARTMENT IS HEREBY AUTHORIZED TO DESIGN, IMPLEMENT AND  MAIN-
TAIN  AN  ELECTRONIC  DEATH REGISTRATION SYSTEM FOR COLLECTING, STORING,
RECORDING, TRANSMITTING, AMENDING, CORRECTING AND AUTHENTICATING  INFOR-
MATION,  AS  NECESSARY AND APPROPRIATE TO COMPLETE A DEATH REGISTRATION,
AND TO GENERATE SUCH  DOCUMENTS  AS  DETERMINED  BY  THE  DEPARTMENT  IN
RELATION TO A DEATH OCCURRING IN THIS STATE. THE CONTRIBUTION REFERENCED
IN SUBDIVISION ONE OF THIS SECTION SHALL BE COLLECTED FOR EACH BURIAL OR
REMOVAL  PERMIT  ISSUED  ON  OR AFTER THE EFFECTIVE DATE OF THIS SECTION
FROM THE LICENSED FUNERAL DIRECTOR OR UNDERTAKER TO WHOM SUCH PERMIT  IS
ISSUED, IN THE MANNER SPECIFIED BY THE DEPARTMENT.
  3.  COMMENCING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, THE
DEPARTMENT MAY REQUIRE THAT DEATHS OCCURRING WITHIN THIS STATE  MUST  BE
REGISTERED USING THE ELECTRONIC DEATH REGISTRATION SYSTEM ESTABLISHED IN
THIS  SECTION. ELECTRONIC DEATH REGISTRATION MAY BE PHASED IN, AS DETER-
MINED BY THE COMMISSIONER, FOR DEATHS OCCURRING IN THE STATE  UNTIL  THE
ELECTRONIC DEATH REGISTRATION SYSTEM IS FULLY IMPLEMENTED IN THE STATE.
  4.  COMMENCING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, ALL
PERSONS REQUIRED TO REGISTER A DEATH UNDER THIS ARTICLE, AND SUCH OTHERS
AS MAY BE AUTHORIZED BY THE COMMISSIONER, SHALL HAVE ACCESS TO THE ELEC-
TRONIC DEATH REGISTRATION SYSTEM FOR THE PURPOSE OF ENTERING INFORMATION
REQUIRED TO EXECUTE, COMPLETE AND FILE A  CERTIFICATE  OF  DEATH  OR  TO
RETRIEVE  SUCH INFORMATION OR GENERATE DOCUMENTATION FROM THE ELECTRONIC
DEATH REGISTRATION SYSTEM. THE  CONFIDENTIALITY  PROVISIONS  IN  SECTION
FORTY-ONE  HUNDRED  FORTY-SEVEN OF THIS TITLE SHALL APPLY TO INFORMATION
MAINTAINED IN THIS SYSTEM.
  5. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, COMMENCING ON
OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, ANY REQUIREMENT  OF  THIS
TITLE FOR A SIGNATURE OF ANY PERSON SHALL BE DEEMED SATISFIED BY THE USE
BY  SUCH  PERSON OF DIGITAL SIGNATURE PROVIDED SUCH PERSON IS AUTHORIZED
IN ACCORDANCE WITH THIS SECTION TO USE THE ELECTRONIC DEATH REGISTRATION
SYSTEM.
  S 2. Subdivision 1 of section 4100-a of  the  public  health  law,  as
amended  by chapter 644 of the laws of 1988, is amended and a new subdi-
vision 5 is added to read as follows:
  1. The term "certified copy" means a photographic reproduction in  the
form  of a photocopy or a microfilm print of the original certificate OR
ELECTRONICALLY PRODUCED PRINT OF THE ORIGINAL CERTIFICATE, COMMENCING ON

S. 6256                            18                            A. 9056

OR AFTER JANUARY FIRST, TWO THOUSAND  FOURTEEN,  and  certified  by  the
commissioner,  his  designated representative, a local registrar [or his
deputy], DEPUTY REGISTRAR OR SUB-REGISTRAR as a true copy thereof.
  5.  THE  TERM  "ELECTRONIC  DEATH  REGISTRATION SYSTEM" MEANS THE DATA
SYSTEM CREATED AND MAINTAINED BY THE DEPARTMENT FOR COLLECTING, STORING,
RECORDING, TRANSMITTING, AMENDING, CORRECTING AND AUTHENTICATING  INFOR-
MATION,  AS  NECESSARY AND APPROPRIATE TO COMPLETE A DEATH REGISTRATION,
AND TO GENERATE SUCH DOCUMENTS AS DETERMINED BY THE DEPARTMENT,  INCLUD-
ING  PERMITS  OR  CERTIFICATES,  RELATING  TO  A DEATH OCCURRING IN THIS
STATE.
  S 3. Subdivision 1 of section 4140 of the public health law is amended
to read as follows:
  1. The death of each person who has died in this state shall be regis-
tered immediately and not later than seventy-two hours  after  death  or
the  finding  of  a dead human body, by filing with the registrar of the
district in which the death occurred or the body was found a certificate
of such death, [which certificate shall be upon the form]  IN  A  MANNER
AND  FORMAT AS prescribed by the commissioner, WHICH MAY INCLUDE THROUGH
ELECTRONIC  MEANS  IN  ACCORDANCE   WITH   SECTION   FORTY-ONE   HUNDRED
FORTY-EIGHT OF THIS TITLE.
  S  4.  Section  4141-a of the public health law, as amended by chapter
153 of the laws of 2011, is amended to read as follows:
  S 4141-a. Death certificate; duties of hospital administrator. When  a
death occurs in a hospital, except in those cases where certificates are
issued  by  coroners  or medical examiners, the person in charge of such
hospital or his or her designated representative shall promptly  present
the certificate to the physician or nurse practitioner in attendance, or
a physician or nurse practitioner acting in his or her behalf, who shall
promptly  certify to the facts of death, provide the medical information
required by the certificate, sign the medical certificate of death,  and
thereupon  return  such certificate to such person, so that the seventy-
two hour registration time limit prescribed in section four thousand one
hundred forty of this title can be met; PROVIDED, HOWEVER THAT  COMMENC-
ING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, INFORMATION AND
SIGNATURES REQUIRED BY THIS  SECTION  SHALL  BE  OBTAINED  AND  MADE  IN
ACCORDANCE WITH SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF THIS TITLE.
  S  5. Section 4142 of the public health law is amended by adding a new
subdivision (e) to read as follows:
  (E) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF LAW AS MAY BE SET FORTH
IN THIS SECTION, COMMENCING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
FOURTEEN,  INFORMATION AND SIGNATURES REQUIRED BY THIS SUBDIVISION SHALL
BE OBTAINED AND  MADE  IN  ACCORDANCE  WITH  SECTION  FORTY-ONE  HUNDRED
FORTY-EIGHT OF THIS TITLE.
  S  6.  Paragraph  (b)  of  subdivision  2  and subdivisions 3 and 5 of
section 4144 of the public health law, paragraph (b) of subdivision 2 as
amended by chapter 153 of the laws of  2011,  are  amended  to  read  as
follows:
  (b)  Verbal  permission to remove a body of a deceased person from the
county in which death occurred or the body was found to  a  non-adjacent
county  within  the state of New York, as provided in subdivision one of
this section, shall be issued by the said registrar of vital statistics,
upon request by telephone of a licensed funeral director  or  undertaker
who  holds  a  certificate of death signed by the attending physician or
nurse practitioner, OR FOR DEATHS OCCURRING ON OR AFTER  JANUARY  FIRST,
TWO THOUSAND FOURTEEN, SUCH CERTIFICATE OF DEATH SIGNED BY THE ATTENDING
PHYSICIAN  OR  NURSE PRACTITIONER IS AVAILABLE ELECTRONICALLY IN ACCORD-

S. 6256                            19                            A. 9056

ANCE WITH SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF THIS  TITLE,  showing
that  the  death  resulted  from  natural causes and was not a result of
accidental, suicidal, homicidal or other external causes.
  3.  No  registrar  of  vital  statistics shall receive any fee for the
issuance of burial or removal  permits  under  this  chapter  EXCEPT  AS
REFERENCED  BY  SECTION  FORTY-ONE HUNDRED FORTY-EIGHT OF THIS TITLE AND
other than the compensation provided in this article.
  5. If the interment, or other disposition of the body  of  a  deceased
person  is  to  be  made  within the state, the wording of the burial or
removal permit may be limited to a statement by the registrar, and  over
his  signature,  that  a  satisfactory certificate of death, having been
filed with him, as required by law,  permission  is  granted  to  inter,
remove  or  otherwise  dispose  of the body, stating the name, age, sex,
cause of death, and other necessary details [upon the form prescribed by
the commissioner] IN A MANNER AND FORMAT  AS  MAY  BE  REQUIRED  BY  THE
COMMISSIONER.
  S  7.  Subdivisions  1 and 4 of section 4161 of the public health law,
subdivision 1 as amended by chapter 589 of the laws of 1991 and subdivi-
sion 4 as amended by chapter 153 of the laws of  2011,  are  amended  to
read as follows:
  1.  The certificate of fetal death and the report of fetal death shall
contain such information and be in such form  as  the  commissioner  may
prescribe;  PROVIDED  HOWEVER THAT COMMENCING ON OR AFTER JANUARY FIRST,
TWO THOUSAND FOURTEEN,  INFORMATION  AND  SIGNATURES  REQUIRED  BY  THIS
SUBDIVISION  SHALL  BE  OBTAINED  AND  MADE  IN  ACCORDANCE WITH SECTION
FORTY-ONE HUNDRED  FORTY-EIGHT  OF  THIS  ARTICLE,  except  that  unless
requested  by  the woman neither the certificate nor the report of fetal
death shall contain the name of the woman, her social security number or
any other information which would permit her to be identified except  as
provided  in this subdivision. The report shall state that a certificate
of fetal death was filed with the commissioner  and  the  date  of  such
filing. The commissioner shall develop a unique, confidential identifier
to  be  used  on the certificate of fetal death to be used in connection
with the exercise of the commissioner's authority to monitor the quality
of care provided by any individual or  entity  licensed  to  perform  an
abortion in this state and to permit coordination of data concerning the
medical  history  of  the  woman for purposes of conducting surveillance
scientific studies and research pursuant to the provisions of  paragraph
(j) of subdivision one of section two hundred six of this chapter.
  4.  When  a  fetal  death  occurs in a hospital, except in those cases
where certificates are issued by  coroners  or  medical  examiners,  the
person  in  charge  of  such hospital or his or her designated represen-
tative shall promptly present the certificate to the physician or  nurse
practitioner  in attendance, or a physician or nurse practitioner acting
in his or her behalf, who shall promptly certify to the facts  of  birth
and  of  fetal  death,  provide  the medical information required by the
certificate, sign the medical certificate of birth and death, and there-
upon return such certificate to such person,  so  that  the  seventy-two
hour  registration  time  limit  prescribed in section four thousand one
hundred sixty of this title can be met; PROVIDED, HOWEVER THAT  COMMENC-
ING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, INFORMATION AND
SIGNATURES REQUIRED BY THIS SUBDIVISION SHALL BE OBTAINED  AND  MADE  IN
ACCORDANCE WITH SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF THIS ARTICLE.
  S 8. Subdivision 3 of section 4171 of the public health law is amended
to read as follows:

S. 6256                            20                            A. 9056

  3.  All certificates, either of birth or death, shall be written legi-
bly, in durable black ink, [and no] PROVIDED HOWEVER, THAT COMMENCING ON
OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, DEATH CERTIFICATES  SHALL
BE COMPLETED IN ACCORDANCE WITH SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF
THIS  ARTICLE.  NO  certificate,  WHETHER  FILED  IN PAPER FORM OR DEATH
CERTIFICATE FILED ELECTRONICALLY IN ACCORDANCE  WITH  SECTION  FORTY-ONE
HUNDRED  FORTY-EIGHT  OF  THIS ARTICLE, shall be held to be complete and
correct that does not supply all of the items of information called  for
therein, or satisfactorily account for their omission.
  S  9.  This act shall take effect immediately; provided, however, that
if chapter 153 of the laws of 2011 is not in effect on  such  date  then
the  amendments  made  to section 4141-a of the public health law, para-
graph (b) of subdivision 2 of section 4144 of the public health law  and
subdivision 4 of section 4161 of the public health law by sections four,
six  and  seven  of this act shall take effect on the same date and same
manner as chapter 153 of  the  laws  of  2011,  takes  effect;  provided
further  that  the  commissioner  of  health is authorized to promulgate
regulations as necessary to implement the provisions of this act.

                                 PART D

  Section 1. 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
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
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. THE COMMISSIONER IS 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
THE DEPARTMENT SHALL BE ITEMIZED IN  THE  ANNUAL  BUDGET  IN  AN  AMOUNT
DETERMINED  BY THE COMMISSIONER, 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 THE COMMISSIONER 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

S. 6256                            21                            A. 9056

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 THE DEPARTMENT 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.  THE  COMMISSIONER SHALL PROMULGATE REGULATIONS, AND MAY PROMULGATE
EMERGENCY REGULATIONS, TO EFFECTUATE THE PROVISIONS OF THIS SECTION.
  S 2. Paragraph (e) of subdivision 1 of section  461-l  of  the  social
services law, as added by chapter 165 of the laws of 1991, is amended to
read as follows:
  (e)  "Services"  shall  mean all services for which full payment to an
assisted living program is included in the capitated  rate  of  payment,
which  shall include personal care services, home care services and such
other services as the commissioner in conjunction with the  commissioner
of health determine by regulation must be included in the capitated rate
of  payment,  and  which  the  assisted living program shall provide, or
arrange for the provision of, through contracts with a  social  services
district, [a] long term home health care [program or a] PROGRAMS, certi-
fied  home health [agency, and] AGENCIES, AND/OR other qualified provid-
ers.
  S 3. Paragraphs (b) and (d) of subdivision 2 of section 461-l  of  the
social  services  law,  as  added by chapter 165 of the laws of 1991 and
subparagraph (iii) of paragraph (d) as amended by  chapter  569  of  the
laws of 2000, are amended to read as follows:
  (b)  If  an  assisted  living  program  itself is not a certified home
health agency or long term home health care program, the assisted living
program shall contract with [a] ONE OR MORE certified home health [agen-
cy or] AGENCIES AND/OR long term home health care [program] PROGRAMS for
the provision of services pursuant to article thirty-six of  the  public
health law. [An assisted living program shall contract with no more than
one  certified home health agency or long term home health care program,
provided, however, that the commissioner and the commissioner of  health
may approve additional contracts for good cause.]
  (d)  Patient services and care. (i) An assisted living program[, or if
the assisted living program itself does not include  a  long  term  home
health  care  program or certified home health agency an assisted living
program and a long term home  health  care  program  or  certified  home
health agency,] shall conduct an initial assessment to determine whether
a  person would otherwise require placement in a residential health care

S. 6256                            22                            A. 9056

facility if not for the availability of the assisted living program  and
is appropriate for admission to an assisted living program. The assisted
living  program  shall  forward  such assessment of a medical assistance
applicant or recipient to the appropriate social services district.
  (ii)  No  person  shall  be determined eligible for and admitted to an
assisted living program unless the assisted living program [and the long
term home health care program or the certified home health  care  agency
agree, based on the initial assessment,] FINDS that the person meets the
criteria  provided  in  paragraph (d) of subdivision one of this section
and unless the appropriate social  services  district  prior  authorizes
payment for services.
  (iii)  Appropriate  services  shall  be provided to an eligible person
only in accordance with a plan of care which is based  upon  an  initial
assessment  and  periodic  reassessments conducted by an assisted living
program[, or if the assisted living program itself does  not  include  a
long  term  home  health care program or certified home health agency an
assisted living program and a long term  home  health  care  program  or
certified  home  health  agency].  A  reassessment shall be conducted as
frequently as is required to respond to changes in the resident's condi-
tion and ensure immediate access to necessary and  appropriate  services
by  the  resident,  but  in no event less frequently than once every six
months. No person shall be admitted to or retained in an assisted living
program unless [the assisted living program, and long term  home  health
care  program or certified home health agency are in agreement that] the
person can be safely and adequately cared  for  with  the  provision  of
services determined by such assessment or reassessment.
  S  4.  Paragraph  (i)  of subdivision 3 of section 461-l of the social
services law is REPEALED.
  S 5. Intentionally Omitted.
  S 6. Subdivision 2 of section 365-a of  the  social  services  law  is
amended  by  adding four new paragraphs (w), (x), (y) and (z) to read as
follows:
  (W) PODIATRY SERVICES FOR INDIVIDUALS WITH  A  DIAGNOSIS  OF  DIABETES
MELLITUS; PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS PARAGRAPH SHALL
NOT  TAKE  EFFECT  UNLESS  ALL NECESSARY APPROVALS UNDER FEDERAL LAW AND
REGULATION HAVE BEEN OBTAINED TO RECEIVE FEDERAL FINANCIAL PARTICIPATION
IN THE COSTS OF HEALTH CARE SERVICES PROVIDED  PURSUANT  TO  THIS  PARA-
GRAPH.
  (X)  LACTATION  COUNSELING  SERVICES FOR PREGNANT AND POSTPARTUM WOMEN
WHEN SUCH SERVICES ARE ORDERED  BY  A  PHYSICIAN,  REGISTERED  PHYSICIAN
ASSISTANT,  REGISTERED  NURSE  PRACTITIONER,  OR  LICENSED  MIDWIFE  AND
PROVIDED BY A CERTIFIED  LACTATION  CONSULTANT,  AS  DETERMINED  BY  THE
COMMISSIONER  OF  HEALTH; PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS
PARAGRAPH SHALL NOT TAKE EFFECT UNLESS  ALL  NECESSARY  APPROVALS  UNDER
FEDERAL  LAW AND REGULATION HAVE BEEN OBTAINED TO RECEIVE FEDERAL FINAN-
CIAL PARTICIPATION IN THE COSTS OF HEALTH CARE SERVICES PROVIDED  PURSU-
ANT  TO  THIS PARAGRAPH. NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO
MODIFY ANY LICENSURE, CERTIFICATION OR SCOPE OF PRACTICE PROVISION UNDER
TITLE EIGHT OF THE EDUCATION LAW.
  (Y) HARM REDUCTION COUNSELING AND SERVICES TO REDUCE OR  MINIMIZE  THE
ADVERSE  HEALTH CONSEQUENCES ASSOCIATED WITH DRUG USE, WHEN ORDERED BY A
PHYSICIAN, REGISTERED PHYSICIAN ASSISTANT, REGISTERED NURSE  PRACTITION-
ER,  OR  LICENSED  MIDWIFE  AND  PROVIDED  BY A QUALIFIED DRUG TREATMENT
PROGRAM OR COMMUNITY-BASED ORGANIZATION, AS DETERMINED  BY  THE  COMMIS-
SIONER  OF  HEALTH; PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS PARA-
GRAPH SHALL NOT TAKE EFFECT UNLESS ALL NECESSARY APPROVALS UNDER FEDERAL

S. 6256                            23                            A. 9056

LAW AND REGULATION HAVE  BEEN  OBTAINED  TO  RECEIVE  FEDERAL  FINANCIAL
PARTICIPATION  IN THE COSTS OF HEALTH CARE SERVICES PROVIDED PURSUANT TO
THIS PARAGRAPH. NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED  TO  MODIFY
ANY  LICENSURE, CERTIFICATION OR SCOPE OF PRACTICE PROVISION UNDER TITLE
EIGHT OF THE EDUCATION LAW.
  (Z) HEPATITIS C WRAP-AROUND SERVICES TO PROMOTE CARE COORDINATION  AND
INTEGRATION WHEN ORDERED BY A PHYSICIAN, REGISTERED PHYSICIAN ASSISTANT,
REGISTERED  NURSE  PRACTITIONER,  OR LICENSED MIDWIFE, AND PROVIDED BY A
QUALIFIED PROFESSIONAL, AS DETERMINED BY  THE  COMMISSIONER  OF  HEALTH.
SUCH  SERVICES  MAY INCLUDE CLIENT OUTREACH, IDENTIFICATION AND RECRUIT-
MENT, HEPATITIS C EDUCATION AND COUNSELING,  COORDINATION  OF  CARE  AND
ADHERENCE  TO TREATMENT, ASSISTANCE IN OBTAINING APPROPRIATE ENTITLEMENT
SERVICES, PEER SUPPORT AND OTHER SUPPORTIVE SERVICES; PROVIDED, HOWEVER,
THAT THE PROVISIONS OF THIS PARAGRAPH SHALL NOT TAKE EFFECT  UNLESS  ALL
NECESSARY  APPROVALS UNDER FEDERAL LAW AND REGULATION HAVE BEEN OBTAINED
TO RECEIVE FEDERAL FINANCIAL PARTICIPATION IN THE COSTS OF  HEALTH  CARE
SERVICES PROVIDED PURSUANT TO THIS PARAGRAPH.  NOTHING IN THIS PARAGRAPH
SHALL  BE  CONSTRUED  TO MODIFY ANY LICENSURE, CERTIFICATION OR SCOPE OF
PRACTICE PROVISION UNDER TITLE EIGHT OF THE EDUCATION LAW.
  S 7. Paragraph (g) of subdivision 2 of section  365-a  of  the  social
services  law,  as  amended by section 23 of part H of chapter 59 of the
laws of 2011, is amended to read as follows:
  (g) sickroom supplies, eyeglasses, prosthetic  appliances  and  dental
prosthetic  appliances  furnished  in accordance with the regulations of
the department; provided further that: (i) the commissioner of health is
authorized to implement a preferred diabetic supply program wherein  the
department  of  health  will  receive  enhanced  rebates  from preferred
manufacturers of glucometers and test strips, and may  subject  non-pre-
ferred manufacturers' glucometers and test strips to prior authorization
under  section  two hundred seventy-three of the public health law; (ii)
enteral formula therapy  and  nutritional  supplements  are  limited  to
coverage  only for nasogastric, jejunostomy, or gastrostomy tube feeding
or for treatment of an inborn metabolic disorder, or to  address  growth
and  development  problems  in children, OR, SUBJECT TO STANDARDS ESTAB-
LISHED BY  THE  COMMISSIONER,  FOR  PERSONS  WITH  A  DIAGNOSIS  OF  HIV
INFECTION,  AIDS OR HIV-RELATED ILLNESS; (iii) prescription footwear and
inserts are limited to coverage only when used as an integral part of  a
lower  limb orthotic appliance, as part of a diabetic treatment plan, or
to address  growth  and  development  problems  in  children;  and  (iv)
compression and support stockings are limited to coverage only for preg-
nancy or treatment of venous stasis ulcers;
  S 8. Intentionally Omitted.
  S 9. Intentionally Omitted.
  S  10.  Paragraph  (d)  of subdivision 2 of section 3332 of the public
health law, as amended by chapter 178 of the laws of  2010,  is  amended
and a new paragraph (e) is added to read as follows:
  (d)  the  date upon which such prescription was actually signed by the
prescribing practitioner[.]; AND
  (E) IF THE PATIENT IS A  LIMITED  ENGLISH  PROFICIENT  INDIVIDUAL,  AS
DEFINED  IN  SECTION THREE THOUSAND THREE HUNDRED NINETY-EIGHT-A OF THIS
CHAPTER, INDICATION OF SUCH  STATUS  AND  INDICATION  OF  THE  PATIENT'S
PRIMARY LANGUAGE.
  S  11.    Section 3333 of the public health law is amended by adding a
new subdivision 6 to read as follows:
  6. IF THE PHARMACIST KNOWS OR HAS REASON TO KNOW THAT THE PATIENT IS A
LIMITED ENGLISH PROFICIENT INDIVIDUAL, AS DEFINED IN SECTION THREE THOU-

S. 6256                            24                            A. 9056

SAND THREE HUNDRED NINETY-EIGHT-A OF THIS CHAPTER, THE PHARMACIST  SHALL
PROVIDE  FOR  TRANSLATION  OR  OTHER  LANGUAGE  SERVICES  AS REQUIRED IN
SECTION THREE THOUSAND THREE HUNDRED  NINETY-EIGHT-A  OF  THIS  CHAPTER,
UNLESS DOING SO WOULD COMPROMISE THE CARE OF THE PATIENT.
  S  12.  Paragraphs (b) and (c) of subdivision 1 of section 3334 of the
public health law, as amended by chapter 178 of the laws  of  2010,  are
amended and a new paragraph (d) is added to read as follows:
  (b)  dispense  the  substance in conformity with the labeling require-
ments applicable to the type of prescription which would be required but
for the emergency; [and]
  (c) make a good faith effort to verify the practitioner's identity, if
the practitioner is unknown to the pharmacist[.]; AND
  (D) IF THE PHARMACIST KNOWS OR HAS REASON TO KNOW THAT THE PATIENT  IS
A  LIMITED  ENGLISH  PROFICIENT  INDIVIDUAL, AS DEFINED IN SECTION THREE
THOUSAND THREE HUNDRED NINETY-EIGHT-A OF THIS  CHAPTER,  THE  PHARMACIST
SHALL  PROVIDE FOR TRANSLATION OR OTHER LANGUAGE SERVICES AS REQUIRED IN
SECTION THREE THOUSAND THREE HUNDRED  NINETY-EIGHT-A  OF  THIS  CHAPTER,
UNLESS DOING SO WOULD COMPROMISE THE CARE OF THE PATIENT.
  S  13.  Subdivision  1  of  section  3337  of the public health law is
amended by adding a new paragraph (d) to read as follows:
  (D) IF THE PHARMACIST KNOWS OR HAS REASON TO KNOW THAT THE PATIENT  IS
A  LIMITED  ENGLISH  PROFICIENT  INDIVIDUAL, AS DEFINED IN SECTION THREE
THOUSAND THREE HUNDRED NINETY-EIGHT-A OF THIS  CHAPTER,  THE  PHARMACIST
SHALL  PROVIDE FOR TRANSLATION OR OTHER LANGUAGE SERVICES AS REQUIRED IN
SECTION THREE THOUSAND THREE HUNDRED  NINETY-EIGHT-A  OF  THIS  CHAPTER,
UNLESS DOING SO WOULD COMPROMISE THE CARE OF THE PATIENT.
  S  14.    Subdivision  1  of section 3338 of the public health law, as
amended by section 12 of part A of chapter 58 of the laws  of  2004,  is
amended to read as follows:
  1.  Official  New  York state prescription forms shall be prepared and
issued by the department in the FORMAT, manner and detail as the commis-
sioner in consultation with the commissioner of education may, by  regu-
lation, require, and, each form shall be serialized. Such forms shall be
furnished to practitioners authorized to write such prescriptions and to
institutional  dispensers.  Such prescription blanks shall not be trans-
ferable.
  S 15. Subdivision b of section 6804 of the education law, as added  by
chapter 987 of the laws of 1971, is amended to read as follows:
  b. To regulate and control the sale, distribution, character and stan-
dard of drugs, poisons, cosmetics, devices and new drugs, INCLUDING, BUT
NOT  LIMITED  TO,  IN  CONJUNCTION  WITH THE COMMISSIONER OF HEALTH, THE
DEVELOPMENT OF REQUIREMENTS  RELATED  TO  THE  SALE,  DISTRIBUTION,  AND
DISPENSING  OF  DRUGS  AND  NEW  DRUGS  TO  ADDRESS THE SPECIAL NEEDS OF
PERSONS WHO ARE ELDERLY, OF LIMITED VISION OR OF LIMITED ENGLISH  PROFI-
CIENCY,
  S 16. Section 6810 of the education law is amended by adding three new
subdivisions 10, 11 and 12 to read as follows:
  10.  COVERED  PHARMACIES,  AS  DEFINED IN SECTION THREE THOUSAND THREE
HUNDRED NINETY-EIGHT-A OF THE PUBLIC HEALTH  LAW,  MUST  PROVIDE  TRANS-
LATION  AND  INTERPRETATION  SERVICES FOR PATIENTS HAVING LIMITED PROFI-
CIENCY IN ENGLISH, SUBJECT TO REGULATIONS OF THE  COMMISSIONER  AND  THE
PROVISIONS OF SECTION THREE THOUSAND THREE HUNDRED NINETY-EIGHT-A OF THE
PUBLIC HEALTH LAW.
  11.  IF  THE  PATIENT  IS  LIMITED  ENGLISH  PROFICIENT, AS DEFINED IN
SECTION THREE THOUSAND THREE HUNDRED NINETY-EIGHT-A OF THE PUBLIC HEALTH

S. 6256                            25                            A. 9056

LAW, INDICATION OF SUCH STATUS AND INDICATION OF THE  PATIENT'S  PRIMARY
LANGUAGE.
  12.  IF THE PHARMACIST KNOWS OR HAS REASON TO KNOW THAT THE PATIENT IS
OF LIMITED ENGLISH PROFICIENCY, AS DEFINED  IN  SECTION  THREE  THOUSAND
THREE  HUNDRED  NINETY-EIGHT-A  OF THE PUBLIC HEALTH LAW, THE PHARMACIST
SHALL PROVIDE FOR TRANSLATION OR OTHER LANGUAGE SERVICES AS REQUIRED  IN
SUCH SECTION, UNLESS DOING SO WOULD COMPROMISE THE CARE OF THE PATIENT.
  S 17. The public health law is amended by adding a new article 33-B to
read as follows:
                              ARTICLE 33-B
                 STANDARDS FOR PRESCRIPTION MEDICATIONS
SECTION 3398.   APPLICATION.
        3398-A. INTERPRETATION REQUIREMENTS FOR PRESCRIPTION DRUGS.
  S 3398. APPLICATION. THIS ARTICLE APPLIES TO MEDICATIONS PRESCRIBED BY
PRACTITIONERS  AUTHORIZED  TO  PRESCRIBE  MEDICATIONS, INCLUDING BUT NOT
LIMITED TO CONTROLLED SUBSTANCES, PURSUANT TO TITLE EIGHT OF THE  EDUCA-
TION  LAW;  PROVIDED,  HOWEVER, THAT TO THE EXTENT THERE IS ANY CONFLICT
BETWEEN THE PROVISIONS OF THIS ARTICLE AND  THE  PROVISIONS  OF  ARTICLE
THIRTY-THREE  OF THIS TITLE WITH RESPECT TO PRESCRIPTIONS FOR CONTROLLED
SUBSTANCES, THE PROVISIONS OF ARTICLE THIRTY-THREE OF THIS  TITLE  SHALL
CONTROL.
  S  3398-A. INTERPRETATION REQUIREMENTS FOR PRESCRIPTION DRUGS.  1. FOR
THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
ING MEANINGS:
  (A) "COVERED PHARMACY" MEANS ANY PHARMACY THAT IS PART OF A  GROUP  OF
FIVE  OR MORE PHARMACIES OWNED BY THE SAME CORPORATE ENTITY, OR WHICH IS
A MAIL ORDER PHARMACY.  FOR PURPOSES OF THIS SECTION, "CORPORATE ENTITY"
SHALL INCLUDE RELATED SUBSIDIARIES, AFFILIATES, SUCCESSORS, OR ASSIGNEES
DOING BUSINESS AS OR OPERATING UNDER A COMMON NAME OR TRADING SYMBOL;
  (B) "LIMITED ENGLISH PROFICIENT INDIVIDUAL" OR "LEP INDIVIDUAL"  MEANS
AN INDIVIDUAL WHO IDENTIFIES AS BEING, OR IS EVIDENTLY, UNABLE TO SPEAK,
READ  OR WRITE ENGLISH AT A LEVEL THAT PERMITS SUCH INDIVIDUAL TO UNDER-
STAND HEALTH RELATED  AND  PHARMACEUTICAL  INFORMATION  COMMUNICATED  IN
ENGLISH;
  (C)"TRANSLATE"  SHALL  MEAN  THE CONVERSION OF A WRITTEN TEXT FROM ONE
LANGUAGE INTO AN EQUIVALENT WRITTEN TEXT IN ANOTHER LANGUAGE BY AN INDI-
VIDUAL COMPETENT TO DO SO AND UTILIZING ALL NECESSARY PHARMACEUTICAL AND
HEALTH-RELATED TERMINOLOGY;
  (D) "COMPETENT ORAL INTERPRETATION" MEANS ORAL COMMUNICATION IN  WHICH
A  PERSON  ACTING  AS  AN  INTERPRETER  COMPREHENDS A SPOKEN MESSAGE AND
RE-EXPRESSES THAT MESSAGE ACCURATELY IN ANOTHER LANGUAGE, UTILIZING  ALL
NECESSARY PHARMACEUTICAL AND HEALTH-RELATED TERMINOLOGY, SO AS TO ENABLE
AN  LEP INDIVIDUAL TO RECEIVE ALL NECESSARY INFORMATION IN THE LEP INDI-
VIDUAL'S PRIMARY LANGUAGE;
  (E) "PHARMACY PRIMARY LANGUAGES" SHALL MEAN THE  TOP  SEVEN  LANGUAGES
SPOKEN  BY LEP INDIVIDUALS IN THIS STATE AS DETERMINED BIENNIALLY BY THE
STATE BOARD OF PHARMACY BASED ON DATA  FROM  THE  MOST  RECENT  AMERICAN
COMMUNITY SURVEY FROM THE UNITED STATES CENSUS BUREAU AND OTHER RELEVANT
DATA SOURCES;
  (F) "MAIL ORDER PHARMACY" SHALL MEAN A PHARMACY THAT DISPENSES MOST OF
ITS  PRESCRIPTIONS  THROUGH  THE  UNITED  STATES POSTAL SERVICE OR OTHER
DELIVERY SERVICES.
  2. (A) EVERY COVERED PHARMACY SHALL PROVIDE FREE, COMPETENT  ORAL  AND
WRITTEN  INTERPRETATION  SERVICES,  TO  EACH  LEP  INDIVIDUAL  FILLING A
PRESCRIPTION AT OR THROUGH SUCH COVERED PHARMACY, IN  THE  LEP  INDIVID-
UAL'S  PRIMARY  LANGUAGE  FOR  THE PURPOSE OF COUNSELING SUCH INDIVIDUAL

S. 6256                            26                            A. 9056

ABOUT HIS OR HER PRESCRIPTION MEDICATIONS AND INTERPRETING LABEL  INFOR-
MATION,  OR  WHEN SOLICITING INFORMATION NECESSARY TO MAINTAIN A PATIENT
MEDICATION PROFILE, UNLESS THE LEP INDIVIDUAL  IS  OFFERED  AND  REFUSES
SUCH SERVICES;
  (B)  EVERY  COVERED PHARMACY SHALL PROVIDE FREE, COMPETENT ORAL INTER-
PRETATION OF PRESCRIPTION MEDICATION LABELS, WARNING  LABELS  AND  OTHER
WRITTEN  MATERIAL  TO  EACH  LEP INDIVIDUAL FILLING A PRESCRIPTION AT OR
THROUGH SUCH COVERED PHARMACY UNLESS THE LEP INDIVIDUAL IS  OFFERED  AND
REFUSES  SUCH SERVICES, OR THE MEDICATION LABEL WARNING LABELS AND OTHER
WRITTEN MATERIALS HAVE ALREADY BEEN TRANSLATED INTO THE LANGUAGE  SPOKEN
BY THE LEP INDIVIDUAL;
  (C)  THE  SERVICES REQUIRED BY THIS SECTION MAY BE PROVIDED BY A STAFF
MEMBER OF  THE  COVERED  PHARMACY  OR  A  THIRD-PARTY  CONTRACTOR.  SUCH
SERVICES MUST BE PROVIDED ON AN IMMEDIATE BASIS BUT NEED NOT BE PROVIDED
IN-PERSON OR FACE-TO-FACE.
  3.  EVERY COVERED PHARMACY SHALL CONSPICUOUSLY POST, AT OR ADJACENT TO
EACH COUNTER OVER WHICH PRESCRIPTION DRUGS  ARE  SOLD,  AND  EVERY  MAIL
ORDER PHARMACY, SHALL INCLUDE IN THE PACKAGE IN WHICH PRESCRIPTION DRUGS
ARE  DELIVERED,  A NOTIFICATION OF THE RIGHT TO FREE LANGUAGE ASSISTANCE
SERVICES FOR LEP INDIVIDUALS AS PROVIDED FOR IN SUBDIVISION TWO OF  THIS
SECTION.  SUCH  NOTIFICATIONS  SHALL BE PROVIDED IN THE PHARMACY PRIMARY
LANGUAGES. THE SIZE, STYLE AND PLACEMENT OF SUCH NOTICE SHALL BE  DETER-
MINED IN ACCORDANCE WITH RULES PROMULGATED BY THE COMMISSIONER.
  4.  ANY  PERSON AGGRIEVED BY A FAILURE TO RECEIVE SERVICES REQUIRED BY
THIS SECTION SHALL HAVE A CAUSE OF ACTION ONLY AGAINST THE COVERED PHAR-
MACY IN ANY COURT OF COMPETENT JURISDICTION FOR DAMAGES, INCLUDING PUNI-
TIVE DAMAGES, AND FOR INJUNCTIVE RELIEF AND SUCH OTHER REMEDIES  AS  MAY
BE APPROPRIATE.
  5.  THIS  SECTION  SHALL  PREEMPT ANY CONTRARY LOCAL LAW OR ORDINANCE,
EXCEPT THAT THIS SECTION SHALL NOT PREEMPT OR SUPERSEDE  LOCAL  LAWS  OR
ORDINANCES  IMPOSING  ADDITIONAL  OR  STRICTER  REQUIREMENTS RELATING TO
INTERPRETATION OR TRANSLATION SERVICES IN PHARMACIES.
  S 18. Section 6509 of the education law is amended  by  adding  a  new
subdivision 15 to read as follows:
  (15)  A  VIOLATION OF SUBDIVISION TWO OR THREE OF SECTION THIRTY-THREE
HUNDRED NINETY-EIGHT-A OF THE PUBLIC HEALTH LAW, BUT ONLY AS TO A  PHAR-
MACY AND NOT AS TO AN INDIVIDUAL LICENSED PHARMACIST.
  S  19.   Subdivisions (f) and (g) of section 2522 of the public health
law, as amended by chapter 484 of the laws of 2009, are  amended  and  a
new subdivision (h) is added to read as follows:
  (f)  follow-up  of  patient  participation  in prenatal care services;
[and]
  (g) identification of regional perinatal health care  system  barriers
and  limitations that lead to poor perinatal outcomes and development of
strategies to address such barriers and limitations[.]; AND
  (H) COORDINATION OF SERVICE DELIVERY BY COMMUNITY-BASED  ORGANIZATIONS
AMONG  HEALTH  CARE  PROVIDERS AND HEALTH PLANS USING HEALTH INFORMATION
TECHNOLOGY AND UNIFORM SCREENING CRITERIA FOR PERINATAL RISK.
  S 20. Intentionally Omitted.
  S 21. Intentionally Omitted.
  S 22. Section 366 of the social services law is amended  by  adding  a
new subdivision 15 to read as follows:
  15.  (A)  THE  COMMISSIONER  MAY CONTRACT WITH ONE OR MORE ENTITIES TO
ENGAGE IN  EDUCATION,  OUTREACH  SERVICES,  AND  FACILITATED  ENROLLMENT
ACTIVITIES FOR AGED, BLIND, AND DISABLED PERSONS WHO MAY BE ELIGIBLE FOR
COVERAGE UNDER THIS TITLE.

S. 6256                            27                            A. 9056

  (B) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTIONS ONE HUNDRED
TWELVE AND ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, OR SECTIONS
ONE HUNDRED FORTY-TWO AND ONE HUNDRED FORTY-THREE OF THE ECONOMIC DEVEL-
OPMENT  LAW, OR ANY OTHER CONTRARY PROVISION OF LAW, THE COMMISSIONER IS
AUTHORIZED  TO ENTER INTO A CONTRACT OR CONTRACTS UNDER THIS SUBDIVISION
WITHOUT A COMPETITIVE BID OR REQUEST  FOR  PROPOSAL  PROCESS,  PROVIDED,
HOWEVER, THAT:
  (I)  THE DEPARTMENT SHALL POST ON ITS WEBSITE, FOR A PERIOD OF NO LESS
THAN THIRTY DAYS:
  (1) A DESCRIPTION OF THE PROPOSED SERVICES TO BE PROVIDED PURSUANT  TO
THE CONTRACT OR CONTRACTS;
  (2) THE CRITERIA FOR SELECTION OF A CONTRACTOR OR CONTRACTORS;
  (3)  THE PERIOD OF TIME DURING WHICH A PROSPECTIVE CONTRACTOR MAY SEEK
SELECTION, WHICH SHALL BE NO LESS THAN THIRTY DAYS AFTER  SUCH  INFORMA-
TION IS FIRST POSTED ON THE WEBSITE; AND
  (4)  THE  MANNER  BY  WHICH  A  PROSPECTIVE  CONTRACTOR  MAY SEEK SUCH
SELECTION, WHICH MAY INCLUDE SUBMISSION BY ELECTRONIC MEANS;
  (II) ALL REASONABLE AND RESPONSIVE SUBMISSIONS THAT ARE RECEIVED  FROM
PROSPECTIVE  CONTRACTORS  IN  TIMELY  FASHION  SHALL  BE REVIEWED BY THE
COMMISSIONER; AND
  (III) THE COMMISSIONER SHALL SELECT  SUCH  CONTRACTOR  OR  CONTRACTORS
THAT, IN HIS OR HER DISCRETION, ARE BEST SUITED TO SERVE THE PURPOSES OF
THIS SUBDIVISION.
  S  23. The public health law is amended by adding a new article 9-B to
read as follows:
                                ARTICLE 9-B
         PRIMARY CARE SERVICE CORPS PRACTITIONER LOAN REPAYMENT
                                 PROGRAM
SECTION 923. DEFINITIONS.
        924. PRIMARY CARE  SERVICE  CORPS  PRACTITIONER  LOAN  REPAYMENT
        PROGRAM.
  S  923.  DEFINITIONS.   THE FOLLOWING WORDS OR PHRASES AS USED IN THIS
SECTION SHALL HAVE THE FOLLOWING MEANINGS:
  1. "UNDERSERVED AREA" MEANS AN AREA  OR  MEDICALLY  UNDERSERVED  POPU-
LATION  DESIGNATED  BY  THE COMMISSIONER AS HAVING A SHORTAGE OF PRIMARY
CARE PHYSICIANS, OTHER PRIMARY CARE PRACTITIONERS, DENTAL  PRACTITIONERS
OR MENTAL HEALTH PRACTITIONERS.
  2. "PRIMARY CARE SERVICE CORPS PRACTITIONER" MEANS A PHYSICIAN ASSIST-
ANT,  NURSE  PRACTITIONER, NURSE MIDWIFE, GENERAL OR PEDODONTIC DENTIST,
DENTAL HYGIENIST, CLINICAL PSYCHOLOGIST, LICENSED CLINICAL SOCIAL  WORK-
ER,  PSYCHIATRIC NURSE PRACTITIONER, LICENSED MARRIAGE AND FAMILY THERA-
PIST, OR A LICENSED MENTAL HEALTH COUNSELOR,  WHO  IS  LICENSED,  REGIS-
TERED,  OR  CERTIFIED  TO  PRACTICE  IN  NEW YORK STATE AND WHO PROVIDES
COORDINATED PRIMARY CARE SERVICES, INCLUDING, BUT NOT LIMITED  TO,  ORAL
HEALTH AND MENTAL HEALTH SERVICES.
  3.  "PHYSICIAN  ASSISTANT"  MEANS  A PERSON WHO HAS BEEN REGISTERED AS
SUCH PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE-B OF THE EDUCATION LAW.
  4. "NURSE PRACTITIONER" MEANS A PERSON WHO HAS BEEN CERTIFIED AS  SUCH
PURSUANT TO SECTION SIXTY-NINE HUNDRED TEN OF THE EDUCATION LAW.
  5. "NURSE MIDWIFE" MEANS A PERSON WHO HAS BEEN LICENSED AS SUCH PURSU-
ANT TO SECTION SIXTY-NINE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW.
  6.  "PSYCHOLOGIST" MEANS A PERSON WHO HAS BEEN LICENSED AS SUCH PURSU-
ANT TO SECTION SEVENTY-SIX HUNDRED THREE OF THE EDUCATION LAW.
  7. "LICENSED CLINICAL SOCIAL WORKER"  MEANS  A  PERSON  WHO  HAS  BEEN
LICENSED  AS  SUCH  PURSUANT TO SECTION SEVENTY-SEVEN HUNDRED TWO OF THE
EDUCATION LAW.

S. 6256                            28                            A. 9056

  8. "PSYCHIATRIC NURSE PRACTITIONER" MEANS A NURSE PRACTITIONER WHO, BY
REASON OF TRAINING AND EXPERIENCE, PROVIDES A FULL SPECTRUM OF PSYCHIAT-
RIC CARE, ASSESSING, DIAGNOSING, AND MANAGING THE PREVENTION AND  TREAT-
MENT OF PSYCHIATRIC DISORDERS AND MENTAL HEALTH PROBLEMS.
  9.  "LICENSED  MARRIAGE  AND  FAMILY THERAPIST" MEANS A PERSON WHO HAS
BEEN LICENSED AS SUCH PURSUANT TO SECTION EIGHTY-FOUR HUNDRED  THREE  OF
THE EDUCATION LAW.
  10.  "LICENSED  MENTAL  HEALTH  COUNSELOR" MEANS A PERSON WHO HAS BEEN
LICENSED AS SUCH PURSUANT TO SECTION  EIGHTY-FOUR  HUNDRED  TWO  OF  THE
EDUCATION LAW.
  11.  "GENERAL  OR  PEDODONTIC  DENTIST"  MEANS  A  PERSON WHO HAS BEEN
LICENSED OR OTHERWISE AUTHORIZED TO PRACTICE DENTISTRY PURSUANT TO ARTI-
CLE ONE HUNDRED THIRTY-THREE OF THE EDUCATION  LAW  EXCLUDING  ORTHODON-
TISTS, ENDODONTISTS AND PERIODONTISTS.
  12.  "DENTAL  HYGIENIST"  MEANS  A  PERSON WHO IS LICENSED TO PRACTICE
DENTAL HYGIENE PURSUANT TO SECTION SIXTY-SIX HUNDRED NINE OF THE  EDUCA-
TION LAW.
  S 924. PRIMARY CARE SERVICE CORPS PRACTITIONER LOAN REPAYMENT PROGRAM.
1. THE COMMISSIONER IS AUTHORIZED, WITHIN AMOUNTS AVAILABLE THEREFOR, TO
MAKE  LOAN REPAYMENT AWARDS TO ELIGIBLE PRIMARY CARE SERVICE CORPS PRAC-
TITIONERS WHO AGREE TO PRACTICE FULL-TIME IN AN UNDERSERVED AREA IN  NEW
YORK  STATE, IN AMOUNTS TO BE DETERMINED BY THE COMMISSIONER, BUT NOT TO
EXCEED THIRTY-TWO THOUSAND DOLLARS PER YEAR FOR ANY YEAR IN  WHICH  SUCH
PRACTITIONERS PROVIDE FULL-TIME ELIGIBLE OBLIGATED SERVICE.
  2.  LOAN REPAYMENT AWARDS MADE TO A PRIMARY CARE SERVICE CORPS PRACTI-
TIONER PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL NOT EXCEED  THE
TOTAL QUALIFYING OUTSTANDING DEBT OF THE PRACTITIONER FROM STUDENT LOANS
TO  COVER  TUITION  AND  OTHER  RELATED EDUCATIONAL EXPENSES, MADE BY OR
GUARANTEED BY THE FEDERAL OR STATE GOVERNMENT, OR MADE BY A  LENDING  OR
EDUCATIONAL  INSTITUTION  APPROVED  UNDER TITLE IV OF THE FEDERAL HIGHER
EDUCATION ACT. LOAN REPAYMENT AWARDS SHALL BE USED SOLELY TO REPAY  SUCH
OUTSTANDING DEBT.
  3.  IN  THE EVENT THAT ANY COMMITMENT PURSUANT TO THE AGREEMENT REFER-
ENCED IN SUBDIVISION ONE OF THIS SECTION IS NOT FULFILLED, THE RECIPIENT
SHALL BE RESPONSIBLE FOR REPAYMENT IN AMOUNTS WHICH SHALL BE  CALCULATED
IN  ACCORDANCE  WITH THE FORMULA SET FORTH IN SUBDIVISION (B) OF SECTION
TWO HUNDRED FIFTY-FOUR-O OF TITLE FORTY-TWO OF THE UNITED  STATES  CODE,
AS AMENDED.
  4.  THE  COMMISSIONER  IS  AUTHORIZED TO APPLY ANY FUNDS AVAILABLE FOR
PURPOSES OF SUBDIVISION ONE OF THIS SECTION FOR USE  AS  MATCHING  FUNDS
FOR  ANY AVAILABLE FEDERAL GRANTS FOR THE PURPOSE OF ASSISTING STATES IN
OPERATING LOAN REPAYMENT PROGRAMS.
  5. THE COMMISSIONER MAY POSTPONE, CHANGE OR WAIVE  THE  SERVICE  OBLI-
GATION AND REPAYMENTS AMOUNTS SET FORTH IN SUBDIVISIONS ONE AND THREE OF
THIS  SECTION,  RESPECTIVELY, IN INDIVIDUAL CIRCUMSTANCES WHERE THERE IS
COMPELLING NEED OR HARDSHIP.
  6. IN ORDER TO BE ELIGIBLE TO RECEIVE A  LOAN  REPAYMENT  AWARD  UNDER
THIS  SECTION,  A PRIMARY CARE SERVICE CORPS PRACTITIONER MUST MEET SITE
AND SERVICE ELIGIBILITY CRITERIA AS DETERMINED BY THE COMMISSIONER.
  7. THE COMMISSIONER SHALL PROMULGATE REGULATIONS NECESSARY TO EFFECTU-
ATE THE PROVISIONS AND PURPOSES OF THIS ARTICLE.
  S 24.  Paragraph (a) of subdivision 4 of section 2801-a of the  public
health law, as amended by section 57 of part A of chapter 58 of the laws
of 2010, is amended to read as follows:
  (a)  Any  change in the person who is the operator of a hospital shall
be approved by the public health and health planning council in  accord-

S. 6256                            29                            A. 9056

ance  with the provisions of subdivisions two and three of this section.
NO CHANGE IN THE DIRECTORS OF A NOT-FOR-PROFIT CORPORATION THAT  IS  THE
OPERATOR  OF  A HOSPITAL SHALL BE EFFECTIVE UNLESS, AT LEAST ONE HUNDRED
TWENTY  DAYS  PRIOR  TO  THE INTENDED EFFECTIVE DATE THEREOF, THE CORPO-
RATION FULLY COMPLETES AND FILES WITH THE DEPARTMENT NOTICE ON  A  FORM,
TO BE DEVELOPED BY THE DEPARTMENT, WHICH SHALL DISCLOSE SUCH INFORMATION
AS  MAY  REASONABLY BE NECESSARY FOR THE DEPARTMENT TO DETERMINE WHETHER
IT SHOULD BAR THE CHANGE IN DIRECTORS. Notwithstanding any  inconsistent
provision  of  this paragraph, any change by a natural person who is the
operator of a hospital seeking to transfer part of his or  her  interest
in such hospital to another person or persons so as to create a partner-
ship  shall  be  approved in accordance with the provisions of paragraph
(b) of this subdivision.
  S 25. Section 2806 of the public health law is amended by adding a new
subdivision 2-a to read as follows:
  2-A. (A) THE COMMISSIONER MAY TEMPORARILY SUSPEND OR LIMIT AN  OPERAT-
ING  CERTIFICATE OF A NOT-FOR-PROFIT CORPORATION WITHOUT A HEARING UPON:
(I) THE COMMENCEMENT BY THE DEPARTMENT OF AN ACTION TO REVOKE,  SUSPEND,
LIMIT  OR  ANNUL  THE OPERATING CERTIFICATE PURSUANT TO PARAGRAPH (A) OF
SUBDIVISION ONE OF THIS SECTION DUE TO REPEATED VIOLATIONS OF THIS ARTI-
CLE OR RULES AND REGULATIONS PROMULGATED THEREUNDER; (II) THE INDICTMENT
ON FELONY CHARGES OF ANY MEMBER OF THE CORPORATION'S BOARD OF  DIRECTORS
OR  (III)  NOTICE  FROM  THE ATTORNEY GENERAL OF AN ACTION TO REMOVE ANY
MEMBER OF THE CORPORATION'S BOARD OF DIRECTORS PURSUANT TO PARAGRAPH (D)
OF SECTION SEVEN HUNDRED SIX OF THE NOT-FOR-PROFIT CORPORATION LAW. SUCH
SUSPENSION OR LIMITATION  OF  THE  OPERATING  CERTIFICATE  SHALL  REMAIN
EFFECTIVE  UNTIL  THE  RESOLUTION  OF  THE  CRIMINAL  ACTION THAT IS THE
SUBJECT OF THE INDICTMENT OR UNTIL THE RESOLUTION OF THE ACTION  OF  THE
ATTORNEY GENERAL, AS APPLICABLE.
  (B)  IN  THE  EVENT  ONE  OR MORE MEMBERS OF A BOARD OF DIRECTORS OF A
NOT-FOR-PROFIT CORPORATION ARE THE SUBJECT OF  AN  ACTION  TO  LIMIT  AN
OPERATING  CERTIFICATE  PURSUANT  TO PARAGRAPH (A) OF SUBDIVISION ONE OF
THIS SECTION, HAVE BEEN INDICTED ON FELONY CHARGES, OR ARE  THE  SUBJECT
OF  AN  ACTION FOR REMOVAL BY THE ATTORNEY GENERAL AS DESCRIBED IN PARA-
GRAPH (A) OF THIS SUBDIVISION, THE COMMISSIONER MAY, IN ADDITION TO  HIS
OR  HER  OTHER  POWERS, LIMIT THE EXISTING OPERATING CERTIFICATE OF SUCH
CORPORATION SO THAT IT SHALL APPLY ONLY TO THE REMAINING MEMBERS OF  THE
BOARD  OF  DIRECTORS  PROVIDED THAT: (I) EVERY SUCH PERSON SUBJECT TO AN
ACTION TO LIMIT THE OPERATING CERTIFICATE PURSUANT TO PARAGRAPH  (A)  OF
SUBDIVISION  ONE  OF  THIS SECTION, EVERY SUCH INDICTED PERSON, OR EVERY
SUCH PERSON SUBJECT TO AN  ACTION  FOR  REMOVAL  SHALL  IMMEDIATELY  AND
COMPLETELY  CEASE  AND  WITHDRAW FROM PARTICIPATION, IN ANY CAPACITY, IN
THE MANAGEMENT, GOVERNANCE OR OPERATION OF THE HOSPITAL;  AND  (II)  THE
COMMISSIONER HAS FOUND THAT THE REMAINING MEMBERS OF THE BOARD OF DIREC-
TORS ARE OF SUCH CHARACTER, EXPERIENCE, COMPETENCE AND STANDING SO AS TO
GIVE REASONABLE ASSURANCE OF THEIR ABILITY TO CONDUCT THE AFFAIRS OF THE
CORPORATION  IN  ITS  BEST  INTERESTS AND IN THE PUBLIC INTEREST. IF THE
CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH ARE
NOT MET, OR IF THE LIMITATION OF THE OPERATING  CERTIFICATE  UNDER  THIS
PARAGRAPH  RESULTS  IN  A BOARD OF DIRECTORS OF LESS THAN THREE MEMBERS,
THE COMMISSIONER SHALL TEMPORARILY  SUSPEND  THE  OPERATING  CERTIFICATE
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
  (C) WHERE THE COMMISSIONER HAS FOUND THAT THE SUSPENSION OR LIMITATION
OF A HOSPITAL OPERATING CERTIFICATE PURSUANT TO THIS SECTION WOULD JEOP-
ARDIZE  EXISTING  OR  CONTINUED  ACCESS TO NECESSARY SERVICES WITHIN THE
COMMUNITY, THE COMMISSIONER MAY APPOINT TEMPORARY MEMBERS OF  THE  BOARD

S. 6256                            30                            A. 9056

OF  DIRECTORS  TO OPERATE AND MANAGE THE HOSPITAL DURING THE TERM OF THE
SUSPENSION.
  S  26.  Paragraphs (a) and (b) of subdivision 5 of section 2806 of the
public health law, paragraph (a) as amended by section 20 of part LL  of
chapter  56  of the laws of 2010 and paragraph (b) as amended by chapter
607 of the laws of 1981, are amended to read as follows:
  (a) Except as provided in paragraphs (b) and (d) of this  subdivision,
anything  contained  in  this section or in a certificate of relief from
disabilities or a certificate of good conduct issued pursuant to article
twenty-three of the correction law to the  contrary  notwithstanding,  a
hospital operating certificate of a hospital under control of a control-
ling person as defined in paragraph (a) of subdivision twelve of section
twenty-eight  hundred  one-a  of  this  article, or under control of any
other entity, shall be revoked upon a finding  by  the  department  that
such  controlling  person  or  any  individual, member of a partnership,
MEMBER OF A LIMITED LIABILITY COMPANY, MEMBER OF A BOARD  OF  DIRECTORS,
or shareholder of a corporation to whom or to which an operating certif-
icate  has  been issued, has been convicted of a class A, B or C felony,
or a felony related in any way to any activity or program subject to the
regulations, supervision, or administration of the department or of  the
office  of  temporary  and  disability assistance or in violation of the
public officers law in a court of competent jurisdiction in  the  state,
or  of  a  crime outside the state which, if committed within the state,
would have been a class A, B or C felony or a felony related in any  way
to  any  activity or program subject to the regulations, supervision, or
administration of the department or of the office of temporary and disa-
bility assistance or in violation of the public officers law.
  (b) In the event one or more members of a  partnership,  MEMBER  OF  A
LIMITED LIABILITY COMPANY, MEMBER OF A BOARD OF DIRECTORS, or sharehold-
ers  of a corporation shall have been convicted of a felony as described
in paragraph (a) of this subdivision, the commissioner shall,  in  addi-
tion  to  his  other powers, limit the existing operating certificate of
such partnership or corporation so that  it  shall  apply  only  to  the
remaining  partner,  MEMBER  OF A LIMITED LIABILITY COMPANY, MEMBER OF A
BOARD OF DIRECTORS, or shareholders, as the case may be,  provided  that
every  such convicted person immediately and completely ceases and with-
draws from participation, IN ANY CAPACITY, in the management and  opera-
tion  of  the  hospital,  and  further  provided that an application for
approval of change of ownership, CHANGE OF BOARD MEMBERSHIP, or transfer
of stock is  filed  without  delay  in  accordance  with  the  pertinent
provisions of section twenty-eight hundred one-a of this [chapter] ARTI-
CLE.
  S  27. The public health law is amended by adding a new section 2806-a
to read as follows:
  S 2806-A. TEMPORARY OPERATOR. 1. FOR THE  PURPOSES  OF  THIS  SECTION:
(A)  THE TERM "ADULT CARE FACILITY" SHALL MEAN AN ADULT HOME OR ENRICHED
HOUSING PROGRAM  LICENSED  PURSUANT  TO  ARTICLE  SEVEN  OF  THE  SOCIAL
SERVICES  LAW OR AN ASSISTED LIVING RESIDENCE LICENSED PURSUANT TO ARTI-
CLE FORTY-SIX-B OF THIS CHAPTER; (B)  THE  TERM  "ESTABLISHED  OPERATOR"
SHALL MEAN THE OPERATOR OF AN ADULT CARE FACILITY, A GENERAL HOSPITAL OR
A  DIAGNOSTIC  AND TREATMENT CENTER THAT HAS BEEN ESTABLISHED AND ISSUED
AN OPERATING CERTIFICATE AS SUCH PURSUANT TO THIS ARTICLE; (C) THE  TERM
"FACILITY"  SHALL MEAN (I) A GENERAL HOSPITAL OR A DIAGNOSTIC AND TREAT-
MENT CENTER THAT HAS BEEN ISSUED AN OPERATING CERTIFICATE AS SUCH PURSU-
ANT TO THIS ARTICLE; OR (II) AN ADULT CARE FACILITY; AND  (D)  THE  TERM
"TEMPORARY OPERATOR" SHALL MEAN ANY PERSON OR ENTITY THAT:

S. 6256                            31                            A. 9056

  (I)  AGREES  TO  OPERATE  A  FACILITY ON A TEMPORARY BASIS IN THE BEST
INTERESTS OF ITS RESIDENTS OR PATIENTS AND THE COMMUNITY SERVED  BY  THE
FACILITY; AND
  (II) HAS DEMONSTRATED THAT HE OR SHE HAS THE CHARACTER, COMPETENCE AND
FINANCIAL  ABILITY TO OPERATE THE FACILITY IN COMPLIANCE WITH APPLICABLE
STANDARDS.
  2. (A) WHEN A STATEMENT OF DEFICIENCIES HAS BEEN ISSUED BY THE DEPART-
MENT AND UPON A DETERMINATION  BY  THE  COMMISSIONER  THAT  THERE  EXIST
SIGNIFICANT  MANAGEMENT  FAILURES, INCLUDING BUT NOT LIMITED TO ADMINIS-
TRATIVE, OPERATIONAL OR CLINICAL DEFICIENCIES OR FINANCIAL  INSTABILITY,
IN  A FACILITY THAT (I) SERIOUSLY ENDANGER THE LIFE, HEALTH OR SAFETY OF
RESIDENTS OR PATIENTS OR (II) JEOPARDIZE EXISTING OR CONTINUED ACCESS TO
NECESSARY SERVICES WITHIN THE COMMUNITY,  HE  OR  SHE  SHALL  APPOINT  A
TEMPORARY  OPERATOR  TO ASSUME SOLE CONTROL OVER AND SOLE RESPONSIBILITY
FOR THE OPERATIONS OF THAT FACILITY.   THE APPOINTMENT  OF  A  TEMPORARY
OPERATOR SHALL BE IN ADDITION TO ANY OTHER REMEDIES PROVIDED BY LAW.
  (B) THE ESTABLISHED OPERATOR OF A FACILITY MAY AT ANY TIME REQUEST THE
COMMISSIONER  TO  APPOINT  A  TEMPORARY  OPERATOR. UPON RECEIVING SUCH A
REQUEST, THE COMMISSIONER MAY, IF HE OR  SHE  DETERMINES  THAT  SUCH  AN
ACTION IS NECESSARY TO RESTORE OR MAINTAIN THE PROVISION OF QUALITY CARE
TO  THE  RESIDENTS  OR PATIENTS, ENTER INTO AN AGREEMENT WITH THE ESTAB-
LISHED OPERATOR FOR THE APPOINTMENT OF A TEMPORARY  OPERATOR  TO  ASSUME
SOLE  CONTROL  OVER  AND  SOLE RESPONSIBILITY FOR THE OPERATIONS OF THAT
FACILITY.
  3. A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION  SHALL  USE
HIS  OR  HER  BEST  EFFORTS  TO  CORRECT  OR ELIMINATE ANY DEFICIENCIES,
MANAGEMENT FAILURES OR FINANCIAL INSTABILITY  IN  THE  FACILITY  AND  TO
PROMOTE  THE  QUALITY  AND  ACCESSIBILITY OF HEALTH CARE SERVICES IN THE
COMMUNITY SERVED BY THE FACILITY.  SUCH  CORRECTION  OR  ELIMINATION  OF
DEFICIENCIES,  MANAGEMENT  FAILURES  OR  FINANCIAL INSTABILITY SHALL NOT
INCLUDE MAJOR ALTERATIONS OF THE PHYSICAL  STRUCTURE  OF  THE  FACILITY.
DURING  THE TERM OF HIS OR HER APPOINTMENT, THE TEMPORARY OPERATOR SHALL
HAVE THE AUTHORITY TO DIRECT THE  MANAGEMENT  OF  THE  FACILITY  IN  ALL
ASPECTS  OF  OPERATION AND SHALL BE AFFORDED FULL ACCESS TO THE ACCOUNTS
AND RECORDS OF THE FACILITY. THE TEMPORARY OPERATOR SHALL,  DURING  THIS
PERIOD,  OPERATE  THE FACILITY IN SUCH A MANNER AS TO PROMOTE SAFETY AND
TO PROMOTE THE QUALITY AND ACCESSIBILITY  OF  HEALTH  CARE  SERVICES  OR
RESIDENTIAL  CARE IN THE COMMUNITY SERVED BY THE FACILITY. THE TEMPORARY
OPERATOR SHALL HAVE  THE  POWER  TO  LET  CONTRACTS  THEREFOR  OR  INCUR
EXPENSES ON BEHALF OF THE FACILITY, PROVIDED THAT WHERE INDIVIDUAL ITEMS
OF  REPAIRS,  IMPROVEMENTS  OR SUPPLIES EXCEED TEN THOUSAND DOLLARS, THE
TEMPORARY OPERATOR SHALL OBTAIN PRICE QUOTATIONS  FROM  AT  LEAST  THREE
REPUTABLE  SOURCES. THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE
ANY BOND. NO SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRIS-
ING THE FACILITY OR CONTAINED WITHIN THE FACILITY, OR IN ANY FIXTURE  OF
THE  FACILITY, SHALL BE IMPAIRED OR DIMINISHED IN PRIORITY BY THE TEMPO-
RARY OPERATOR. NEITHER THE TEMPORARY OPERATOR NOR THE  DEPARTMENT  SHALL
ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION OF PROPERTY WITH-
OUT THE PAYMENT OF FAIR COMPENSATION.
  4.  THE  TEMPORARY  OPERATOR SHALL BE ENTITLED TO A REASONABLE FEE, AS
DETERMINED BY THE COMMISSIONER, AND NECESSARY EXPENSES  INCURRED  DURING
HIS OR HER PERFORMANCE AS TEMPORARY OPERATOR, TO BE PAID FROM THE REVEN-
UE  OF  THE  FACILITY.    THE  TEMPORARY OPERATOR SHALL COLLECT INCOMING
PAYMENTS FROM ALL SOURCES AND APPLY THEM FIRST TO THE REASONABLE FEE AND
TO COSTS INCURRED IN THE PERFORMANCE OF HIS OR HER FUNCTIONS  AS  TEMPO-
RARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE ONLY IN HIS OR HER

S. 6256                            32                            A. 9056

CAPACITY  AS  TEMPORARY  OPERATOR  FOR  INJURY TO PERSON AND PROPERTY BY
REASON OF CONDITIONS OF THE FACILITY IN  A  CASE  WHERE  AN  ESTABLISHED
OPERATOR  WOULD HAVE BEEN LIABLE; HE OR SHE SHALL NOT HAVE ANY LIABILITY
IN  HIS OR HER PERSONAL CAPACITY, EXCEPT FOR GROSS NEGLIGENCE AND INTEN-
TIONAL ACTS.
  5. (A) THE INITIAL TERM OF THE APPOINTMENT OF THE  TEMPORARY  OPERATOR
SHALL NOT EXCEED ONE HUNDRED EIGHTY DAYS. AFTER ONE HUNDRED EIGHTY DAYS,
IF  THE COMMISSIONER DETERMINES THAT TERMINATION OF THE TEMPORARY OPERA-
TOR WOULD CAUSE SIGNIFICANT DETERIORATION OF THE QUALITY OF,  OR  ACCESS
TO,  HEALTH CARE OR RESIDENTIAL CARE IN THE COMMUNITY OR THAT REAPPOINT-
MENT IS NECESSARY TO CORRECT THE  DEFICIENCIES,  MANAGEMENT  FAILURE  OR
FINANCIAL  INSTABILITY  THAT  REQUIRED  THE APPOINTMENT OF THE TEMPORARY
OPERATOR, THE COMMISSIONER MAY AUTHORIZE UP TO TWO ADDITIONAL NINETY DAY
TERMS.  WITHIN FOURTEEN DAYS PRIOR TO THE TERMINATION OF  EACH  TERM  OF
THE  APPOINTMENT OF THE TEMPORARY OPERATOR, THE TEMPORARY OPERATOR SHALL
SUBMIT TO THE COMMISSIONER AND TO  THE  ESTABLISHED  OPERATOR  A  REPORT
DESCRIBING  THE  ACTIONS  TAKEN  DURING  THE APPOINTMENT TO ADDRESS SUCH
DEFICIENCIES, MANAGEMENT  FAILURES  AND/OR  FINANCIAL  INSTABILITY.  THE
REPORT  SHALL  REFLECT  BEST  EFFORTS  TO  PRODUCE  A  FULL AND COMPLETE
ACCOUNTING.
  (B) UPON THE COMPLETION OF THE TWO  NINETY  DAY  TERMS  REFERENCED  IN
PARAGRAPH  (A)  OF THIS SUBDIVISION, IF THE COMMISSIONER DETERMINES THAT
TERMINATION OF THE TEMPORARY OPERATOR WOULD  CAUSE  SIGNIFICANT  DETERI-
ORATION OF THE QUALITY OF, OR ACCESS TO, HEALTH CARE OR RESIDENTIAL CARE
IN  THE  COMMUNITY  OR  THAT  REAPPOINTMENT IS NECESSARY TO CONTINUE THE
CORRECTION OF THE DEFICIENCIES, MANAGEMENT FAILURE OR  FINANCIAL  INSTA-
BILITY  THAT  REQUIRED  THE  APPOINTMENT  OF THE TEMPORARY OPERATOR, THE
COMMISSIONER MAY REAPPOINT THE TEMPORARY OPERATOR FOR ADDITIONAL  NINETY
DAY  TERMS,  PROVIDED THAT THE COMMISSIONER SHALL PROVIDE FOR NOTICE AND
THE OPPORTUNITY FOR A HEARING AS SET FORTH IN SUBDIVISION  SIX  OF  THIS
SECTION.
  (C)  THE  TERM  OF THE INITIAL APPOINTMENT AND OF ANY SUBSEQUENT REAP-
POINTMENT MAY BE TERMINATED PRIOR TO THE EXPIRATION  OF  THE  DESIGNATED
TERM,  IF  THE ESTABLISHED OPERATOR AND THE COMMISSIONER AGREE ON A PLAN
OF CORRECTION AND THE IMPLEMENTATION OF SUCH PLAN.
  6. THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION  TO  APPOINT  A
TEMPORARY  OPERATOR PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS
SECTION OR REAPPOINT A TEMPORARY OPERATOR FOR THE FIRST ADDITIONAL NINE-
TY DAY TERM PURSUANT TO  PARAGRAPH  (A)  OF  SUBDIVISION  FIVE  OF  THIS
SECTION,  CAUSE  THE ESTABLISHED OPERATOR OF THE FACILITY TO BE NOTIFIED
OF THE DETERMINATION BY REGISTERED OR CERTIFIED MAIL  ADDRESSED  TO  THE
PRINCIPAL OFFICE OF THE ESTABLISHED OPERATOR. IF THE COMMISSIONER DETER-
MINES THAT ADDITIONAL REAPPOINTMENTS PURSUANT TO PARAGRAPH (B) OF SUBDI-
VISION  FIVE  OF THIS SECTION ARE REQUIRED, THE COMMISSIONER SHALL AGAIN
CAUSE THE ESTABLISHED OPERATOR OF THE FACILITY TO BE  NOTIFIED  OF  SUCH
DETERMINATION BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE PRINCIPAL
OFFICE  OF  THE ESTABLISHED OPERATOR AT THE COMMENCEMENT OF THE FIRST OF
EVERY TWO ADDITIONAL TERMS.  UPON RECEIPT OF SUCH  NOTIFICATION  AT  THE
PRINCIPAL  OFFICE  OF THE ESTABLISHED OPERATOR AND BEFORE THE EXPIRATION
OF TEN DAYS THEREAFTER, THE ESTABLISHED OPERATOR MAY REQUEST AN ADMINIS-
TRATIVE HEARING ON THE DETERMINATION TO BEGIN NO LATER THAN  SIXTY  DAYS
FROM THE DATE OF THE APPOINTMENT OR REAPPOINTMENT OF THE TEMPORARY OPER-
ATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED TO THE ISSUE OF WHETHER
THE  DETERMINATION OF THE COMMISSIONER WHICH RESULTED IN THE APPOINTMENT
OR REAPPOINTMENT IS SUPPORTED BY SUBSTANTIAL EVIDENCE.

S. 6256                            33                            A. 9056

  7. NO PROVISION CONTAINED IN THIS SECTION SHALL BE DEEMED  TO  RELIEVE
THE  ESTABLISHED  OPERATOR  OR ANY OTHER PERSON OF ANY CIVIL OR CRIMINAL
LIABILITY INCURRED, OR ANY DUTY IMPOSED BY LAW, BY  REASON  OF  ACTS  OR
OMISSIONS  OF  THE ESTABLISHED OPERATOR OR ANY OTHER PERSON PRIOR TO THE
APPOINTMENT  OF  ANY  TEMPORARY  OPERATOR  HEREUNDER; NOR SHALL ANYTHING
CONTAINED IN THIS SECTION BE CONSTRUED TO SUSPEND DURING THE TERM OF THE
APPOINTMENT OF THE TEMPORARY OPERATOR ANY OBLIGATION OF THE  ESTABLISHED
OPERATOR OR ANY OTHER PERSON FOR THE PAYMENT OF TAXES OR OTHER OPERATING
AND MAINTENANCE EXPENSES OF THE FACILITY NOR OF THE ESTABLISHED OPERATOR
OR ANY OTHER PERSON FOR THE PAYMENT OF MORTGAGES OR LIENS.
  S  28.  Section  2  of  chapter  584 of the laws of 2011, amending the
public authorities law, relating to the powers and duties of the  dormi-
tory authority of the state of New York relative to the establishment of
subsidiaries for certain purposes, is amended to read as follows:
  S  2.  This  act shall take effect immediately and shall expire and be
deemed repealed ON July 1, [2012] 2015; provided however, that the expi-
ration of this act shall not impair  or  otherwise  affect  any  of  the
powers,  duties,  responsibilities,  functions, rights or liabilities of
any subsidiary duly  created  pursuant  to  subdivision  twenty-five  of
section 1678 of the public authorities law prior to such expiration.
  S  29.    Subdivision 1 of section 2999-i of the public health law, as
added by section 52 of part H of chapter 59 of  the  laws  of  2011,  is
amended to read as follows:
  1. (A) The commissioner of taxation and finance shall be the custodian
of  the  fund  and  the  special account established pursuant to section
ninety-nine-t of the state finance law. All payments from the fund shall
be made by the commissioner of taxation and  finance  upon  certificates
signed by the superintendent of financial services, or his or her desig-
nee,  as hereinafter provided. The fund shall be separate and apart from
any other fund and from all other state monies; PROVIDED, HOWEVER,  THAT
MONIES OF THE FUND MAY BE INVESTED AS SET FORTH IN PARAGRAPH (B) OF THIS
SUBDIVISION.   No monies from the fund shall be transferred to any other
fund, nor shall any such monies be applied to the making of any  payment
for any purpose other than the purpose set forth in this title.
  (B)  ANY MONIES OF THE FUND NOT REQUIRED FOR IMMEDIATE USE MAY, AT THE
DISCRETION OF THE COMMISSIONER OF  FINANCIAL  SERVICES  IN  CONSULTATION
WITH  THE  COMMISSIONER  OF  HEALTH  AND  THE DIRECTOR OF THE BUDGET, BE
INVESTED BY THE COMMISSIONER OF TAXATION AND FINANCE IN  OBLIGATIONS  OF
THE UNITED STATES OR THE STATE OR OBLIGATIONS THE PRINCIPAL AND INTEREST
OF  WHICH ARE GUARANTEED BY THE UNITED STATES OR THE STATE. THE PROCEEDS
OF ANY SUCH INVESTMENT SHALL BE RETAINED BY THE FUND  AS  ASSETS  TO  BE
USED FOR THE PURPOSES OF THE FUND.
  S  30.  Subdivision  9  of  section  2803  of the public health law is
REPEALED.
  S 31. Paragraph (b) of subdivision 1-a of section 2802 of  the  public
health law, as amended by chapter 174 of the laws of 2011, is amended to
read as follows:
  (b)  repair  or  maintenance,  regardless  of  cost, including routine
purchases and the acquisition  of  minor  equipment  undertaken  in  the
course  of  a  hospital's inventory control functions; PROVIDED THAT FOR
PROJECTS UNDER THIS PARAGRAPH WITH A TOTAL COST OF  UP  TO  SIX  MILLION
DOLLARS, NO WRITTEN NOTICE SHALL BE REQUIRED;
  S  32.   Subdivision 1 of section 1 of chapter 119 of the laws of 1997
relating to authorizing the department of health  to  establish  certain
payments  to  general  hospitals,  as amended by section 1 of part S2 of
chapter 62 of the laws of 2003, is amended to read as follows:

S. 6256                            34                            A. 9056

  1. Notwithstanding any inconsistent provision of  law  or  regulation,
effective for the period [April 1, 1997 through March 31, 1998] APRIL 1,
2012  THROUGH DECEMBER 31, 2012 and for annual periods beginning [April]
JANUARY 1 thereafter, the [department] DEPARTMENT of [health] HEALTH  is
authorized  to  pay voluntary non-profit general hospitals as defined in
subdivision 10 of section 2801  of  the  public  health  law  additional
payments  for inpatient hospital services as medical assistance payments
pursuant to title 11 of article 5 of the social services law and federal
law and regulations governing disproportionate share payments, based  on
the  [amount  of state aid for which such general hospitals are eligible
pursuant to articles 25, 26 and 41 of the  mental  hygiene  law  and  as
identified in subdivision 2 of this section] COSTS INCURRED IN EXCESS OF
REVENUES BY GENERAL HOSPITALS IN PROVIDING SERVICES IN ELIGIBLE PROGRAMS
TO  UNINSURED  PATIENTS  AND  PATIENTS  ELIGIBLE FOR MEDICAL ASSISTANCE.
Payment made pursuant to this section shall not exceed each such general
hospital's cost of providing services to uninsured patients and patients
eligible for medical assistance pursuant to title 11 of article 5 of the
social services law after taking into consideration  all  other  medical
assistance  received,  including disproportionate share payments made to
such general hospital, and payments from or on behalf of such  uninsured
patients, and shall also not exceed the total amount of state aid, iden-
tified  by  subdivision  2  of  this  section, available to such general
hospital by law. Payments made to such  general  hospitals  pursuant  to
this  section  shall be made in lieu of any state aid payments available
to such general hospital by law.
  S 33. Subdivision 1 of section 241 of the elder  law,  as  amended  by
section  29  of  part A of chapter 58 of the laws of 2008, is amended to
read as follows:
  1. "Covered drug" shall mean a drug dispensed  subject  to  a  legally
authorized  prescription  pursuant to section sixty-eight hundred ten of
the education law, and  insulin,  an  insulin  syringe,  or  an  insulin
needle.  Such  term  shall  not  include: (a) any drug determined by the
commissioner of the federal food and drug administration to be  ineffec-
tive  or  unsafe; (b) any drug dispensed in a package, or form of dosage
or administration, as to which the commissioner of health finally deter-
mines in accordance with the provisions of section two hundred fifty-two
of this title that a less expensive package, or form of dosage or admin-
istration, is available that is pharmaceutically equivalent  and  equiv-
alent  in  its therapeutic effect for the general health characteristics
of the eligible program participant population; (c) any device  for  the
aid  or correction of vision; (d) any drug, including vitamins, which is
generally available without a physician's prescription;  and  (e)  drugs
for  the  treatment of sexual or erectile dysfunction, unless such drugs
are used to treat a condition, other than sexual  or  erectile  dysfunc-
tion,  for  which  the  drugs have been approved by the federal food and
drug administration; and (f) a brand name drug for which a  multi-source
therapeutically  and  generically  equivalent drug, as determined by the
federal food and drug administration, is  available,  unless  previously
authorized  by  the  elderly  pharmaceutical insurance coverage program,
provided, however, that the [elderly pharmaceutical  insurance  coverage
panel]  COMMISSIONER  is authorized to exempt, for good cause shown, any
brand name drug from such restriction, and provided  further  that  such
restriction  shall  not  apply  to  any  drug  that  is  included on the
preferred drug list under section two hundred seventy-two of the  public
health  law  or is in the clinical drug review program under section two
hundred seventy-four of the public health law to  the  extent  that  the

S. 6256                            35                            A. 9056

preferred  drug program and the clinical drug review program are applied
to the elderly pharmaceutical insurance  coverage  program  pursuant  to
section  two  hundred  seventy-five  of the public health law, or to any
drug  covered  under  a  program  participant's Medicare part D or other
primary insurance plan. Any of the drugs  enumerated  in  the  preceding
sentence  shall  be considered a covered drug or a prescription drug for
purposes of this article if it is added to the preferred drug list under
article two-A of the public health law.  For the purpose of this  title,
except  as  otherwise  provided in this section, a covered drug shall be
dispensed in quantities no greater than  a  thirty  day  supply  or  one
hundred  units, whichever is greater. In the case of a drug dispensed in
a form of administration other than a tablet  or  capsule,  the  maximum
allowed  quantity shall be a thirty day supply; the [panel] COMMISSIONER
is authorized  to  approve  exceptions  to  these  limits  for  specific
products  following consideration of recommendations from pharmaceutical
or medical experts regarding commonly packaged quantities, unusual forms
of administration, length of treatment or  cost  effectiveness.  In  the
case of a drug prescribed pursuant to section thirty-three hundred thir-
ty-two of the public health law to treat one of the conditions that have
been  enumerated by the commissioner of health pursuant to regulation as
warranting the prescribing of greater than a  thirty  day  supply,  such
drug  shall  be  dispensed  in  quantities  not  to exceed a three month
supply.
  S 33-a. Subdivision 1 of section 241 of the elder law, as  amended  by
section  12  of  part B of chapter 57 of the laws of 2006, is amended to
read as follows:
  1. "Covered drug" shall mean a drug dispensed  subject  to  a  legally
authorized  prescription  pursuant to section sixty-eight hundred ten of
the education law, and  insulin,  an  insulin  syringe,  or  an  insulin
needle.  Such  term  shall  not  include: (a) any drug determined by the
commissioner of the federal food and drug administration to be  ineffec-
tive  or  unsafe; (b) any drug dispensed in a package, or form of dosage
or administration, as to which the commissioner of health finally deter-
mines in accordance with the provisions of section two hundred fifty-two
of this title that a less expensive package, or form of dosage or admin-
istration, is available that is pharmaceutically equivalent  and  equiv-
alent  in  its therapeutic effect for the general health characteristics
of the eligible program participant population; (c) any device  for  the
aid  or  correction of vision, or any drug, including vitamins, which is
generally available without a physician's prescription;  and  (d)  drugs
for  the  treatment of sexual or erectile dysfunction, unless such drugs
are used to treat a condition, other than sexual  or  erectile  dysfunc-
tion,  for  which  the  drugs have been approved by the federal food and
drug administration. For the purpose of this title, except as  otherwise
provided  in  this section, a covered drug shall be dispensed in quanti-
ties no greater than a thirty day supply or one hundred units, whichever
is greater. In the case of a drug dispensed in a form of  administration
other  than a tablet or capsule, the maximum allowed quantity shall be a
thirty day supply; the [panel] COMMISSIONER  is  authorized  to  approve
exceptions to these limits for specific products following consideration
of  recommendations  from  pharmaceutical  or  medical experts regarding
commonly packaged quantities, unusual forms of administration, length of
treatment or cost effectiveness. In the case of a drug prescribed pursu-
ant to section thirty-three hundred thirty-two of the public health  law
to  treat one of the conditions that have been enumerated by the commis-
sioner of health pursuant to regulation as warranting the prescribing of

S. 6256                            36                            A. 9056

greater than a thirty day supply, such drug shall be dispensed in  quan-
tities not to exceed a three month supply.
  S  33-b.  Paragraph  (f)  of subdivision 3 of section 242 of the elder
law, as amended by section 3-d of part A of chapter 59 of  the  laws  of
2011, is amended to read as follows:
  (f)  As  a  condition  of eligibility for benefits under this title, a
program participant is required to be enrolled in Medicare part D and to
maintain such enrollment.   FOR UNMARRIED PARTICIPANTS  WITH  INDIVIDUAL
ANNUAL  INCOME  LESS  THAN OR EQUAL TO TWENTY-THREE THOUSAND DOLLARS AND
MARRIED PARTICIPANTS WITH JOINT ANNUAL INCOME  LESS  THAN  OR  EQUAL  TO
TWENTY-NINE  THOUSAND  DOLLARS,  THE  ELDERLY  PHARMACEUTICAL  INSURANCE
COVERAGE PROGRAM SHALL PAY FOR THE PORTION OF THE PART D MONTHLY PREMIUM
THAT IS THE RESPONSIBILITY OF THE PARTICIPANT.  SUCH  PAYMENT  SHALL  BE
LIMITED  TO  THE  LOW-INCOME BENCHMARK PREMIUM AMOUNT ESTABLISHED BY THE
FEDERAL CENTERS FOR MEDICARE AND MEDICAID SERVICES AND ANY OTHER  AMOUNT
WHICH  SUCH  AGENCY  ESTABLISHES  UNDER  ITS  DE MINIMUS PREMIUM POLICY,
EXCEPT THAT SUCH PAYMENTS MADE ON BEHALF OF PARTICIPANTS ENROLLED  IN  A
MEDICARE  ADVANTAGE  PLAN  MAY  EXCEED  THE LOW-INCOME BENCHMARK PREMIUM
AMOUNT IF DETERMINED TO BE COST EFFECTIVE TO THE PROGRAM.
  S 33-c. Paragraph (b) of subdivision 2 of section  243  of  the  elder
law,  as  amended  by section 3-g of part A of chapter 59 of the laws of
2011, is amended to read as follows:
  (b) notifying [each eligible program participant in writing  upon  the
commencement  of  the annual coverage period of such participant's cost-
sharing responsibilities pursuant to section two hundred forty-seven  of
this  title.  The  contractor  shall  also notify] each eligible program
participant of any adjustment of the co-payment schedule by mail no less
than thirty days prior to the effective date  of  such  adjustments  and
shall inform such eligible program participants of the date such adjust-
ments shall take effect;
  S 33-d. Section 245 of the elder law is REPEALED.
  S  33-e.  Subdivision  1  of section 247 of the elder law, as added by
section 3-j of part A of chapter 59 of the laws of 2011, is  amended  to
read as follows:
  1.  As  a  condition  of  eligibility  for  benefits under this title,
participants must [maintain Medicare part D  coverage  and  pay  monthly
premiums  to  their  Medicare  part D drug plan] BE ENROLLED IN MEDICARE
PART D AND MAINTAIN SUCH ENROLLMENT.
  S 33-f. Subdivision 1 of section 249 of the elder law, as  amended  by
section  111  of part C of chapter 58 of the laws of 2009, is amended to
read as follows:
  1. The state shall offer an opportunity to participate in this program
to all provider pharmacies as defined in section two  hundred  forty-one
of  this  title, provided, however, that the participation of pharmacies
registered in the state pursuant to section sixty-eight hundred  eight-b
of the education law shall be limited to state assistance provided under
this  title  for  prescription  drugs covered by a program participant's
medicare [or other] drug plan.
  S 33-g. Subdivisions 1 and 2 of section  253  of  the  elder  law  are
amended to read as follows:
  1.  In  counties  having a population of seventy-five thousand or less
that are in proximity to the state boundary and which are determined  by
the  [executive  director]  COMMISSIONER  OF HEALTH to be not adequately
served by provider pharmacies registered in New  York,  and  in  Fishers
Island in the town of Southold, Suffolk county, the [executive director]
COMMISSIONER  may  approve as provider pharmacies, pharmacies located in

S. 6256                            37                            A. 9056

New Jersey, Connecticut, Vermont, Pennsylvania  or  Massachusetts.  Such
approvals  shall  be made after (a) consideration of the convenience and
necessity of New York residents in the rural areas served by such  phar-
macies,  (b)  consideration of the quality of service of such pharmacies
and the standing of such pharmacies with the governmental board or agen-
cy of the state in which such pharmacy is located,  (c)  the  [executive
director]  COMMISSIONER  shall  give  all licensed pharmacies within the
county notice of his or  her  intention  to  approve  such  out-of-state
provider  pharmacies,  and (d) the [executive director] COMMISSIONER has
held a public hearing at which he or she has determined  factually  that
the licensed pharmacies within such county are not adequately serving as
provider pharmacies.
  2.  The  [executive director] COMMISSIONER OF HEALTH shall investigate
and determine whether certification shall be granted within ninety  days
of  the filing of an application for certification by the governing body
of any city, town or village, within a county determined by the  [execu-
tive  director]  COMMISSIONER  to  be  not adequately served by provider
pharmacies registered in New York pursuant to subdivision  one  of  this
section, claiming to be lacking adequate pharmaceutical service.
  S  34.    Subdivision  25 of section 2808 of the public health law, as
added by section 31 of part B of  chapter  109  of  the  laws  of  2010,
subparagraph  (iii) of paragraph (b) as amended and subparagraph (iv) of
paragraph (b) as added by section 69 of part H of chapter 59 of the laws
of 2011, is amended to read as follows:
  25. Reserved bed  days.  (a)  For  purposes  of  this  subdivision,  a
"reserved bed day" is a day for which a governmental agency pays a resi-
dential  health care facility to reserve a bed for a person eligible for
medical assistance pursuant to title  eleven  of  article  five  of  the
social  services  law  while he or she is temporarily hospitalized or on
leave of absence from the facility.
  (b) Notwithstanding any other provisions of this section or any  other
law  or  regulation  to  the contrary, for reserved bed days provided on
behalf of persons twenty-one years of age or older:
  (i) payments for reserved  bed  days  shall  be  made  at  ninety-five
percent  of  the  Medicaid  rate  otherwise  payable to the facility for
services provided on behalf of such person;
  (ii) payment to a facility for reserved bed days provided on behalf of
such person for temporary hospitalizations may not exceed fourteen  days
in any twelve month period;
  (iii)  payment  to a facility for reserved bed days provided on behalf
of such person for non-hospitalization leaves of absence may not  exceed
ten days in any twelve month period[; and
  (iv)  payments  for  reserved  bed days for temporary hospitalizations
shall only be made to a residential health care  facility  if  at  least
fifty  percent  of the facility's residents eligible to participate in a
Medicare managed care plan are enrolled in such a plan].
  (C)(I) NOTWITHSTANDING ANY CONTRARY PROVISION OF THIS  SUBDIVISION  OR
ANY  OTHER  LAW  AND  SUBJECT  TO  THE AVAILABILITY OF FEDERAL FINANCIAL
PARTICIPATION, FOR RATE PERIODS ON AND AFTER APRIL FIRST,  TWO  THOUSAND
TWELVE,  WITH  REGARD  TO  SERVICES  PROVIDED TO RESIDENTIAL HEALTH CARE
FACILITY RESIDENTS TWENTY-ONE YEARS OF AGE AND OLDER,  THE  COMMISSIONER
SHALL  PROMULGATE REGULATIONS, AND MAY PROMULGATE EMERGENCY REGULATIONS,
EFFECTIVE FOR PERIODS ON AND AFTER APRIL  FIRST,  TWO  THOUSAND  TWELVE,
ESTABLISHING REIMBURSEMENT RATES FOR RESERVED BED DAYS, PROVIDED, HOWEV-
ER,   THAT  SUCH  REGULATIONS  SHALL  ACHIEVE  AN  AGGREGATE  ANNUALIZED

S. 6256                            38                            A. 9056

REDUCTION IN REIMBURSEMENT FOR SUCH RESERVED BED DAYS OF  NO  LESS  THAN
FORTY MILLION DOLLARS, AS DETERMINED BY THE COMMISSIONER.
  (II)  IN  THE EVENT THE COMMISSIONER DETERMINES THAT FEDERAL FINANCIAL
PARTICIPATION WILL NOT BE AVAILABLE FOR RATE ADJUSTMENTS  MADE  PURSUANT
TO  SUBPARAGRAPH (I) OF THIS PARAGRAPH OR REGULATIONS PROMULGATED THERE-
UNDER, THEN, FOR RATE PERIODS ON AND AFTER  APRIL  FIRST,  TWO  THOUSAND
TWELVE,  MEDICAID  RATES  FOR  INPATIENT  SERVICES SHALL NOT INCLUDE ANY
FACTOR OR PAYMENT AMOUNT FOR SUCH RESERVED BED DAYS WITH REGARD TO RESI-
DENTS TWENTY-ONE YEARS OF AGE AND OLDER.
  (III) IN THE EVENT THE PROVISIONS OF SUBPARAGRAPH (II) OF  THIS  PARA-
GRAPH  ARE INVOKED AND IMPLEMENTED BY THE COMMISSIONER, THEN THE COMMIS-
SIONER SHALL PROMULGATE REGULATIONS, AND MAY PROMULGATE EMERGENCY  REGU-
LATIONS,  EFFECTIVE  FOR  RATE  PERIODS  ON  OR  AFTER  APRIL FIRST, TWO
THOUSAND TWELVE, PROVIDING UPWARD REVISIONS  TO  MEDICAID  RATES  ISSUED
PURSUANT  TO  SUBDIVISION TWO-C OF THIS SECTION, PROVIDED, HOWEVER, THAT
SUCH UPWARD REVISIONS SHALL NOT  IN  AGGREGATE,  AS  DETERMINED  BY  THE
COMMISSIONER,  EXCEED,  ON  AN  ANNUAL BASIS, AN AMOUNT EQUAL TO CURRENT
ANNUAL MEDICAID PAYMENTS FOR  RESERVED  BED  DAYS,  LESS  FORTY  MILLION
DOLLARS.
  S  35. Paragraphs (l) and (m) of subdivision 1 of section 367-q of the
social services law, as added by section 22 of part C of chapter  59  of
the laws of 2011, are amended to read as follows:
  (l)  for  the  period  April  first, two thousand twelve through March
thirty-first, two thousand thirteen, UP  TO  twenty-eight  million  five
hundred thousand dollars; and
  (m)  for  the  period April first, two thousand thirteen through March
thirty-first, two thousand fourteen, UP  TO  twenty-eight  million  five
hundred thousand dollars.
  S  35-a.  Clause (K) of subparagraph (i) of paragraph (bb) of subdivi-
sion 1 of section 2807-v of the public health law, as amended by section
8 of part C of chapter 59 of the laws of 2011, is  amended  to  read  as
follows:
  (K)  UP  TO  one  hundred thirty-six million dollars each state fiscal
year for the period April first, two thousand eleven through March thir-
ty-first, two thousand fourteen.
  S 35-b. Subparagraph (xi)  of  paragraph  (cc)  of  subdivision  1  of
section 2807-v of the public health law, as amended by section 8 of part
C of chapter 59 of the laws of 2011, is amended to read as follows:
  (xi)  UP  TO  eleven  million  two hundred thousand dollars each state
fiscal year for the period April  first,  two  thousand  eleven  through
March thirty-first, two thousand fourteen.
  S  35-c.  Subparagraph  (vii)  of  paragraph (ccc) of subdivision 1 of
section 2807-v of the public health law, as amended by section 8 of part
C of chapter 59 of the laws of 2011, is amended to read as follows:
  (vii) UP TO fifty million dollars each state fiscal year for the peri-
od April first, two thousand  eleven  through  March  thirty-first,  two
thousand fourteen.
  S 36.  Paragraph (g-1) of subdivision 2 of section 365-a of the social
services  law,  as  amended by section 23 of part H of chapter 59 of the
laws of 2011, is amended to read as follows:
  (g-1) drugs provided on an in-patient basis, those drugs contained  on
the  list established by regulation of the commissioner of health pursu-
ant to subdivision four of this section, and those drugs which  may  not
be  dispensed  without a prescription as required by section sixty-eight
hundred ten of the education law and which the  commissioner  of  health
shall determine to be reimbursable based upon such factors as the avail-

S. 6256                            39                            A. 9056

ability  of  such  drugs  or  alternatives at low cost if purchased by a
medicaid recipient, or the essential nature of such drugs  as  described
by such commissioner in regulations, provided, however, that such drugs,
exclusive  of long-term maintenance drugs, shall be dispensed in quanti-
ties no greater than a thirty day supply or one hundred doses, whichever
is greater; provided further that the commissioner of health is  author-
ized  to  require  prior  authorization for any refill of a prescription
when less than seventy-five percent of the previously  dispensed  amount
per  fill  should have been used were the product used as normally indi-
cated; provided further that the commissioner of health is authorized to
require prior authorization of prescriptions  of  opioid  analgesics  in
excess  of  four prescriptions in a thirty-day period in accordance with
section two hundred seventy-three of the public health law, EXCEPT  THAT
PRIOR  AUTHORIZATION  MAY  BE DENIED IF THE DEPARTMENT, AFTER GIVING THE
PRESCRIBER A REASONABLE OPPORTUNITY TO PRESENT A  JUSTIFICATION,  DETER-
MINES  THAT  THE  ADDITIONAL  PRESCRIPTION  IS  NOT MEDICALLY NECESSARY;
medical assistance shall not include any drug provided on other than  an
in-patient  basis for which a recipient is charged or a claim is made in
the case of a prescription drug, in excess of the  maximum  reimbursable
amounts  to  be established by department regulations in accordance with
standards established by the secretary of the United  States  department
of  health and human services, or, in the case of a drug not requiring a
prescription, in excess of the maximum reimbursable  amount  established
by  the  commissioner of health pursuant to paragraph (a) of subdivision
four of this section;
  S 37. Subdivision 6 of section 368-d of the social  services  law,  as
added  by  section  6  of  part  H of chapter 59 of the laws of 2011, is
amended to read as follows:
  6. The commissioner shall evaluate the results of the study  conducted
pursuant  to  subdivision four of this section to determine, after iden-
tification of actual direct and indirect costs incurred by public school
districts and state operated[/] AND state supported  schools  FOR  BLIND
AND  DEAF  STUDENTS, whether it is advisable to claim federal reimburse-
ment for expenditures under this section as  certified  public  expendi-
tures.  In the event such claims are submitted, if federal reimbursement
received for certified public expenditures on behalf of medical  assist-
ance  recipients  whose  assistance and care are the responsibility of a
social services district [in a  city  with  a  population  of  over  two
million,]  results  in  a decrease in the state share of annual expendi-
tures pursuant to this section for such recipients, then to  the  extent
that  the amount of any such decrease when combined with any decrease in
the state share of annual expenditures described in subdivision five  of
section  three hundred sixty-eight-e of this title exceeds fifty million
dollars IN STATE FISCAL YEAR 2011-12, OR  EXCEEDS  ONE  HUNDRED  MILLION
DOLLARS  IN STATE FISCAL YEAR 2012-13 OR ANY FISCAL YEAR THEREAFTER, the
excess  amount  shall  be  transferred  to  such  [city]  PUBLIC  SCHOOL
DISTRICTS  AND  STATE OPERATED AND STATE SUPPORTED SCHOOLS FOR BLIND AND
DEAF STUDENTS IN AMOUNTS PROPORTIONAL TO THEIR  PERCENTAGE  CONTRIBUTION
TO  THE STATEWIDE SAVINGS.  Any such excess amount transferred shall not
be considered a revenue received by such  social  services  district  in
determining  the  district's  actual medical assistance expenditures for
purposes of paragraph (b) of section one of part  C  of  chapter  fifty-
eight of the laws of two thousand five.
  S  38.  Subdivision  5 of section 368-e of the social services law, as
added by section 7 of part H of chapter 59  of  the  laws  of  2011,  is
amended to read as follows:

S. 6256                            40                            A. 9056

  5.  The commissioner shall evaluate the results of the study conducted
pursuant to subdivision three of this section to determine, after  iden-
tification  of actual direct and indirect costs incurred by counties for
medical care, services, and supplies furnished  to  pre-school  children
with  handicapping  conditions, whether it is advisable to claim federal
reimbursement for expenditures under this section  as  certified  public
expenditures.  In  the  event  such  claims  are  submitted,  if federal
reimbursement received for certified public expenditures  on  behalf  of
medical  assistance recipients whose assistance and care are the respon-
sibility of a social services district [in a city with a  population  of
over  two  million],  results in a decrease in the state share of annual
expenditures pursuant to this section for such recipients, then  to  the
extent  that  the  amount  of  any  such decrease when combined with any
decrease in the state share of annual expenditures described in subdivi-
sion six of section three hundred sixty-eight-d of  this  title  exceeds
fifty  million  dollars  IN  STATE  FISCAL  YEAR 2011-12, OR EXCEEDS ONE
HUNDRED MILLION DOLLARS IN STATE FISCAL YEAR 2012-13 OR ANY FISCAL  YEAR
THEREAFTER,  the excess amount shall be transferred to such [city] COUN-
TIES IN AMOUNTS PROPORTIONAL TO THEIR  PERCENTAGE  CONTRIBUTION  TO  THE
STATEWIDE  SAVINGS.    Any  such  excess amount transferred shall not be
considered a revenue received by such social services district in deter-
mining  the  district's  actual  medical  assistance  expenditures   for
purposes  of  paragraph  (b)  of section one of part C of chapter fifty-
eight of the laws of two thousand five.
  S 39. Subparagraph (i) of paragraph (a-1) of subdivision 4 of  section
365-a  of the social services law, as amended by section 46 of part C of
chapter 58 of the laws of 2009, is amended to read as follows:
  (i) a brand name drug for which  a  multi-source  therapeutically  and
generically  equivalent drug, as determined by the federal food and drug
administration,  is  available,  unless  previously  authorized  by  the
department  of  health.  The  commissioner  of  health  is authorized to
exempt, for good cause shown, any brand name drug from the  restrictions
imposed  by this subparagraph[. This subparagraph shall not apply to any
drug that is in a therapeutic class included on the preferred drug  list
under  section two hundred seventy-two of the public health law or is in
the clinical drug review program under section two hundred  seventy-four
of the public health law];
  S  40.    Subdivision  8  of  section 272 of the public health law, as
amended by section 5 of part B of chapter 109 of the laws  of  2010,  is
amended to read as follows:
  8. The commissioner shall provide notice of any recommendations devel-
oped  by  the  committee  regarding the preferred drug program, at least
five days before any final determination by the commissioner, by  making
such  information  available  on  the department's website. [Such public
notice shall include: a summary of the deliberations of the committee; a
summary of the positions of those making public comments at meetings  of
the  committee; the response of the committee to those comments, if any;
and the findings and recommendations of the committee.]
  S 41. Paragraphs (e), (f) and (g) of subdivision 1 of section 367-a of
the social services law, paragraph (e) as added by chapter  433  of  the
laws  of  1997, paragraph (f) as added by section 1 of part E of chapter
58 of the laws of 2008, paragraph (g) as added by section 65-a of part H
of chapter 59 of the laws of 2011, are amended to read as follows:
  (e) Amounts payable under this title for  medical  assistance  in  the
form  of  clinic services pursuant to article twenty-eight of the public
health law and article sixteen of the mental  hygiene  law  provided  to

S. 6256                            41                            A. 9056

eligible  persons DIAGNOSED WITH A DEVELOPMENTAL DISABILITY who are also
beneficiaries under part [b] B of title [xviii]  XVIII  of  the  federal
social security act [and who are also], OR PROVIDED TO PERSONS diagnosed
with a DEVELOPMENTAL disability WHO ARE QUALIFIED MEDICARE BENEFICIARIES
UNDER  PART  B  OF  TITLE  XVIII  OF SUCH ACT shall not be less than the
approved medical assistance payment level less the amount payable  under
part [b] B.
  (f)  Amounts  payable  under  this title for medical assistance in the
form of outpatient mental health services under  article  thirty-one  of
the mental hygiene law provided to eligible persons who are also benefi-
ciaries  under  part B of title XVIII of the federal social security act
OR PROVIDED TO QUALIFIED MEDICARE BENEFICIARIES UNDER PART  B  OF  TITLE
XVIII OF SUCH ACT shall not be less than the approved medical assistance
payment level less the amount payable under part B.
  (g)  Notwithstanding  any  provision  of this section to the contrary,
amounts payable under this title for medical assistance in the  form  of
hospital outpatient services or diagnostic and treatment center services
pursuant  to  article  twenty-eight of the public health law provided to
eligible persons who are also beneficiaries under part B of title  XVIII
of  the  federal  social  security act OR PROVIDED TO QUALIFIED MEDICARE
BENEFICIARIES UNDER PART B OF TITLE XVIII OF SUCH ACT shall  not  exceed
the  approved  medical  assistance payment level less the amount payable
under part B.
  S 42. Subdivision 6 of section 2818 of the public health law, as added
by section 25-a of part A of chapter 59 of the laws of 2011, is  amended
to read as follows:
  6.  Notwithstanding  any  contrary provision of this section, sections
one hundred twelve and one hundred sixty-three of the state finance law,
or any other contrary provision of law, subject to  available  appropri-
ations,  funds available for expenditure pursuant to this section may be
distributed by the commissioner without a competitive bid or request for
proposal process for grants to general hospitals, DIAGNOSTIC AND  TREAT-
MENT  CENTERS, and residential health care facilities for the purpose of
facilitating closures, mergers and restructuring of such  facilities  in
order  to  strengthen  and  protect continued access to essential health
care resources. Prior to an [awarded] AWARD being granted to an eligible
applicant without a competitive bid or request for proposal process, the
commissioner shall notify the chair of the senate finance committee, the
chair of the assembly ways and means committee and the director  of  the
division  of  budget  of  the intent to grant such an award. Such notice
shall include information regarding how  the  eligible  applicant  meets
criteria established pursuant to this section.
  S 43. Paragraph (a) of subdivision 8-a of section 2807-j of the public
health law, as amended by section 16 of part D of chapter 57 of the laws
of 2006, is amended to read as follows:
  (a)  Payments and reports submitted or required to be submitted to the
commissioner or to the commissioner's designee pursuant to this  section
and  section  twenty-eight hundred seven-s of this article by designated
providers of services and by third-party payors which  have  elected  to
make  payments  directly  to  the  commissioner or to the commissioner's
designee in accordance with subdivision five-a of this section, shall be
subject to audit by the commissioner for a period of six years following
the close of the calendar year in which such payments  and  reports  are
due,  after which such payments shall be deemed final and not subject to
further adjustment or reconciliation, INCLUDING THROUGH  OFFSET  ADJUST-
MENTS  OR RECONCILIATIONS MADE BY DESIGNATED PROVIDERS OF SERVICES OR BY

S. 6256                            42                            A. 9056

THIRD-PARTY PAYORS WITH REGARD TO SUBSEQUENT PAYMENTS, provided,  howev-
er, that nothing herein shall be construed as precluding the commission-
er from pursuing collection of any such payments which are identified as
delinquent  within  such  six  year  period,  or which are identified as
delinquent as a result of an audit commenced within such six year  peri-
od, or from conducting an audit of any adjustment or reconciliation made
by a designated provider of services or by a third party payor which has
elected  to  make  such  payments  directly  to  the commissioner or the
commissioner's designee, OR FROM CONDUCTING AN AUDIT  OF  PAYMENTS  MADE
PRIOR  TO  SUCH  SIX  YEAR  PERIOD WHICH ARE FOUND TO BE COMMINGLED WITH
PAYMENTS WHICH ARE OTHERWISE SUBJECT TO TIMELY AUDIT  PURSUANT  TO  THIS
SECTION.
  S 44.  Paragraph (a) of subdivision 10 of section 2807-t of the public
health law, as amended by section 17 of part D of chapter 57 of the laws
of 2006, is amended to read as follows:
  (a)  Payments and reports submitted or required to be submitted to the
commissioner or to the commissioner's designee pursuant to this  section
by specified third-party payors shall be subject to audit by the commis-
sioner  for  a  period  of six years following the close of the calendar
year in which such payments  and  reports  are  due,  after  which  such
payments  shall be deemed final and not subject to further adjustment or
reconciliation, INCLUDING THROUGH OFFSET ADJUSTMENTS OR  RECONCILIATIONS
MADE  BY  SUCH  SPECIFIED  THIRD-PARTY  PAYORS WITH REGARD TO SUBSEQUENT
PAYMENTS, provided, however, that nothing herein shall be  construed  as
precluding  the  commissioner  from  pursuing  collection  of  any  such
payments which are identified as delinquent within such six year period,
or which are identified as delinquent as a result of an audit  commenced
within  such six year period, or from conducting an audit of any adjust-
ments and reconciliation made by a specified third  party  payor  within
such six year period, OR FROM CONDUCTING AN AUDIT OF PAYMENTS MADE PRIOR
TO  SUCH  SIX YEAR PERIOD WHICH ARE FOUND TO BE COMMINGLED WITH PAYMENTS
WHICH ARE OTHERWISE SUBJECT TO TIMELY AUDIT PURSUANT TO THIS SECTION.
  S 45. Subdivision 7 of section 2807-d of  the  public  health  law  is
amended by adding a new paragraph (f) to read as follows:
  (F)  PAYMENTS AND REPORTS SUBMITTED OR REQUIRED TO BE SUBMITTED TO THE
COMMISSIONER OR TO THE COMMISSIONER'S DESIGNEE PURSUANT TO THIS  SECTION
SHALL  BE SUBJECT TO AUDIT BY THE COMMISSIONER FOR A PERIOD OF SIX YEARS
FOLLOWING THE CLOSE OF THE CALENDAR YEAR  IN  WHICH  SUCH  PAYMENTS  AND
REPORTS ARE DUE, AFTER WHICH SUCH PAYMENTS SHALL BE DEEMED FINAL AND NOT
SUBJECT  TO  FURTHER  ADJUSTMENT  OR  RECONCILIATION,  INCLUDING THROUGH
OFFSET ADJUSTMENTS OR RECONCILIATIONS MADE TO SUBSEQUENT  PAYMENTS  MADE
PURSUANT  TO  THIS SECTION, PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL
BE CONSTRUED AS PRECLUDING THE COMMISSIONER FROM PURSUING COLLECTION  OF
ANY  SUCH  PAYMENTS  WHICH  ARE IDENTIFIED AS DELINQUENT WITHIN SUCH SIX
YEAR PERIOD, OR WHICH ARE IDENTIFIED AS DELINQUENT AS  A  RESULT  OF  AN
AUDIT COMMENCED WITHIN SUCH SIX YEAR PERIOD, OR FROM CONDUCTING AN AUDIT
OF ANY ADJUSTMENT OR RECONCILIATION MADE BY A HOSPITAL.
  S 46.  Paragraph (f) of subdivision 18 of section 2807-c of the public
health law, as amended by section 15 of part D of chapter 57 of the laws
of 2006, is amended to read as follows:
  (f) Payments of assessments and allowances required to be submitted by
general hospitals pursuant to this subdivision and subdivisions fourteen
and  fourteen-b  of this section and paragraph (a) of subdivision two of
section twenty-eight hundred seven-d of this article shall be subject to
audit by the commissioner for a period of six years following the  close
of  the  calendar  year in which such payments are due, after which such

S. 6256                            43                            A. 9056

payments shall be deemed final and not subject to further adjustment  or
reconciliation,  INCLUDING THROUGH OFFSET ADJUSTMENTS OR RECONCILIATIONS
MADE BY GENERAL HOSPITALS WITH REGARD TO SUBSEQUENT PAYMENTS,  provided,
however,  that  nothing  herein  shall  be  construed  as precluding the
commissioner from pursuing collection of any such assessments and allow-
ances which are identified as delinquent within such six year period, or
which are identified as delinquent as a result  of  an  audit  commenced
within  such  six  year audit period, or from conducting an audit of any
adjustment or reconciliation made by a general hospital within such  six
year  period, OR FROM CONDUCTING AN AUDIT OF PAYMENTS MADE PRIOR TO SUCH
SIX YEAR PERIOD WHICH ARE FOUND TO BE COMMINGLED WITH PAYMENTS WHICH ARE
OTHERWISE SUBJECT TO TIMELY AUDIT  PURSUANT  TO  THIS  SECTION.  General
hospitals which, in the course of such an audit, fail to produce data or
documentation  requested  in furtherance of such an audit, within thirty
days of such request may be assessed a civil penalty of up to ten  thou-
sand  dollars  for each such failure, provided, however, that such civil
penalty shall not be imposed if the hospital demonstrates good cause for
such failure.  The imposition of such civil penalties shall  be  subject
to the provisions of section twelve-a of this chapter.
  S  47.  Paragraph (e) of subdivision 2-a of section 2807 of the public
health law is amended by adding a new  subparagraph  (iii)  to  read  as
follows:
  (III)  REGULATIONS  ISSUED  PURSUANT TO THIS PARAGRAPH MAY INCORPORATE
QUALITY RELATED MEASURES LIMITING OR EXCLUDING REIMBURSEMENT RELATED  TO
POTENTIALLY PREVENTABLE CONDITIONS AND COMPLICATIONS.
  S  48.  Paragraph (c) of subdivision 7 of section 2807-d of the public
health law, as added by chapter 938 of the laws of 1990, is  amended  to
read as follows:
  (c)  The  reports  shall  be  in such form as may be prescribed by the
commissioner to accurately disclose information  required  to  implement
this  section,  PROVIDED,  HOWEVER,  THAT  FOR PERIODS ON AND AFTER JULY
FIRST, TWO THOUSAND TWELVE, SUCH  REPORTS  AND  ANY  ASSOCIATED  CERTIF-
ICATIONS  SHALL BE SUBMITTED ELECTRONICALLY IN A FORM AS MAY BE REQUIRED
BY THE COMMISSIONER.
  S 48-a. Subparagraph (i) of paragraph (a) of subdivision 7 of  section
2807-j  of  the public health law, as amended by section 36 of part B of
chapter 58 of the laws of 2008, is amended to read as follows;
  (i) Every designated provider of services shall submit reports of  net
patient  service revenues received for or on account of patient services
for each month which shall be in such form as may be prescribed  by  the
commissioner  to  accurately  disclose information required to implement
this section. For periods on and after January first, two thousand five,
reports by designated providers of services shall be submitted electron-
ically in a form as may  be  required  by  the  commissioner;  provided,
however,  any  designated  provider  of  services is not prohibited from
submitting reports electronically on a voluntary  basis  prior  to  such
date,   AND   PROVIDED   FURTHER,  HOWEVER,  THAT  ALL  SUCH  ELECTRONIC
SUBMISSIONS SUBMITTED ON AND AFTER JULY FIRST, TWO THOUSAND TWELVE SHALL
BE VERIFIED WITH AN ELECTRONIC SIGNATURE AS PRESCRIBED  BY  THE  COMMIS-
SIONER.
  S 48-b. Subparagraph (ii) of paragraph (b) of subdivision 7 of section
2807-j  of the public health law, as amended by section 25 of part A3 of
chapter 62 of the laws of 2003, is amended to read as follows:
  (ii) For periods on and after July first, two thousand  four,  reports
submitted  on  a  monthly basis by third-party payors in accordance with
subparagraph (i) of this paragraph and reports submitted on a monthly or

S. 6256                            44                            A. 9056

annual basis by payors acting in an administrative services capacity  on
behalf  of  electing  third-party payors in accordance with subparagraph
(i) of this paragraph shall be made electronically in a form as  may  be
required  by the commissioner; provided, however, any third-party payor,
except payors acting in an administrative services capacity on behalf of
electing third-party payors, which, on or after January first, two thou-
sand four, elects to make payments directly to the commissioner  or  the
commissioner's  designee  pursuant  to subdivision five of this section,
shall be subject to this subparagraph only after one full year  of  pool
payment experience which results in reports being submitted on a monthly
basis,   AND   PROVIDED  FURTHER,  HOWEVER,  THAT  ALL  SUCH  ELECTRONIC
SUBMISSIONS SUBMITTED ON AND AFTER JULY FIRST, TWO THOUSAND TWELVE SHALL
BE VERIFIED WITH AN ELECTRONIC SIGNATURE AS PRESCRIBED  BY  THE  COMMIS-
SIONER.    This  subparagraph  shall  not be interpreted to prohibit any
third-party payor from submitting reports electronically on a  voluntary
basis.
  S  48-c.  Subparagraph  (ii)  of  paragraph  (b)  of subdivision 20 of
section 2807-c of the public health law, as added by section 26 of  part
A3 of chapter 62 of the laws of 2003, is amended to read as follows:
  (ii)  For  periods  on  and  after  January  first, two thousand five,
reports submitted by general hospitals to implement the  assessment  set
forth  in  subdivision eighteen of this section shall be submitted elec-
tronically in a form as may be required by the  commissioner;  provided,
however,  general  hospitals  are not prohibited from submitting reports
electronically on a voluntary basis prior to  such  date,  AND  PROVIDED
FURTHER,  HOWEVER, THAT ALL SUCH ELECTRONIC SUBMISSIONS SUBMITTED ON AND
AFTER JULY FIRST, TWO THOUSAND TWELVE SHALL BE VERIFIED  WITH  AN  ELEC-
TRONIC SIGNATURE AS PRESCRIBED BY THE COMMISSIONER.
  S  49.    Subdivision  8  of section 3605 of the public health law, as
added by chapter 959 of the laws of 1984, is amended to read as follows:
  8. Agencies licensed pursuant to this section but not certified pursu-
ant to section three thousand six hundred eight of this  article,  shall
not  be  qualified  to  participate  as  a  home health agency under the
provisions of title XVIII or XIX of  the  federal  Social  Security  Act
provided, however, an agency which has a contract with a state agency or
its locally designated office OR, AS SPECIFIED BY THE COMMISSIONER, WITH
A  MANAGED  CARE  ORGANIZATION PARTICIPATING IN THE MANAGED CARE PROGRAM
ESTABLISHED PURSUANT TO SECTION THREE HUNDRED SIXTY-FOUR-J OF THE SOCIAL
SERVICES LAW OR WITH A MANAGED LONG TERM CARE PLAN ESTABLISHED  PURSUANT
TO  SECTION  FORTY-FOUR  HUNDRED  THREE-F  OF  THIS CHAPTER, may receive
reimbursement under title XIX of the federal Social Security Act.
  S 50. Subdivision 6 of section 365-f of the  social  services  law  is
renumbered  subdivision  7  and  a new subdivision 6 is added to read as
follows:
  6. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION  OR  ANY
OTHER  CONTRARY  PROVISION  OF  LAW,  MANAGED  CARE PROGRAMS ESTABLISHED
PURSUANT TO SECTION THREE HUNDRED SIXTY-FOUR-J OF THIS TITLE AND MANAGED
LONG TERM CARE PLANS AND  OTHER  CARE  COORDINATION  MODELS  ESTABLISHED
PURSUANT  TO  SECTION  FOUR  THOUSAND FOUR HUNDRED THREE-F OF THE PUBLIC
HEALTH LAW SHALL OFFER CONSUMER DIRECTED PERSONAL ASSISTANCE PROGRAMS TO
ENROLLEES.
  S 51.  Subparagraph (ii) of paragraph (e) of subdivision 4 of  section
364-j  of the social services law, as amended by section 14 of part C of
chapter 58 of the laws of 2004, is amended to read as follows:
  (ii) In any social services district which has implemented a mandatory
managed care program pursuant to this section, the requirements of  this

S. 6256                            45                            A. 9056

subparagraph  shall  apply to the extent consistent with federal law and
regulations. The department of health, may contract  with  one  or  more
independent  organizations  to provide enrollment counseling and enroll-
ment  services,  for  participants  required  to  enroll in managed care
programs, for each social services district [requesting the services  of
an  enrollment  broker]  WHICH  HAS IMPLEMENTED A MANDATORY MANAGED CARE
PROGRAM. To select such organizations, the department  of  health  shall
issue  a request for proposals (RFP), shall evaluate proposals submitted
in response to such RFP  and,  pursuant  to  such  RFP,  shall  award  a
contract  to  one  or  more qualified and responsive organizations. Such
organizations shall not be owned, operated, or controlled by any govern-
mental agency, managed care provider, comprehensive  HIV  special  needs
plan, mental health special needs plan, or medical services provider.
  S  52.  Paragraph (b) of subdivision 1 of section 4403-f of the public
health law is REPEALED and paragraphs (c)  and  (d),  paragraph  (c)  as
relettered by section 7 of part C of chapter 58 of the laws of 2007, are
relettered paragraphs (b) and (c).
  S 53.  The opening paragraph of subdivision 2 of section 4403-f of the
public  health  law,  as amended by section 8 of part C of chapter 58 of
the laws of 2007, is amended to read as follows:
  An [eligible] applicant shall submit an application for a  certificate
of  authority  to  operate  a  managed  long  term  care plan upon forms
prescribed by the commissioner. Such [eligible] applicant  shall  submit
information  and  documentation to the commissioner which shall include,
but not be limited to:
  S 54.  Paragraph (b) of subdivision 4 of section 4403-f of the  public
health law, as added by section 5 of part C of chapter 58 of the laws of
2010, is amended to read as follows:
  (b)  Standards  established  pursuant  to  this  subdivision  shall be
adequate to protect the interests of enrollees in managed long term care
plans.  The commissioner shall be satisfied that the  [eligible]  appli-
cant  is  financially sound, and has made adequate provisions to pay for
services.
  S 55.  Paragraph (c) of subdivision 6 of section 4403-f of the  public
health  law,  as  amended by section 41-b of part H of chapter 59 of the
laws of 2011, is amended to read as follows:
  (c) For the period beginning April  first,  two  thousand  twelve  and
ending  March thirty-first, two thousand fifteen, the majority leader of
the senate and the speaker of the assembly may  each  recommend  to  the
commissioner, in writing, up to four [eligible] applicants to convert to
be  approved  managed  long  term care plans. An applicant shall only be
approved and issued a  certificate  of  authority  if  the  commissioner
determines  that  the  applicant  meets  the requirements of subdivision
three of this section. The majority leader of the senate or the  speaker
of  the  assembly  may  assign  their authority to recommend one or more
applicants under this section to the commissioner.
  S 56.  Paragraph (a) of subdivision 3 of section  366  of  the  social
services  law, as amended by chapter 110 of the laws of 1971, is amended
to read as follows:
  (a) Medical assistance shall  be  furnished  to  applicants  in  cases
where,  although  such  applicant has a responsible relative with suffi-
cient income and resources to provide medical assistance  as  determined
by  the  regulations  of the department, the income and resources of the
responsible relative are not available to such applicant because of  the
absence  of such relative [or] AND the refusal or failure of such ABSENT
relative to provide the necessary care and assistance.   In such  cases,

S. 6256                            46                            A. 9056

however,  the  furnishing  of  such  assistance  shall create an implied
contract with such relative, and the cost thereof may be recovered  from
such  relative  in  accordance  with  title six of article three OF THIS
CHAPTER and other applicable provisions of law.
  S  57. Subdivision 1 of section 92 of part H of chapter 59 of the laws
of 2011, amending the public health law and other laws relating to known
and projected department of health state funds Medicaid expenditures, is
amended to read as follows:
  1. For state fiscal years 2011-12 [and 2012-13] THROUGH  2013-14,  the
director  of the budget, in consultation with the commissioner of health
referenced as "commissioner" for purposes of this section, shall  assess
on a monthly basis, as reflected in monthly reports pursuant to subdivi-
sion five of this section known and projected department of health state
funds  medicaid  expenditures  by  category of service and by geographic
regions, as defined by the commissioner, and  if  the  director  of  the
budget  determines that such expenditures are expected to cause medicaid
disbursements for such period to  exceed  the  projected  department  of
health  medicaid  state funds disbursements in the enacted budget finan-
cial plan pursuant to subdivision 3 of section 23 of the  state  finance
law,  the  commissioner  of health, in consultation with the director of
the budget, shall develop a medicaid savings allocation  plan  to  limit
such  spending  to  the  aggregate  limit level specified in the enacted
budget financial  plan,  provided,  however,  such  projections  may  be
adjusted by the director of the budget to account for any changes in the
New  York state federal medical assistance percentage amount established
pursuant to the federal social security act, changes in provider  reven-
ues,  REDUCTIONS  TO  LOCAL  SOCIAL SERVICES DISTRICT MEDICAL ASSISTANCE
ADMINISTRATION, and beginning April 1, 2012 the operational costs of the
New York state medical indemnity fund.
  S 58.  Paragraph (b) of section 90 of part H of chapter 59 of the laws
of 2011, amending the public health law and other laws relating to types
of appropriations exempt from certain reductions, is amended to read  as
follows:
  (b)  The  following  types  of  appropriations  shall  be  exempt from
reductions pursuant to this section:
  (i) any reductions that would violate federal law including,  but  not
limited to, payments required pursuant to the federal Medicare program;
  (ii)  any reductions related to payments pursuant to article 32, arti-
cle 31 and article 16 of the mental hygiene law;
  (iii) payments the state is obligated to make pursuant to court orders
or judgments;
  (iv) payments for which the non-federal share  does  not  reflect  any
state funding; [and]
  (v)  at  the discretion of the commissioner of health and the director
of the budget, payments with regard to which it  is  determined  by  the
commissioner  of  health and the director of the budget that application
of reductions pursuant to this section would  result,  by  operation  of
federal law, in a lower federal medical assistance percentage applicable
to such payments; AND
  (VI)  PAYMENTS  MADE  WITH  REGARD  TO  THE EARLY INTERVENTION PROGRAM
PURSUANT TO SECTION 2540 OF THE PUBLIC HEALTH LAW.
  S 59. Subparagraph (ii) of paragraph (a) of subdivision 5  of  section
2807-j of the public health law, as amended by section 23 of part A-3 of
chapter 62 of the laws of 2003, is amended to read as follows:
  (ii) An election shall remain in effect unless revoked in writing by a
specified  third-party payor, which revocation shall be effective on the

S. 6256                            47                            A. 9056

first day of the next [calendar year quarter] MONTH, provided that  such
payor  has provided notice of its intention to so revoke at least [thir-
ty] TWENTY days prior to the beginning of such [calendar quarter] MONTH.
  S 60. Paragraph (b) of subdivision 5-a of section 2807-m of the public
health law is amended by adding a new clause (H) to read as follows:
  (H)  NOTWITHSTANDING  ANY  INCONSISTENT PROVISION OF THIS SUBDIVISION,
FOR PERIODS ON AND AFTER APRIL FIRST, TWO THOUSAND THIRTEEN, ECRIP GRANT
AWARDS SHALL BE MADE IN ACCORDANCE WITH RULES AND REGULATIONS PROMULGAT-
ED BY THE COMMISSIONER.
  S 61. Section 1 of part C of chapter 58 of the laws of 2005,  relating
to  authorizing  reimbursements for expenditures made by or on behalf of
social services districts for medical assistance for needy  persons  and
the  administration  thereof, is amended by adding a new subdivision (h)
to read as follows:
  (H) NOTWITHSTANDING THE PROVISIONS OF  SECTION  368-A  OF  THE  SOCIAL
SERVICES  LAW  OR  ANY OTHER CONTRARY PROVISION OF LAW, NO REIMBURSEMENT
SHALL BE MADE FOR SOCIAL SERVICES DISTRICTS'  CLAIMS  SUBMITTED  ON  AND
AFTER  JULY 1, 2006, FOR DISTRICT EXPENDITURES INCURRED PRIOR TO JANUARY
1, 2006, INCLUDING,  BUT  NOT  LIMITED  TO,  EXPENDITURES  FOR  SERVICES
PROVIDED  TO INDIVIDUALS WHO WERE ELIGIBLE FOR MEDICAL ASSISTANCE PURSU-
ANT TO SECTION THREE HUNDRED SIXTY-SIX OF THE SOCIAL SERVICES LAW  AS  A
RESULT  OF  A  MENTAL DISABILITY, FORMERLY REFERRED TO AS HUMAN SERVICES
OVERBURDEN AID TO COUNTIES.
  S 62.   Notwithstanding any inconsistent provision  of  law,  rule  or
regulation,  for  purposes  of implementing the provisions of the public
health law and the social services law, references to titles XIX and XXI
of the federal social security act in the  public  health  law  and  the
social  services  law  shall  be  deemed to include and also to mean any
successor titles thereto under the federal social security act.
  S 63. Notwithstanding any inconsistent provision of law, rule or regu-
lation, the effectiveness of the provisions of sections 2807 and 3614 of
the public health law, section 18 of chapter 2 of the laws of 1988,  and
18  NYCRR  505.14(h), as they relate to time frames for notice, approval
or certification of rates of payment, are hereby suspended  and  without
force or effect for purposes of implementing the provisions of this act.
  S 64.  Severability clause. If any clause, sentence, paragraph, subdi-
vision,  section  or  part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair or invalidate the remainder thereof, but shall be confined in its
operation  to  the  clause, sentence, paragraph, subdivision, section or
part thereof directly involved in the controversy in which such judgment
shall have been rendered. It is hereby declared to be the intent of  the
legislature  that  this act would have been enacted even if such invalid
provisions had not been included herein.
  S 65. This act shall take effect immediately, and shall be  deemed  to
have been in full force and effect on and after April 1, 2012, provided,
however, that:
  (a)  the  commissioner  of health may promulgate emergency regulations
necessary to effectuate the provisions of sections two, three  and  four
of this act; and
  (a-1)  provided,  further, that the amendments to section 1 of chapter
119 of the laws of 1997 made by section thirty-two of this act, relating
to authorizing the department of health to establish certain payments to
general hospitals, shall be subject to the expiration  of  such  chapter
and shall be deemed expired therewith;

S. 6256                            48                            A. 9056

  (a-2)  provided,  further,  that  the  amendments  to subdivision 1 of
section 241 of the elder law made by section thirty-three  of  this  act
shall  be  subject  to  the expiration and reversion of such subdivision
pursuant to section 79 of part C of chapter 58 of the laws of  2005,  as
amended, when upon such date the provisions of section thirty-three-a of
this act shall take effect;
  (b)  the  amendments  to  paragraph  (a-1) of subdivision 4 of section
365-a of the social services law made by section thirty-nine of this act
shall not affect the expiration and  reversion  of  such  paragraph  and
shall be deemed to expire therewith;
  (c)  provided,  further,  that  the  amendments  to section 272 of the
public health law made by section forty of this act shall not affect the
repeal of such section and shall be deemed repealed therewith;
  (d) provided, further, that the amendments to section  2807-j  of  the
public  health  law  made by sections forty-three, forty-eight-a, forty-
eight-b and fifty-nine of this act shall not affect  the  expiration  of
such section and shall be deemed to expire therewith;
  (e)  provided,  further,  that the amendments to section 2807-t of the
public health law made by section  forty-four  of  this  act  shall  not
affect  the  expiration  of  such  section and shall be deemed to expire
therewith;
  (f) provided, further, that the amendments to section  4403-f  of  the
public  health  law, made by sections fifty-two, fifty-three, fifty-four
and fifty-five of this act shall not affect the repeal of  such  section
and shall be deemed to repeal therewith;
  (g)  provided,  further,  that  the amendments to subparagraph (ii) of
paragraph (e) of subdivision 4 of section 364-j of the  social  services
law made by section fifty-one of this act shall not affect the repeal of
such section and shall be deemed repealed therewith;
  (h)  provided,  further,  that sections ten, eleven, twelve, thirteen,
fourteen, fifteen, sixteen, seventeen and eighteen  of  this  act  shall
take effect April 1, 2013;
  (i)  provided,  further,  that  any  rules or regulations necessary to
implement the provisions of this act may be promulgated and  any  proce-
dures,  forms,  or instructions necessary for such implementation may be
adopted and issued on or after the date this act  shall  have  become  a
law;
  (j)  provided, further, that this act shall not be construed to alter,
change, affect, impair or defeat  any  rights,  obligations,  duties  or
interests  accrued, incurred or conferred prior to the effective date of
this act;
  (k) provided, further, that the commissioner of health and the  super-
intendent of financial services and any appropriate council may take any
steps necessary to implement this act prior to its effective date;
  (k-1)  provided,  further,  that the amendments to section 2802 of the
public health law made by section thirty-one  of  this  act  shall  take
effect  on  the same date and in the same manner as section 1 of chapter
174 of the laws of 2011 takes effect, whichever is later;
  (l) provided, further, that notwithstanding any inconsistent provision
of the state administrative procedure act or any other provision of law,
rule or regulation, the commissioner of health and the superintendent of
financial services and any appropriate council is authorized to adopt or
amend or promulgate on an emergency basis any regulation he  or  she  or
such council determines necessary to implement any provision of this act
on its effective date; and

S. 6256                            49                            A. 9056

  (m)  provided,  further,  that the provisions of this act shall become
effective notwithstanding the failure of the commissioner of  health  or
the  superintendent  of  financial  services  or any council to adopt or
amend or promulgate regulations implementing this act.

                                 PART E

  Section  1.  This act shall be known and may be cited as the "New York
Health Benefit Exchange Act".
  S 2. The public authorities law is amended by  adding  a  new  article
10-E to read as follows:
                               ARTICLE 10-E
                    NEW YORK HEALTH BENEFIT EXCHANGE
SECTION 3980. STATEMENT OF POLICY AND PURPOSES.
        3981. DEFINITIONS.
        3982. ESTABLISHMENT OF THE NEW YORK HEALTH BENEFIT EXCHANGE.
        3983. GENERAL POWERS OF THE EXCHANGE.
        3984. FUNCTIONS OF THE EXCHANGE.
        3985. SPECIAL  FUNCTIONS  OF THE EXCHANGE RELATED TO HEALTH PLAN
                 CERTIFICATION AND QUALIFIED HEALTH PLAN OVERSIGHT.
        3986. REGIONAL ADVISORY COMMITTEES.
        3987. FUNDING OF THE EXCHANGE.
        3988. STUDIES AND RECOMMENDATIONS.
        3989. TAX EXEMPTION AND TAX CONTRACT BY THE STATE.
        3990. OFFICERS AND EMPLOYEES.
        3991. LIMITATION OF LIABILITY; INDEMNIFICATION.
        3992. CONTINGENCY FOR FEDERAL FUNDING.
        3993. CONSTRUCTION.
  S 3980. STATEMENT OF POLICY AND PURPOSES. THE PURPOSE OF THIS  ARTICLE
IS  TO  ESTABLISH  AN  AMERICAN  HEALTH BENEFIT EXCHANGE IN NEW YORK, IN
CONFORMANCE WITH THE FEDERAL PATIENT PROTECTION AND AFFORDABLE CARE ACT,
PUBLIC LAW 111-148, AS AMENDED BY THE HEALTH CARE AND  EDUCATION  RECON-
CILIATION  ACT  OF 2010, PUBLIC LAW 111-152.  THE EXCHANGE SHALL FACILI-
TATE ENROLLMENT IN HEALTH COVERAGE, THE PURCHASE AND SALE  OF  QUALIFIED
HEALTH PLANS IN THE INDIVIDUAL MARKET IN THIS STATE, AND ENROLL INDIVID-
UALS  IN  HEALTH COVERAGE FOR WHICH THEY ARE ELIGIBLE IN ACCORDANCE WITH
FEDERAL LAW. THE EXCHANGE ALSO SHALL INCORPORATE A SMALL BUSINESS HEALTH
OPTIONS PROGRAM ("SHOP") TO ASSIST QUALIFIED EMPLOYERS  IN  FACILITATING
THE  ENROLLMENT  OF THEIR EMPLOYEES IN QUALIFIED HEALTH PLANS OFFERED IN
THE GROUP MARKET.   IT IS THE INTENT OF  THE  LEGISLATURE,  THROUGH  THE
ESTABLISHMENT  OF THE EXCHANGE, TO PROMOTE QUALITY AND AFFORDABLE HEALTH
COVERAGE AND CARE, REDUCE THE NUMBER OF  UNINSURED  PERSONS,  PROVIDE  A
TRANSPARENT  MARKETPLACE,  EDUCATE CONSUMERS AND ASSIST INDIVIDUALS WITH
ACCESS TO COVERAGE, PREMIUM  ASSISTANCE  TAX  CREDITS  AND  COST-SHARING
REDUCTIONS.
  S 3981. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
NITIONS SHALL APPLY:
  1. "BOARD" OR "BOARD OF DIRECTORS" MEANS THE BOARD OF DIRECTORS OF THE
EXCHANGE.
  2.  "REGIONAL  ADVISORY  COMMITTEES" MEANS THE NEW YORK HEALTH BENEFIT
EXCHANGE REGIONAL ADVISORY COMMITTEES ESTABLISHED PURSUANT TO THIS ARTI-
CLE.
  3. "COMMISSIONER" MEANS THE COMMISSIONER OF HEALTH.
  4. "EXCHANGE" MEANS THE NEW YORK HEALTH BENEFIT  EXCHANGE  ESTABLISHED
PURSUANT TO THIS ARTICLE.

S. 6256                            50                            A. 9056

  5. "FEDERAL ACT" MEANS THE PATIENT PROTECTION AND AFFORDABLE CARE ACT,
PUBLIC  LAW  111-148, AS AMENDED BY THE HEALTH CARE AND EDUCATION RECON-
CILIATION ACT OF 2010, PUBLIC LAW 111-152, AND ANY REGULATIONS OR  GUID-
ANCE ISSUED THEREUNDER.
  6.  "HEALTH  PLAN" MEANS A POLICY, CONTRACT OR CERTIFICATE, OFFERED OR
ISSUED BY AN INSURER TO PROVIDE, DELIVER, ARRANGE FOR, PAY FOR OR  REIM-
BURSE  ANY  OF  THE COSTS OF HEALTH CARE SERVICES. HEALTH PLAN SHALL NOT
INCLUDE THE FOLLOWING:
  (A) ACCIDENT INSURANCE OR DISABILITY INCOME INSURANCE, OR ANY COMBINA-
TION THEREOF;
  (B) COVERAGE ISSUED AS A SUPPLEMENT TO LIABILITY INSURANCE;
  (C) LIABILITY INSURANCE, INCLUDING  GENERAL  LIABILITY  INSURANCE  AND
AUTOMOBILE LIABILITY INSURANCE;
  (D) WORKERS' COMPENSATION OR SIMILAR INSURANCE;
  (E) AUTOMOBILE NO-FAULT INSURANCE;
  (F) CREDIT INSURANCE;
  (G)  OTHER  SIMILAR  INSURANCE COVERAGE, AS SPECIFIED IN FEDERAL REGU-
LATIONS, UNDER WHICH BENEFITS FOR MEDICAL CARE ARE  SECONDARY  OR  INCI-
DENTAL TO OTHER INSURANCE BENEFITS;
  (H)  LIMITED  SCOPE  DENTAL OR VISION BENEFITS, BENEFITS FOR LONG-TERM
CARE INSURANCE, NURSING HOME INSURANCE,  HOME  CARE  INSURANCE,  OR  ANY
COMBINATION  THEREOF,  OR  SUCH  OTHER  SIMILAR, LIMITED BENEFITS HEALTH
INSURANCE AS SPECIFIED IN  FEDERAL  REGULATIONS,  IF  THE  BENEFITS  ARE
PROVIDED  UNDER  A SEPARATE POLICY, CERTIFICATE OR CONTRACT OF INSURANCE
OR ARE OTHERWISE NOT AN INTEGRAL PART OF THE PLAN;
  (I) COVERAGE ONLY FOR A SPECIFIED DISEASE OR ILLNESS, HOSPITAL  INDEM-
NITY, OR OTHER FIXED INDEMNITY COVERAGE;
  (J)  MEDICARE  SUPPLEMENTAL INSURANCE AS DEFINED IN SECTION 1882(G)(1)
OF THE FEDERAL SOCIAL SECURITY ACT, COVERAGE SUPPLEMENTAL TO THE  COVER-
AGE  PROVIDED UNDER CHAPTER 55 OF TITLE 10 OF THE UNITED STATES CODE, OR
SIMILAR SUPPLEMENTAL COVERAGE PROVIDED UNDER A GROUP HEALTH PLAN  IF  IT
IS  OFFERED  AS A SEPARATE POLICY, CERTIFICATE OR CONTRACT OF INSURANCE;
OR
  (K) THE MEDICAL INDEMNITY FUND ESTABLISHED PURSUANT TO TITLE  FOUR  OF
ARTICLE TWENTY-NINE-D OF THE PUBLIC HEALTH LAW.
  7.  "INSURER" MEANS AN INSURANCE COMPANY SUBJECT TO ARTICLE THIRTY-TWO
OR FORTY-THREE OF THE INSURANCE LAW, OR A HEALTH  MAINTENANCE  ORGANIZA-
TION  CERTIFIED  PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW
THAT CONTRACTS OR OFFERS TO CONTRACT TO PROVIDE, DELIVER,  ARRANGE,  PAY
OR REIMBURSE ANY OF THE COSTS OF HEALTH CARE SERVICES.
  8.  "QUALIFIED  DENTAL PLAN" MEANS A LIMITED SCOPE DENTAL PLAN THAT IS
ISSUED  BY  AN  INSURER  AND  CERTIFIED  IN  ACCORDANCE   WITH   SECTION
THIRTY-NINE HUNDRED EIGHTY-FIVE OF THIS ARTICLE.
  9. "QUALIFIED EMPLOYER" MEANS A SMALL EMPLOYER THAT ELECTS TO MAKE ITS
FULL-TIME  EMPLOYEES  ELIGIBLE  FOR  ONE  OR MORE QUALIFIED HEALTH PLANS
THROUGH THE EXCHANGE.
  10. "QUALIFIED HEALTH PLAN" MEANS A HEALTH PLAN THAT IS ISSUED  BY  AN
INSURER  AND  CERTIFIED  IN  ACCORDANCE WITH SECTION THIRTY-NINE HUNDRED
EIGHTY-FIVE OF THIS ARTICLE.
  11. "QUALIFIED INDIVIDUAL" MEANS AN  INDIVIDUAL,  INCLUDING  A  MINOR,
WHO:
  (A)  IS  SEEKING TO ENROLL IN A QUALIFIED HEALTH PLAN OFFERED TO INDI-
VIDUALS THROUGH THE EXCHANGE;
  (B) RESIDES IN THIS STATE;
  (C) AT THE TIME OF ENROLLMENT, IS NOT INCARCERATED, OTHER THAN  INCAR-
CERATION PENDING THE DISPOSITION OF CHARGES; AND

S. 6256                            51                            A. 9056

  (D)  IS,  AND  IS REASONABLY EXPECTED TO BE, FOR THE ENTIRE PERIOD FOR
WHICH ENROLLMENT IS SOUGHT, A CITIZEN OR NATIONAL OF THE  UNITED  STATES
OR AN ALIEN LAWFULLY PRESENT IN THE UNITED STATES.
  12. "SECRETARY" MEANS THE SECRETARY OF THE UNITED STATES DEPARTMENT OF
HEALTH AND HUMAN SERVICES.
  13. "SHOP" MEANS THE SMALL BUSINESS HEALTH OPTIONS PROGRAM DESIGNED TO
ASSIST  QUALIFIED EMPLOYERS IN THIS STATE IN FACILITATING THE ENROLLMENT
OF THEIR EMPLOYEES IN QUALIFIED HEALTH PLANS OFFERED IN THE GROUP MARKET
IN THIS STATE.
  14. "SMALL EMPLOYER" MEANS, FOR PLAN YEARS PRIOR TO JANUARY FIRST, TWO
THOUSAND SIXTEEN, AN EMPLOYER THAT EMPLOYED AN AVERAGE OF AT  LEAST  ONE
BUT  NOT MORE THAN FIFTY EMPLOYEES ON BUSINESS DAYS DURING THE PRECEDING
CALENDAR YEAR. FOR PLAN YEARS BEGINNING ON AND AFTER JANUARY FIRST,  TWO
THOUSAND  SIXTEEN,  SMALL  EMPLOYER  MEANS  AN EMPLOYER THAT EMPLOYED AN
AVERAGE OF AT LEAST ONE BUT NOT MORE THAN ONE HUNDRED EMPLOYEES ON BUSI-
NESS DAYS DURING THE PRECEDING CALENDAR YEAR. FOR PURPOSES OF THE  DEFI-
NITION OF SMALL EMPLOYER:
  (A)  ALL  PERSONS  TREATED  AS A SINGLE EMPLOYER UNDER SUBSECTION (B),
(C), (M) OR (O) OF SECTION 414 OF THE  INTERNAL  REVENUE  CODE  OF  1986
SHALL BE TREATED AS A SINGLE EMPLOYER;
  (B)  AN  EMPLOYER  AND  ANY PREDECESSOR EMPLOYER SHALL BE TREATED AS A
SINGLE EMPLOYER;
  (C) ALL EMPLOYEES SHALL BE COUNTED, INCLUDING PART-TIME EMPLOYEES  AND
EMPLOYEES WHO ARE NOT ELIGIBLE FOR COVERAGE THROUGH THE EMPLOYER;
  (D)  IF  AN  EMPLOYER  WAS  NOT  IN EXISTENCE THROUGHOUT THE PRECEDING
CALENDAR YEAR, THEN THE DETERMINATION OF  WHETHER  THAT  EMPLOYER  IS  A
SMALL  EMPLOYER SHALL BE BASED UPON THE AVERAGE NUMBER OF EMPLOYEES THAT
THE EMPLOYER REASONABLY EXPECTS  TO  EMPLOY  ON  BUSINESS  DAYS  IN  THE
CURRENT CALENDAR YEAR;
  (E)  IF A QUALIFIED EMPLOYER THAT MAKES ENROLLMENT IN QUALIFIED HEALTH
PLANS AVAILABLE TO ITS EMPLOYEES THROUGH THE EXCHANGE  CEASES  TO  BE  A
SMALL  EMPLOYER BY REASON OF AN INCREASE IN THE NUMBER OF ITS EMPLOYEES,
THEN THE EMPLOYER SHALL CONTINUE TO BE TREATED AS A  QUALIFIED  EMPLOYER
FOR  PURPOSES OF THIS ARTICLE FOR THE PERIOD BEGINNING WITH THE INCREASE
AND ENDING WITH THE FIRST DAY ON WHICH THE EMPLOYER DOES NOT  MAKE  SUCH
ENROLLMENT AVAILABLE TO ITS EMPLOYEES; AND
  (F) NOTWITHSTANDING PARAGRAPHS (A) THROUGH (E) OF THIS SUBDIVISION, AN
EMPLOYER  ALSO  SHALL  BE CONSIDERED A SMALL EMPLOYER IF THE COVERAGE IT
OFFERS WOULD BE CONSIDERED SMALL GROUP COVERAGE UNDER THE INSURANCE  LAW
AND REGULATIONS PROMULGATED THEREUNDER PROVIDED THAT IT IS NOT OTHERWISE
PROHIBITED UNDER THE FEDERAL ACT.
  15. "SMALL GROUP MARKET" MEANS THE HEALTH INSURANCE MARKET UNDER WHICH
INDIVIDUALS  RECEIVE  HEALTH  INSURANCE COVERAGE ON BEHALF OF THEMSELVES
AND THEIR DEPENDENTS THROUGH A GROUP HEALTH PLAN MAINTAINED BY  A  SMALL
EMPLOYER.
  16. "SUPERINTENDENT" MEANS THE SUPERINTENDENT OF FINANCIAL SERVICES.
  S  3982.  ESTABLISHMENT  OF  THE NEW YORK HEALTH BENEFIT EXCHANGE.  1.
THERE IS HEREBY CREATED A PUBLIC BENEFIT CORPORATION TO BE KNOWN AS  THE
NEW  YORK  HEALTH  BENEFIT  EXCHANGE.  SUCH  CORPORATION SHALL BE A BODY
CORPORATE AND POLITIC.
  2. THE PURPOSE OF THE EXCHANGE IS TO FACILITATE THE PURCHASE AND  SALE
OF  QUALIFIED  HEALTH  PLANS, ASSIST QUALIFIED EMPLOYERS IN FACILITATING
THE ENROLLMENT OF THEIR EMPLOYEES IN QUALIFIED HEALTH PLANS THROUGH  THE
SMALL  BUSINESS  HEALTH  OPTIONS  PROGRAM,  ENROLL INDIVIDUALS IN HEALTH
COVERAGE FOR WHICH THEY ARE ELIGIBLE IN ACCORDANCE WITH FEDERAL LAW  AND
CARRY OUT OTHER FUNCTIONS SET FORTH IN THIS ARTICLE.

S. 6256                            52                            A. 9056

  3. (A) THE EXCHANGE SHALL BE GOVERNED BY A BOARD OF DIRECTORS CONSIST-
ING  OF NINE VOTING DIRECTORS, INCLUDING THE COMMISSIONER AND THE SUPER-
INTENDENT, WHO SHALL SERVE AS EX OFFICIO DIRECTORS.
  (B)  SEVEN  DIRECTORS  SHALL BE APPOINTED BY THE GOVERNOR, TWO OF WHOM
SHALL BE APPOINTED UPON THE RECOMMENDATION OF THE TEMPORARY PRESIDENT OF
THE SENATE AND TWO OF WHOM SHALL BE APPOINTED UPON THE RECOMMENDATION OF
THE SPEAKER OF THE ASSEMBLY.  EACH PERSON APPOINTED AS A DIRECTOR PURSU-
ANT TO THIS PARAGRAPH SHALL HAVE EXPERTISE IN ONE OR MORE OF THE FOLLOW-
ING AREAS:
  (I) INDIVIDUAL HEALTH CARE COVERAGE;
  (II) SMALL EMPLOYER HEALTH CARE COVERAGE;
  (III) HEALTH BENEFITS ADMINISTRATION;
  (IV) HEALTH CARE FINANCE;
  (V) PUBLIC OR PRIVATE HEALTH CARE DELIVERY SYSTEMS; AND
  (VI) PURCHASING HEALTH PLAN COVERAGE.
  (C) RECOMMENDATIONS AND APPOINTMENTS SHALL TAKE INTO CONSIDERATION THE
EXPERTISE OF OTHER DIRECTORS RECOMMENDED AND APPOINTED PURSUANT TO  THIS
SUBDIVISION, SO THAT THE BOARD COMPOSITION REFLECTS A DIVERSITY OF EXPE-
RIENCE  AND COMPLIES WITH ANY REGULATIONS ISSUED BY THE SECRETARY PURSU-
ANT TO THE FEDERAL ACT.
  (D) RECOMMENDATIONS BY THE TEMPORARY PRESIDENT OF THE SENATE  AND  THE
SPEAKER  OF  THE ASSEMBLY SHALL BE MADE WITHIN THIRTY DAYS OF THE EFFEC-
TIVE DATE OF THIS ARTICLE, WITHIN SIXTY DAYS  OF  THE  OCCURRENCE  OF  A
VACANCY OR WITHIN SIXTY DAYS PRIOR TO THE EXPIRATION OF A TERM.
  4.  THE  GOVERNOR  SHALL  APPOINT  A CHAIR OF THE BOARD FROM AMONG THE
DIRECTORS WHO SHALL BE SUBJECT TO THE ADVICE AND CONSENT OF THE  SENATE.
ANY  DIRECTOR  APPOINTED BY THE GOVERNOR AS CHAIR OF THE BOARD MAY SERVE
AS ACTING CHAIR UNTIL SUCH TIME AS A VOTE FOR CONFIRMATION IS  TAKEN  BY
THE  SENATE.  NO  DIRECTOR  APPOINTED  AS CHAIR SHALL SERVE AS CHAIR, OR
CONTINUE TO SERVE AS ACTING CHAIR,  IF  THE  SENATE  HAS  VOTED  NOT  TO
CONFIRM SUCH DIRECTOR AS CHAIR.
  5.  (A)  THE  TERMS OF THE DIRECTORS, OTHER THAN THE EX OFFICIO DIREC-
TORS, SHALL BE THREE YEARS, PROVIDED, HOWEVER, THAT THE INITIAL TERMS OF
ONE OF THE DIRECTORS APPOINTED  UPON  RECOMMENDATION  OF  THE  TEMPORARY
PRESIDENT OF THE SENATE, ONE OF THE DIRECTORS APPOINTED UPON RECOMMENDA-
TION  OF THE SPEAKER OF THE ASSEMBLY, AND ONE OF THE DIRECTORS APPOINTED
BY THE GOVERNOR WITHOUT RECOMMENDATION SHALL BE FOR TWO YEARS.
  (B) VACANCIES OCCURRING OTHERWISE THAN BY EXPIRATION OF TERM OF OFFICE
SHALL BE FILLED FOR THE  UNEXPIRED  TERM  IN  THE  MANNER  PROVIDED  FOR
ORIGINAL APPOINTMENT.
  6. THE DIRECTORS SHALL NOT RECEIVE ANY COMPENSATION FOR THEIR SERVICES
AS DIRECTORS.
  7.  (A)  EACH  DIRECTOR SHALL HAVE THE RESPONSIBILITY AND DUTY TO MEET
THE REQUIREMENTS OF THIS ARTICLE, THE FEDERAL ACT,  AND  ALL  APPLICABLE
STATE  AND  FEDERAL LAWS AND REGULATIONS TO SERVE THE PUBLIC INTEREST OF
THE INDIVIDUALS  AND  SMALL  BUSINESSES  SEEKING  HEALTH  CARE  COVERAGE
THROUGH THE EXCHANGE, CONSISTENT WITH SECTION TWENTY-EIGHT HUNDRED TWEN-
TY-FOUR OF THIS CHAPTER.
  (B)  EACH  DIRECTOR  SHALL  BE  A  STATE  OFFICER  OR EMPLOYEE FOR THE
PURPOSES OF SECTIONS SEVENTY-THREE AND SEVENTY-FOUR OF THE PUBLIC  OFFI-
CERS LAW.
  (C) NO DIRECTOR MAY BE EMPLOYED OR OTHERWISE RETAINED BY THE EXCHANGE.
  8.  (A) THE BOARD MAY CREATE SUCH COMMITTEES AS THE BOARD DEEMS NECES-
SARY. THE FIRST MEETING OF THE BOARD SHALL BE HELD WITHIN FOURTEEN  DAYS
AFTER  ALL  DIRECTORS  ARE INITIALLY APPOINTED.  AT THE FIRST MEETING OF
THE BOARD, AND AT THE FIRST MEETING IN EACH SUBSEQUENT YEAR,  THE  BOARD

S. 6256                            53                            A. 9056

SHALL  ELECT  FROM  AMONG  ITS  MEMBERS A SECRETARY AND A TREASURER. THE
BOARD ALSO SHALL ELECT SUCH OTHER OFFICERS AS IT SHALL  DEEM  NECESSARY.
THE  OFFICERS  SO  ELECTED  SHALL  HAVE  SUCH  POWERS  AND DUTIES AS ARE
ASSIGNED BY THE BY-LAWS AND THIS CHAPTER.
  (B)  THE  BOARD, AND ANY COMMITTEE THEREOF, MAY HOLD MEETINGS BY ELEC-
TRONIC MEANS CONSISTENT WITH ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW.
  S 3983. GENERAL POWERS OF THE EXCHANGE. THE EXCHANGE  SHALL  HAVE  THE
FOLLOWING POWERS TO BE USED IN FURTHERANCE OF ITS CORPORATE PURPOSES:
  1.  TO  SUE AND BE SUED AND TO PARTICIPATE IN ACTIONS AND PROCEEDINGS,
WHETHER JUDICIAL, ADMINISTRATIVE, ARBITRATIVE OR OTHERWISE;
  2. TO HAVE A CORPORATE SEAL, AND TO ALTER SUCH SEAL AT  PLEASURE,  AND
TO  USE  IT  BY  CAUSING IT OR A FACSIMILE TO BE AFFIXED OR IMPRESSED OR
REPRODUCED IN ANY OTHER MANNER;
  3. TO PURCHASE, RECEIVE, TAKE  BY  GRANT,  GIFT,  DEVISE,  BEQUEST  OR
OTHERWISE,  LEASE, OR OTHERWISE ACQUIRE, OWN, HOLD, IMPROVE, EMPLOY, USE
AND OTHERWISE DEAL IN AND WITH, REAL OR PERSONAL PROPERTY, OR ANY INTER-
EST THEREIN, WHEREVER SITUATED;
  4. TO SELL, CONVEY, LEASE, EXCHANGE, TRANSFER OR OTHERWISE DISPOSE OF,
OR MORTGAGE OR PLEDGE, OR CREATE A SECURITY INTEREST IN, ALL OR  ANY  OF
ITS PROPERTY, OR ANY INTEREST THEREIN, WHEREVER SITUATED;
  5.  TO  MAKE  CONTRACTS,  GIVE  GUARANTEES  AND INCUR LIABILITIES, AND
BORROW MONEY; PROVIDED, HOWEVER,  THAT  THE  EXCHANGE  SHALL  NOT  ISSUE
BONDS;
  6.  TO  INVEST  AND  REINVEST  ITS  FUNDS,  AND TAKE AND HOLD REAL AND
PERSONAL PROPERTY AS SECURITY FOR THE PAYMENT  OF  FUNDS  SO  LOANED  OR
INVESTED;
  7. TO MAKE AND ALTER BY-LAWS FOR ITS ORGANIZATION AND MANAGEMENT;
  8.  TO  MAKE AND ALTER RULES AND REGULATIONS AS NECESSARY TO IMPLEMENT
THE PROVISIONS OF THIS ARTICLE, SUBJECT TO THE PROVISIONS OF  THE  STATE
ADMINISTRATIVE PROCEDURE ACT;
  9.  TO  HIRE  EMPLOYEES,  CONSISTENT  WITH SECTION THIRTY-NINE HUNDRED
NINETY OF THIS ARTICLE;
  10. TO DESIGNATE THE DEPOSITORIES OF ITS MONEY;
  11. TO ESTABLISH ITS FISCAL YEAR;
  12. TO INSURE OR OTHERWISE PROVIDE FOR THE INSURANCE OF THE EXCHANGE'S
PROPERTY OR OPERATIONS AND AGAINST SUCH OTHER RISKS AS THE EXCHANGE  MAY
DEEM ADVISABLE;
  13.  TO  RECEIVE  AND SPEND MONEY FOR ANY OF ITS CORPORATE PURPOSES IN
ACCORDANCE WITH THIS ARTICLE; AND
  14. TO APPLY FOR, ACCEPT THE AWARD OF, AND SPEND ANY  AVAILABLE  GRANT
MONEY.
  S 3984. FUNCTIONS OF THE EXCHANGE.  THE EXCHANGE SHALL:
  1.  (A) MAKE AVAILABLE QUALIFIED HEALTH PLANS TO QUALIFIED INDIVIDUALS
AND QUALIFIED EMPLOYERS BEGINNING ON OR BEFORE JANUARY FIRST, TWO  THOU-
SAND  FOURTEEN,  PROVIDED THAT COVERAGE UNDER SUCH QUALIFIED PLANS SHALL
NOT BECOME EFFECTIVE PRIOR TO SUCH DATE AND SHALL NOT MAKE AVAILABLE ANY
HEALTH PLAN THAT IS NOT A QUALIFIED HEALTH PLAN;
  (B) MAKE AVAILABLE QUALIFIED DENTAL PLANS TO QUALIFIED INDIVIDUALS AND
QUALIFIED EMPLOYERS BEGINNING ON OR BEFORE JANUARY FIRST,  TWO  THOUSAND
FOURTEEN, PROVIDED THAT COVERAGE UNDER SUCH QUALIFIED DENTAL PLANS SHALL
NOT  BECOME  EFFECTIVE  PRIOR  TO  SUCH  DATE,  EITHER  SEPARATELY OR IN
CONJUNCTION WITH A QUALIFIED HEALTH PLAN, IF SUCH PLAN  PROVIDES  PEDIA-
TRIC  DENTAL  BENEFITS MEETING THE REQUIREMENTS OF SECTION 1302(B)(1)(J)
OF THE FEDERAL ACT;
  2. ASSIGN A RATING TO EACH QUALIFIED HEALTH PLAN OFFERED  THROUGH  THE
EXCHANGE  IN  ACCORDANCE  WITH  THE  CRITERIA DEVELOPED BY THE SECRETARY

S. 6256                            54                            A. 9056

PURSUANT TO SECTION 1311(C)(3) OF THE FEDERAL ACT,  AND  DETERMINE  EACH
QUALIFIED HEALTH PLAN'S LEVEL OF COVERAGE IN ACCORDANCE WITH REGULATIONS
ISSUED BY THE SECRETARY PURSUANT TO SECTION 1302(D)(2)(A) OF THE FEDERAL
ACT;
  3. UTILIZE A STANDARDIZED FORMAT FOR PRESENTING HEALTH BENEFIT OPTIONS
IN  THE  EXCHANGE,  INCLUDING THE USE OF THE UNIFORM OUTLINE OF COVERAGE
ESTABLISHED UNDER SECTION 2715 OF THE FEDERAL PUBLIC HEALTH SERVICE ACT;
  4. PROVIDE FOR ENROLLMENT PERIODS PURSUANT TO THE FEDERAL ACT  OR  THE
INSURANCE  LAW,  WHICHEVER IS IN THE BEST INTEREST OF QUALIFIED INDIVID-
UALS AND QUALIFIED EMPLOYERS, AFTER THE INITIAL  ENROLLMENT  PERIOD  HAS
BEEN ESTABLISHED AS REQUIRED IN THE FEDERAL ACT; PROVIDED, HOWEVER, THAT
IF  ENROLLMENT PERIODS PURSUANT TO THE INSURANCE LAW CONFLICT WITH RULES
ADOPTED BY THE SECRETARY, THEN ENROLLMENT PERIODS PURSUANT TO THE FEDER-
AL ACT SHALL APPLY;
  5. IMPLEMENT PROCEDURES FOR  THE  CERTIFICATION,  RECERTIFICATION  AND
DECERTIFICATION  OF  HEALTH  PLANS AS QUALIFIED HEALTH PLANS, CONSISTENT
WITH GUIDELINES DEVELOPED BY THE SECRETARY PURSUANT TO  SECTION  1311(C)
OF  THE  FEDERAL ACT AND SECTION THIRTY-NINE HUNDRED EIGHTY-FIVE OF THIS
ARTICLE;
  6. REQUIRE QUALIFIED HEALTH PLANS TO OFFER THOSE  BENEFITS  DETERMINED
BY  THE  SECRETARY  TO  BE ESSENTIAL HEALTH BENEFITS PURSUANT TO SECTION
1302(B) OF THE FEDERAL ACT (EXCEPT  AS  PROVIDED  IN  PARAGRAPH  (B)  OF
SUBDIVISION  ONE  OF  SECTION THREE THOUSAND NINE HUNDRED EIGHTY-FIVE OF
THIS ARTICLE) AND SUCH ADDITIONAL BENEFITS AS MAY BE  REQUIRED  PURSUANT
TO  THE  INSURANCE  LAW, PROVIDED THAT THE STATE HAS ASSUMED THE COST OF
SUCH ADDITIONAL BENEFITS AS REQUIRED UNDER SECTION 1311(D)(3)(B) OF  THE
FEDERAL ACT;
  7.  ENSURE THAT INSURERS OFFERING HEALTH PLANS THROUGH THE EXCHANGE DO
NOT CHARGE AN INDIVIDUAL A FEE OR PENALTY FOR TERMINATION OF COVERAGE;
  8. PROVIDE FOR THE OPERATION  OF  A  TOLL-FREE  TELEPHONE  HOTLINE  TO
RESPOND TO REQUESTS FOR ASSISTANCE;
  9.  MAINTAIN  AN INTERNET WEBSITE THROUGH WHICH ENROLLEES AND PROSPEC-
TIVE ENROLLEES OF QUALIFIED HEALTH PLANS MAY OBTAIN STANDARDIZED COMPAR-
ATIVE INFORMATION ON SUCH PLANS AND PUBLIC HEALTH PROGRAMS;
  10. ESTABLISH AND MAKE AVAILABLE BY ELECTRONIC MEANS A  CALCULATOR  TO
DETERMINE  THE  ACTUAL  COST  OF  COVERAGE  AFTER THE APPLICATION OF ANY
PREMIUM TAX CREDIT UNDER SECTION 36B OF THE  INTERNAL  REVENUE  CODE  OF
1986  AND  ANY  COST-SHARING REDUCTION UNDER SECTION 1402 OF THE FEDERAL
ACT;
  11. ESTABLISH A PROGRAM UNDER WHICH  THE  EXCHANGE  AWARDS  GRANTS  TO
ENTITIES  TO  SERVE AS NAVIGATORS, IN ACCORDANCE WITH SECTION 1311(I) OF
THE FEDERAL ACT AND REGULATIONS ADOPTED THEREUNDER;
  12. IN ACCORDANCE WITH SECTION 1413 OF THE FEDERAL ACT,  INFORM  INDI-
VIDUALS OF ELIGIBILITY REQUIREMENTS FOR THE MEDICAID PROGRAM UNDER TITLE
XIX  OF THE SOCIAL SECURITY ACT, THE CHILDREN'S HEALTH INSURANCE PROGRAM
(CHIP) UNDER TITLE XXI OF THE SOCIAL  SECURITY  ACT  OR  ANY  APPLICABLE
STATE OR LOCAL PUBLIC HEALTH INSURANCE PROGRAM AND IF, THROUGH SCREENING
OF  THE  APPLICATION  BY THE EXCHANGE, THE EXCHANGE DETERMINES THAT SUCH
INDIVIDUALS ARE ELIGIBLE FOR ANY SUCH PROGRAM, ENROLL  SUCH  INDIVIDUALS
IN SUCH PROGRAM;
  13. PURSUANT TO SECTION 1411 OF THE FEDERAL ACT, GRANT A CERTIFICATION
ATTESTING  THAT,  FOR  PURPOSES OF THE INDIVIDUAL RESPONSIBILITY PENALTY
UNDER SECTION 5000A OF THE INTERNAL REVENUE CODE OF 1986, AN  INDIVIDUAL
IS  EXEMPT  FROM  THE  INDIVIDUAL RESPONSIBILITY REQUIREMENT OR FROM THE
PENALTY IMPOSED BY THAT SECTION BECAUSE:

S. 6256                            55                            A. 9056

  (A) THERE IS NO AFFORDABLE QUALIFIED HEALTH PLAN AVAILABLE THROUGH THE
EXCHANGE OR THE INDIVIDUAL'S EMPLOYER, COVERING THE INDIVIDUAL; OR
  (B) THE INDIVIDUAL MEETS THE REQUIREMENTS FOR ANY OTHER SUCH EXEMPTION
FROM THE INDIVIDUAL RESPONSIBILITY REQUIREMENT OR PENALTY;
  14.  TRANSMIT  TO THE SECRETARY OF THE UNITED STATES DEPARTMENT OF THE
TREASURY:
  (A) A LIST OF THE INDIVIDUALS TO WHOM THE EXCHANGE GRANTED  A  CERTIF-
ICATION  UNDER  SUBDIVISION THIRTEEN OF THIS SECTION, INCLUDING THE NAME
AND TAXPAYER IDENTIFICATION NUMBER OF EACH INDIVIDUAL;
  (B) THE NAME AND TAXPAYER IDENTIFICATION NUMBER OF EACH INDIVIDUAL WHO
WAS AN EMPLOYEE OF AN EMPLOYER WHO WAS DETERMINED TO BE ELIGIBLE FOR THE
PREMIUM TAX CREDIT UNDER SECTION 36B OF THE  INTERNAL  REVENUE  CODE  OF
1986 BECAUSE:
  (I)  THE EMPLOYER DID NOT PROVIDE MINIMUM ESSENTIAL COVERAGE AS DETER-
MINED BY THE SECRETARY PURSUANT TO SECTION 1311(D) OF THE  FEDERAL  ACT;
OR
  (II)  THE  EMPLOYER  PROVIDED THE MINIMUM ESSENTIAL COVERAGE AS DETER-
MINED BY THE SECRETARY PURSUANT TO SECTION 1311(D) OF THE  FEDERAL  ACT,
BUT IT WAS DETERMINED UNDER SECTION 36B(C)(2)(C) OF THE INTERNAL REVENUE
CODE OF 1986 TO EITHER BE UNAFFORDABLE TO THE EMPLOYEE OR TO NOT PROVIDE
THE REQUIRED MINIMUM ACTUARIAL VALUE; AND
  (C) THE NAME AND TAXPAYER IDENTIFICATION NUMBER OF:
  (I)  EACH  INDIVIDUAL  WHO  NOTIFIES  THE EXCHANGE PURSUANT TO SECTION
1411(B)(4) OF THE FEDERAL ACT THAT HE OR SHE HAS CHANGED EMPLOYERS; AND
  (II) EACH INDIVIDUAL WHO CEASES COVERAGE UNDER A QUALIFIED HEALTH PLAN
DURING A PLAN YEAR AND THE EFFECTIVE DATE OF THAT CESSATION;
  15. PROVIDE TO EACH EMPLOYER THE NAME OF EACH EMPLOYEE OF THE EMPLOYER
DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION FOURTEEN OF THIS  SECTION  WHO
CEASES COVERAGE UNDER A QUALIFIED HEALTH PLAN DURING A PLAN YEAR AND THE
EFFECTIVE DATE OF THE CESSATION;
  16.  OPERATE A SMALL BUSINESS HEALTH OPTIONS PROGRAM ("SHOP") PURSUANT
TO SECTION 1311 OF THE FEDERAL ACT  THROUGH  WHICH  QUALIFIED  EMPLOYERS
ACCESS COVERAGE FOR THEIR EMPLOYEES, AND MAY:
  (A) PERMIT QUALIFIED EMPLOYERS TO SPECIFY A LEVEL OF COVERAGE SO THEIR
EMPLOYEES  MAY  ENROLL  IN ANY QUALIFIED HEALTH PLAN OFFERED THROUGH THE
SHOP AT THE SPECIFIED LEVEL OF COVERAGE OR,  UNLESS  PROHIBITED  BY  THE
FEDERAL  ACT,  PROVIDE  A SPECIFIC AMOUNT OR OTHER PAYMENT FORMULATED IN
ACCORDANCE WITH THE FEDERAL ACT TO BE USED AS PART OF AN EMPLOYEE CHOICE
PLAN; AND
  (B) PROVIDE PREMIUM AGGREGATION AND OTHER RELATED SERVICES TO MINIMIZE
ADMINISTRATIVE BURDENS FOR QUALIFIED EMPLOYERS;
  17. ENTER INTO AGREEMENTS AS NECESSARY WITH:  (A)  FEDERAL  AND  STATE
AGENCIES  AND  OTHER  STATE  EXCHANGES TO CARRY OUT ITS RESPONSIBILITIES
UNDER  THIS  ARTICLE,  PROVIDED   SUCH   AGREEMENTS   INCLUDE   ADEQUATE
PROTECTIONS WITH RESPECT TO THE CONFIDENTIALITY OF ANY INFORMATION TO BE
SHARED AND COMPLY WITH ALL STATE AND FEDERAL LAWS AND REGULATIONS; AND
  (B)  LOCAL  DEPARTMENTS OF SOCIAL SERVICES TO COORDINATE ENROLLMENT IN
OTHER SOCIAL SERVICES PROGRAMS, AS APPROPRIATE, PROVIDED SUCH AGREEMENTS
INCLUDE ADEQUATE PROTECTIONS WITH RESPECT TO THE CONFIDENTIALITY OF  ANY
INFORMATION  TO BE SHARED AND COMPLY WITH ALL STATE AND FEDERAL LAWS AND
REGULATIONS;
  18. PERFORM DUTIES REQUIRED BY THE SECRETARY OR THE SECRETARY  OF  THE
UNITED  STATES  DEPARTMENT OF THE TREASURY RELATED TO DETERMINING ELIGI-
BILITY FOR PREMIUM TAX  CREDITS,  REDUCED  COST-SHARING,  OR  INDIVIDUAL
RESPONSIBILITY REQUIREMENT EXEMPTIONS;

S. 6256                            56                            A. 9056

  19.  MEET  FINANCIAL  INTEGRITY REQUIREMENTS UNDER SECTION 1313 OF THE
FEDERAL ACT AND THIS CHAPTER, INCLUDING:
  (A)  KEEPING  AN  ACCURATE ACCOUNTING OF ALL ACTIVITIES, RECEIPTS, AND
EXPENDITURES AND ANNUALLY SUBMITTING TO THE SECRETARY A REPORT  CONCERN-
ING  SUCH ACCOUNTINGS, WITH A COPY OF SUCH REPORT PROVIDED TO THE GOVER-
NOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEM-
BLY; AND
  (B) FULLY COOPERATING WITH ANY INVESTIGATION CONDUCTED BY  THE  SECRE-
TARY  PURSUANT  TO  THE  SECRETARY'S AUTHORITY UNDER SECTION 1313 OF THE
FEDERAL ACT AND ALLOWING THE SECRETARY, IN COORDINATION WITH THE INSPEC-
TOR GENERAL  OF  THE  UNITED  STATES  DEPARTMENT  OF  HEALTH  AND  HUMAN
SERVICES, TO:
  (I) INVESTIGATE THE AFFAIRS OF THE EXCHANGE;
  (II) EXAMINE THE PROPERTIES AND RECORDS OF THE EXCHANGE; AND
  (III) REQUIRE PERIODIC REPORTS IN RELATION TO THE ACTIVITIES UNDERTAK-
EN BY THE EXCHANGE;
  20.  (A)  CONSULT  WITH  THE  REGIONAL ADVISORY COMMITTEES ESTABLISHED
PURSUANT TO SECTION THIRTY-NINE HUNDRED EIGHTY-SIX OF THIS ARTICLE; AND
  (B) CONSULT WITH STAKEHOLDERS RELEVANT TO CARRYING OUT THE  ACTIVITIES
REQUIRED UNDER THIS ARTICLE, INCLUDING BUT NOT LIMITED TO:
  (I) HEALTH CARE CONSUMERS WHO ARE ENROLLEES IN HEALTH PLANS;
  (II)  INDIVIDUALS AND ENTITIES WITH EXPERIENCE IN FACILITATING ENROLL-
MENT IN HEALTH PLANS;
  (III) REPRESENTATIVES OF SMALL BUSINESSES AND  SELF-EMPLOYED  INDIVID-
UALS;
  (IV)  STATE  MEDICAID  OFFICES,  INCLUDING LOCAL DEPARTMENTS OF SOCIAL
SERVICES;
  (V) ADVOCATES FOR ENROLLING HARD TO REACH POPULATIONS;
  (VI) HEALTH CARE PROVIDERS; AND
  (VII) INSURERS;
  21. SUBMIT INFORMATION PROVIDED BY EXCHANGE APPLICANTS  FOR  VERIFICA-
TION AS REQUIRED BY SECTION 1411(C) OF THE FEDERAL ACT;
  22.  ESTABLISH RULES AND REGULATIONS, PURSUANT TO SUBDIVISION EIGHT OF
SECTION THIRTY-NINE HUNDRED EIGHTY-THREE OF THIS ARTICLE,  THAT  DO  NOT
CONFLICT  WITH  OR PREVENT THE APPLICATION OF REGULATIONS PROMULGATED BY
THE SECRETARY; AND
  23. DETERMINE ELIGIBILITY, PROVIDE NOTICES, AND PROVIDE  OPPORTUNITIES
FOR  APPEAL  AND  REDETERMINATION IN ACCORDANCE WITH THE REQUIREMENTS OF
SECTIONS 1411 AND 1413 OF THE FEDERAL ACT.
  S 3985. SPECIAL FUNCTIONS OF  THE  EXCHANGE  RELATED  TO  HEALTH  PLAN
CERTIFICATION  AND  QUALIFIED  HEALTH  PLAN OVERSIGHT.   1. HEALTH PLANS
CERTIFIED BY THE EXCHANGE SHALL MEET THE FOLLOWING REQUIREMENTS:
  (A) THE INSURER OFFERING THE HEALTH PLAN:
  (I) IS LICENSED OR CERTIFIED BY THE SUPERINTENDENT OR COMMISSIONER AND
MEETS THE REQUIREMENTS OF SECTION 1301(A)(1)(C)(I) OF  THE  FEDERAL  ACT
AND ANY GUIDANCE ISSUED THEREUNDER;
  (II)  OFFERS  AT LEAST ONE QUALIFIED HEALTH PLAN IN EACH OF THE SILVER
AND GOLD LEVELS;
  (III) HAS FILED WITH AND RECEIVED APPROVAL FROM THE SUPERINTENDENT  OF
ITS PREMIUM RATES AND POLICY OR CONTRACT FORMS PURSUANT TO THE INSURANCE
LAW AND THE PUBLIC HEALTH LAW;
  (IV)  DOES  NOT CHARGE ANY CANCELLATION FEES OR PENALTIES IN VIOLATION
OF SUBDIVISION SEVEN OF SECTION THIRTY-NINE HUNDRED EIGHTY-FOUR OF  THIS
ARTICLE; AND

S. 6256                            57                            A. 9056

  (V)  COMPLIES  WITH  THE  REGULATIONS DEVELOPED BY THE SECRETARY UNDER
SECTION 1311(C) OF THE FEDERAL ACT AND SUCH OTHER  REQUIREMENTS  AS  THE
EXCHANGE MAY ESTABLISH;
  (B)  THE HEALTH PLAN: (I) PROVIDES THE ESSENTIAL HEALTH BENEFITS PACK-
AGE DESCRIBED IN SECTION 1302(A) OF THE FEDERAL ACT  AND  INCLUDES  SUCH
ADDITIONAL  BENEFITS  AS  MAY BE REQUIRED PURSUANT TO THE INSURANCE LAW,
PROVIDED THAT THE STATE HAS ASSUMED THE COST OF SUCH ADDITIONAL BENEFITS
AS REQUIRED UNDER SECTION 1311(D)(3)(B) OF THE FEDERAL ACT, EXCEPT  THAT
THE HEALTH PLAN SHALL NOT BE REQUIRED TO PROVIDE ESSENTIAL BENEFITS THAT
DUPLICATE THE MINIMUM BENEFITS OF QUALIFIED DENTAL PLANS IF:
  (A)  THE  EXCHANGE  HAS  DETERMINED THAT AT LEAST ONE QUALIFIED DENTAL
PLAN IS AVAILABLE TO SUPPLEMENT THE HEALTH PLAN'S COVERAGE; AND
  (B) THE INSURER MAKES PROMINENT DISCLOSURE AT THE TIME IT  OFFERS  THE
HEALTH  PLAN, IN A FORM APPROVED BY THE EXCHANGE, THAT THE PLAN DOES NOT
PROVIDE THE FULL RANGE OF ESSENTIAL PEDIATRIC BENEFITS, AND THAT  QUALI-
FIED DENTAL PLANS PROVIDING THOSE BENEFITS AND OTHER DENTAL BENEFITS NOT
COVERED BY THE PLAN ARE OFFERED THROUGH THE EXCHANGE;
  (II)  PROVIDES  AT  LEAST  A  BRONZE  LEVEL  OF COVERAGE AS DEFINED IN
SECTION 1302(D) OF THE FEDERAL ACT, UNLESS THE PLAN IS  CERTIFIED  AS  A
QUALIFIED CATASTROPHIC PLAN, AS DEFINED IN SECTION 1302(E) OF THE FEDER-
AL   ACT,  AND  SHALL  ONLY  BE  OFFERED  TO  INDIVIDUALS  ELIGIBLE  FOR
CATASTROPHIC COVERAGE;
  (III) HAS COST-SHARING REQUIREMENTS, INCLUDING DEDUCTIBLES,  WHICH  DO
NOT  EXCEED  THE LIMITS ESTABLISHED UNDER SECTION 1302(C) OF THE FEDERAL
ACT AND ANY REQUIREMENTS OF THE EXCHANGE;
  (IV) COMPLIES WITH REGULATIONS PROMULGATED BY THE  SECRETARY  PURSUANT
TO  SECTION  1311(C) OF THE FEDERAL ACT, WHICH INCLUDE MINIMUM STANDARDS
IN THE AREAS OF MARKETING PRACTICES, NETWORK ADEQUACY, ESSENTIAL  COMMU-
NITY PROVIDERS IN UNDERSERVED AREAS, ACCREDITATION, QUALITY IMPROVEMENT,
UNIFORM ENROLLMENT FORMS AND DESCRIPTIONS OF COVERAGE AND INFORMATION ON
QUALITY MEASURES FOR HEALTH BENEFIT PLAN PERFORMANCE;
  (V) COMPLIES WITH THE INSURANCE LAW AND THE PUBLIC HEALTH LAW REQUIRE-
MENTS  APPLICABLE TO HEALTH INSURANCE ISSUED IN THIS STATE AND ANY REGU-
LATIONS PROMULGATED PURSUANT  THERETO  THAT  DO  NOT  CONFLICT  WITH  OR
PREVENT THE APPLICATION OF FEDERAL REQUIREMENTS; AND
  (C)  THE  EXCHANGE  DETERMINES  THAT  MAKING THE HEALTH PLAN AVAILABLE
THROUGH THE EXCHANGE IS IN THE INTEREST  OF  QUALIFIED  INDIVIDUALS  AND
QUALIFIED EMPLOYERS IN THIS STATE.
  2. THE EXCHANGE SHALL NOT EXCLUDE A HEALTH PLAN:
  (A) ON THE BASIS THAT THE HEALTH PLAN IS A FEE-FOR-SERVICE PLAN;
  (B)  THROUGH THE IMPOSITION OF PREMIUM PRICE CONTROLS BY THE EXCHANGE;
OR
  (C) ON THE BASIS THAT THE HEALTH PLAN PROVIDES TREATMENTS NECESSARY TO
PREVENT PATIENTS' DEATHS IN CIRCUMSTANCES THE  EXCHANGE  DETERMINES  ARE
INAPPROPRIATE OR TOO COSTLY.
  3.  THE  EXCHANGE  SHALL  REQUIRE  EACH  INSURER  CERTIFIED OR SEEKING
CERTIFICATION OF A HEALTH PLAN AS A QUALIFIED HEALTH PLAN TO:
  (A) SUBMIT A JUSTIFICATION FOR ANY PREMIUM INCREASE  TO  THE  EXCHANGE
PRIOR TO IMPLEMENTATION OF SUCH INCREASE.  THE INSURER SHALL PROMINENTLY
POST THE INFORMATION ON ITS INTERNET WEBSITE; PROVIDED, HOWEVER, THAT IF
INFORMATION  SUBMITTED  TO  THE  SUPERINTENDENT AS A JUSTIFICATION FOR A
PREMIUM RATE ADJUSTMENT PURSUANT TO THE INSURANCE  LAW,  OR  INFORMATION
POSTED  TO  AN  INSURER'S  INTERNET  WEBSITE,  OTHERWISE  MEETS  FEDERAL
REQUIREMENTS, THEN SUBMISSION OF A COPY OF THE SAME JUSTIFICATION TO THE
EXCHANGE OR USE OF THE SAME POSTING SHALL BE DEEMED SUFFICIENT  TO  MEET
THE REQUIREMENTS OF THIS SECTION.  THE EXCHANGE SHALL TAKE THIS INFORMA-

S. 6256                            58                            A. 9056

TION,  AND  THE  INFORMATION  AND  THE  RECOMMENDATIONS  PROVIDED TO THE
EXCHANGE BY THE SUPERINTENDENT UNDER SECTION 1003  OF  THE  FEDERAL  ACT
(RELATING  TO  PATTERNS OR PRACTICES OF EXCESSIVE OR UNJUSTIFIED PREMIUM
INCREASES),  INTO  CONSIDERATION  WHEN  DETERMINING WHETHER TO ALLOW THE
INSURER TO MAKE HEALTH PLANS AVAILABLE THROUGH THE EXCHANGE.  SUCH  RATE
INCREASES  SHALL  BE SUBJECT TO THE PRIOR APPROVAL OF THE SUPERINTENDENT
PURSUANT TO THE INSURANCE LAW;
  (B)(I) MAKE AVAILABLE TO THE PUBLIC AND SUBMIT TO  THE  EXCHANGE,  THE
SECRETARY AND THE SUPERINTENDENT, ACCURATE AND TIMELY DISCLOSURE OF:
  (A) CLAIMS PAYMENT POLICIES AND PRACTICES;
  (B) PERIODIC FINANCIAL DISCLOSURES;
  (C) DATA ON ENROLLMENT AND DISENROLLMENT;
  (D) DATA ON THE NUMBER OF CLAIMS THAT ARE DENIED;
  (E) DATA ON RATING PRACTICES;
  (F)  INFORMATION ON COST-SHARING AND PAYMENTS WITH RESPECT TO ANY OUT-
OF-NETWORK COVERAGE;
  (G) INFORMATION ON ENROLLEE AND PARTICIPANT RIGHTS UNDER  TITLE  I  OF
THE FEDERAL ACT; AND
  (H) OTHER INFORMATION AS DETERMINED APPROPRIATE BY THE SECRETARY;
  (II) THE INFORMATION SHALL BE PROVIDED IN PLAIN LANGUAGE, AS THAT TERM
IS  DEFINED IN SECTION 1311(E)(3)(B) OF THE FEDERAL ACT, AND IN GUIDANCE
JOINTLY ISSUED THEREUNDER BY THE SECRETARY AND THE FEDERAL SECRETARY  OF
LABOR; AND
  (C) PROVIDE TO INDIVIDUALS, IN A TIMELY MANNER UPON THE REQUEST OF THE
INDIVIDUAL,  THE  AMOUNT  OF COST-SHARING, INCLUDING DEDUCTIBLES, COPAY-
MENTS, AND COINSURANCE, UNDER THE INDIVIDUAL'S HEALTH PLAN  OR  COVERAGE
THAT  THE INDIVIDUAL WOULD BE RESPONSIBLE FOR PAYING WITH RESPECT TO THE
FURNISHING OF A SPECIFIC ITEM OR SERVICE BY A PARTICIPATING PROVIDER. AT
A MINIMUM, THIS INFORMATION SHALL BE MADE AVAILABLE  TO  THE  INDIVIDUAL
THROUGH  AN  INTERNET  WEBSITE  AND  THROUGH OTHER MEANS FOR INDIVIDUALS
WITHOUT ACCESS TO THE INTERNET; PROVIDED, HOWEVER, THAT  TO  THE  EXTENT
THAT  REQUIREMENTS UNDER THE INSURANCE LAW OR THE PUBLIC HEALTH LAW MEET
THE STANDARDS OF THE FEDERAL ACT,  AN  INSURER'S  COMPLIANCE  WITH  SUCH
STATE  REQUIREMENTS SHALL BE SUFFICIENT TO MEET THE REQUIREMENTS OF THIS
SECTION.
  4. (A) THE PROVISIONS OF THIS ARTICLE THAT APPLY TO  QUALIFIED  HEALTH
PLANS  ALSO SHALL APPLY TO THE EXTENT RELEVANT TO QUALIFIED DENTAL PLANS
EXCEPT AS MODIFIED IN ACCORDANCE WITH THE PROVISIONS OF  PARAGRAPHS  (B)
AND (C) OF THIS SUBDIVISION OR OTHERWISE REQUIRED BY THE EXCHANGE.
  (B)  THE  QUALIFIED  DENTAL  PLAN  SHALL BE LIMITED TO DENTAL AND ORAL
HEALTH BENEFITS, WITHOUT SUBSTANTIALLY DUPLICATING THE BENEFITS TYPICAL-
LY OFFERED BY HEALTH BENEFIT PLANS WITHOUT DENTAL  COVERAGE,  AND  SHALL
INCLUDE,   AT   A  MINIMUM,  THE  ESSENTIAL  PEDIATRIC  DENTAL  BENEFITS
PRESCRIBED BY THE SECRETARY PURSUANT TO  SECTION  1302(B)(1)(J)  OF  THE
FEDERAL ACT, AND SUCH OTHER DENTAL BENEFITS AS THE EXCHANGE OR SECRETARY
MAY SPECIFY IN REGULATIONS.
  (C)  INSURERS  MAY  JOINTLY  OFFER  A  COMPREHENSIVE  PLAN THROUGH THE
EXCHANGE IN WHICH AN INSURER PROVIDES  THE  DENTAL  BENEFITS  THROUGH  A
QUALIFIED DENTAL PLAN AND AN INSURER PROVIDES THE OTHER BENEFITS THROUGH
A  QUALIFIED  HEALTH PLAN, PROVIDED THAT THE PLANS ARE PRICED SEPARATELY
AND ALSO ARE MADE AVAILABLE FOR PURCHASE SEPARATELY AT THE SAME PRICE.
  S 3986. REGIONAL ADVISORY COMMITTEES. 1. THERE ARE HEREBY CREATED  THE
NEW YORK HEALTH BENEFIT EXCHANGE REGIONAL ADVISORY COMMITTEES ("ADVISORY
COMMITTEES"). ONE REGIONAL ADVISORY COMMITTEE SHALL BE ESTABLISHED WITH-
IN  EACH  OF  FIVE  REGIONS,  TO BE KNOWN AS THE "NEW YORK CITY REGION,"
"METROPOLITAN SUBURBAN REGION," "NORTHERN REGION," "CENTRAL REGION"  AND

S. 6256                            59                            A. 9056

"WESTERN  REGION."  THE  BOARD SHALL DETERMINE THE COUNTIES THAT MAKE UP
SUCH REGIONS.
  2. EACH REGIONAL ADVISORY COMMITTEE SHALL BE COMPRISED OF FIVE MEMBERS
APPOINTED  BY  THE  GOVERNOR,  ONE  OF  WHOM SHALL BE APPOINTED UPON THE
RECOMMENDATION OF THE TEMPORARY PRESIDENT OF THE SENATE AND ONE OF  WHOM
SHALL  BE APPOINTED UPON THE RECOMMENDATION OF THE SPEAKER OF THE ASSEM-
BLY.
  3. TERMS SHALL BE THREE  YEARS.    MEMBERS  SHALL  SERVE  UNTIL  THEIR
SUCCESSORS ARE APPOINTED. MEMBERS MAY SERVE UP TO TWO CONSECUTIVE TERMS.
  4.  VACANCIES  SHALL BE FILLED IN THE SAME MANNER AS ORIGINAL APPOINT-
MENTS, AND SUCCESSORS SHALL SERVE FOR THE  REMAINDER  OF  THE  UNEXPIRED
TERM TO WHICH THEY ARE APPOINTED.
  5.  RECOMMENDATIONS  BY  THE TEMPORARY PRESIDENT OF THE SENATE AND THE
SPEAKER OF THE ASSEMBLY SHALL BE MADE WITHIN SIXTY DAYS OF THE EFFECTIVE
DATE OF THIS ARTICLE OR THE OCCURRENCE OF A  VACANCY,  OR  WITHIN  SIXTY
DAYS PRIOR TO THE EXPIRATION OF A TERM.
  6. THE MEMBERS OF EACH REGIONAL ADVISORY COMMITTEE SHALL INCLUDE:
  (A)  REPRESENTATIVES  FROM THE FOLLOWING CATEGORIES, BUT NOT MORE THAN
TWO FROM ANY SINGLE CATEGORY:
  (I) HEALTH PLAN CONSUMER ADVOCATES;
  (II) SMALL BUSINESS CONSUMER REPRESENTATIVES;
  (III) HEALTH CARE PROVIDER REPRESENTATIVES;
  (IV) REPRESENTATIVES OF THE HEALTH INSURANCE INDUSTRY;
  (B) REPRESENTATIVES FROM THE FOLLOWING CATEGORIES, BUT NOT  MORE  THAN
ONE FROM EITHER CATEGORY:
  (I) LICENSED INSURANCE PRODUCERS; AND
  (II) REPRESENTATIVES OF LABOR ORGANIZATIONS.
  7.  THE BOARD SHALL SELECT THE CHAIR OF EACH REGIONAL ADVISORY COMMIT-
TEE FROM AMONG THE MEMBERS OF SUCH  COMMITTEE.  THE  BOARD  SHALL  ADOPT
RULES  FOR  THE  GOVERNANCE OF THE REGIONAL ADVISORY COMMITTEES AND EACH
REGIONAL ADVISORY COMMITTEE SHALL MEET AT LEAST ONCE EACH QUARTER AND AT
SUCH OTHER TIMES AS DETERMINED BY THE BOARD TO BE NECESSARY.
  8. MEMBERS OF THE REGIONAL ADVISORY  COMMITTEES  SHALL  SERVE  WITHOUT
COMPENSATION.
  9.  THE REGIONAL ADVISORY COMMITTEES SHALL MAKE FINDINGS AND RECOMMEN-
DATIONS REGARDING REGIONAL VARIATIONS IN THE OPERATION OF THE  EXCHANGE,
WHICH  SHALL  BE  SUBMITTED  TO  THE  BOARD  OF DIRECTORS, POSTED ON THE
WEBSITE OF THE EXCHANGE, AND CONSIDERED BY THE  BOARD  IN  A  REASONABLY
TIMELY  FASHION.  SUCH  FINDINGS AND RECOMMENDATIONS SHALL BE MADE ON AN
ANNUAL BASIS, ON A DATE DETERMINED BY THE BOARD, AND AT SUCH OTHER TIMES
AS THE BOARD OR ANY REGIONAL ADVISORY COMMITTEE DEEMS APPROPRIATE.
  S 3987. FUNDING OF THE EXCHANGE.  1. THE EXCHANGE SHALL BE FINANCIALLY
SELF-SUFFICIENT BY JANUARY FIRST, TWO THOUSAND FIFTEEN.
  2. THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF, AND
SHALL REPORT ITS RECOMMENDATIONS UPON, THE OPTIONS TO  GENERATE  FUNDING
FOR  THE  ONGOING OPERATION OF THE EXCHANGE, AS PROVIDED FOR IN SUBDIVI-
SION EIGHT OF SECTION THIRTY-NINE HUNDRED EIGHTY-EIGHT OF  THIS  ARTICLE
AND  SUBJECT  TO  THE PROVISIONS OF SUBDIVISIONS FOURTEEN AND FIFTEEN OF
SUCH SECTION.
  3.  THE EXCHANGE SHALL PUBLISH ON ITS INTERNET WEBSITE  THE  FEES  AND
ANY  OTHER  PAYMENTS  REQUIRED  BY  THE EXCHANGE, AND THE ADMINISTRATIVE
COSTS OF THE EXCHANGE, TO EDUCATE CONSUMERS ON SUCH COSTS AND THE AMOUNT
OF MONIES LOST TO WASTE, FRAUD AND ABUSE.
  4. THE EXCHANGE SHALL NOT UTILIZE ANY FUNDS INTENDED FOR THE  ADMINIS-
TRATIVE  AND  OPERATIONAL  EXPENSES  OF THE EXCHANGE FOR STAFF RETREATS,
PROMOTIONAL GIVEAWAYS, EXCESSIVE EXECUTIVE COMPENSATION, OR PROMOTION OF

S. 6256                            60                            A. 9056

FEDERAL OR STATE LEGISLATIVE AND REGULATORY  MODIFICATIONS  PURSUANT  TO
SECTION 1411(C) OF THE FEDERAL ACT.
  5.  THE  MONEYS OF THE EXCHANGE SHALL, EXCEPT AS OTHERWISE PROVIDED IN
THIS SECTION, BE DEPOSITED IN A GENERAL  ACCOUNT  CALLED  THE  NEW  YORK
HEALTH  BENEFIT EXCHANGE ACCOUNT AND SUCH OTHER ACCOUNTS AS THE EXCHANGE
MAY DEEM NECESSARY, PURSUANT TO RESOLUTION OF THE BOARD, FOR THE  TRANS-
ACTION  OF ITS BUSINESS AND SHALL BE PAID OUT AS AUTHORIZED BY THE CHAIR
OF THE BOARD OR BY SUCH OTHER PERSON OR PERSONS AS THE CHAIR MAY  DESIG-
NATE.
  6.  NO  FUNDS OF THE EXCHANGE SHALL BE TRANSFERRED TO THE GENERAL FUND
OR ANY SPECIAL REVENUE FUND OR SHALL BE USED FOR ANY PURPOSE OTHER  THAN
THE  PURPOSES  SET FORTH IN THIS ARTICLE.  NO FUNDS SHALL BE TRANSFERRED
FROM THE GENERAL FUND OR ANY SPECIAL REVENUE FUND TO THE EXCHANGE  WITH-
OUT AN APPROPRIATION.
  7. THE ACCOUNTS OF THE EXCHANGE SHALL BE SUBJECT TO SUPERVISION OF THE
COMPTROLLER  AND  SUCH  ACCOUNTS  SHALL  INCLUDE RECEIPTS, EXPENDITURES,
CONTRACTS AND OTHER MATTERS WHICH PERTAIN TO THE FISCAL SOUNDNESS OF THE
EXCHANGE.
  8. NOTWITHSTANDING ANY LAW TO THE CONTRARY,  AND  IN  ACCORDANCE  WITH
SECTION  FOUR  OF THE STATE FINANCE LAW, UPON REQUEST OF THE DIRECTOR OF
THE BUDGET, IN CONSULTATION WITH THE  COMMISSIONER,  THE  SUPERINTENDENT
AND  THE  CHAIR  OF  THE BOARD, THE COMPTROLLER IS HEREBY AUTHORIZED AND
DIRECTED TO SUBALLOCATE OR TRANSFER SPECIAL REVENUE FEDERAL FUNDS APPRO-
PRIATED TO THE DEPARTMENT OF HEALTH FOR PLANNING AND IMPLEMENTING  VARI-
OUS  HEALTHCARE  AND  INSURANCE REFORM INITIATIVES AUTHORIZED BY FEDERAL
LEGISLATION, INCLUDING, BUT NOT LIMITED TO, THE PATIENT  PROTECTION  AND
AFFORDABLE  CARE  ACT  (P.L.  111-148) AND THE HEALTH CARE AND EDUCATION
RECONCILIATION ACT OF 2010 (P.L. 111-152) TO THE NEW YORK  STATE  HEALTH
BENEFIT  EXCHANGE.  MONEYS  SUBALLOCATED OR TRANSFERRED PURSUANT TO THIS
SECTION SHALL BE PAID OUT OF THE FUND UPON  AUDIT  AND  WARRANT  OF  THE
STATE COMPTROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE EXCHANGE.
  S  3988.  STUDIES  AND  RECOMMENDATIONS.    1.  (A) THE EXCHANGE SHALL
CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF, AND SHALL MAKE  RECOMMENDA-
TIONS  UPON,  THE  ESSENTIAL HEALTH BENEFITS IDENTIFIED BY THE SECRETARY
PURSUANT TO SECTION 1302(B) OF THE  FEDERAL  ACT  AND  OF  THE  BENEFITS
REQUIRED  UNDER  THE INSURANCE LAW OR REGULATIONS PROMULGATED THEREUNDER
THAT ARE NOT DETERMINED BY THE SECRETARY TO BE  ESSENTIAL  HEALTH  BENE-
FITS. SUCH STUDY AND RECOMMENDATIONS SHALL ADDRESS MATTERS INCLUDING BUT
NOT LIMITED TO:
  (I)  WHETHER  THE ESSENTIAL HEALTH BENEFITS REQUIRED TO BE INCLUDED IN
POLICIES AND CONTRACTS SOLD THROUGH THE EXCHANGE SHOULD BE SOLD TO SIMI-
LARLY SITUATED INDIVIDUALS AND GROUPS PURCHASING COVERAGE OUTSIDE OF THE
EXCHANGE;
  (II) WHETHER ANY BENEFITS REQUIRED UNDER THE INSURANCE  LAW  OR  REGU-
LATIONS  PROMULGATED  THEREUNDER  THAT  ARE  NOT IDENTIFIED AS ESSENTIAL
HEALTH BENEFITS BY THE SECRETARY SHOULD NO LONGER BE REQUIRED  IN  POLI-
CIES OR CONTRACTS SOLD EITHER THROUGH THE EXCHANGE OR TO SIMILARLY SITU-
ATED INDIVIDUALS AND GROUPS OUTSIDE OF THE EXCHANGE;
  (III) THE COSTS OF EXTENDING ANY BENEFITS REQUIRED UNDER THE INSURANCE
LAW OR REGULATIONS PROMULGATED THEREUNDER TO POLICIES AND CONTRACTS SOLD
THROUGH THE EXCHANGE; AND
  (IV)   MECHANISMS   TO   FINANCE   ANY   COSTS   PURSUANT  TO  SECTION
1311(D)(3)(B)(II) OF THE FEDERAL ACT OF EXTENDING ANY BENEFITS  REQUIRED
UNDER  THE  INSURANCE LAW OR REGULATIONS PROMULGATED THEREUNDER TO POLI-
CIES AND CONTRACTS SOLD THROUGH THE EXCHANGE.

S. 6256                            61                            A. 9056

  (B) IN MAKING ITS RECOMMENDATIONS, THE  EXCHANGE  SHALL  CONSIDER  THE
INDIVIDUAL  AND SMALL GROUP MARKETS OUTSIDE OF THE EXCHANGE AND CONSIDER
APPROACHES TO PREVENT MARKETPLACE DISRUPTION, REMAIN CONSISTENT WITH THE
EXCHANGE AND AVOID ANTI-SELECTION.
  (C) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  2. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON: (I) WHETHER INSURERS  PARTICIPATING
IN THE EXCHANGE SHOULD BE REQUIRED TO OFFER ALL HEALTH PLANS SOLD IN THE
EXCHANGE  TO  INDIVIDUALS OR SMALL GROUPS PURCHASING COVERAGE OUTSIDE OF
THE EXCHANGE;
  (II) WHETHER THE INDIVIDUAL AND SMALL GROUP MARKETS SHOULD  BE  PLACED
ENTIRELY INSIDE THE EXCHANGE;
  (III)  WHETHER  THE BENEFITS IN THE INDIVIDUAL AND SMALL GROUP MARKETS
SHOULD BE STANDARDIZED INSIDE THE EXCHANGE OR  INSIDE  AND  OUTSIDE  THE
EXCHANGE;
  (IV) HOW TO DEVELOP AND IMPLEMENT THE TRANSITIONAL REINSURANCE PROGRAM
FOR  THE  INDIVIDUAL  MARKET  AND  ANY  OTHER RISK ADJUSTMENT MECHANISMS
DEVELOPED IN ACCORDANCE WITH SECTIONS 1341, 1342 AND 1343 OF THE FEDERAL
ACT;
  (V) WHETHER TO MERGE THE INDIVIDUAL AND SMALL GROUP  HEALTH  INSURANCE
MARKETS  FOR  RATING  PURPOSES  INCLUDING AN ANALYSIS OF THE IMPACT SUCH
MERGER WOULD HAVE ON PREMIUMS;
  (VI) WHETHER TO INCREASE THE SIZE OF SMALL EMPLOYERS FROM  AN  AVERAGE
OF  AT  LEAST  ONE BUT NOT MORE THAN FIFTY EMPLOYEES TO AN AVERAGE OF AT
LEAST ONE BUT NOT MORE THAN  ONE  HUNDRED  EMPLOYEES  PRIOR  TO  JANUARY
FIRST, TWO THOUSAND SIXTEEN;
  (VII)  HOW  TO ACCOUNT FOR SOLE PROPRIETORS IN DEFINING "SMALL EMPLOY-
ERS"; AND
  (VIII) WHETHER TO REVISE THE DEFINITION OF  "SMALL  EMPLOYER"  OUTSIDE
THE  EXCHANGE  TO BE CONSISTENT WITH THE DEFINITION AS IT APPLIES WITHIN
THE EXCHANGE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  3. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND  SHALL MAKE RECOMMENDATIONS UPON, WHETHER THE STATE SHOULD ESTABLISH
A BASIC HEALTH PLAN PROGRAM IDENTIFIED  BY  THE  SECRETARY  PURSUANT  TO
SECTION 1331 OF THE FEDERAL ACT.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  4. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON, THE ADVANTAGES AND DISADVANTAGES OF
THE EXCHANGE SERVING AS AN ACTIVE PURCHASER, A SELECTIVE CONTRACTOR,  OR
CLEARINGHOUSE OF INSURANCE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  5. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON, (I) THE ANTICIPATED ANNUAL  OPERAT-
ING  EXPENSES OF THE EXCHANGE, INCLUDING BUT NOT LIMITED TO THE DEVELOP-
MENT OF ANY MULTI-YEAR FINANCIAL MODELS; AND (II) THE OPTIONS TO  GENER-
ATE  FUNDING  FOR  THE  ONGOING  OPERATION  AND  SELF-SUFFICIENCY OF THE

S. 6256                            62                            A. 9056

EXCHANGE INCLUDING BUT NOT LIMITED  TO  ASSESSMENTS  UPON  INSURERS  AND
PROVIDERS.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  6. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON, THE BENCHMARK  BENEFITS  IDENTIFIED
BY  THE  SECRETARY  AND OF THE BENEFITS REQUIRED UNDER THE PUBLIC HEALTH
LAW OR THE SOCIAL SERVICES LAW  OR  REGULATIONS  PROMULGATED  THEREUNDER
THAT  ARE NOT DETERMINED BY THE SECRETARY TO BE BENCHMARK BENEFITS. SUCH
STUDY AND RECOMMENDATIONS SHALL ADDRESS MATTERS INCLUDING BUT NOT LIMIT-
ED TO:
  (I) WHETHER ANY BENEFITS REQUIRED UNDER THE PUBLIC HEALTH LAW  OR  THE
SOCIAL  SERVICES  LAW OR REGULATIONS PROMULGATED THEREUNDER THAT ARE NOT
IDENTIFIED AS BENCHMARK BENEFITS BY THE SECRETARY SHOULD CONTINUE TO  BE
REQUIRED  AS COVERED BENEFITS AVAILABLE TO NEWLY MEDICAID-ELIGIBLE INDI-
VIDUALS INSIDE THE EXCHANGE;
  (II) THE COSTS OF EXTENDING ANY BENEFITS  REQUIRED  UNDER  THE  PUBLIC
HEALTH  LAW OR THE SOCIAL SERVICES LAW OR REGULATIONS PROMULGATED THERE-
UNDER AS COVERED BENEFITS AVAILABLE TO NEWLY MEDICAID-ELIGIBLE  INDIVID-
UALS THROUGH THE EXCHANGE; AND
  (III)  MECHANISMS  TO FINANCE ANY COSTS PURSUANT TO THE FEDERAL ACT OF
EXTENDING ANY BENEFITS REQUIRED UNDER  THE  PUBLIC  HEALTH  LAW  OR  THE
SOCIAL  SERVICES  LAW  OR REGULATIONS PROMULGATED THEREUNDER TO POLICIES
AND CONTRACTS SOLD THROUGH THE EXCHANGE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  7.  (A) THE EXCHANGE SHALL MAKE RECOMMENDATIONS UPON THE IMPACT OF THE
ESTABLISHMENT AND OPERATION OF THE EXCHANGE  ON  THE  HEALTHY  NEW  YORK
PROGRAM  ESTABLISHED  PURSUANT TO SECTION FORTY-THREE HUNDRED TWENTY-SIX
OF THE INSURANCE LAW AND THE FAMILY  HEALTH  PLUS  EMPLOYER  PARTNERSHIP
PROGRAM  ESTABLISHED  PURSUANT TO SECTION THREE HUNDRED SIXTY-NINE-FF OF
THE SOCIAL SERVICES LAW.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  8. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND  SHALL  MAKE  RECOMMENDATIONS  UPON, PROCEDURES UNDER WHICH LICENSED
HEALTH INSURANCE PRODUCERS, CHAMBERS OF COMMERCE  AND  BUSINESS  ASSOCI-
ATIONS MAY ENROLL INDIVIDUALS AND EMPLOYERS IN ANY QUALIFIED HEALTH PLAN
IN  THE  INDIVIDUAL OR SMALL GROUP MARKET AS SOON AS THE PLAN IS OFFERED
THROUGH THE EXCHANGE; AND TO ASSIST INDIVIDUALS IN APPLYING FOR  PREMIUM
TAX  CREDITS  AND  COST-SHARING  REDUCTIONS  FOR  PLANS SOLD THROUGH THE
EXCHANGE; AND
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER  OF  THE  ASSEMBLY  ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  9. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND  SHALL  MAKE  RECOMMENDATIONS  UPON, THE CRITERIA FOR ELIGIBILITY TO
SERVE AS A NAVIGATOR FOR PURPOSES OF SECTION 1311(I) OF THE FEDERAL ACT,
ANY GUIDANCE ISSUED THEREUNDER AND SUBDIVISION FOURTEEN OF SECTION THIR-
TY-NINE HUNDRED EIGHTY-FOUR OF THIS ARTICLE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.

S. 6256                            63                            A. 9056

  10.  (A)  THE  EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY
OF, AND SHALL MAKE RECOMMENDATIONS UPON, THE ROLE  OF  THE  EXCHANGE  IN
DECREASING  HEALTH  DISPARITIES IN HEALTH CARE SERVICES AND PERFORMANCE,
INCLUDING BUT NOT LIMITED TO DISPARITIES ON THE BASIS OF RACE OR ETHNIC-
ITY,  IN  ACCORDANCE WITH SECTION FORTY-THREE HUNDRED TWO OF THE FEDERAL
ACT.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  11.  (A)  THE  EXCHANGE SHALL MAKE RECOMMENDATIONS UPON WHETHER AND TO
WHAT EXTENT HEALTH  SAVINGS  ACCOUNTS  SHOULD  BE  OFFERED  THROUGH  THE
EXCHANGE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  12. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE  CONDUCTED  A  STUDY
OF,  AND SHALL MAKE RECOMMENDATIONS UPON, WHETHER TO ALLOW LARGE EMPLOY-
ERS TO PARTICIPATE IN THE EXCHANGE BEGINNING JANUARY FIRST, TWO THOUSAND
SEVENTEEN, AND SHALL TAKE INTO ACCOUNT  ANY  EXCESS  OF  PREMIUM  GROWTH
OUTSIDE  OF  THE  EXCHANGE AS COMPARED TO THE RATE OF SUCH GROWTH INSIDE
THE EXCHANGE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE DECEMBER FIRST, TWO THOUSAND FIFTEEN.
  13.  THE  EXCHANGE  SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON, THE INTEGRATION  OF  PUBLIC  HEALTH
INSURANCE  PROGRAMS,  INCLUDING  MEDICAID, CHILD HEALTH PLUS, AND FAMILY
HEALTH PLUS WITHIN THE EXCHANGE, WHICH MAY INCLUDE SUCH REPORTS  AS  ARE
PERIODICALLY  SUBMITTED TO THE SECRETARY, ON OR BEFORE AUGUST FIRST, TWO
THOUSAND TWELVE.
  14. NOTWITHSTANDING ANY PROVISION OF SUBDIVISIONS ONE THROUGH THIRTEEN
OF THIS SECTION, IF THE EXCHANGE  DETERMINES  THAT  ANY  RECOMMENDATIONS
REQUIRED UNDER ANY SUCH SUBDIVISION CANNOT BE SUBMITTED BY THE SPECIFIED
DATE  BECAUSE FEDERAL GUIDANCE OR REGULATIONS NECESSARY TO COMPLETE SUCH
RECOMMENDATIONS HAS NOT BEEN ISSUED, THE EXCHANGE MAY  ESTABLISH  A  NEW
AND REASONABLE DATE FOR SUCH COMPLETION AND SUBMISSION.
  15. (A) ANY OF THE STUDIES REQUIRED UNDER THIS SECTION MAY BE COMBINED
WITH  OTHER  STUDIES REQUIRED UNDER THIS SECTION OR OTHERWISE UNDERTAKEN
BY THE EXCHANGE TO THE EXTENT FEASIBLE AND TIMELY.
  (B) IN LIEU OF CONDUCTING OR  CAUSING  TO  BE  CONDUCTED  ANY  OF  THE
STUDIES  REQUIRED  UNDER  THIS  SECTION,  THE EXCHANGE MAY RELY UPON ANY
OTHER STUDY OR STUDIES, IN WHOLE OR IN PART, COMPLETED PRIOR TO THE DATE
ON WHICH THE EXCHANGE  SUBMITS  ITS  RECOMMENDATIONS,  IF  THE  EXCHANGE
DETERMINES THAT SUCH STUDY OR STUDIES ARE SUFFICIENTLY RELIABLE.
  16.  THE EXCHANGE SHALL HAVE NO AUTHORITY, WHETHER EXPRESS OR IMPLIED,
TO IMPLEMENT ANY RECOMMENDATION ON THE ISSUES SET FORTH IN  SUBDIVISIONS
ONE  THROUGH TWELVE OF THIS SECTION WITHOUT FURTHER STATUTORY AUTHORITY;
PROVIDED, HOWEVER, THAT NOTHING IN THIS SUBDIVISION SHALL BE  DEEMED  TO
ALTER ANY POWERS EXPRESSLY GRANTED ELSEWHERE IN THIS ARTICLE.
  S  3989. TAX EXEMPTION AND TAX CONTRACT BY THE STATE.  1. IT IS HEREBY
DETERMINED THAT THE CREATION OF THE EXCHANGE AND THE FULFILLMENT OF  ITS
CORPORATE  PURPOSES  IS IN ALL RESPECTS FOR THE BENEFIT OF THE PEOPLE OF
THIS STATE AND IS A PUBLIC PURPOSE. ACCORDINGLY, THE EXCHANGE  SHALL  BE
REGARDED  AS  PERFORMING AN ESSENTIAL GOVERNMENTAL FUNCTION IN THE EXER-
CISE OF THE POWERS CONFERRED UPON IT BY THIS ARTICLE, AND  THE  EXCHANGE
SHALL  NOT BE REQUIRED TO PAY ANY FEES, TAXES, SPECIAL AD VALOREM LEVIES

S. 6256                            64                            A. 9056

OR ASSESSMENTS OF ANY KIND, WHETHER STATE OR LOCAL,  INCLUDING  BUT  NOT
LIMITED TO FEES, TAXES, SPECIAL AD VALOREM LEVIES OR ASSESSMENTS ON REAL
PROPERTY,  FRANCHISE  TAXES, SALES TAXES, TRANSFER TAXES, MORTGAGE TAXES
OR  OTHER  TAXES,  UPON  OR  WITH RESPECT TO ANY PROPERTY OWNED BY IT OR
UNDER ITS JURISDICTION, CONTROL OR SUPERVISION, OR UPON THE USES  THERE-
OF,  OR UPON OR WITH RESPECT TO ITS ACTIVITIES OR OPERATIONS IN FURTHER-
ANCE OF THE POWERS CONFERRED UPON IT BY THIS ARTICLE, OR  UPON  OR  WITH
RESPECT  TO ANY FARES, TOLLS, RENTALS, RATES, CHARGES, FEES, REVENUES OR
OTHER INCOME RECEIVED BY THE EXCHANGE.
  2. THE EXCHANGE MAY PAY, OR MAY ENTER INTO AGREEMENTS WITH ANY  COUNTY
OR  MUNICIPALITY  TO  PAY,  A  SUM  OR  SUMS ANNUALLY OR OTHERWISE OR TO
PROVIDE OTHER CONSIDERATIONS WITH RESPECT TO REAL PROPERTY OWNED BY  THE
EXCHANGE LOCATED WITHIN SUCH COUNTY OR MUNICIPALITY.
  S  3990.  OFFICERS AND EMPLOYEES. 1. THE BOARD SHALL HAVE THE POWER TO
APPOINT EMPLOYEES TO SERVE AS SENIOR MANAGERIAL STAFF OF THE EXCHANGE AS
NECESSARY, WHO SHALL BE DESIGNATED TO BE IN THE EXEMPT  CLASS  OF  CIVIL
SERVICE. THE BOARD SHALL ALSO HAVE THE POWER TO FIX THE SALARIES OF SUCH
EMPLOYEES.
  2.  ANY  NEWLY  HIRED  EMPLOYEES  WHO  ARE NOT DESIGNATED TO BE IN THE
EXEMPT CLASS OF CIVIL  SERVICE  PURSUANT  TO  SUBDIVISION  ONE  OF  THIS
SECTION  AND WHO ARE NOT SUBJECT TO THE TRANSFER PROVISIONS SET FORTH IN
SUBDIVISIONS FOUR, FIVE AND SIX OF THIS SECTION SHALL BE CONSIDERED  FOR
PURPOSES  OF  ARTICLE  FOURTEEN  OF  THE  CIVIL SERVICE LAW TO BE PUBLIC
EMPLOYEES IN THE CIVIL SERVICE OF THE STATE, AND SHALL  BE  ASSIGNED  TO
THE  APPROPRIATE  COLLECTIVE BARGAINING UNIT BY THE EXCHANGE IN THE SAME
MANNER AND CONSISTENT WITH THOSE EMPLOYEES DESCRIBED IN SUBDIVISION  SIX
OF THIS SECTION.
  3.  ANY  PUBLIC  OFFICER  OR EMPLOYEE OF A STATE DEPARTMENT, AGENCY OR
COMMISSION MAY BE TRANSFERRED TO THE EXCHANGE  WITHOUT  EXAMINATION  AND
WITHOUT  LOSS  OF  ANY  CIVIL  SERVICE  STATUS OR RIGHTS TO A COMPARABLE
OFFICE, POSITION OR EMPLOYMENT WITH THE EXCHANGE; PROVIDED, HOWEVER,  NO
SUCH TRANSFER MAY BE MADE WITHOUT THE CONSENT OF THE HEAD OF THE DEPART-
MENT,  AGENCY OR COMMISSION.  TRANSFERS SHALL BE MADE PURSUANT TO SUBDI-
VISION TWO OF SECTION SEVENTY OF THE CIVIL SERVICE LAW.
  4. THE SALARY OR COMPENSATION OF ANY SUCH OFFICER OR  EMPLOYEE,  AFTER
SUCH TRANSFER, SHALL BE PAID BY THE EXCHANGE.
  5.  ANY  OFFICER  OR  EMPLOYEE TRANSFERRED TO THE EXCHANGE PURSUANT TO
THIS SECTION, WHO ARE MEMBERS OF OR BENEFIT UNDER ANY  EXISTING  PENSION
OR  RETIREMENT FUND OR SYSTEM, SHALL CONTINUE TO HAVE ALL RIGHTS, PRIVI-
LEGES, OBLIGATIONS AND STATUS WITH RESPECT TO SUCH FUND OR SYSTEM AS ARE
NOW PRESCRIBED BY LAW, BUT DURING THE PERIOD OF THEIR EMPLOYMENT BY  THE
EXCHANGE,  ALL  CONTRIBUTIONS TO SUCH FUNDS OR SYSTEMS TO BE PAID BY THE
EMPLOYER ON ACCOUNT OF SUCH OFFICERS OR EMPLOYEES SHALL BE PAID  BY  THE
EXCHANGE.
  6. A TRANSFERRED EMPLOYEE SHALL REMAIN IN THE SAME COLLECTIVE BARGAIN-
ING UNIT AS WAS THE CASE PRIOR TO HIS OR HER TRANSFER; SUCCESSOR EMPLOY-
EES  TO THE POSITIONS HELD BY SUCH TRANSFERRED EMPLOYEES SHALL, CONSIST-
ENT WITH THE PROVISIONS OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW, BE
INCLUDED IN THE SAME UNIT AS THEIR PREDECESSORS.  EMPLOYEES  SERVING  IN
POSITIONS  IN NEWLY CREATED TITLES SHALL BE ASSIGNED TO THE SAME COLLEC-
TIVE BARGAINING UNIT AS THEY WOULD  HAVE  BEEN  ASSIGNED  TO  WERE  SUCH
TITLES  CREATED  PRIOR  TO  THE  ESTABLISHMENT  OF THE EXCHANGE. NOTHING
CONTAINED IN THIS ARTICLE SHALL BE CONSTRUED (A) TO DIMINISH THE  RIGHTS
OF  EMPLOYEES  PURSUANT  TO  A COLLECTIVE BARGAINING AGREEMENT OR (B) TO
AFFECT EXISTING LAW WITH RESPECT TO AN APPLICATION TO THE PUBLIC EMPLOY-

S. 6256                            65                            A. 9056

MENT RELATIONS BOARD SEEKING A DESIGNATION BY  THE  BOARD  THAT  CERTAIN
PERSONS ARE MANAGERIAL OR CONFIDENTIAL.
  S  3991.  LIMITATION OF LIABILITY; INDEMNIFICATION.  THE PROVISIONS OF
SECTIONS SEVENTEEN AND NINETEEN OF THE  PUBLIC  OFFICERS  LAW  SHALL  BE
APPLICABLE  TO  EXCHANGE  EMPLOYEES, AS SUCH TERM IS DEFINED IN SECTIONS
SEVENTEEN AND NINETEEN OF THE PUBLIC OFFICERS  LAW;  PROVIDED,  HOWEVER,
THAT NOTHING CONTAINED WITHIN THIS SECTION SHALL BE DEEMED TO PERMIT THE
EXCHANGE  TO EXTEND THE PROVISIONS OF SECTIONS SEVENTEEN AND NINETEEN OF
THE PUBLIC OFFICERS LAW UPON ANY INDEPENDENT CONTRACTOR.
  S 3992. CONTINGENCY FOR FEDERAL FUNDING.   THE IMPLEMENTATION  OF  THE
PROVISIONS  OF  THIS  ARTICLE  SHALL BE CONTINGENT, AS DETERMINED BY THE
DIRECTOR OF THE BUDGET, ON THE AVAILABILITY OF SUFFICIENT FEDERAL FINAN-
CIAL SUPPORT FOR THE PLANNING AND  IMPLEMENTATION  OF  HEALTH  CARE  AND
INSURANCE REFORM INITIATIVES AUTHORIZED BY FEDERAL LEGISLATION TO ESTAB-
LISH AND IMPLEMENT THE HEALTH BENEFIT EXCHANGE.
  S 3993. CONSTRUCTION.  NOTHING IN THIS ARTICLE, AND NO ACTION TAKEN BY
THE EXCHANGE PURSUANT HERETO, SHALL BE CONSTRUED TO:
  1.  PREEMPT  OR  SUPERSEDE  THE AUTHORITY OF THE SUPERINTENDENT OR THE
COMMISSIONER; OR
  2. EXEMPT INSURERS, INSURANCE PRODUCERS OR QUALIFIED HEALTH PLANS FROM
THE PUBLIC HEALTH LAW OR THE INSURANCE LAW AND  REGULATIONS  PROMULGATED
THEREUNDER.
  S 3. Subdivision 1 of section 17 of the public officers law is amended
by adding a new paragraph (x) to read as follows:
  (X)  FOR  PURPOSES  OF THIS SECTION, THE TERM "EMPLOYEE" SHALL INCLUDE
DIRECTORS, OFFICERS  AND  EMPLOYEES  OF  THE  NEW  YORK  HEALTH  BENEFIT
EXCHANGE ESTABLISHED PURSUANT TO ARTICLE TEN-E OF THE PUBLIC AUTHORITIES
LAW.
  S 4. Subdivision 1 of section 19 of the public officers law is amended
by adding a new paragraph (j) to read as follows:
  (J)  FOR  PURPOSES  OF THIS SECTION, THE TERM "EMPLOYEE" SHALL INCLUDE
DIRECTORS, OFFICERS  AND  EMPLOYEES  OF  THE  NEW  YORK  HEALTH  BENEFIT
EXCHANGE ESTABLISHED PURSUANT TO ARTICLE TEN-E OF THE PUBLIC AUTHORITIES
LAW.
  S  5.  If any provision or application of this act shall be held to be
invalid, or to violate or be inconsistent with  any  applicable  federal
law  or  regulation,  that shall not affect other provisions or applica-
tions of this act which can be given effect without  that  provision  or
application;  and  to  that end, the provisions and applications of this
act are severable; provided, however, that nothing in this section shall
be deemed to invalidate the provisions of section  3992  of  the  public
authorities law, as added by section two of this act.
  S  6. If the federal act is held to be unconstitutional by the supreme
court of the United States or repealed by the  United  States  Congress,
the  legislature  shall  convene  within  180  days  of such decision or
congressional act to consider appropriate legislative options.
  S 7. This act shall take effect immediately; provided,  however,  that
until such time as the members of the board of directors of the New York
health benefit exchange are initially appointed pursuant to section 3982
of  the public authorities law, as added by section two of this act, and
the first meeting of such board is convened, nothing in this  act  shall
be deemed to prevent the commissioner of health or the superintendent of
financial services from applying for, accepting the award of, and spend-
ing  any available grant money pertaining to the establishment or opera-
tion of such exchange for purposes consistent with this act or,  at  any

S. 6256                            66                            A. 9056

time, from accepting or spending grant money awarded prior to the enact-
ment of this act.

                                 PART F

  Section  1.  Section  1  of  part C of chapter 58 of the laws of 2005,
authorizing reimbursements for expenditures made  by  or  on  behalf  of
social  services  districts for medical assistance for needy persons and
the administration thereof, is amended by adding a new subdivision (c-1)
to read as follows:
  (C-1) NOTWITHSTANDING  ANY  PROVISIONS  OF  SUBDIVISION  (C)  OF  THIS
SECTION TO THE CONTRARY, EFFECTIVE APRIL 1, 2013, FOR THE PERIOD JANUARY
1, 2013 THROUGH DECEMBER 31, 2013 AND FOR EACH CALENDAR YEAR THEREAFTER,
THE  MEDICAL  ASSISTANCE  EXPENDITURE  AMOUNT  FOR  THE  SOCIAL SERVICES
DISTRICT FOR SUCH PERIOD SHALL BE EQUAL TO THE PREVIOUS CALENDAR  YEAR'S
MEDICAL ASSISTANCE EXPENDITURE AMOUNT, EXCEPT THAT:
  (1)  FOR  THE  PERIOD  JANUARY  1, 2013 THROUGH DECEMBER 31, 2013, THE
PREVIOUS CALENDAR YEAR MEDICAL ASSISTANCE  EXPENDITURE  AMOUNT  WILL  BE
INCREASED BY 2%;
  (2)  FOR  THE  PERIOD  JANUARY  1, 2014 THROUGH DECEMBER 31, 2014, THE
PREVIOUS CALENDAR YEAR MEDICAL ASSISTANCE  EXPENDITURE  AMOUNT  WILL  BE
INCREASED BY 1%.
  S  2.  Paragraph  (iii)  of  subdivision (g) of section 1 of part C of
chapter 58 of the laws of 2005, authorizing reimbursements for  expendi-
tures  made  by  or  on  behalf of social services districts for medical
assistance for needy persons and the administration thereof, as  amended
by section 59 of part A of chapter 57 of the laws of 2006, is amended to
read as follows:
  (iii)  During each state fiscal year subject to the provisions of this
section AND PRIOR TO STATE FISCAL YEAR 2015-16, the  commissioner  shall
maintain  an  accounting,  for each social services district, of the net
amounts that would have been expended by, or on behalf of, such district
had the social services district medical assistance shares provisions in
effect on January 1, 2005 been applied to such district.   For  purposes
of  this paragraph, fifty percent of the payments made by New York State
to the secretary of the federal department of health and human  services
pursuant  to  section 1935(c) of the social security act shall be deemed
to be payments made on behalf of social services districts;  such  fifty
percent share shall be apportioned to each district in the same ratio as
the  number of "full-benefit dual eligible individuals," as that term is
defined in section 1935(c)(6) of such act, for whom  such  district  has
fiscal  responsibility  pursuant  to  section 365 of the social services
law, relates to the total of such individuals for  whom  districts  have
fiscal  responsibility.   As soon as practicable after the conclusion of
each such fiscal year, but in no event later than six months  after  the
conclusion  of  each  such fiscal year, the commissioner shall reconcile
such net amounts  with  such  fiscal  year's  social  services  district
expenditure  cap  amount.  Such  reconciliation shall be based on actual
expenditures made by or on behalf  of  social  services  districts,  and
revenues  received by social services districts, during such fiscal year
and shall be made without regard  to  expenditures  made,  and  revenues
received, outside such fiscal year that are related to services provided
during,  or  prior  to,  such fiscal year. The commissioner shall pay to
each social  services  district  the  amount,  if  any,  by  which  such
district's expenditure cap amount exceeds such net amount.

S. 6256                            67                            A. 9056

  S  3. Paragraph (i) of subdivision (b) of section 2 of part C of chap-
ter 58 of the laws of 2005, authorizing reimbursements for  expenditures
made by or on behalf of social services districts for medical assistance
for  needy persons and the administration thereof, is amended to read as
follows:
  (i)  A social services district shall exercise the option described in
this section through the adoption of a resolution by its local  legisla-
tive body, in the form set forth in subparagraph (ii) of this paragraph,
to  elect  the medical assistance reimbursement methodology set forth in
paragraph (a) of this section and to elect the tax intercept methodology
set forth in subdivision (f) of section 1261 of the tax law or  subdivi-
sion  (g) of section 1261 and subdivision (h) of section 1313 of the tax
law, as applicable. A social services district, acting through its local
legislative body, is hereby authorized to adopt such a resolution.  Such
a  resolution  shall  be  effective only if it is adopted exactly as set
forth in subparagraph (ii) of this paragraph no later than September 30,
2007, and a certified copy of such resolution is mailed to  the  commis-
sioner  of  health  by  certified mail by such date. The commissioner of
health shall, no later than October 31, 2007, certify to the commission-
er of taxation and finance a list of  those  social  services  districts
which  have  elected  the  option  described  in  this section. A social
services district [shall have no authority] MAY BE  ALLOWED  to  rescind
the exercise of the option described in this section NO LATER THAN JANU-
ARY 1, 2013, WITH THE APPROVAL OF AND SUBJECT TO CONDITIONS SPECIFIED BY
THE COMMISSIONER OF HEALTH AND THE COMMISSIONER OF TAXATION AND FINANCE.
  S  4. Part C of chapter 58 of the laws of 2005, authorizing reimburse-
ments for expenditures made by or on behalf of social services districts
for medical assistance for needy persons and the administration thereof,
is amended by adding a new section 4-a to read as follows:
  S 4-A. (A) FOR STATE FISCAL YEAR 2012-13, AND FOR  EACH  STATE  FISCAL
YEAR  THEREAFTER,  A  SOCIAL SERVICES DISTRICT WILL BE REIMBURSED BY THE
STATE FOR THE FULL NON-FEDERAL SHARE OF EXPENDITURES BY THE DISTRICT FOR
THE ADMINISTRATION OF THE MEDICAL ASSISTANCE PROGRAM, NOT TO EXCEED  THE
ADMINISTRATIVE  CAP AMOUNT DETERMINED IN ACCORDANCE WITH SUBDIVISION (B)
OF THIS SECTION. ANY PORTION OF THE NON-FEDERAL SHARE OF  SUCH  EXPENDI-
TURES  IN EXCESS OF THE ADMINISTRATIVE CAP AMOUNT SHALL BE THE RESPONSI-
BILITY OF THE SOCIAL SERVICES DISTRICT AND SHALL BE IN ADDITION  TO  THE
MEDICAL  ASSISTANCE  EXPENDITURE  AMOUNT  CALCULATED  IN ACCORDANCE WITH
SUBDIVISIONS (B), (C), (C-1), AND (D) OF SECTION ONE OF THIS ACT. BEGIN-
NING IN STATE FISCAL YEAR 2013-14, NO REIMBURSEMENT  WILL  BE  MADE  FOR
ADMINISTRATIVE EXPENDITURES IN EXCESS OF SUCH CAP.
  (B) THE ADMINISTRATIVE CAP AMOUNT FOR A SOCIAL SERVICES DISTRICT SHALL
BE EQUAL TO A PERCENTAGE OF THE AMOUNT INCLUDED IN THE STATE FISCAL YEAR
2011-12  ENACTED  BUDGET FOR THE NON-FEDERAL SHARE OF MEDICAL ASSISTANCE
ADMINISTRATIVE COSTS PURSUANT TO  THIS  SECTION.  EACH  SOCIAL  SERVICES
DISTRICT'S  PERCENTAGE  SHALL  BE  EQUAL  TO  THE  PERCENTAGE OF MEDICAL
ASSISTANCE ADMINISTRATIVE COSTS CLAIMED BY SUCH  DISTRICT  IN  THE  2011
CALENDAR YEAR IN RELATION TO ALL OTHER SOCIAL SERVICES DISTRICTS.
  (C) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (B) OF THIS SECTION,
THE  COMMISSIONER OF HEALTH MAY, AT HIS OR HER SOLE DISCRETION, REDUCE A
SOCIAL SERVICES DISTRICT'S ADMINISTRATIVE CAP AMOUNT TO  ACCOUNT  FOR  A
REDUCTION  IN  THE  SCOPE  OR  VOLUME  OF  THE DISTRICT'S ADMINISTRATIVE
RESPONSIBILITIES, INCLUDING BUT NOT LIMITED TO SUCH A REDUCTION  RESULT-
ING  FROM  THE PROCESS OF CONVERTING THE MEDICAL ASSISTANCE PROGRAM TO A
DEPARTMENT-ADMINISTERED PROGRAM PURSUANT TO SECTION 365-N OF THE  SOCIAL
SERVICES LAW.

S. 6256                            68                            A. 9056

  S  5.  Section 91 of part H of chapter 59 of the laws of 2011 amending
the public health law  and  other  laws  relating  to  general  hospital
reimbursement for annual rates is amended to read as follows:
  S 91. 1. Notwithstanding any inconsistent provision of state law, rule
or  regulation to the contrary, subject to federal approval, the year to
year rate of growth of department of health state funds Medicaid  spend-
ing  shall not exceed the ten year rolling average of the medical compo-
nent of the consumer price index  as  published  by  the  United  States
department  of  labor, bureau of labor statistics, for the preceding ten
years.
  2. EXCEPT AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION, FOR  STATE
FISCAL  YEAR  2013-14  AND FOR EACH FISCAL YEAR THEREAFTER, THE SPENDING
LIMIT CALCULATED PURSUANT TO SUBDIVISION ONE OF THIS  SECTION  SHALL  BE
INCREASED  BY AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE TOTAL SOCIAL
SERVICES DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS CALCULATED  FOR
SUCH PERIOD IN CONFORMANCE WITH SUBDIVISIONS (B), (C), (C-1), AND (D) OF
SECTION  1  OF  PART  C  OF CHAPTER 58 OF THE LAWS OF 2005 AND THE TOTAL
SOCIAL SERVICES DISTRICT MEDICAL EXPENDITURE  AMOUNTS  THAT  WOULD  HAVE
RESULTED  IF THE PROVISIONS OF SUBDIVISION (C-1) OF SUCH SECTION HAD NOT
BEEN APPLIED.
  3. WITH RESPECT TO A SOCIAL SERVICES DISTRICT THAT RESCINDS THE  EXER-
CISE  OF  THE  OPTION  PROVIDED  IN  PARAGRAPH (I) OF SUBDIVISION (B) OF
SECTION 2 OF PART C OF CHAPTER 58 OF THE LAWS OF 2005, FOR STATE  FISCAL
YEAR  2013-14  AND  FOR  EACH FISCAL YEAR THEREAFTER, THE SPENDING LIMIT
CALCULATED PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL BE  REDUCED
BY  THE  AMOUNT  OF THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT CALCULATED
FOR SUCH DISTRICT FOR SUCH PERIOD.
  S 6. The social services law is amended by adding a new section  365-n
to read as follows:
  S 365-N. DEPARTMENT ASSUMPTION OF PROGRAM ADMINISTRATION.  1. LEGISLA-
TIVE  INTENT.  (A)  THE  LEGISLATURE  FINDS  THAT  TO ENSURE THE MEDICAL
ASSISTANCE PROGRAM CONTINUES TO FUNCTION IN AN EFFICIENT MANNER TO  MAKE
HIGH  QUALITY MEDICAL CARE, SERVICES, AND SUPPLIES AVAILABLE TO ELIGIBLE
PERSONS, AND TO ACHIEVE TIMELY COMPLIANCE WITH THE REQUIREMENTS  OF  THE
PATIENT  PROTECTION  AND AFFORDABLE CARE ACT RELATED TO THE EXPANSION OF
THE MEDICAL ASSISTANCE  PROGRAM  AND  THE  CREATION  OF  A  HEALTH  CARE
EXCHANGE,  IT  IS NECESSARY TO CONVERT THE PROGRAM OF MEDICAL ASSISTANCE
FROM ONE PRIMARILY ADMINISTERED BY SOCIAL SERVICES DISTRICTS, UNDER  THE
SUPERVISION  OF THE DEPARTMENT OF HEALTH ("DEPARTMENT"), TO ONE ADMINIS-
TERED BY THE DEPARTMENT,  WITH  SUCH  ASSISTANCE  FROM  SOCIAL  SERVICES
DISTRICTS  AS  THE COMMISSIONER OF HEALTH ("COMMISSIONER") MAY DETERMINE
NECESSARY, AND THAT SUCH CONVERSION SHOULD BE COMPLETED BY APRIL  FIRST,
TWO  THOUSAND  EIGHTEEN.    RECOGNIZING THE COMPLEXITY AND DIFFICULTY OF
COMPLETING THIS CONVERSION WITHIN SUCH TIME FRAME, IT IS THE  INTENT  OF
THE LEGISLATURE TO GRANT THE COMMISSIONER BROAD AUTHORITY AND FLEXIBILI-
TY  TO TAKE ACTIONS NECESSARY TO ACHIEVE THIS GOAL, AS DETERMINED BY THE
COMMISSIONER, AND TO HAVE THE PROVISIONS OF THIS  SECTION  CONSTRUED  IN
LIGHT OF THE AUTHORITY AND FLEXIBILITY SO GRANTED. THE ADMINISTRATION OF
THE  PROGRAM  BY  THE  DEPARTMENT MAY BE ACCOMPLISHED THROUGH THE USE OF
DEPARTMENT STAFF, CONTRACTED ENTITIES, OR SOME COMBINATION  THEREOF,  AS
DETERMINED  ADVISABLE  BY  THE COMMISSIONER TO ACHIEVE THE GOALS OF THIS
SECTION, SUBJECT TO THE LIMITATIONS PRESCRIBED HEREIN. THE  COMMISSIONER
WILL  CONSULT  WITH SOCIAL SERVICES DISTRICTS IN FORMULATING THE OPTIMAL
PLAN FOR IMPLEMENTING THIS CONVERSION.
  (B) THE LEGISLATURE FURTHER FINDS THAT THE  CONTINUED,  UNINTERRUPTED,
ADEQUATE AND EFFICIENT OPERATION OF FUNCTIONS RELATED TO MEDICAL ASSIST-

S. 6256                            69                            A. 9056

ANCE  ELIGIBILITY  AND  COVERED  BENEFITS  IS  NECESSARY FOR THE GENERAL
WELFARE OF THE PEOPLE OF THE STATE; THAT  SUCH  OPERATION  INVOLVES  AND
REQUIRES  PERSONNEL WITH TRAINING, PRACTICAL EXPERIENCE AND KNOWLEDGE IN
MEDICAL  ASSISTANCE ELIGIBILITY AND COVERED BENEFITS; AND THAT REQUIRING
COMPETITIVE EXAMINATION FOR APPOINTMENT OF PERSONS CURRENTLY  PERFORMING
SUCH  FUNCTIONS  IN COUNTIES IN THE STATE TO POSITIONS IN THE CLASSIFIED
SERVICE OF THE STATE UPON  THE  ASSUMPTION  OF  SUCH  FUNCTIONS  BY  THE
DEPARTMENT  WOULD  IRREPARABLY  DISRUPT, DELAY AND IMPEDE OPERATIONS AND
INTERRUPT THE CONTINUANCE AND PERFORMANCE OF IMPORTANT SERVICES.
  2. NOTWITHSTANDING THE PROVISIONS OF TITLE TWO  OF  ARTICLE  THREE  OF
THIS  CHAPTER OR OF SECTION THREE HUNDRED SIXTY-FIVE OF THIS TITLE OR OF
ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER IS  AUTHORIZED  TO  TAKE
ANY  AND ALL ACTIONS NECESSARY TO TRANSFER RESPONSIBILITY FOR THE ADMIN-
ISTRATION  OF  THE  MEDICAL  ASSISTANCE  PROGRAM  FROM  SOCIAL  SERVICES
DISTRICTS TO THE DEPARTMENT.
  3. FOR PURPOSES OF THIS SECTION, ADMINISTRATION OF THE MEDICAL ASSIST-
ANCE  PROGRAM INCLUDES PROCESSING APPLICATIONS FOR BENEFITS AND SERVICES
AVAILABLE UNDER THIS TITLE AND TITLE ELEVEN-D OF  THIS  ARTICLE,  MAKING
DETERMINATIONS  OF INITIAL AND ONGOING ELIGIBILITY FOR SUCH BENEFITS AND
SERVICES AND MAKING COVERAGE DETERMINATIONS WITH RESPECT TO BENEFITS AND
SERVICES REQUIRING PRIOR AUTHORIZATION, NOTIFYING APPLICANTS AND RECIPI-
ENTS OF THESE DETERMINATIONS AND OF THEIR RIGHTS  AND  RESPONSIBILITIES,
AUTHORIZING BENEFITS AND SERVICES FOR PERSONS FOUND ELIGIBLE, EXERCISING
SUBROGATION  RIGHTS  WITH  RESPECT  TO  AMOUNTS  RECEIVED FROM INSURANCE
CARRIERS OR OTHER LIABLE THIRD  PARTIES,  IMPOSING  LIENS  AND  PURSUING
RECOVERIES,  AND ANY OTHER TASKS AND FUNCTIONS IDENTIFIED BY THE COMMIS-
SIONER.
  4. NOTWITHSTANDING THE PROVISIONS OF THE  CIVIL  SERVICE  LAW  OR  ANY
PROVISIONS  TO  THE CONTRARY CONTAINED IN ANY GENERAL, SPECIAL, OR LOCAL
LAWS, ALL LAWFUL APPOINTEES OF A COUNTY PERFORMING FUNCTIONS RELATED  TO
MEDICAL  ASSISTANCE ELIGIBILITY AND COVERED BENEFITS AS OF THE EFFECTIVE
DATE OF THIS SECTION WILL BE ELIGIBLE TO TRANSFER TO  APPROPRIATE  POSI-
TIONS  IN  THE DEPARTMENT OF HEALTH CLASSIFIED TO PERFORM SUCH FUNCTIONS
WITHOUT FURTHER EXAMINATION OR QUALIFICATION AND,  UPON  SUCH  TRANSFER,
WILL  HAVE  ALL  THE RIGHTS AND PRIVILEGES OF THE JURISDICTIONAL CLASSI-
FICATION TO WHICH SUCH POSITIONS MAY  BE  ALLOCATED  IN  THE  CLASSIFIED
SERVICE OF THE STATE.
  5.  SUBJECT  TO  THE  PROVISIONS OF SUBDIVISIONS SIX AND SEVEN OF THIS
SECTION, THE COMMISSIONER  MAY  CONTRACT  WITH  ONE  OR  MORE  ENTITIES,
INCLUDING  UNITS  OF LOCAL GOVERNMENT, FOR THE PURPOSE OF EXERCISING HIS
OR HER AUTHORITY UNDER THIS SECTION. SUCH ENTITIES MAY BE CONTRACTED  TO
PERFORM ALL OR A PORTION OF THE FUNCTIONS DESCRIBED IN SUBDIVISION THREE
OF  THIS  SECTION,  AND  MAY  PERFORM SUCH FUNCTIONS WITH RESPECT TO THE
ENTIRE STATE OR WITH RESPECT TO A SPECIFIC REGION OR REGIONS, AS  DETER-
MINED  BY  THE COMMISSIONER. IN NO EVENT, HOWEVER, SHALL THE DEPARTMENT,
BY MEANS OF SUCH A CONTRACT, DELEGATE ITS AUTHORITY TO EXERCISE ADMINIS-
TRATIVE DISCRETION IN THE ADMINISTRATION OR  SUPERVISION  OF  THE  STATE
PLAN  FOR MEDICAL ASSISTANCE SUBMITTED PURSUANT TO SECTION THREE HUNDRED
SIXTY-THREE-A OF THIS TITLE, OR TO  ISSUE  POLICIES,  RULES,  AND  REGU-
LATIONS  ON  PROGRAM MATTERS, NOR MAY ANY CONTRACTED ENTITY BE GIVEN THE
AUTHORITY TO CHANGE OR DISAPPROVE ANY  ADMINISTRATIVE  DECISION  OF  THE
DEPARTMENT,  OR  OTHERWISE  SUBSTITUTE THE ENTITY'S JUDGMENT FOR THAT OF
THE DEPARTMENT WITH RESPECT TO THE APPLICATION OF POLICIES,  RULES,  AND
REGULATIONS ISSUED BY THE DEPARTMENT.
  6.  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTIONS ONE HUNDRED
TWELVE AND ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, OR SECTIONS

S. 6256                            70                            A. 9056

ONE HUNDRED FORTY-TWO AND ONE HUNDRED FORTY-THREE OF THE ECONOMIC DEVEL-
OPMENT LAW, OR ANY OTHER CONTRARY PROVISION OF LAW, THE COMMISSIONER  IS
AUTHORIZED  TO  AMEND  THE  TERMS  OF  EXISTING  CONTRACTS,  INCLUDING A
CONTRACT ENTERED INTO PURSUANT TO SUBDIVISION TWENTY-FOUR OF SECTION TWO
HUNDRED SIX OF THE PUBLIC HEALTH LAW, AS ADDED BY SECTION THIRTY-NINE OF
PART C OF CHAPTER FIFTY-EIGHT OF THE LAWS OF TWO THOUSAND EIGHT, WITHOUT
A  COMPETITIVE BID OR REQUEST FOR PROPOSAL PROCESS, UPON A DETERMINATION
THAT THE EXISTING CONTRACTOR IS QUALIFIED TO PROVIDE ASSISTANCE WITH ONE
OR MORE FUNCTIONS RELATED TO THE ADMINISTRATION OF THE  MEDICAL  ASSIST-
ANCE PROGRAM OR TO ACHIEVING THE GOALS OF THIS SECTION.
  7.  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTIONS ONE HUNDRED
TWELVE AND ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, OR SECTIONS
ONE HUNDRED FORTY-TWO AND ONE HUNDRED FORTY-THREE OF THE ECONOMIC DEVEL-
OPMENT LAW, OR ANY OTHER CONTRARY PROVISION OF LAW, THE COMMISSIONER  IS
AUTHORIZED  TO ENTER INTO A CONTRACT OR CONTRACTS UNDER THIS SUBDIVISION
WITHOUT A COMPETITIVE BID OR REQUEST  FOR  PROPOSAL  PROCESS,  PROVIDED,
HOWEVER,  THAT  WITH  RESPECT  TO A CONTRACT WITH AN ENTITY OTHER THAN A
LOCAL UNIT OF GOVERNMENT:
  (A) THE DEPARTMENT SHALL POST ON ITS WEBSITE, FOR A PERIOD OF NO  LESS
THAN THIRTY DAYS:
  (I)  A DESCRIPTION OF THE PROPOSED SERVICES TO BE PROVIDED PURSUANT TO
THE CONTRACT OR CONTRACTS;
  (II) THE CRITERIA FOR SELECTION OF A CONTRACTOR OR CONTRACTORS;
  (III) THE PERIOD OF TIME DURING WHICH  A  PROSPECTIVE  CONTRACTOR  MAY
SEEK  SELECTION,  WHICH  SHALL  BE  NO  LESS THAN THIRTY DAYS AFTER SUCH
INFORMATION IS FIRST POSTED ON THE WEBSITE; AND
  (IV) THE MANNER BY  WHICH  A  PROSPECTIVE  CONTRACTOR  MAY  SEEK  SUCH
SELECTION, WHICH MAY INCLUDE SUBMISSION BY ELECTRONIC MEANS;
  (B)  ALL  REASONABLE AND RESPONSIVE SUBMISSIONS THAT ARE RECEIVED FROM
PROSPECTIVE CONTRACTORS IN TIMELY  FASHION  SHALL  BE  REVIEWED  BY  THE
COMMISSIONER; AND
  (C) THE COMMISSIONER SHALL SELECT SUCH CONTRACTOR OR CONTRACTORS THAT,
IN  HIS OR HER DISCRETION, ARE BEST SUITED TO SERVE THE PURPOSES OF THIS
SECTION.
  8. THE COMMISSIONER SHALL PROMULGATE SUCH REGULATIONS AS MAY BE NECES-
SARY TO CARRY OUT THE PROVISIONS OF THIS SECTION, WHICH REGULATIONS  MAY
BE  PROMULGATED  ON  AN  EMERGENCY  BASIS. IN ADDITION, THE COMMISSIONER
SHALL MAKE ANY AMENDMENTS TO THE STATE PLAN FOR MEDICAL  ASSISTANCE,  OR
DEVELOP  AND  SUBMIT AN APPLICATION FOR ANY WAIVER OR APPROVAL UNDER THE
FEDERAL SOCIAL SECURITY ACT, THAT MAY BE  NECESSARY  TO  CARRY  OUT  THE
PROVISIONS OF THIS SECTION.
  S 7. Subdivision 7 of section 369 of the social services law, as added
by  section 71-a of part C of chapter 58 of the laws of 2008, is amended
to read as follows:
  7. Notwithstanding any provision of law to the contrary,  the  depart-
ment [may commence] SHALL, WHEN IT DETERMINES NECESSARY PROGRAM FEATURES
ARE  IN  PLACE,  ASSUME  SOLE  RESPONSIBILITY  FOR COMMENCING actions or
proceedings in accordance with the provisions of this section,  sections
one  hundred one, one hundred four, one hundred four-b, paragraph (a) of
subdivision three of section three hundred sixty-six,  subparagraph  one
of paragraph (h) of subdivision four of section three hundred sixty-six,
and paragraph (b) of subdivision two of section three hundred sixty-sev-
en-a  of  this  chapter,  to  recover  the  cost  of  medical assistance
furnished pursuant to this title and title eleven-D of this article. The
department is authorized to contract with an entity that  shall  conduct
activities  on  behalf  of  the department pursuant to this subdivision.

S. 6256                            71                            A. 9056

PRIOR TO ASSUMING SUCH RESPONSIBILITY FROM A SOCIAL  SERVICES  DISTRICT,
THE  DEPARTMENT  OF  HEALTH  SHALL,  IN  CONSULTATION WITH THE DISTRICT,
DEFINE THE SCOPE OF THE  SERVICES  THE  DISTRICT  WILL  BE  REQUIRED  TO
PERFORM  ON BEHALF OF THE DEPARTMENT OF HEALTH PURSUANT TO THIS SUBDIVI-
SION.
  S 8. Notwithstanding any inconsistent provision of law, rule or  regu-
lation, for purposes of implementing the provisions of the public health
law and the social services law, references to titles XIX and XXI of the
federal  social  security  act  in  the public health law and the social
services law shall be deemed to include and also to mean  any  successor
titles thereto under the federal social security act.
  S  9. Notwithstanding any inconsistent provision of law, rule or regu-
lation, the effectiveness of the provisions of sections 2807 and 3614 of
the public health law, section 18 of chapter 2 of the laws of 1988,  and
18  NYCRR  505.14(h), as they relate to time frames for notice, approval
or certification of rates of payment, are hereby suspended  and  without
force or effect for purposes of implementing the provisions of this act.
  S  10. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair or invalidate the remainder thereof, but shall be confined in its
operation to the clause, sentence, paragraph,  subdivision,  section  or
part thereof directly involved in the controversy in which such judgment
shall  have been rendered. It is hereby declared to be the intent of the
legislature that this act would have been enacted even if  such  invalid
provisions had not been included herein.
  S  11.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2012,  provided
that:
  1. section one of this act shall take effect April 1, 2013;
  2.  any  rules or regulations necessary to implement the provisions of
this act may be promulgated and any procedures, forms,  or  instructions
necessary  for such implementation may be adopted and issued on or after
the date this act shall have become a law;
  3. this act shall not be construed to alter, change, affect, impair or
defeat any rights, obligations, duties or interests accrued, incurred or
conferred prior to the effective date of this act;
  4. the commissioner of health and the superintendent of insurance  and
any  appropriate  council may take any steps necessary to implement this
act prior to its effective date;
  5. notwithstanding any inconsistent provision of the state administra-
tive procedure act or any other provision of law,  rule  or  regulation,
the  commissioner  of health and the superintendent of insurance and any
appropriate council is authorized to adopt or amend or promulgate on  an
emergency  basis  any  regulation  he  or she or such council determines
necessary to implement any provision of this act on its effective date;
  6. the amendment to section 91 of part H of chapter 59 of the laws  of
2011,  amending the public health law and other laws relating to general
hospital reimbursement for annual rates, made by section  five  of  this
act  shall  take  effect on the same date and in the same manner as such
section takes effect;
  7. the provisions of this act shall become  effective  notwithstanding
the  failure  of  the  commissioner  of  health or the superintendent of
insurance or any council to adopt or  amend  or  promulgate  regulations
implementing this act.

S. 6256                            72                            A. 9056

                                 PART G

  Section  1. Subdivision 1 of section 79 of part C of chapter 58 of the
laws of 2005 relating to the preferred drug program is amended and a new
subdivision 1-a is added  to read as follows:
  1. sections ten [through], ELEVEN, TWELVE  AND  fifteen  of  this  act
shall expire and be deemed repealed on and after June 15, [2012] 2019;
  1-A.  SECTION FOURTEEN OF THIS ACT SHALL EXPIRE AND BE DEEMED REPEALED
ON AND AFTER JUNE 15, 2012;
  S 2. Subparagraph (v) of paragraph (b) of subdivision  35  of  section
2807-c of the public health law, as amended by section 35-a of part H of
chapter 59 of the laws of 2011, is amended to read as follows:
  (v)  such  regulations  shall  incorporate  quality  related measures,
including, but not limited  to,  potentially  preventable  re-admissions
(PPRs) and provide for rate adjustments or payment disallowances related
to  PPRs  and  other  potentially preventable negative outcomes (PPNOs),
which shall be calculated in accordance with methodologies as determined
by the commissioner, provided, however, that such methodologies shall be
based on a comparison of the actual and risk adjusted expected number of
PPRs and other PPNOs in a given hospital and with benchmarks established
by the commissioner and provided further that such rate  adjustments  or
payment disallowances shall result in an aggregate reduction in Medicaid
payments of no less than thirty-five million dollars for the period July
first,  two thousand ten through March thirty-first, two thousand eleven
and no less than fifty-one million dollars for [the period] ANNUAL PERI-
ODS BEGINNING April first, two thousand  eleven  through  March  thirty-
first, two thousand [twelve] THIRTEEN, provided further that such aggre-
gate reductions shall be offset by Medicaid payment reductions occurring
as a result of decreased PPRs during the period July first, two thousand
ten through March thirty-first, two thousand eleven and the period April
first,  two  thousand  eleven  through  March thirty-first, two thousand
[twelve] THIRTEEN and as a result of decreased PPNOs during  the  period
April  first,  two thousand eleven through March thirty-first, two thou-
sand [twelve] THIRTEEN; and provided further that for  the  period  July
first,  two  thousand  ten  through  March  thirty-first,  two  thousand
[twelve] THIRTEEN, such rate adjustments or payment disallowances  shall
not apply to behavioral health PPRs; or to readmissions that occur on or
after fifteen days following an initial admission. By no later than July
first,  two  thousand eleven the commissioner shall enter into consulta-
tions with representatives of the health care facilities subject to this
section regarding potential prospective revisions to applicable  method-
ologies  and benchmarks set forth in regulations issued pursuant to this
subparagraph;
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2012.

                                 PART H

  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,

S. 6256                            73                            A. 9056

[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
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 of the director of the budget.
  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 the director of the budget, to  promulgate  regu-
lations  or to address by other means the extent and nature of a provid-
er's administrative costs and  executive  compensation  which  shall  be
eligible  to  be reimbursed with state financial assistance or state-au-
thorized payments for operating expenses. Each agency shall require that
providers of services that receive reimbursements directly or indirectly
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
the director of the budget, but in no event  shall  such  figure  exceed
Level I of the federal government's Rates of Basic Pay for the Executive
Schedule  promulgated  by  the United States Office of Personnel Manage-
ment.  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 may, in the sole discretion of the commis-
sioner of each state agency, form the basis for termination or non-rene-
wal 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 the director of the budget.

S. 6256                            74                            A. 9056

  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, 2012.

                                 PART I

  Section  1. Notwithstanding any inconsistent provision of sections one
hundred twelve and one hundred sixty-three of the state finance law,  or
section  one  hundred  forty-two of the economic development law, or any
other law to the contrary, the commissioner of  developmental  disabili-
ties,  pursuant  to  a  pilot  program established in accordance with an
application made under section 1115 of the federal social security  act,
42  U.S.C.  1315,  is  authorized  to enter into a contract or contracts
without a competitive bid or request  for  proposal  process,  with  the
approval of the director of the budget, provided, however, that:
  (a)  the  office for people with developmental disabilities shall post
on its website, for a period of not  less  than  thirty  days,  a  pilot
application, and the following information:
  (i)  a description of the proposed services to be provided pursuant to
the pilot program;
  (ii) the procedure for application to participate in the pilot program
and criteria for selection of an applicant to participate in  the  pilot
program;
  (iii) the period of time during which an applicant may seek selection,
which  shall be no less than thirty days after such information is first
posted on the website; and
  (iv) the manner by which an applicant may seek such  selection,  which
may include submission by electronic means;
  (b)  all  reasonable and responsive submissions that are received from
applicants in a timely fashion shall be reviewed  by  the  commissioner;
and
  (c)  the  commissioner of developmental disabilities shall select such
applicant or applicants that, in  the  commissioner's  discretion,  have
demonstrated  the  ability to effectively, efficiently, and economically
provide services pursuant to  the  pilot  program;  have  the  requisite
expertise  and  financial resources; have demonstrated that their direc-
tors, sponsors, members, managers, partners or operators have the requi-
site character, competence and standing in the community, and  are  best
suited to serve the purposes of this section.
  S 2. This act shall take effect immediately.

                                 PART J

  Section  1. Section 13.17 of the mental hygiene law, as added by chap-
ter 978 of the laws of 1977, the section heading as amended  by  chapter
168  of the laws of 2010, subdivisions (b) and (d) as amended by chapter
37 of the laws of 2011, and subdivision (c) as amended by chapter 538 of
the laws of 1987, is amended to read as follows:
S 13.17 Programs, services, and operations [of facilities] in the office
          for people with developmental disabilities.
  (a) The commissioner shall establish policy  and  procedures  for  the
organization,  administration, and [operation of the facilities] SERVICE
DELIVERY SYSTEM under his OR  HER  jurisdiction[.  He]  AND  shall  make
provision  for  the  effective  rendition  of  SUPPORTS  AND services to
[patients by such  facilities  or  office  personnel]  INDIVIDUALS  WITH
DEVELOPMENTAL DISABILITIES.

S. 6256                            75                            A. 9056

  (b)  [There  shall  be  in  the  office the developmental disabilities
services offices named below  serving  the  areas  either  currently  or
previously  served  by  a  school, for the care and treatment of persons
with developmental disabilities and for research  and  teaching  in  the
science  and  skills required for the care and treatment of such persons
with developmental disabilities:
  Bernard M. Fineson Developmental Disabilities Services Office
  Brooklyn Developmental Disabilities Services Office
  Broome Developmental Disabilities Services Office
  Capital District Developmental Disabilities Services Office
  Central New York Developmental Disabilities Services Office
  Finger Lakes Developmental Disabilities Services Office
  Institute for Basic Research in Developmental Disabilities
  Hudson Valley Developmental Disabilities Services Office
  Metro New York Developmental Disabilities Services Office
  Long Island Developmental Disabilities Services Office
  Sunmount Developmental Disabilities Services Office
  Taconic Developmental Disabilities Services Office
  Western New York Developmental Disabilities Services Office
  Staten Island Developmental Disabilities Services Office
  The New York State Institute for Basic Research in Developmental Disa-
bilities is designated as  an  institute  for  the  conduct  of  medical
research  and other scientific investigation directed towards furthering
knowledge of the etiology, diagnosis, treatment and prevention of devel-
opmental disabilities.
  (c)] The commissioner shall establish [the areas which  each  facility
or],  AT  HIS  OR  HER  DISCRETION, developmental disabilities [services
office under his jurisdiction shall serve and the categories of  clients
which  shall  be  served  thereby]  REGIONAL OFFICES AND SHALL ESTABLISH
STATE OPERATIONS  OFFICES  THAT  PROVIDE  FOR  THE  DIRECT  DELIVERY  OF
SUPPORTS  AND SERVICES BY THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISA-
BILITIES.
  [(d)] (C) The commissioner may [permit] AUTHORIZE other offices of the
department and any public or private non-profit  organization  or  poli-
tical subdivision of the state to [operate programs for persons] DELIVER
SUPPORTS  AND  SERVICES TO INDIVIDUALS with developmental disabilities[,
not inconsistent with the programs and objectives of the office  in  any
facility under his jurisdiction. The commissioner may permit any facili-
ty  under  his  jurisdiction to operate programs for persons with mental
disabilities, not inconsistent  with  programs  and  objectives  of  the
department,  under contracts or agreements with other offices within the
department].
  S 2. Section 13.19 of the mental hygiene law, as added by chapter  978
of  the laws of 1977, subdivisions (a) and (d) as amended by chapter 168
of the laws of 2010, and subdivision (e) as added by chapter 307 of  the
laws of 1979, is amended to read as follows:
S 13.19 Personnel of the office; regulations.
  (a)  The  commissioner  may, within the amounts appropriated therefor,
appoint and remove in accordance with law and applicable  rules  of  the
state  civil  service  commission,  such  officers  and employees of the
office for people with developmental disabilities [and school and facil-
ity officers and employees who are designated managerial or confidential
pursuant to article fourteen of the civil service law] as are  necessary
for efficient administration.  THE COMMISSIONER SHALL, IN EXERCISING HIS
OR   HER   APPOINTING   AUTHORITY,   TAKE,   CONSISTENT   WITH   ARTICLE
TWENTY-THREE-A OF THE CORRECTION LAW, ALL REASONABLE AND NECESSARY STEPS

S. 6256                            76                            A. 9056

TO ENSURE THAT ANY SUCH PERSON SO APPOINTED HAS NOT  PREVIOUSLY  ENGAGED
IN ANY ACT IN VIOLATION OF ANY LAW WHICH COULD COMPROMISE THE HEALTH AND
SAFETY OF INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES.
  (b)  [The director of a hospital or institute in the office shall have
professional qualifications and  experience  to  be  prescribed  by  the
commissioner.
  (c)]  Notwithstanding the provisions of any other law, the [positions]
POSITION of [psychiatrist III and] deputy director in  [any]  AN  office
facility may be filled BY NEW HIRE OR by promotion open to employees [of
all  such  facilities]  who  possess  the minimum qualifications for the
[respective positions. Promotion lists which are established  for  those
positions shall be general eligible promotion lists from which names are
certified  in  the  order of final earned ratings and from which certif-
ication shall not be subdivided by the facility or department  in  which
such persons are employed. Nothing in this subdivision shall prevent the
use of open competitive examinations] POSITION.
  [(d)]  (C)  The  use  of  volunteers [at facilities] in the office for
people with developmental disabilities shall be encouraged. The  commis-
sioner may establish regulations governing such volunteer services.
  [(e)]  (D)  Where,  and  to  the extent that, an agreement between the
state and an employee organization  entered  into  pursuant  to  article
fourteen  of  the  civil  service  law  so provides, the commissioner is
authorized to implement the provisions of  such  agreement  relating  to
discipline consistent with the terms thereof.
  S  3. Section 13.21 of the mental hygiene law, as added by chapter 978
of the laws of 1977, the section heading and subdivisions (a) and (c) as
amended by chapter 168 of the laws of 2010, subdivision (b)  as  amended
by  chapter 558 of the laws of 2011, subdivision (d) as added by chapter
355 of the laws of 1987 and subdivision (e) as added by chapter  492  of
the  laws  of 1978 and as relettered by chapter 355 of the laws of 1987,
is amended to read as follows:
S 13.21 Directors of [schools] STATE  OPERATIONS  OFFICES  AND  DEVELOP-
          MENTAL  DISABILITIES REGIONAL OFFICES in the office for people
          with developmental disabilities.
  (a) The [director] DIRECTORS of [a school] BOTH THE  STATE  OPERATIONS
OFFICES  AND  DEVELOPMENTAL  DISABILITIES REGIONAL OFFICES in the office
for people with developmental disabilities shall  be  appointed  by  the
commissioner  [and shall be its chief executive officer. The director of
a school  shall  be  the  director  of  the  developmental  disabilities
services  office  serving  the  areas  designated by the commissioner in
regulation, and in such context, the term facility shall also  refer  to
such  developmental  disabilities  services  office]. Each such director
shall be in the non-competitive class and designated as confidential  as
defined  by  subdivision two-a of section forty-two of the civil service
law and shall serve at the pleasure of  the  commissioner.  [Except  for
school  and facility officers and employees for which subdivision (a) of
section 13.19 of this article makes the commissioner the appointing  and
removing authority, the director of a school shall have the power, with-
in  amounts  appropriated  therefor, to appoint and remove in accordance
with law and applicable rules of the state civil service commission such
officers and employees of the facility of which he or she is director as
are necessary for its efficient administration. He or she shall in exer-
cising his or her appointing authority  take,  consistent  with  article
twenty-three-A of the correction law, all reasonable and necessary steps
to  insure  that any such person so appointed has not previously engaged
in any act in violation of any law which could compromise the health and

S. 6256                            77                            A. 9056

safety of patients in the facility of which he or she is  director.]  He
or she shall manage the [facility, and administer its personnel system,]
STATE  OPERATIONS  OFFICE  OR DEVELOPMENTAL DISABILITIES REGIONAL OFFICE
subject  to applicable law, the regulations of the commissioner, and the
rules of the state civil service commission.  [Before  the  commissioner
shall issue any such regulation or any amendment or revision thereof, he
or she shall consult with the directors of schools in the office regard-
ing  its  suitability.]  The  [director]  DIRECTORS OF THE DEVELOPMENTAL
DISABILITIES REGIONAL OFFICES AND STATE OPERATIONS OFFICES  shall  main-
tain effective [supervision] OVERSIGHT of all parts of [the facility and
over  all  persons employed therein or coming thereon and] THEIR RESPEC-
TIVE OFFICES. THE DIRECTORS OF STATE OPERATIONS OFFICES shall  generally
[direct]  PROVIDE  FOR  the  [care  and treatment of patients. Directors
presently serving at facilities of the office shall  continue  to  serve
under  the  terms  of  their  original  appointment]  ADMINISTRATION  OF
SUPPORTS AND SERVICES TO INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES  IN
STATE  OPERATED  PROGRAMS. DIRECTORS OF REGIONAL OFFICES SHALL GENERALLY
OVERSEE THE ADMINISTRATION OF SUPPORTS AND SERVICES TO INDIVIDUALS  WITH
DEVELOPMENTAL  DISABILITIES  IN  SETTINGS  OUTSIDE  THE  STATE  OPERATED
PROGRAMS.
  (b) Such [director] DIRECTORS shall have the responsibility of  seeing
that  there  is  humane  treatment  of [the patients at his facility and
shall investigate every case of alleged patient abuse  or  mistreatment]
INDIVIDUALS   WITH  DEVELOPMENTAL  DISABILITIES  RECEIVING  SERVICES  IN
SETTINGS OPERATED, LICENSED,  CERTIFIED,  FUNDED  OR  APPROVED  BY  THIS
OFFICE.   [The] A director OF STATE OPERATIONS shall notify immediately,
and in any event within three working days the board of visitors of  the
facility  and the mental hygiene legal service located in the same judi-
cial department as [the hospital, school or institution] THE STATE OPER-
ATIONS OFFICE of every complaint of patient abuse  or  mistreatment  and
shall  inform  the  board  and  the  mental hygiene legal service of the
results of his OR HER investigation. If it appears that a crime may have
been committed, the STATE OPERATIONS director shall give notice  thereof
to  the  district attorney or other appropriate law enforcement official
as soon as possible, and in any event within three working  days  unless
it  appears  that  the  crime  includes  an employee, intern, volunteer,
consultant, contractor, or visitor and the alleged conduct caused  phys-
ical  injury  or the patient was subject to unauthorized sexual contact,
or if it appears the crime is endangering the welfare of an  incompetent
or  physically  disabled  person pursuant to section 260.25 of the penal
law, or if the crime was any felony under state or federal law, then the
district attorney or other appropriate law enforcement official must  be
contacted immediately, and in any event no later than twenty-four hours.
  (c)  In  any  investigation  into the treatment and care of [patients]
INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES or the conduct, performance,
or neglect of duty of officers or employees, the [director of  a  school
in  the  office for people with developmental disabilities] COMMISSIONER
OR HIS OR HER DESIGNEE shall be authorized to subpoena witnesses, compel
their attendance, administer oaths to witnesses, examine witnesses under
oath, and require the production of any books or papers deemed  relevant
to  the  inquiry  or investigation. A subpoena issued under this section
shall be regulated by the civil practice law and rules.
  (d) [Such] THE director of a [school] STATE OPERATIONS OFFICE shall be
responsible for the provision of STATE OPERATED community  developmental
disabilities  services, in those areas that the commissioner may assign.
Such responsibility shall, consistent with  article  forty-one  of  this

S. 6256                            78                            A. 9056

chapter,  include  the operation of STATE OPERATED facilities[,] AND the
development of needed facilities[, and the provision  of  assistance  to
service  providers in such areas and any necessarily related activities.
All  powers  and duties as set forth in this section shall apply to such
responsibilities]. REGIONAL  DIRECTORS  SHALL  BE  RESPONSIBLE  FOR  THE
PROVISION  OF  COMMUNITY DEVELOPMENTAL DISABILITIES SERVICES TO INDIVID-
UALS IN SETTINGS OTHER THEN STATE OPERATED PROGRAMS. THE REGIONAL DIREC-
TOR'S RESPONSIBILITY SHALL, CONSISTENT WITH ARTICLE  FORTY-ONE  OF  THIS
CHAPTER,  INCLUDE  THE  OVERSIGHT  OF FACILITIES AND PROGRAMS OTHER THAN
THOSE OPERATED BY THE STATE.
  (e) Each [facility] STATE OPERATIONS director  of  the  office  shall,
upon  notice  from  the  commissioner or upon knowledge that programs of
such facility may be contracted or terminated, implement  procedures  to
ensure  timely notification to affected employees. Such procedures shall
include, but not be limited to:
  (1) dissemination and posting of all decisions,  policies  and  proce-
dures  with  respect  to all aspects of such actions and their impact on
facility staff; and
  (2) compliance with all requirements and protection of employee rights
pursuant to collective bargaining agreements with the  designated  legal
representative of the employees and the civil service law.
  S  4. Section 13.33 of the mental hygiene law, as added by chapter 978
of the laws of 1977, subdivision (a) as amended by  chapter  37  of  the
laws  of  2011, subdivision (d) as amended by chapter 686 of the laws of
1995, subdivisions (f) and (h) as amended by chapter 175 of the laws  of
1986,  subdivision  (i)  as  amended  by chapter 14 of the laws of 1990,
paragraph 1 of subdivision (i) as amended by chapter 75 of the  laws  of
1992,  paragraph  2 of subdivision (i) and subdivision (m) as amended by
chapter 168 of the laws of 2010, subdivision (j) as amended  by  chapter
264  of  the  laws of 1980 and subdivisions (j) and (k) as relettered by
chapter 84 of the laws of 1980, subdivision (l) as  amended  by  chapter
406  of  the laws of 1994, and subdivision (n) as amended by chapter 662
of the laws of 1995, is amended to read as follows:
S 13.33 Boards of visitors.
  (a) Each [developmental disabilities services] STATE OPERATIONS office
under the jurisdiction of the commissioner shall have a MINIMUM  OF  ONE
board  of  visitors consisting of at least seven but not more than four-
teen members[; provided, however, that the  Central  New  York  develop-
mental  disabilities  services  office  shall  have  a board of visitors
consisting of at least ten, but not more  than  seventeen  members;  and
that  the  Finger Lakes developmental disabilities services office shall
have a board of visitors consisting of at least fourteen, but  not  more
than  twenty-one  members.  When a school is replaced by a developmental
disabilities services office, the members  of  that  school's  board  of
visitors  shall  continue  to serve their terms as the board of visitors
for  the  new  developmental  disabilities  services  office].   Members
appointed  or reappointed after the effective date of this chapter shall
be appointed by the governor, by and with the advice and consent of  the
senate.  Members shall be appointed for four year terms to expire on the
thirty-first  day  of  December of the fourth year of the term of office
provided however, when more than three terms expire  in  any  one  year,
members  may  be appointed for terms of fewer years as designated by the
governor so that no more than three members' terms  expire  in  any  one
year. All terms of office shall expire on the thirty-first day of Decem-
ber  of  the  designated  year.  A  member whose term has expired shall,
however, remain  in  office  until  such  member's  successor  has  been

S. 6256                            79                            A. 9056

appointed and has taken office, or until such member shall have resigned
or  have  been  removed  from office in the manner hereinafter provided.
Should any member resign or be removed from office, the  governor  shall
promptly  submit,  for senate consent, a successor candidate to fill the
remaining term of the vacated office. A visitor may be  removed  by  the
governor  for cause after notice and an opportunity for a hearing on the
charges. In making appointments to  boards  of  visitors,  the  governor
shall  endeavor  to  ensure that the membership of each such board shall
adequately reflect the  composition  of  the  community  or  communities
served by the [facility] STATE OPERATIONS OFFICE, that the membership of
each  such  board includes at least three individuals who are parents or
relatives of patients or of  former  patients  and  that  the  remainder
includes  only  those persons, including former patients, who shall have
expressed an active interest in, or  shall  have  obtained  professional
knowledge  in  the care of persons with developmental disabilities or in
developmental disability endeavors generally.
  (b) No elected state officer or member of the legislature may serve as
a visitor.
  (c) If the [facility] STATE  OPERATIONS  OFFICE  serves  an  area,  as
established  by  the regulations of the commissioner, the visitors shall
reside at the time of appointment or reappointment in such area. [If  no
specific  area  is  designated, the visitors shall reside at the time of
appointment or reappointment in  the  developmental  disabilities  area,
established by the commissioner, in which the facility is located.]
  (d) Each board shall, at the first meeting of each calendar year elect
one member to serve as president of the board and one member to serve as
secretary;  provided however, that no member may serve for more than two
consecutive years as president.
  (e) Visitors shall not receive compensation but  shall  be  reimbursed
for their actual expenses in connection with their service as visitors.
  (f) (1) Each board of visitors shall hold six bi-monthly regular meet-
ings annually, but a greater number of regular meetings may be scheduled
by the board. Each board of visitors shall establish in their by-laws or
otherwise,  in  writing, whether these six meetings shall be held during
months represented by odd numbers or months represented by even numbers.
The president of the board shall notify the chairman of  the  commission
on  quality of care [for the mentally disabled] AND ADVOCACY FOR PERSONS
WITH DISABILITIES and the [facility] STATE OPERATIONS  director  of  the
determination   made  concerning  the  designated  months  for  the  six
bi-monthly regular meetings. The president of the board, the commission-
er, the director, or the members as determined by the rules of the board
may call special meetings. The board may require the director to  submit
a  report  at  each  meeting.  Each  board  shall  keep  a record of its
proceedings and activities. A member of a  board  of  visitors  who  has
failed  to attend three consecutive bi-monthly regular meetings shall be
considered to have vacated his office unless otherwise  ordered  by  the
governor.  The board shall cause notice of any of its public meetings to
be sent to the mental hygiene legal service located in the same judicial
department as the school. The mental hygiene legal service  may  send  a
representative  to any such public meeting, and may request the board to
review patient complaints or investigate alleged incidents of  abuse  or
mistreatment.  The  board shall notify the appropriate representative of
the mental hygiene legal service of the board's actions and findings  in
relation to any such request.
  (2)  The  president  of the board of visitors shall notify a member by
certified or registered mail return receipt requested when  such  member

S. 6256                            80                            A. 9056

of the board has failed to attend any two consecutive bi-monthly regular
meetings. This notice shall be sent within ten days following the second
meeting  and  shall  include  the  dates  of the two meetings which were
missed, the date of the next bi-monthly regular meeting, and a statement
concerning the consequences of failure to attend the next meeting.
  (3)  Within  three  days  after  the  third  consecutive  absence at a
bi-monthly regular meeting by a member, the president of  the  board  of
visitors  shall  notify, in writing, the governor, the commissioner, the
chairman of the commission on quality of care [for  the  mentally  disa-
bled]  AND  ADVOCACY  FOR  PERSONS  WITH DISABILITIES and the [facility]
STATE OPERATIONS director of such absences. The president of  the  board
of  visitors shall send a copy of this notice by registered or certified
mail return receipt requested to the member to  whom  it  pertains.  The
member may petition the governor to excuse his absences. If the governor
does  not  excuse the absences within forty-five days of the date of the
third consecutive meeting absence, the office of  the  member  shall  be
deemed vacated.
  (g)  Upon the request of the commissioner or the director, or upon the
board's initiative, the board shall consult, advise, and work  with  the
director  with  respect  to community relations, conditions at the STATE
OPERATIONS facility, preliminary plans for construction and alterations,
and programs and activities of the STATE OPERATED facility.
  (h) Each board or any member of the board may visit and inspect  [the]
A  STATE  OPERATED  facility WHICH IS IN THE CATCHMENT AREA OF THE STATE
OPERATIONS REGION IN WHICH SUCH MEMBER OR  MEMBERS  SERVE  at  any  time
without  prior  notice  and may report on conditions to the governor, to
the commissioner and to the chairman of the state commission on  quality
of  care [for the mentally disabled] AND ADVOCACY FOR PERSONS WITH DISA-
BILITIES. In addition, each board shall ensure that a member or  commit-
tee of members shall inspect [the] SUCH facility once every three months
without  prior  notice.  A  report on conditions may be submitted to the
governor, to the commissioner or to the chairman of the state commission
on quality of care [for the mentally disabled] AND ADVOCACY FOR  PERSONS
WITH  DISABILITIES.  Each board member shall visit and inspect [the] ANY
SUCH facility at least twice during each calendar  year.  Within  thirty
days  after  the  conclusion of each calendar year, the president of the
board of visitors shall  notify  the  governor,  the  commissioner,  the
chairman  of  the  commission on quality of care [for the mentally disa-
bled] AND ADVOCACY FOR PERSONS WITH  DISABILITIES,  and  the  [facility]
STATE  OPERATIONS  director,  if  any  member of the board has failed to
visit and inspect [the] ANY SUCH facility at  least  twice  during  that
year.  The  president of the board of visitors shall send a copy of this
notice by certified or registered mail return receipt requested  to  the
member  to  whom  it  pertains.  A member of a board of visitors who has
failed to visit and inspect [the] A facility at least twice a year shall
be considered to have vacated his OR HER office unless otherwise ordered
by the governor within forty-five days after the  end  of  the  calendar
year.  The board shall have the power to investigate all charges against
the STATE OPERATIONS director and all cases of alleged patient abuse  or
mistreatment  made  against  any  employee  and  shall have the power to
interview patients and employees of the [facility] FACILITIES in pursuit
of such investigations. In conducting such an investigation,  the  board
shall  have  the  power,  in  accordance with the civil practice law and
rules, to subpoena witnesses, compel their testimony,  administer  oaths
to  witnesses,  examine witnesses under oath, and require the production
of any books or papers deemed relevant to the investigation. A board  or

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a  member may include in the report or separately at any time any matter
pertaining to the management and affairs of [the facility] SUCH  FACILI-
TIES  and  may make recommendations to the governor, to the commissioner
and  to the chairman of the state commission on quality of care [for the
mentally disabled] AND ADVOCACY  FOR  PERSONS  WITH  DISABILITIES.  Each
board  member shall enter in a book, kept at each SUCH facility for that
purpose, the date of each visit.
  (i) (1) Any member or members of the board may  visit  and  inspect  a
family  care  home, which is within the catchment area of the [school on
the board of] STATE OPERATIONS REGION IN which such  member  or  members
serve.  Such  member or members shall be granted access to such facility
and to all books, records and data pertaining to  such  facility  deemed
necessary  for  carrying  out  the  purposes of such visit. Information,
books, records or data which are confidential as provided by  law  shall
be  kept confidential and any limitations on the release thereof imposed
by law upon the party furnishing the information, books, records or data
shall apply to such member or members  of  the  board.  After  any  such
visits  or inspections, a report containing findings and recommendations
may be submitted to the governor, to the commissioner or  to  the  state
commission  on  quality of care [for the mentally disabled] AND ADVOCACY
FOR PERSONS WITH DISABILITIES.
  (2) Any member or members of the board may visit and inspect a  commu-
nity  residence  operated  by  the  office for people with developmental
disabilities, which is within the catchment area of the [school  on  the
board of] STATE OPERATIONS REGION IN which such member or members serve.
Such  member  or members shall be granted access to such facility and to
all books, records and data pertaining to such facility deemed necessary
for carrying out the purposes of such visit and inspection. Information,
books, records or data which are confidential as provided by  law  shall
be  kept confidential and any limitations on the release thereof imposed
by law upon the party furnishing the information, books, records or data
shall apply to such member or members  of  the  board.  After  any  such
visits  or  inspection, a report containing findings and recommendations
shall be submitted promptly to the commissioner and to the  chairman  of
the  state  commission  on quality of care and advocacy for persons with
disabilities.
  (j) Once each year, each board shall make an independent assessment of
conditions at [the facility] SUCH FACILITIES and shall submit  a  report
on  the  assessment  and recommendations to the governor, to the commis-
sioner and to the chairman of the state commission on  quality  of  care
[for the mentally disabled] AND ADVOCACY FOR PERSONS WITH DISABILITIES.
  (k)  The commissioner shall notify the board of visitors of a [school]
FACILITY under his OR HER jurisdiction of the proposed appointment of  a
STATE OPERATIONS director [to such facility] or the proposed transfer of
a  STATE  OPERATIONS  director [from such facility], with a request that
the board report an expression of its  opinion  of  the  appointment  or
transfer and, if it objects thereto, the reasons for such objection.
  (l)  The  commissioner  shall  appoint  representatives  of the office
[department] to serve as liaison between the office and  the  boards  of
visitors.  At  least once each year the commissioner shall meet with the
boards collectively. The commissioner, or his  OR  HER  designee,  shall
meet quarterly with representatives of boards of visitors.
  (m)  Members of the boards of visitors shall be considered officers of
the office for people with developmental disabilities for  the  purposes
of  sections seventy-three, to the extent provided therein, and seventy-

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four of the public officers law relating  to  business  or  professional
activities by state officers and employees and the code of ethics.
  (n)  Each member shall attend, within one year of the initial appoint-
ment or any subsequent reappointment, an  orientation  training  program
provided  by  the  commission on quality of care [for the mentally disa-
bled] AND ADVOCACY FOR PERSONS WITH DISABILITIES for members  of  boards
of  visitors. The chairman of the commission on quality of care [for the
mentally disabled] AND ADVOCACY  FOR  PERSONS  WITH  DISABILITIES  shall
notify  the governor and the appointed member of any such member's fail-
ure to attend such a training program. A member who has failed to attend
such a training program scheduled for such member shall be considered to
have vacated his office unless otherwise ordered by the governor  within
forty-five days after the notice.
  S  5.  Paragraph  (c)  of  subdivision 3 of section 2963 of the public
health law, as added by chapter 818 of the laws of 1987, is  amended  to
read as follows:
  (c) If the attending physician determines that a patient lacks capaci-
ty  because  of a developmental disability, the concurring determination
required by paragraph (a) of this subdivision shall  be  provided  by  a
physician  or  psychologist employed by [a school named in section 13.17
of the mental hygiene law] THE  OFFICE  FOR  PEOPLE  WITH  DEVELOPMENTAL
DISABILITIES,  or  who  has  been employed for a minimum of two years to
render care and service in a facility operated or licensed by the office
[of mental retardation and] FOR PEOPLE WITH developmental  disabilities,
or who has been approved by the commissioner of [mental retardation and]
developmental disabilities in accordance with regulations promulgated by
such  commissioner.  Such  regulations shall require that a physician or
psychologist possess specialized training or three years  experience  in
treating developmental disabilities.
  S  6.  Paragraph  (c)  of  subdivision 2 of section 2981 of the public
health law, as added by chapter 752 of the laws of 1990, is  amended  to
read as follows:
  (c)  For  persons  who reside in a mental hygiene facility operated or
licensed by the office [of  mental  retardation  and]  FOR  PEOPLE  WITH
developmental  disabilities, at least one witness shall be an individual
who is not affiliated with the facility and at least one  witness  shall
be  a  physician  or  clinical psychologist who either is employed by [a
school named in section 13.17 of the mental hygiene law] THE OFFICE  FOR
PEOPLE  WITH  DEVELOPMENTAL  DISABILITIES or who has been employed for a
minimum of two years to render care and service in a  facility  operated
or  licensed  by  the office [of mental retardation and] FOR PEOPLE WITH
developmental disabilities, or who has been approved by the commissioner
of [mental retardation and]  developmental  disabilities  in  accordance
with  regulations  approved  by the commissioner. Such regulations shall
require that a physician or clinical  psychologist  possess  specialized
training  or  three years experience in treating developmental disabili-
ties.
  S 7. Paragraph (c) of subdivision 1 of  section  2983  of  the  public
health  law,  as added by chapter 752 of the laws of 1990, is amended to
read as follows:
  (c) If the attending physician determines that a patient lacks capaci-
ty because of a developmental disability, the  attending  physician  who
makes  the  determination  must  be, or must consult, for the purpose of
confirming the determination, with a physician or clinical  psychologist
who either is employed by [a school named in section 13.17 of the mental
hygiene  law]  THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, or

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who has been employed for a minimum of two  years  to  render  care  and
service  in  a  facility  operated  or licensed by the office [of mental
retardation and] FOR PEOPLE WITH developmental disabilities, or who  has
been  approved  by the commissioner of [mental retardation and] develop-
mental disabilities in accordance with regulations promulgated  by  such
commissioner.  Such  regulations shall require that a physician or clin-
ical psychologist possess specialized training or three years experience
in treating developmental disabilities. A record  of  such  consultation
shall be included in the patient's medical record.
  S 8. Subparagraph ii of paragraph c of subdivision 3 of section 2994-c
of  the public health law, as added by chapter 8 of the laws of 2010, is
amended to read as follows:
  (ii) If the attending physician makes an initial determination that  a
patient  lacks decision-making capacity because of mental retardation or
a developmental disability, either such physician must have the  follow-
ing  qualifications,  or  another professional with the following quali-
fications must independently determine whether the patient  lacks  deci-
sion-making capacity: a physician or clinical psychologist who either is
employed  by [a school named in section 13.17 of the mental hygiene law,
or who has been employed for a minimum of two years to render  care  and
service  in  a  facility  operated or licensed by] the office [of mental
retardation and] FOR PEOPLE WITH developmental disabilities, or who  has
been  approved  by the commissioner of [mental retardation and] develop-
mental disabilities in accordance with regulations promulgated  by  such
commissioner.  Such  regulations shall require that a physician or clin-
ical psychologist possess specialized training or three years experience
in treating developmental disabilities. A record  of  such  consultation
shall be included in the patient's medical record.
  S  9.  Subdivision  10 of section 2994-aa of the public health law, as
added by chapter 8 of the laws of 2010, is amended to read as follows:
  10. "Hospital" means a general hospital as defined in subdivision  ten
of  section  twenty-eight  hundred one of this chapter and a residential
health care facility as defined in subdivision three of section  twenty-
eight  hundred  one of this chapter or a hospital as defined in subdivi-
sion ten of section 1.03 of the mental hygiene law [or a school named in
section 13.17 of the mental hygiene law].
  S 10. Subdivision 6 of section 2994-dd of the public  health  law,  as
added by chapter 8 of the laws of 2010, is amended to read as follows:
  6.  The  commissioner may authorize the use of one or more alternative
forms for issuing a nonhospital order not to resuscitate  (in  place  of
the  standard  form prescribed by the commissioner under subdivision two
of this section). Such alternative form or forms may  also  be  used  to
issue  a  non-hospital do not intubate order. Any such alternative forms
intended for use for persons with [mental retardation or]  developmental
disabilities  or persons with mental illness who are incapable of making
their own health care decisions or who have a  guardian  of  the  person
appointed  pursuant  to  article eighty-one of the mental hygiene law or
article seventeen-A of the surrogate's court procedure act must also  be
approved  by  the commissioner of [mental retardation and] developmental
disabilities or the commissioner of mental health,  as  appropriate.  An
alternative  form  under  this  subdivision shall otherwise conform with
applicable federal and state  law.  This  subdivision  does  not  limit,
restrict  or  impair the use of an alternative form for issuing an order
not to resuscitate in a general  hospital  or  residential  health  care
facility  under article twenty-eight of this chapter or a hospital under

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subdivision ten of section 1.03 of the mental hygiene law [or  a  school
under section 13.17 of the mental hygiene law].
  S 11. Subparagraph (B) of paragraph (vi) of subdivision (c) of section
958  of the general municipal law, as amended by chapter 708 of the laws
of 1993, is amended to read as follows:
  (B) a state-operated hospital or facility listed in [sections] SECTION
7.17 [or 13.17] of the mental hygiene law OR A FACILITY OPERATED BY  THE
OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, which has been desig-
nated by either the commissioner of mental health or the commissioner of
[mental  retardation  and] developmental disabilities for contraction or
discontinuance.  Provided however, that not more than one-third  of  the
zones  designated pursuant to paragraph (iii) or (iv) of subdivision (b)
of section nine hundred sixty OF THIS ARTICLE, shall be based on  appli-
cations filed pursuant to THIS paragraph [(vi) of this subdivision].
  S  12. Paragraph (b) of subdivision 4 of section 6810 of the education
law, as added by chapter 519 of the laws of 2002, is amended to read  as
follows:
  (b)  Oral  prescriptions  for  patients  in general hospitals, nursing
homes, residential health care facilities as defined in section  twenty-
eight  hundred  one  of  the  public health law, hospitals as defined in
subdivision ten of section 1.03 of the mental hygiene law, or  [develop-
mental  centers or developmental disabilities services offices listed in
subdivision (b) of section 13.17 of the mental hygiene  law]  FACILITIES
OPERATED  BY  THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, may
be communicated to a pharmacist serving as a  vendor  of  pharmaceutical
services  based upon a contractual arrangement by an agent designated by
and under the direction of the prescriber or the institution. Such agent
shall be a health care practitioner currently  licensed  and  registered
under this title.
  S  13. Paragraph (b) of subdivision 7 of section 6810 of the education
law, as amended by chapter 519 of the laws of 2002, is amended  to  read
as follows:
  (b)  With  respect  to  drugs  other  than  controlled substances, the
provisions of this subdivision shall not apply to  pharmacists  employed
by  or  providing  services under contract to general hospitals, nursing
homes, residential health care facilities as defined in section  twenty-
eight  hundred  one  of  the  public health law, hospitals as defined in
subdivision ten of section 1.03 of the mental hygiene law, or  [develop-
mental  centers or developmental disabilities services offices listed in
subdivision (b) of section 13.17 of the mental hygiene  law]  FACILITIES
OPERATED  BY  THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, who
dispense drugs in the course of said employment  or  in  the  course  of
providing  such  services  under  contract. With respect to such pharma-
cists, each prescription shall be  transcribed  on  a  patient  specific
prescription form.
  S  14.  Paragraph  1  of subdivision (b) of section 5.05 of the mental
hygiene law, as amended by chapter 168 of the laws of 2010,  is  amended
to read as follows:
  (1)  The  commissioners of the office of mental health, the office for
people with developmental disabilities and the office of alcoholism  and
substance  abuse  services shall constitute an inter-office coordinating
council which, consistent with the autonomy of each office  for  matters
within  its  jurisdiction,  shall  ensure  that the state policy for the
prevention, care,  treatment  and  rehabilitation  of  individuals  with
mental  illness  and  developmental  disabilities,  alcoholism,  alcohol
abuse, substance abuse, substance dependence, and chemical dependence is

S. 6256                            85                            A. 9056

planned,  developed  and  implemented  comprehensively;  that  gaps   in
services  to  individuals  with multiple disabilities are eliminated and
that no person is denied treatment and services because he  or  she  has
more than one disability; that procedures for the regulation of programs
which  offer  care and treatment for more than one class of persons with
mental disabilities be coordinated between the offices having  jurisdic-
tion  over  such programs; and that research projects of the institutes,
as identified in section 7.17 [or 13.17] of this chapter OR AS  OPERATED
BY  THE  OFFICE  FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, are coordi-
nated to maximize the success and cost effectiveness  of  such  projects
and to eliminate wasteful duplication.
  S  15.  Subdivision (b) of section 13.11 of the mental hygiene law, as
added by chapter 978 of the laws of 1977, is amended to read as follows:
  (b) The commissioner shall control the organization of the office  and
may  continue,  establish,  discontinue, expand, and contract facilities
under his OR HER jurisdiction. [The  facilities  set  forth  in  section
13.17 may not be discontinued by the commissioner.] Units and facilities
shall  have  such  functions,  duties,  and  responsibilities  as may be
assigned to them by the commissioner.
  S 16. Subdivisions 1 and 2 of section 13.34 of the mental hygiene law,
as amended by chapter 542 of the laws of 2011, are amended  to  read  as
follows:
  1.  There  shall  be  at each developmental center facility [listed in
section 13.17 of this article], an ombudsman who shall be an employee of
the commission on quality of care and advocacy for persons with disabil-
ities under article forty-five of this chapter and who shall be  respon-
sible  for receiving and responding to any complaints regarding individ-
ual clients residing in such facility.  The  ombudsman  shall  have  the
following powers and duties:
  i.  to  advise and consult with parents, guardians, correspondents and
other interested persons with  respect  to  any  complaints,  or  issues
related to the conditions of clients' residents;
  ii. to review and attempt to remedy specific complaints with responsi-
ble and appropriate staff;
  iii.  where  it appears that care has not been rendered as required by
applicable standards to refer the complaint to the appropriate agency or
body for its attention;
  iv. to receive and keep confidential  any  complaint,  information  or
inquiry from any source. The records of the ombudsman shall be confiden-
tial, and shall not be available to the public;
  v.  to  advise  and consult with the board of visitors of the develop-
mental center served by the ombudsman with respect to any complaints  or
issues  relating  to  conditions  of client's residence and to regularly
attend the meetings of such board; and
  vi. to meet with the commissioner, or a representative of the  commis-
sioner,  on  a  quarterly basis regarding systemic issues in the ombuds-
man's jurisdiction.
  2. The president of the  board  of  visitors  of  each  [developmental
center  facility  listed in section 13.17 of this article] REGION IN THE
CATCHMENT AREA OF THE STATE  OPERATIONS  REGION  IN  WHICH  SUCH  MEMBER
SERVES, shall, in consultation with the members of such board, recommend
three  persons  to  serve  as  ombudsman at the facility. In making such
recommendation, the president shall also consider the expressed  opinion
of  parents,  guardians  and  correspondents of clients residing at such
facility. The persons so recommended as ombudsman shall  have  expressed
an  active interest or shall have had professional knowledge in advocat-

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ing for persons who are mentally disabled. The commission on quality  of
care  and advocacy for persons with disabilities shall select one of the
recommended persons as ombudsman. The ombudsman may only be removed from
office for just cause.  An individual appointed as ombudsman shall be an
exempt  class  employee  as  defined  by  section forty-one of the civil
service law and may be removed by the commissioner upon the  recommenda-
tion  of  the president of the board of visitors, for cause after notice
and opportunity for a hearing on the charges.
  S 17. Subdivision 1 of section 157 of  the  social  services  law,  as
amended  by  section 43 of part B of chapter 436 of the laws of 1997, is
amended to read as follows:
  1. Safety net assistance means  allowances  pursuant  to  section  one
hundred  thirty-one-a  OF  THIS ARTICLE for all support, maintenance and
need, and costs of suitable training in a trade to enable  a  person  to
become  self-supporting,  furnished eligible needy persons in accordance
with applicable provisions of law, by a municipal corporation, or a town
where safety net assistance is a town charge, to persons or their depen-
dents in their abode or habitation whenever possible and  includes  such
relief  granted  to  veterans  under  existing laws but does not include
hospital or institutional care, except as  otherwise  provided  in  this
subdivision,  or  family  assistance    or  medical assistance for needy
persons granted under titles ten and eleven OF THIS ARTICLE, respective-
ly, or aid to persons receiving  federal  supplemental  security  income
payments  and/or  additional state payments.   Safety net assistance may
also be provided in a family home or boarding home, operated in  compli-
ance  with  the  regulations of the department, and on and after January
first, nineteen hundred seventy-four, in facilities in which a person is
receiving family care or residential care, as those terms  are  used  in
title  six  of  [article five of] this [chapter] ARTICLE, and to persons
receiving care in a facility supervised by the office of alcoholism  and
substance  abuse  SERVICES or in a residential facility for the mentally
disabled approved, licensed or operated by the office of  mental  health
or  the office [of mental retardation and] FOR PEOPLE WITH developmental
disabilities, other than those facilities defined in [sections]  SECTION
7.17  [and  13.17]  of the mental hygiene law, IN A DEVELOPMENTAL CENTER
FACILITY OPERATED BY THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL  DISABILI-
TIES  or  residential  care centers for adults operated by the office of
mental health, when such type of care is deemed necessary.  Payments  to
such  homes  and  facilities  for  care and maintenance provided by them
shall be at rates established pursuant to law  and  regulations  of  the
department.  The  department,  however,  shall  not  establish  rates of
payment to such homes or facilities without approval of the director  of
the budget.
  S  18.  Subparagraph (i) of paragraph (a) and clause A of subparagraph
(i) of paragraph (e) of subdivision 4 of section 1750-b  of  the  surro-
gate's court procedure act, as added by chapter 500 of the laws of 2002,
are amended to read as follows:
  (i) be employed by [a developmental disabilities services office named
in  section  13.17 of the mental hygiene law] THE OFFICE FOR PEOPLE WITH
DEVELOPMENTAL DISABILITIES, or
  A. be employed by [a developmental disabilities services office  named
in  section  13.17 of the mental hygiene law] THE OFFICE FOR PEOPLE WITH
DEVELOPMENTAL DISABILITIES, or
  S 19. (a) Wherever the  terms  "directors  of  office  facilities"  or
"directors  of schools" or "director of facilities" appear in the mental
hygiene law in reference to a facility operated by the office for people

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with developmental  disabilities,  such  terms  are  hereby  changed  to
"directors of state operations offices".
  (b)  Wherever  the  term "developmental disabilities services offices"
appears in the mental hygiene law, such term is hereby changed to "state
operations office".
  (c) The legislative bill drafting commission  is  hereby  directed  to
effectuate  this  provision,  and  shall  be  guided  by a memorandum of
instruction setting forth the specific provisions of law to be  amended.
Such  memorandum  shall  be transmitted to the legislative bill drafting
commission within sixty days of enactment of this provision.  Such memo-
randum shall be issued jointly by the governor, the temporary  president
of  the  senate  and  the speaker of the assembly, or by the delegate of
each.
  S 20. This act shall take effect immediately.

                                 PART K

  Section 1. Sections 19 and 21 of chapter  723  of  the  laws  of  1989
amending the mental hygiene law and other laws relating to comprehensive
psychiatric  emergency  programs,  as  amended by section 1 of part F of
chapter 58 of the laws of 2008, are amended to read as follows:
  S 19. Notwithstanding any other provision of law, the commissioner  of
mental health shall, until July 1, [2012] 2016, be solely authorized, in
his  or  her  discretion,  to  designate  those general hospitals, local
governmental units and voluntary agencies which may apply and be consid-
ered for the approval and issuance of an operating certificate  pursuant
to  article  31 of the mental hygiene law for the operation of a compre-
hensive psychiatric emergency program.
  S 21. This act shall take effect immediately, and  sections  one,  two
and  four  through  twenty  of  this  act shall remain in full force and
effect, until July 1, [2012] 2016, at  which  time  the  amendments  and
additions  made  by  such  sections  of  this  act shall be deemed to be
repealed, and any provision of law amended by any of  such  sections  of
this  act  shall revert to its text as it existed prior to the effective
date of this act.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2012.

                                 PART L

  Section  1. Legislative findings. It is the finding of the legislature
that the integration and coordination of physical and behavioral  health
services  results  in  an  improvement  in the quality of services being
provided to recipients, with a resultant  improvement  in  outcomes  and
reduction  in the costs of care. It is the further finding of the legis-
lature that the reduction or elimination  of  redundant  or  unnecessary
licensing  and oversight requirements and procedures will facilitate the
provision of integrated and coordinated care and result in a more  effi-
cient use of governmental resources.
  S  2. (a) Notwithstanding any law, rule or regulation to the contrary,
the commissioners of the department of  health,  the  office  of  mental
health,  the  office  of alcoholism and substance abuse services, and/or
the office  for  people  with  developmental  disabilities  are  jointly
authorized  to  establish operating, reporting and construction require-
ments, as well as joint survey requirements and procedures for  entities
that:

S. 6256                            88                            A. 9056

  (1)  can  demonstrate  experience  and  competence  in the delivery of
health, mental health,  alcohol  and  substance  abuse  services  and/or
services  to persons with developmental disabilities and the capacity to
offer the integrated delivery of such services at locations  as  may  be
approved by two or more of the respective commissioners; and
  (2)  meet  the  standards  that  may  be established by the respective
commissioners for the provision of  such  services;  provided,  however,
that  an  entity  meeting  the  standards  established  pursuant to this
section shall not be required  to  be  an  integrated  service  provider
pursuant to subdivision 7 of section 365-l of the social services law.
  (b)  In  establishing one or more sets of joint requirements or proce-
dures for entities described in this section, the commissioners  of  the
department  of  health, the office of mental health, the office of alco-
holism and substance abuse services, and/or the office for  people  with
developmental  disabilities  are  authorized  to  waive  any  regulatory
requirements, or to determine that compliance with  another  commission-
er's  regulatory  requirements  shall  be  deemed to meet the regulatory
requirements of his or her agency, as may be necessary or  desirable  to
avoid duplication of requirements and/or to permit the integrated deliv-
ery  of health and behavioral health services in an efficient and effec-
tive manner.
  (c) The  authority  granted  the  commissioners  in  this  section  is
intended  to  complement  and  supplement  the authority granted to such
commissioners pursuant to subdivision 7 of section 365-l of  the  social
services law.
  S  3.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2012.

                                 PART M

  Section 1. Legislative findings. It is the finding of the  legislature
that  patients  hospitalized  in  facilities  operated  by the office of
mental health who are between the ages of five and twenty-one are  enti-
tled  to receive an education comparable to that which they would other-
wise be entitled to receive in their local school districts pursuant  to
the education law and the regulations of the commissioner of education.
  S  2.  (a) Notwithstanding any other provision of law to the contrary,
the office of mental health shall be authorized to enter into an  agree-
ment  with  the state education department for the purposes of providing
education programming and services for patients  residing  in  hospitals
operated by the office of mental health who are between the ages of five
and twenty-one, that is comparable to that which they would otherwise be
entitled  to  receive  in  their  local school districts pursuant to the
education law and the regulations of the commissioner.  The commissioner
of education shall be authorized  to  require  local  school  districts,
including  the  school district located in a city with a million persons
or more, and/or boards of cooperative educational  services  to  provide
such comparable educational programming and services, provided, however,
the  commissioner  of  mental  health  shall  be  authorized to contract
directly with local school  districts,  including  the  school  district
located in a city with a million persons or more, and/or boards of coop-
erative  educational  services  to  provide  such comparable educational
programming and services.   Such comparable  education  programming  and
services  for  such  children shall be authorized to be provided, in the
2012-2013 and 2013-2014 and 2014-2015 school years within a city with  a
population  of a million persons or more, and in the 2013-2014 and 2014-

S. 6256                            89                            A. 9056

2015 school year in the rest of the state, in accordance with  implemen-
tation standards issued by the commissioner of education, and in accord-
ance  with  a  plan  for  educational  services  jointly approved by the
commissioners of education and mental health.
  (b) The commissioner of education, or pursuant to contract the commis-
sioner of mental health, shall reimburse districts and boards of cooper-
ative  educational  services for unreimbursed, approved expenses for the
cost of such programming and services for such children pursuant to this
section, as may be determined through a reimbursement methodology devel-
oped by the commissioner of education and approved by  the  director  of
the budget.
  (c) The commissioner of mental health, with the approval of the direc-
tor  of  the  budget,  shall  be  authorized  to transfer funding to the
commissioner of education for the provision of  educational  programming
and services to patients residing in hospitals operated by the office of
mental health who are between the ages of five and twenty-one.
  S  3.  The  commissioners of education and mental health shall jointly
submit to the governor and to the temporary president of the senate  and
the  speaker  of  the assembly a report by February 1, 2015, which shall
state whether additional actions should be taken to ensure that children
who are patients residing in hospitals operated by the office of  mental
health receive education programming and services that are comparable to
that  which  they  would otherwise be entitled to receive in their local
school districts pursuant to education law and the  regulations  of  the
commissioner.  Such  commissioners shall also recommend whether this act
should be amended and whether it should be made permanent.
  S 4. This act shall take effect July 1, 2012 and shall expire June 30,
2015 when upon such date the provisions of  this  act  shall  be  deemed
repealed.

                                 PART N

  Section 1. Section 1.03 of the mental hygiene law is amended by adding
two new subdivisions 56 and 57 to read as follows:
  56.   "SUBSTANCE  USE  DISORDER"  MEANS  THE  MISUSE,  DEPENDENCE,  OR
ADDICTION TO ALCOHOL AND/OR LEGAL OR ILLEGAL DRUGS  LEADING  TO  EFFECTS
THAT  ARE DETRIMENTAL TO THE INDIVIDUAL'S PHYSICAL AND MENTAL HEALTH, OR
THE WELFARE OF OTHERS  AND  SHALL  INCLUDE  ALCOHOLISM,  ALCOHOL  ABUSE,
SUBSTANCE  ABUSE,  SUBSTANCE DEPENDENCE, CHEMICAL ABUSE, AND/OR CHEMICAL
DEPENDENCE.
  57. "SUBSTANCE USE DISORDER SERVICES" SHALL MEAN AND INCLUDE  EXAMINA-
TION,  EVALUATION, DIAGNOSIS, CARE, TREATMENT, REHABILITATION, OR TRAIN-
ING OF PERSONS WITH  SUBSTANCE  USE  DISORDERS  AND  THEIR  FAMILIES  OR
SIGNIFICANT OTHERS.
  S 2. The mental hygiene law is amended by adding a new section 5.06 to
read as follows:
S 5.06 BEHAVIORAL HEALTH SERVICES ADVISORY COUNCIL.
  (A)  THERE IS HEREBY CREATED WITHIN THE DEPARTMENT A BEHAVIORAL HEALTH
SERVICES ADVISORY COUNCIL, THE PURPOSE OF WHICH SHALL BE TO  ADVISE  THE
OFFICES  OF MENTAL HEALTH AND ALCOHOLISM AND SUBSTANCE ABUSE SERVICES ON
MATTERS RELATING TO THE PROVISION OF BEHAVIORAL HEALTH SERVICES;  ISSUES
OF  JOINT  CONCERN  TO THE OFFICES, INCLUDING THE INTEGRATION OF VARIOUS
BEHAVIORAL HEALTH SERVICES AND  THE  INTEGRATION  OF  BEHAVIORAL  HEALTH
SERVICES  WITH  HEALTH  SERVICES;  AND ISSUES RELATED TO THE DELIVERY OF
BEHAVIORAL HEALTH SERVICES THAT  ARE  RESPONSIVE  TO  LOCAL,  STATE  AND
FEDERAL  CONCERNS.  THE  COUNCIL  SHALL  CONSIST  OF THE COMMISSIONER OF

S. 6256                            90                            A. 9056

MENTAL HEALTH AND THE COMMISSIONER OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE
SERVICES  WHO SHALL NOT HAVE THE RIGHT TO VOTE, THE CHAIR OF THE CONFER-
ENCE OF LOCAL MENTAL HYGIENE DIRECTORS OR HIS OR HER DESIGNEE, AND TWEN-
TY-EIGHT  MEMBERS APPOINTED BY THE GOVERNOR.  MEMBERS SHALL BE APPOINTED
ONLY IF THEY HAVE PROFESSIONAL KNOWLEDGE IN THE CARE OF PERSONS  RECEIV-
ING  BEHAVIORAL HEALTH SERVICES, OR AN ACTIVE INTEREST IN THE BEHAVIORAL
HEALTH SERVICES SYSTEM.
  (B) THE GOVERNOR SHALL DESIGNATE ONE OF THE MEMBERS OF THE COUNCIL  AS
CHAIR.  AT  LEAST  ONE-HALF  OF  THE MEMBERS OF THE COUNCIL SHALL NOT BE
PROVIDERS OF BEHAVIORAL HEALTH SERVICES.   MEMBERSHIP  SHALL  REFLECT  A
BALANCED  REPRESENTATION  OF PERSONS WITH INTERESTS IN MENTAL HEALTH AND
SUBSTANCE USE DISORDER SERVICES AND SHALL INCLUDE:
  (1) AT LEAST FIVE CURRENT OR FORMER  CONSUMERS  OF  BEHAVIORAL  HEALTH
SERVICES;
  (2) AT LEAST THREE INDIVIDUALS WHO ARE PARENTS OR RELATIVES OF CURRENT
OR FORMER CONSUMERS OF BEHAVIORAL HEALTH SERVICES;
  (3)  AT LEAST THREE MEMBERS WHO ARE NOT PROVIDERS OF BEHAVIORAL HEALTH
SERVICES AND WHO REPRESENT NON-GOVERNMENTAL ORGANIZATIONS, SUCH AS  NOT-
FOR-PROFIT  ENTITIES  REPRESENTING  HEALTH  OR  BEHAVIORAL  HEALTH  CARE
EMPLOYEES, OR OTHER ORGANIZATIONS CONCERNED WITH THE PROVISION OF BEHAV-
IORAL HEALTH SERVICES;
  (4) AT LEAST FIVE REPRESENTATIVES OF PROVIDERS OF SERVICES TO  PERSONS
WITH  MENTAL  ILLNESS  AND AT LEAST FIVE REPRESENTATIVES OF PROVIDERS OF
SERVICES TO PERSONS WITH SUBSTANCE USE DISORDERS, AT LEAST TWO  OF  WHOM
SHALL BE PHYSICIANS;
  (5)  ONE MEMBER APPOINTED ON THE RECOMMENDATION OF THE DIRECTOR OF THE
DIVISION OF VETERANS' AFFAIRS;
  (6) ONE MEMBER APPOINTED ON THE RECOMMENDATION OF THE ADJUTANT GENERAL
OF THE DIVISION OF MILITARY AND NAVAL AFFAIRS;
  (7) AT LEAST THREE REPRESENTATIVES OF LOCAL GOVERNMENTS OR OTHER STATE
AND LOCAL AGENCIES CONCERNED WITH THE  PROVISION  OF  BEHAVIORAL  HEALTH
SERVICES; AND
  (8) AT LEAST TWO MEMBERS WHO ARE ALSO MEMBERS OF THE PUBLIC HEALTH AND
HEALTH  PLANNING  COUNCIL  PURSUANT TO SECTION TWO HUNDRED TWENTY OF THE
PUBLIC HEALTH LAW.
  (C) MEMBERS SHALL BE APPOINTED FOR  TERMS  OF  THREE  YEARS  PROVIDED,
HOWEVER,  THAT  OF  THE  MEMBERS  FIRST  APPOINTED,  ONE-THIRD  SHALL BE
APPOINTED FOR ONE YEAR TERMS AND ONE-THIRD SHALL BE  APPOINTED  FOR  TWO
YEAR  TERMS.  VACANCIES  SHALL  BE FILLED IN THE SAME MANNER AS ORIGINAL
APPOINTMENTS FOR THE REMAINDER OF ANY UNEXPIRED TERM. NO PERSON SHALL BE
AN APPOINTED MEMBER OF THE COUNCIL FOR MORE THAN SIX YEARS IN ANY PERIOD
OF TWELVE CONSECUTIVE YEARS.
  (D) THE COUNCIL SHALL MEET AT LEAST FOUR TIMES IN EACH  FULL  CALENDAR
YEAR.  THE  COUNCIL  SHALL  MEET  AT  THE REQUEST OF ITS CHAIR OR EITHER
COMMISSIONER.
  (E) THE COUNCIL SHALL ESTABLISH SUCH COMMITTEES AS IT DEEMS  NECESSARY
TO  ADDRESS  THE  SERVICE  NEEDS  OF  SPECIAL POPULATIONS AND TO ADDRESS
PARTICULAR SUBJECTS OF IMPORTANCE IN THE DEVELOPMENT AND  MANAGEMENT  OF
BEHAVIORAL HEALTH SERVICES.
  (F) THE COUNCIL MAY CONSIDER ANY MATTER RELATING TO THE IMPROVEMENT OF
BEHAVIORAL HEALTH SERVICES IN THE STATE AND SHALL ADVISE THE COMMISSION-
ERS ON ANY SUCH MATTER, INCLUDING, BUT NOT LIMITED TO:
  (1)  CARE  AND  SERVICES  TO PERSONS WITH BEHAVIORAL HEALTH DISORDERS,
INCLUDING SPECIAL AND  UNDERSERVED  POPULATIONS  AS  DETERMINED  BY  THE
COMMISSIONER;
  (2) FINANCING BEHAVIORAL HEALTH SERVICES;

S. 6256                            91                            A. 9056

  (3) INTEGRATION OF BEHAVIORAL HEALTH SERVICES WITH HEALTH SERVICES;
  (4)  CARE  AND  SERVICES  FOR  PERSONS  WITH CO-OCCURRING DISORDERS OR
MULTIPLE DISABILITIES;
  (5) PREVENTION OF BEHAVIORAL HEALTH DISORDERS; AND
  (6) IMPROVEMENT OF CARE IN STATE OPERATED OR COMMUNITY BASED PROGRAMS,
RECRUITMENT, EDUCATION AND TRAINING OF QUALIFIED DIRECT CARE  PERSONNEL,
AND  PROTECTION OF THE INTERESTS OF EMPLOYEES AFFECTED BY ADJUSTMENTS IN
THE BEHAVIORAL HEALTH SERVICE SYSTEM.
  (G) THE COUNCIL SHALL, IN COOPERATION WITH THE  COMMISSIONERS,  ESTAB-
LISH  STATEWIDE GOALS AND OBJECTIVES FOR SERVICES TO PERSONS WITH BEHAV-
IORAL HEALTH DISORDERS, PURSUANT TO SECTION 5.07 OF THIS ARTICLE.
  (H) (1) THE COUNCIL SHALL REVIEW THE PORTION OF THE STATEWIDE PLAN  TO
BE  DEVELOPED  AND  UPDATED  ANNUALLY  BY  THE COMMISSIONERS PURSUANT TO
SECTION 5.07 OF THIS ARTICLE AND REPORT ITS RECOMMENDATIONS  THEREON  TO
THE COMMISSIONERS.
  (2) THE COUNCIL SHALL REVIEW ANY MENTAL HEALTH OR SUBSTANCE USE COMPO-
NENT OF STATEWIDE HEALTH PLANS DEVELOPED IN ACCORDANCE WITH ANY APPLICA-
BLE  FEDERAL  LAW  AND  SHALL  REPORT ITS RECOMMENDATIONS THEREON TO THE
COMMISSIONERS.
  (I) THE COUNCIL SHALL REVIEW APPLICATIONS FILED IN ACCORDANCE WITH:
  (1) SECTION 31.22 OF THIS CHAPTER FOR  APPROVAL  OF  INCORPORATION  OR
ESTABLISHMENT  OF  A  FACILITY,  AND  SECTION  31.23 OF THIS CHAPTER FOR
APPROVAL OF THE CONSTRUCTION OF A FACILITY FOR WHICH APPROVAL  FROM  THE
COMMISSIONER OF MENTAL HEALTH IS REQUIRED; AND
  (2)  SECTION  32.29  OR 32.31 OF THIS CHAPTER FOR APPROVAL OF INCORPO-
RATION OR ESTABLISHMENT OR CONSTRUCTION OF A FACILITY FOR WHICH APPROVAL
TO OPERATE IS REQUIRED FROM THE COMMISSIONER OF ALCOHOLISM AND SUBSTANCE
ABUSE SERVICES PURSUANT TO ARTICLE THIRTY-TWO OF THIS  CHAPTER,  AND  AS
OTHERWISE REQUESTED BY SUCH COMMISSIONER;
  (J)  AT LEAST SIXTY DAYS PRIOR TO THE COMMISSIONERS' FINAL APPROVAL OF
RULES AND REGULATIONS UNDER THEIR RESPECTIVE  JURISDICTION,  OTHER  THAN
EMERGENCY  RULES AND REGULATIONS AND REGULATIONS PROMULGATED PURSUANT TO
SECTION 43.01 OF THIS  CHAPTER,  THE  COMMISSIONERS  SHALL  SUBMIT  SUCH
PROPOSED  RULES AND REGULATIONS TO THE COUNCIL FOR ITS REVIEW. THE COUN-
CIL SHALL REVIEW ALL PROPOSED  RULES  AND  REGULATIONS  AND  REPORT  ITS
RECOMMENDATIONS  THEREON  TO  THE  COMMISSIONERS  WITHIN SIXTY DAYS. THE
COMMISSIONER HAVING STATUTORY JURISDICTION OVER  THE  PROPOSED  RULE  OR
REGULATION  SHALL  NOT ACT IN A MANNER INCONSISTENT WITH THE RECOMMENDA-
TIONS OF THE COUNCIL WITHOUT  FIRST  APPEARING  BEFORE  THE  COUNCIL  TO
REPORT  THE  REASONS  THEREFOR. THE COUNCIL, UPON A MAJORITY VOTE OF ITS
MEMBERS, MAY REQUIRE THAT AN ALTERNATIVE APPROACH TO THE PROPOSED  RULES
AND  REGULATIONS  BE PUBLISHED WITH THE NOTICE OF THE PROPOSED RULES AND
REGULATIONS PURSUANT TO SECTION TWO HUNDRED TWO OF THE STATE ADMINISTRA-
TIVE PROCEDURE ACT. WHEN AN ALTERNATIVE APPROACH IS  PUBLISHED  PURSUANT
TO  THIS  SECTION, THE COMMISSIONER HAVING STATUTORY JURISDICTION OF THE
SUBJECT PROPOSED RULE OR REGULATION SHALL  STATE  THE  REASONS  FOR  NOT
SELECTING SUCH ALTERNATIVE APPROACH.
  (K)  THE COUNCIL, BY A MAJORITY VOTE OF ITS MEMBERS, MAY PROPOSE RULES
AND REGULATIONS ON ANY MATTER WITHIN THE REGULATORY JURISDICTION OF  THE
OFFICES  OF  MENTAL  HEALTH  OR ALCOHOLISM AND SUBSTANCE ABUSE SERVICES,
OTHER THAN ESTABLISHMENT OF FEE SCHEDULES PURSUANT TO SECTION  43.01  OF
THIS  CHAPTER,  AND  FORWARD SUCH PROPOSED RULES AND REGULATIONS TO BOTH
COMMISSIONERS FOR REVIEW AND CONSIDERATION, PROVIDED, HOWEVER, THAT ONLY
THE APPROVAL OF THE COMMISSIONER  WITH  STATUTORY  JURISDICTION  OF  THE
PROPOSED RULE OR REGULATION SHALL BE REQUIRED. PRIOR TO SUCH COMMISSION-
ER'S  FINAL  APPROVAL  AND PROMULGATION OF SUCH PROPOSED RULES AND REGU-

S. 6256                            92                            A. 9056

LATIONS, IF SUCH RULES AND REGULATIONS ARE MODIFIED IN ANY RESPECT, THEY
SHALL BE SUBMITTED TO THE COUNCIL PURSUANT TO SUBDIVISION  (J)  OF  THIS
SECTION. IF SUCH COMMISSIONER DETERMINES NOT TO PROMULGATE SUCH PROPOSED
RULES  AND REGULATIONS, THE COMMISSIONER SHALL APPEAR BEFORE THE COUNCIL
TO REPORT THE REASONS THEREFOR.
  (L) THE MEMBERS OF THE COUNCIL SHALL RECEIVE NO COMPENSATION FOR THEIR
SERVICES BUT SHALL BE REIMBURSED FOR EXPENSES ACTUALLY  AND  NECESSARILY
INCURRED IN THE PERFORMANCE OF THEIR DUTIES.
  (M)  THE  COMMISSIONERS,  UPON REQUEST OF THE COUNCIL, SHALL DESIGNATE
ONE OR MORE OFFICERS OR EMPLOYEES FROM EITHER OR BOTH OFFICES TO PROVIDE
ADMINISTRATIVE SUPPORT SERVICES TO THE COUNCIL, AND MAY ASSIGN FROM TIME
TO TIME SUCH OTHER EMPLOYEES AS THE COUNCIL MAY REQUEST.
  (N) NO CIVIL ACTION SHALL BE BROUGHT IN ANY COURT AGAINST  ANY  MEMBER
OF  THE  BEHAVIORAL HEALTH SERVICES COUNCIL FOR ANY ACT DONE, FAILURE TO
ACT, OR STATEMENT OR OPINION MADE, WHILE DISCHARGING HIS OR  HER  DUTIES
AS  A MEMBER OF THE COUNCIL, WITHOUT LEAVE FROM A JUSTICE OF THE SUPREME
COURT, FIRST HAD AND OBTAINED. IN ANY EVENT SUCH  MEMBER  SHALL  NOT  BE
LIABLE  FOR  DAMAGES IN ANY SUCH ACTION IF HE OR SHE SHALL HAVE ACTED IN
GOOD FAITH, WITH REASONABLE CARE AND UPON PROBABLE CAUSE.    MEMBERS  OF
THE  COUNCIL  SHALL  BE  CONSIDERED  PUBLIC OFFICERS FOR THE PURPOSES OF
SECTION SEVENTEEN OF THE PUBLIC OFFICERS LAW.
  (O) THE COUNCIL MAY ESTABLISH SUCH COMMITTEES AS IT DEEMS NECESSARY.
  (P) THE COUNCIL MAY ESTABLISH WRITTEN BYLAWS.
  (Q) FOR PURPOSES OF THIS SECTION, "BEHAVIORAL HEALTH  SERVICES"  SHALL
MEAN  EXAMINATION, DIAGNOSIS, CARE, TREATMENT, REHABILITATION, OR TRAIN-
ING FOR PERSONS WITH MENTAL ILLNESS AND/OR FOR  PERSONS  WITH  SUBSTANCE
USE OR COMPULSIVE GAMBLING DISORDERS.
  S  3.  The section heading, subdivision (a), the opening paragraph and
paragraphs 1 and 3 of subdivision (b) and  subdivision  (c)  of  section
5.07  of the mental hygiene law, the section heading as amended by chap-
ter 55 of the laws of 1992, subdivision (a), the opening  paragraph  and
paragraphs  1 and 3 of subdivision (b) and subdivision (c) as amended by
chapter 223 of the laws of 1992,  paragraph  1  of  subdivision  (a)  as
amended  by  chapter  37  of  the laws of 2011, the opening paragraph of
paragraph 1 of subdivision (b) as amended by chapter 168 of the laws  of
2010, subparagraphs h and i as amended and subparagraph j of paragraph 1
of subdivision (b) as added by chapter 413 of the laws of 2009 and para-
graph  3  of subdivision (b) as renumbered by chapter 322 of the laws of
1992, are amended to read as follows:
Establishment of [statewide goals and objectives;] statewide  comprehen-
         sive plans of services for [the mentally disabled] PERSONS WITH
         MENTAL DISABILITIES.
  (a)  (1) The [mental health] BEHAVIORAL HEALTH services ADVISORY coun-
cil and the advisory [councils] COUNCIL  on  developmental  disabilities
[and  alcoholism  and  substance  abuse services] shall [each establish]
PROVIDE RECOMMENDATIONS FOR statewide PRIORITIES AND goals  [and  objec-
tives]  to  guide comprehensive planning, resource allocation and evalu-
ation processes for state and local services  for  persons  with  mental
illness,  developmental disabilities [and], AND/OR those [suffering from
chemical abuse  or  dependence,  respectively]  WITH  SUBSTANCE  USE  OR
COMPULSIVE GAMBLING DISORDERS. Such goals and objectives shall:
  a.  be  measurable  in terms of attainment AND FOCUSED ON OUTCOMES FOR
THOSE BEING SERVED;
  b. be DEVELOPED IN COLLABORATION WITH, AND communicated to,  providers
of  services,  department  facilities,  consumers and consumer represen-
tatives, and other appropriate state and local governmental agencies;

S. 6256                            93                            A. 9056

  c. [require that all state and local public and private  services  for
persons  with  mental disabilities be organized, staffed and financed to
best meet the needs of all  persons  with  mental  disabilities  whether
receiving in-patient or non in-patient services;
  d.]  reflect  the  partnership  between  state  and local governmental
units; and
  [e.] D. emphasize [that gaps in services be filled and  that  services
are  provided to persons with mental disabilities] THE NEED TO INTEGRATE
BEHAVIORAL HEALTH AND HEALTH SERVICES.
  (2) Such advisory councils shall [establish, review, augment or delete
from such goals and objectives, as appropriate,] ACCOMPLISH THEIR DUTIES
by means of a [continuing annual goal-setting] process which is:
  a. open, visible and accessible to the public; and
  b. consistent with the  statewide  AND  FEDERALLY  MANDATED  planning,
appropriation  and  evaluation  processes and activities for services to
[the mentally disabled] PERSONS WITH MENTAL DISABILITIES.
  (3) The advisory councils are hereby empowered to hold public hearings
and meetings to enable them to accomplish their duties.
  Statewide comprehensive plan for services to [the  mentally  disabled]
PERSONS WITH MENTAL DISABILITIES.
  (1)  The  office of mental health, the office for people with develop-
mental disabilities and the office of  alcoholism  and  substance  abuse
services  shall  [each]  formulate a statewide comprehensive [five-year]
plan for the provision of all state and local services for persons  with
mental  illness  [and],  developmental  disabilities, [and] AND/OR those
[suffering from alcoholism and] WITH substance [abuse, respectively] USE
OR COMPULSIVE GAMBLING DISORDERS.   [Each] THE  STATEWIDE  COMPREHENSIVE
plan shall be [formulated from] BASED UPON AN ANALYSIS OF local [compre-
hensive]  SERVICES plans developed by each local governmental unit, with
participation of consumers, consumer groups, providers of  services  and
departmental  facilities  [furnishing] THAT FURNISH services to individ-
uals with mental disabilities [of the area] in conformance  with  state-
wide  PRIORITIES AND goals [and objectives] established [by] WITH RECOM-
MENDATIONS OF the advisory council  of  each  office.  [Each]  THE  plan
shall:
  a.  identify  [needs  and  problems which must be addressed during the
next ensuing five years which such plan encompasses]  STATEWIDE  PRIORI-
TIES;
  b.  specify  [time-limited] STATEWIDE goals [to meet those needs] THAT
REFLECT THE STATEWIDE PRIORITIES AND ARE FOCUSED ON  OBTAINING  POSITIVE
MEASURABLE OUTCOMES;
  c. [identify resources to achieve the goals, including but not limited
to resource reallocations;
  d. establish] PROPOSE STRATEGIES AND INITIATIVES TO ADDRESS THE prior-
ities  [for resource allocation] AND FACILITATE ACHIEVEMENT OF STATEWIDE
GOALS;
  [e. define the  authority  and  responsibility  for  state  and  local
participation  in  the  delivery of services] D.   IDENTIFY SERVICES AND
SUPPORTS, WHICH MAY INCLUDE PROGRAMS RUN  OR  LED  BY  PEERS,  THAT  ARE
DESIGNED  TO  PROMOTE  THE  HEALTH  AND  WELLNESS OF PERSONS WITH MENTAL
ILLNESS, DEVELOPMENTAL DISABILITIES, AND/OR SUBSTANCE USE OR  COMPULSIVE
GAMBLING DISORDERS;
  [f.  propose programs to achieve the goals, which programs may include
direct services, development of multi-purpose facilities, contracts  for
services, and innovative financial and organizational relationships with
public and private providers;

S. 6256                            94                            A. 9056

  g.  identify  services and programs that assist the informal caregiver
to care for the mentally disabled; make recommendations to  enhance  the
ability of the informal caregiver to continue providing care; and devel-
op strategies for creating informal caregivers for clients in the commu-
nity who do not have a system in place;
  h. analyze] E. PROVIDE ANALYSIS OF current and anticipated utilization
of  state  and local, and public and private facilities [and], programs,
SERVICES, AND/OR SUPPORTS;
  [i.] F. encourage and promote PERSON-CENTERED, CULTURALLY AND LINGUIS-
TICALLY COMPETENT community-based programs,  SERVICES,  AND/OR  SUPPORTS
which  reflect  the  partnership  between  state  and local governmental
units; and
  [j.] G. include progress reports on the implementation of both  short-
term  and  long-term  recommendations  of  the  children's plan required
pursuant to section four hundred eighty-three-f of the  social  services
law.
  (3)  The commissioners of each of the offices shall be responsible for
the development of such statewide [five-year] plan for  services  within
the jurisdiction of their respective offices and after giving due notice
shall  conduct  one or more public hearings on such plan. The BEHAVIORAL
HEALTH SERVICES advisory council [of each office] AND THE ADVISORY COUN-
CIL ON DEVELOPMENTAL DISABILITIES shall review the statewide [five year]
COMPREHENSIVE plan developed by such office OR OFFICES  and  report  its
recommendations  thereon  to  such  commissioner  OR COMMISSIONERS. Each
commissioner shall submit the plan, with appropriate  modifications,  to
the  governor  no later than the first day of [October] NOVEMBER of each
year in order that such plan may be considered with the estimates of the
offices for the preparation of the executive budget of the state of  New
York  for  the  next  succeeding state fiscal year.   [Each commissioner
shall also submit such plan to the legislature. The statewide plan] SUCH
PLANS SHALL ALSO BE POSTED TO THE  WEBSITE  OF  EACH  OFFICE.  STATEWIDE
PLANS  shall  [be  reassessed and updated at least annually to encompass
the next ensuing five years to] ensure responsiveness to changing  needs
and  goals and [to] SHALL reflect the development of new information and
the completion of program evaluations. [An interim report detailing  the
commissioner's actions in fulfilling the requirements of this section in
preparation  of the plan and modifications in the plan of services being
considered by the commissioner shall be submitted to  the  governor  and
the legislature on or before the fifteenth day of February of each year.
Such interim report shall include, but need not be limited to:
  (a)  actions  to  include participation of consumers, consumer groups,
providers of services and departmental facilities, as required  by  this
subdivision; and
  (b)  any modifications in the plan of services being considered by the
commissioner, to include:  (i)  compelling  budgetary,  programmatic  or
clinical  justifications  or  other  major  appropriate  reason  for any
significant new statewide  programs  or  policy  changes  from  a  prior
(approved)  five year comprehensive plan; and (ii) procedures to involve
or inform local governmental units of such actions or plans.
  (c) Three year capital plan. (1) On or before July first of each year,
the commissioners of the offices of the  department  of  mental  hygiene
shall  each submit to the advisory council of their respective offices a
statewide three year capital plan for facilities within the jurisdiction
of their respective offices.  The  capital  plan  shall  set  forth  the
projects  proposed to be designed, constructed, acquired, reconstructed,
rehabilitated or otherwise substantially altered pursuant  to  appropri-

S. 6256                            95                            A. 9056

ation  to  meet the capital development needs of the respective agencies
for the next ensuing three years; the years of such  plan  shall  corre-
spond to the years of the statewide five year plan as required by subdi-
vision (b) of this section.
  (2)  Such  plan  for each office shall include but not be limited to a
detailed project schedule indicating the location by county  or  borough
and  estimated  cost of each project, the anticipated dates on which the
design and construction of the project  is  to  commence,  the  proposed
method  of financing for the project, the estimated economic life of the
project  and  whether  the  proposed  project  constitutes  design,  new
construction or rehabilitation.
  (3)  Such  plan  shall  further  specify  for each project whether the
project is to be a residential or nonresidential facility,  a  state  or
voluntary  operated  facility,  and, the number of clients, by source of
clients, proposed to utilize the facility. The information on the source
of the client shall include but not  be  limited  to  identification  of
clients  currently  living  independently,  or at home with families, or
with caretakers, clients defined by their respective agencies as special
populations, or clients currently residing in an  institutional  setting
under the jurisdiction of the offices of the department.
  (4)  The  advisory council of the appropriate office shall review such
plan and report its recommendation to the  commissioner  for  inclusion,
provided, however, that the mental health services council shall forward
its  comments  on the capital plan of the office of mental health to the
mental health planning council which shall forward such  recommendations
after  review  to  the  commissioner  of mental health. The commissioner
shall submit his or her plan with  the  formal  recommendations  of  the
advisory  council  of  his  or her office and any subsequent appropriate
modifications to the governor no later than the first day of October  of
each  year  or  concurrent  with  the annual submission of estimates and
information required by section one of article seven of the constitution
in order that such plans shall be considered with the estimates  of  the
offices  for the preparation of the executive budget of the state of New
York for the next succeeding state fiscal year. The commissioners  shall
also  submit  such plans to the chairmen of the senate finance committee
and the assembly ways and means committee.
  (5) Each statewide three year capital plan  for  facilities  shall  be
evaluated  and  revised  annually  to  encompass the fiscal year then in
progress and the next ensuing two fiscal years to ensure  responsiveness
to  the  changing  needs and goals of the department, and to reflect the
development of new information and project completion.]
  S 4. Section 7.05 of the mental hygiene law is REPEALED.
  S 5. Subdivision (c) of section 13.05 of the mental  hygiene  law,  as
amended  by  chapter  37  of  the  laws  of  2011, is amended to read as
follows:
  (c) The developmental disabilities  advisory  council  shall  have  no
executive,  administrative  or appointive duties. The council shall have
the duty to foster public understanding and acceptance of  developmental
disabilities. It shall, in cooperation with the commissioner of develop-
mental  disabilities,  [establish] PROVIDE RECOMMENDATIONS FOR statewide
PRIORITIES AND goals [and objectives] for services for individuals  with
developmental  disabilities and shall advise the commissioner on matters
related to development and  implementation  of  the  [OPWDD's  triennial
state   developmental  disabilities]  STATEWIDE  comprehensive  plan  as
required under [paragraph two of subdivision (b)  of]  section  5.07  of
this  chapter. The advisory council shall have the power to consider any

S. 6256                            96                            A. 9056

matter relating to the improvement of the state developmental  disabili-
ties program and shall advise the commissioner of developmental disabil-
ities  thereon  and  on  any matter relating to the performance of their
duties  with relation to individuals with developmental disabilities and
on policies, goals, budget and operation of  developmental  disabilities
services.
  S 6. Section 19.05 of the mental hygiene law is REPEALED.
  S  7.  Subdivision  (c) of section 41.16 of the mental hygiene law, as
amended by section 16 of part E of chapter 111 of the laws of  2010,  is
amended to read as follows:
  (c)  A  local services plan shall be developed, in accordance with the
regulations of the  commissioner  or  commissioners  of  the  office  or
offices  of  the  department  having jurisdiction of the services by the
local governmental unit or units which shall  direct  and  administer  a
local comprehensive planning process for its geographic area, consistent
with statewide goals and objectives established pursuant to section 5.07
of this chapter. The planning process shall involve the directors of any
department   facilities,  directors  of  hospital  based  mental  health
services, directors of community mental health centers, THE DIRECTOR  OF
THE  LOCAL OFFICE FOR THE AGING OR HIS OR HER REPRESENTATIVE, consumers,
consumer groups, voluntary agencies, other providers  of  services,  and
local correctional facilities and other local criminal justice agencies.
The  local  governmental  unit,  or  units, shall determine the proposed
local services plan to be submitted for approval.  If  any  provider  of
services  including  facilities in the department, or any representative
of the consumer or community interests within the local  planning  proc-
ess,  disputes  any  element  of the proposed plan for the area which it
serves, the objection shall be presented in writing to the  director  of
the  local  governmental unit. If such dispute cannot be resolved to the
satisfaction of all parties, the director shall determine the plan to be
submitted. If requested and supplied by the objecting party,  a  written
objection  to  the plan shall be appended thereto and transmitted to the
single agent of the department jointly designated by the commissioners.
  S 8.  Section 220 of the public health law, as amended by  section  45
of  part  A  of  chapter  58  of the laws of 2010, is amended to read as
follows:
  S 220. Public health  and  health  planning  council;  appointment  of
members.  There  shall  continue to be in the department a public health
and health planning council to consist of the commissioner and  fourteen
members  to  be appointed by the governor with the advice and consent of
the senate; provided that effective December first,  two  thousand  ten,
the  membership  of  the  council  shall consist of the commissioner and
twenty-four members to be appointed by the governor with the advice  and
consent  of the senate. Membership on the council shall be reflective of
the diversity of the state's population including, but not  limited  to,
the  various  geographic  areas  and population densities throughout the
state. The members shall include representatives of  the  public  health
system,  health  care  providers  that  comprise the state's health care
delivery system, individuals with expertise in the clinical and adminis-
trative aspects of health care delivery, issues  affecting  health  care
consumers,  health  planning,  health  care financing and reimbursement,
health care regulation and compliance, and public health practice and at
least two members shall also  be  members  of  the  [mental]  BEHAVIORAL
health  services council; at least four members shall be representatives
of general hospitals or nursing homes; and at least one member shall  be
a  representative  of  each of the following groups: home care agencies,

S. 6256                            97                            A. 9056

diagnostic and treatment centers, health care  payors,  labor  organiza-
tions  for  health  care  employees,  and  health care consumer advocacy
organizations.
  S  9.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2012; provided,
however, that sections one through six of this act shall take effect  on
the one hundred twentieth day after it shall have become a law.

                                 PART O

  Section  1. Subdivision (b) of section 7.17 of the mental hygiene law,
as amended by section 1 of part G of chapter 59 of the laws of 2011,  is
amended to read as follows:
  (b)  There  shall  be  in the office the hospitals named below for the
care, treatment and rehabilitation of persons with  mental  illness  and
for  research  and  teaching  in the science and skills required for the
care, treatment and rehabilitation of such persons with mental illness.
  Greater Binghamton Health Center
  Bronx Psychiatric Center
  Buffalo Psychiatric Center
  Capital District Psychiatric Center
  Central New York Psychiatric Center
  Creedmoor Psychiatric Center
  Elmira Psychiatric Center
  [Hudson River Psychiatric Center
  Kingsboro Psychiatric Center]
  Kirby Forensic Psychiatric Center
  Manhattan Psychiatric Center
  Mid-Hudson Forensic Psychiatric Center
  Mohawk Valley Psychiatric Center
  Nathan S. Kline Institute for Psychiatric Research
  New York State Psychiatric Institute
  Pilgrim Psychiatric Center
  Richard H. Hutchings Psychiatric Center
  Rochester Psychiatric Center
  Rockland Psychiatric Center
  St. Lawrence Psychiatric Center
  South Beach Psychiatric Center
  [Bronx Children's Psychiatric Center
  Brooklyn Children's Center
  Queens Children's Psychiatric Center]
  NEW YORK CITY CHILDREN'S CENTER
  Rockland Children's Psychiatric Center
  Sagamore Children's Psychiatric Center
  Western New York Children's Psychiatric Center
  The New York State Psychiatric  Institute  and  The  Nathan  S.  Kline
Institute  for Psychiatric Research are designated as institutes for the
conduct of medical research and other scientific investigation  directed
towards  furthering  knowledge of the etiology, diagnosis, treatment and
prevention of mental illness.  [The  Brooklyn  Children's  Center  is  a
facility operated by the office to provide community-based mental health
services for children with serious emotional disturbances.]
  S  2.  Notwithstanding  the  provisions of subdivisions (b) and (e) of
section 7.17 of the mental hygiene law,  section  41.55  of  the  mental
hygiene  law,  or  any  other  law to the contrary, the office of mental
health is authorized to close, consolidate, reduce, transfer  or  other-

S. 6256                            98                            A. 9056

wise redesign services of hospitals, other facilities and programs oper-
ated  by  the  office  of  mental  health,  and to implement significant
service reductions and reconfigurations according  to  this  section  as
shall be determined by the commissioner of mental health to be necessary
for  the cost-effective and efficient operation of such hospitals, other
facilities and programs. One of the intents of actions taken that result
in  closure,  consolidation,  reduction,  transfer  or  other   redesign
services  of  hospitals is to reinvest appropriate levels of funding for
community based mental health services and programs as determined by the
commissioner of mental health with approval from  the  director  of  the
division of the budget.
  (a) In addition to the closure, consolidation or merger of one or more
facilities,  the  commissioner of mental health is authorized to perform
any significant service  reductions  that  would  reduce  inpatient  bed
capacity,  which  shall include but not be limited to, closures of wards
at a state-operated psychiatric center or  the  conversion  of  beds  to
transitional  placement programs, provided that the commissioner provide
at least 30 days notice of such reductions to the temporary president of
the senate and the speaker of the assembly and simultaneously post  such
notice  upon  its public website. In assessing which significant service
reductions to undertake, the commissioner shall consider data related to
inpatient census, indicating  nonutilization  or  under  utilization  of
beds, and the efficient operation of facilities.
  (b)  At  least  sixty  days  prior to the anticipated closure, consol-
idation or merger of any hospitals named in subdivision (b)  of  section
7.17  of the mental hygiene law, the commissioner of mental health shall
provide notice of such closure, consolidation or merger to the temporary
president of the senate, and speaker of the assembly, the  chief  execu-
tive  officer  of the county in which the facility is located, and shall
post such notice upon its public  website.  The  commissioner  shall  be
authorized  to  conduct  any  and  all  preparatory actions which may be
required to effectuate such closures during such sixty day period.    In
assessing  which  of  such  hospitals  to  close, the commissioner shall
consider the following factors: (1) the size, scope and type of services
provided by the hospital; (2) the  relative  quality  of  the  care  and
treatment  provided  by  the hospital, as may be informed by internal or
external quality or accreditation reviews; (3) the  current  and  antic-
ipated long-term need for the types of services provided by the facility
within  its  catchment  area,  which may include, but not be limited to,
services for adults or children, or other specialized services, such  as
forensic  services;  (4) the availability of staff sufficient to address
the current and anticipated long term service needs; (5) the  long  term
capital  investment  required to ensure that the facility meets relevant
state and federal regulatory and capital construction requirements,  and
national  accreditation  standards; (6) the proximity of the facility to
other facilities with space that could accommodate anticipated need, the
relative cost of any necessary renovations of such space,  the  relative
potential  operating  efficiency of such facilities, and the size, scope
and types of services provided by the other facilities; (7)  anticipated
savings  based  upon  economies of scale or other factors; (8) community
mental health services available in the facility catchment area and  the
ability  of such community mental health services to meet the behavioral
health needs of the impacted consumers; (9) the obligations of the state
to place persons with mental disabilities in community  settings  rather
than  in institutions, when appropriate; and (10) the anticipated impact
of the closure on access to mental health services.

S. 6256                            99                            A. 9056

  (c) Any transfers of inpatient capacity or any resulting  transfer  of
functions  shall  be authorized to be made by the commissioner of mental
health and any transfer of personnel upon such transfer of  capacity  or
transfer  of  functions  shall  be  accomplished  in accordance with the
provisions of section 70 of the civil service law.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  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, 2012; provided
that the date for the closure of Kingsboro psychiatric center  shall  be
on a date certified by the commissioner of mental health.

                                 PART P

  Section 1. Subdivision (o) of section 10.03 of the mental hygiene law,
as  amended  by  chapter  168 of the laws of 2010, is amended to read as
follows:
  (o) "Secure treatment facility" means a facility or  a  portion  of  a
facility,  designated  by  the commissioner, that may include a facility
located on the grounds of a correctional facility, that is staffed  with
personnel from the office of mental health or the office for people with
developmental disabilities for the purposes of providing care and treat-
ment  to  persons  confined  under  this article, and persons defined in
paragraph five of subdivision (g) of this section. Personnel from  these
same  agencies  may  provide security services, provided that such staff
are adequately trained in security methods and so equipped as  to  mini-
mize  the  risk  or  danger of escape.   THE COMMISSIONER SHALL HAVE THE
DISCRETION TO ENTER INTO AGREEMENTS FOR THE PROVISION OF CARE AND TREAT-
MENT TO PERSONS HELD AT A SECURE TREATMENT  FACILITY  PURSUANT  TO  THIS
ARTICLE, OR FOR THE PROVISION OF APPROPRIATE SECURITY SERVICES, BY INDI-
VIDUALS WHO ARE NOT PERSONNEL OF SUCH AGENCIES.
  S  2.  Subdivision  (k) of section 10.06 of the mental hygiene law, as
amended by section 118-c of subpart B of part C of  chapter  62  of  the
laws of 2011, is amended to read as follows:
  (k) At the conclusion of the hearing, the court shall determine wheth-
er  there  is  probable  cause  to  believe that the respondent is a sex
offender requiring civil management. If the court determines that proba-
ble cause has not been established,  the  court  shall  issue  an  order
dismissing  the  petition,  and  the  respondent's  release  shall be in
accordance with other applicable provisions of law. If the court  deter-
mines  that  probable  cause  has  been established: (i) the court shall
order that the respondent be committed to a  secure  treatment  facility
designated  by the commissioner for care, treatment and control upon his
or her release, provided, however, that a respondent who otherwise would
be required to be transferred to  a  secure  treatment  facility  [may,]
SHALL  REMAIN IN THE CUSTODY OF THE DEPARTMENT OF CORRECTIONS AND COMMU-
NITY SUPERVISION PENDING THE OUTCOME OF THE PROCEEDINGS UNDER THIS ARTI-
CLE UNTIL HE OR SHE HAS REACHED THE MAXIMUM EXPIRATION  OF  HIS  OR  HER
SENTENCE  OR  HAS BEEN APPROVED FOR RELEASE TO PAROLE SUPERVISION BY THE

S. 6256                            100                           A. 9056

STATE BOARD OF PAROLE, PROVIDED, FURTHER THAT A RESPONDENT MAY,  upon  a
written consent signed by the respondent and his or her counsel, consent
to  remain in the custody of the department of corrections and community
supervision  pending  the outcome of the proceedings under this article,
and that such consent may be revoked in writing at any  time;  (ii)  the
court  shall  set a date for trial in accordance with subdivision (a) of
section 10.07 of this article; and (iii) the  respondent  shall  not  be
released pending the completion of such trial.
  S  3.  Subdivision  (f) of section 10.07 of the mental hygiene law, as
added by chapter 7 of the laws of 2007, is amended to read as follows:
  (f) If the jury, or the court if a jury trial  is  waived,  determines
that the respondent is a detained sex offender who suffers from a mental
abnormality,  then  the court shall consider whether the respondent is a
dangerous sex offender requiring confinement or a sex offender requiring
strict and intensive  supervision.  The  parties  may  offer  additional
evidence,  and  the  court shall hear argument, as to that issue. If the
court finds by clear and convincing evidence that the respondent  has  a
mental  abnormality involving such a strong predisposition to commit sex
offenses, and such an inability to control behavior, that the respondent
is likely to be a danger to others and to commit  sex  offenses  if  not
confined  to  a secure treatment facility, then the court shall find the
respondent to be a dangerous sex offender requiring confinement. In such
case, the respondent shall be committed to a secure  treatment  facility
for  care, treatment, and control until such time as he or she no longer
requires confinement. FAILURE OF  A  DANGEROUS  SEX  OFFENDER  REQUIRING
CONFINEMENT  TO MEANINGFULLY PARTICIPATE IN TREATMENT IN A SECURE TREAT-
MENT FACILITY SHALL CONSTITUTE A VIOLATION OF THE ORDER OF  CONFINEMENT.
If the court does not find that the respondent is a dangerous sex offen-
der requiring confinement, then the court shall make a finding of dispo-
sition that the respondent is a sex offender requiring strict and inten-
sive  supervision,  and  the respondent shall be subject to a regimen of
strict and  intensive  supervision  and  treatment  in  accordance  with
section  10.11  of this article. In making a finding of disposition, the
court shall consider the conditions  that  would  be  imposed  upon  the
respondent  if subject to a regimen of strict and intensive supervision,
and all available information about the prospects for  the  respondent's
possible re-entry into the community.
  S  4.  Section  10.08 of the mental hygiene law is amended by adding a
new subdivision (i) to read as follows:
  (I) AT ANY PROCEEDING CONDUCTED PURSUANT TO THIS ARTICLE OTHER THAN  A
TRIAL  CONDUCTED PURSUANT TO SECTION 10.07 OF THIS ARTICLE, THE RESPOND-
ENT OR ANY WITNESS SHALL BE PERMITTED, UPON GOOD CAUSE SHOWN, TO MAKE AN
ELECTRONIC APPEARANCE IN THE COURT BY MEANS OF AN INDEPENDENT  AUDIO-VI-
SUAL  SYSTEM,  AS  THAT  TERM  IS  DEFINED IN SUBDIVISION ONE OF SECTION
182.10 OF THE CRIMINAL PROCEDURE LAW, FOR PURPOSES OF A COURT APPEARANCE
OR FOR GIVING TESTIMONY. IT SHALL CONSTITUTE GOOD CAUSE THAT  A  WITNESS
IS  CURRENTLY  EMPLOYED  BY  THE STATE AT A SECURE TREATMENT FACILITY OR
ANOTHER WORK LOCATION, UNLESS THERE ARE COMPELLING CIRCUMSTANCES REQUIR-
ING THE WITNESS'S PERSONAL  PRESENCE  AT  THE  COURT  PROCEEDING.    FOR
PURPOSES  OF  THIS  SUBDIVISION,  AN  "ELECTRONIC  APPEARANCE"  MEANS AN
APPEARANCE AT WHICH A PARTICIPANT IS NOT PRESENT IN THE  COURT,  BUT  IN
WHICH:  (I)  ALL OF THE PARTICIPANTS ARE ABLE TO SEE AND HEAR THE SIMUL-
TANEOUS REPRODUCTIONS OF THE VOICES AND IMAGES OF  THE  JUDGE,  COUNSEL,
RESPONDENT  OR  ANY  OTHER  APPROPRIATE PARTICIPANT, AND (II) COUNSEL IS
PRESENT WITH THE RESPONDENT OR THE RESPONDENT AND COUNSEL  ARE  ABLE  TO
SEE  AND  HEAR  EACH  OTHER  AND  ENGAGE IN PRIVATE CONVERSATION. WHEN A

S. 6256                            101                           A. 9056

RESPONDENT OR A  WITNESS  MAKES  AN  ELECTRONIC  APPEARANCE,  THE  COURT
STENOGRAPHER  SHALL  RECORD  ANY STATEMENTS IN THE SAME MANNER AS IF THE
RESPONDENT OR WITNESS HAD MADE A PERSONAL APPEARANCE.  NOTHING  IN  THIS
SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT THE RESPONDENT OR ANY WITNESS
FROM  MAKING  AN ELECTRONIC APPEARANCE IN THE COURT AT A TRIAL CONDUCTED
PURSUANT TO SECTION 10.07 OF THIS ARTICLE BY  MEANS  OF  AN  INDEPENDENT
AUDIO-VISUAL SYSTEM, UPON GOOD CAUSE SHOWN AND CONSENT OF THE PARTIES.
  S  5. The section heading and subdivisions (a), (b), (c), (d), and (f)
of section 10.09 of the mental hygiene law, as added by chapter 7 of the
laws of 2007, are amended to read as follows:
[Annual] BIENNIAL examinations and petitions for discharge.
  (a) The commissioner shall provide  the  respondent  and  counsel  for
respondent  with  [an  annual] A BIENNIAL written notice of the right to
petition the court for discharge. The notice shall contain  a  form  for
the waiver of the right to petition for discharge.
  (b)  The commissioner shall also assure that each respondent committed
under this article shall have an examination for evaluation  of  his  or
her  mental  condition  made  at  least once every [year] TWO YEARS by a
psychiatric examiner who shall report to the  commissioner  his  or  her
written  findings  as to whether the respondent is currently a dangerous
sex offender requiring confinement. At such time,  the  respondent  also
shall have the right to be evaluated by an independent psychiatric exam-
iner.    If  the respondent is financially unable to obtain an examiner,
the court shall appoint an examiner of the  respondent's  choice  to  be
paid  within  the  limits  prescribed by law. Following such evaluation,
each psychiatric examiner shall report his or her findings in writing to
the commissioner and to counsel for respondent. The  commissioner  shall
review  relevant  records  and  reports,  along with the findings of the
psychiatric examiners, and shall make a determination in writing  as  to
whether  the  respondent is currently a dangerous sex offender requiring
confinement.
  (c) The commissioner shall [annually] BIENNIALLY  forward  the  notice
and  waiver form, along with a report including the commissioner's writ-
ten determination and the findings of the  psychiatric  examination,  to
the supreme or county court where the respondent is located.
  (d) The court shall hold an evidentiary hearing as to retention of the
respondent within forty-five days if it appears from one of the [annual]
BIENNIAL  submissions to the court under subdivision (c) of this section
(i) that the respondent has petitioned, or has not affirmatively  waived
the  right to petition, for discharge, or (ii) that even if the respond-
ent has waived the right to petition, and the  commissioner  has  deter-
mined  that  the  respondent  remains a dangerous sex offender requiring
confinement, the court finds on the basis of the materials described  in
subdivision  (b) of this section that there is a substantial issue as to
whether the  respondent  remains  a  dangerous  sex  offender  requiring
confinement. At an evidentiary hearing on that issue under this subdivi-
sion, the attorney general shall have the burden of proof.
  (f)  The  respondent  may at any time petition the court for discharge
and/or release to the community under a regimen of strict and  intensive
supervision  and  treatment.  Upon  review of the respondent's petition,
other than in connection with [annual] BIENNIAL reviews as described  in
subdivisions  (a), (b) and (d) of this section, the court may order that
an evidentiary hearing be held, or may deny an evidentiary  hearing  and
deny  the petition upon a finding that the petition is frivolous or does
not provide sufficient basis for reexamination prior to the next  [annu-
al]  BIENNIAL  review.  If the court orders an evidentiary hearing under

S. 6256                            102                           A. 9056

this subdivision, the attorney general shall have the burden of proof as
to whether the respondent is currently a dangerous sex offender  requir-
ing confinement.
  S  6.  Subdivision  (a) of section 10.10 of the mental hygiene law, as
added by chapter 7 of the laws of 2007, is amended to read as follows:
  (a) If the respondent is found to be a dangerous sex offender  requir-
ing  confinement  and  committed  to  a  secure treatment facility, that
facility shall provide care, treatment, and control  of  the  respondent
until  such  time  that  a court discharges the respondent in accordance
with the provisions of this article. FAILURE OF A DANGEROUS SEX OFFENDER
REQUIRING CONFINEMENT TO MEANINGFULLY  PARTICIPATE  IN  TREATMENT  IN  A
SECURE  TREATMENT  FACILITY SHALL CONSTITUTE A VIOLATION OF THE ORDER OF
CONFINEMENT.
  S 7. Subdivision (c) of section 10.11 of the mental  hygiene  law,  as
amended  by  section  118-e  of subpart B of part C of chapter 62 of the
laws of 2011, is amended to read as follows:
  (c) An order for a regimen of strict  and  intensive  supervision  and
treatment places the person in the custody and control of the department
of  corrections and community supervision. A person ordered to undergo a
regimen of strict and intensive supervision and  treatment  pursuant  to
this  article  is  subject to lawful conditions set by the court and the
department of corrections and community supervision.  A VIOLATION  OF  A
CONDITION  OF THE REGIMEN OF STRICT AND INTENSIVE SUPERVISION AND TREAT-
MENT FOR A PERSON UNDER COMMUNITY SUPERVISION, AS DEFINED IN SUBDIVISION
THREE OF SECTION TWO HUNDRED FIFTY-NINE OF THE EXECUTIVE LAW, MAY BE THE
BASIS  FOR  REVOCATION  OF  PAROLE  PURSUANT  TO  SECTION  TWO   HUNDRED
FIFTY-NINE-I OF THE EXECUTIVE LAW. A PERSON WHO INTENTIONALLY VIOLATES A
MATERIAL  CONDITION  OF  THE REGIMEN OF STRICT AND INTENSIVE SUPERVISION
AND TREATMENT SHALL BE GUILTY OF A CLASS E FELONY.
  S 8. Section 120.05 of the penal law is amended by adding a new subdi-
vision 13 to read as follows:
  13. HAVING BEEN  FOUND  TO  BE  A  DANGEROUS  SEX  OFFENDER  REQUIRING
CONFINEMENT  AND  WHILE  CONFINED  IN  A  SECURE  TREATMENT FACILITY, AS
DEFINED IN SECTION 7.18 OF THE MENTAL HYGIENE LAW, WITH INTENT TO  CAUSE
PHYSICAL  INJURY TO ANOTHER PERSON, HE CAUSES SUCH INJURY TO SUCH PERSON
OR TO A THIRD PERSON.
  S 9. This act shall take effect immediately.

                                 PART Q

  Section 1. Section 730.10 of the criminal procedure law is amended  by
adding a new subdivision 9 to read as follows:
  9.  "APPROPRIATE  INSTITUTION"  MEANS:  (A) A HOSPITAL OPERATED BY THE
OFFICE OF MENTAL HEALTH OR A DEVELOPMENTAL CENTER OPERATED BY THE OFFICE
FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES;  (B)  A  LOCAL  CORRECTIONAL
FACILITY,  AS  SUCH  TERMS  ARE DEFINED IN SECTION TWO OF THE CORRECTION
LAW, WHICH OPERATES A MENTAL HEALTH UNIT; OR (C) A HOSPITAL LICENSED  BY
THE  DEPARTMENT  OF HEALTH WHICH OPERATES A PSYCHIATRIC UNIT LICENSED BY
THE OFFICE OF MENTAL HEALTH, AS DETERMINED BY THE COMMISSIONER.
  S 2. Subdivision 1 of section 730.40 of the criminal procedure law, as
amended by chapter 231 of the laws  of  2008,  is  amended  to  read  as
follows:
  1. When a local criminal court, following a hearing conducted pursuant
to  subdivision  three  or four of section 730.30, is satisfied that the
defendant is not an incapacitated person, the  criminal  action  against
him  OR  HER  must  proceed. If it is satisfied that the defendant is an

S. 6256                            103                           A. 9056

incapacitated person, or if no motion for such a hearing is  made,  such
court  must  issue  a final or temporary order of observation committing
him OR HER to the custody of the commissioner for care and treatment  in
an  appropriate  institution for a period not to exceed ninety days from
the date of the order, provided,  however,  that  the  commissioner  may
designate  an appropriate hospital for placement of a defendant for whom
a final order of observation has been issued,  where  such  hospital  is
licensed  by  the office of mental health and has agreed to accept, upon
referral by the commissioner, defendants  subject  to  final  orders  of
observation  issued  under this subdivision. When a local criminal court
accusatory instrument other than  a  felony  complaint  has  been  filed
against  the  defendant, such court must issue a final order of observa-
tion[; when]. WHEN a felony complaint has been filed against the defend-
ant, such court must issue a temporary order of  observation  COMMITTING
HIM  OR  HER TO THE JURISDICTION OF THE COMMISSIONER FOR CARE AND TREAT-
MENT IN AN APPROPRIATE INSTITUTION OR ON  AN  OUT-PATIENT  BASIS  FOR  A
PERIOD  NOT  TO  EXCEED  NINETY DAYS FROM THE DATE OF SUCH ORDER, except
that, with the consent of the district attorney, it may  issue  a  final
order of observation.
  S 3. Subdivision 1 of section 730.50 of the criminal procedure law, as
amended  by  chapter  231  of  the  laws  of 2008, is amended to read as
follows:
  1. When a superior court, following a hearing  conducted  pursuant  to
subdivision  three  or  four  of  section  730.30, is satisfied that the
defendant is not an incapacitated person, the  criminal  action  against
him  OR  HER  must  proceed. If it is satisfied that the defendant is an
incapacitated person, or if no motion for such a  hearing  is  made,  it
must  adjudicate  him  OR  HER an incapacitated person, and must issue a
final order of observation or an order of commitment. When  the  indict-
ment  does  not charge a felony or when the defendant has been convicted
of an offense other than a felony, such court (a)  must  issue  a  final
order  of  observation  committing  the  defendant to the custody of the
commissioner for care and treatment in an appropriate institution for  a
period  not to exceed ninety days from the date of such order, provided,
however, that the commissioner may designate an appropriate hospital for
placement of a defendant for whom a final order of observation has  been
issued,  where  such hospital is licensed by the office of mental health
and has agreed to accept, upon referral by the commissioner,  defendants
subject  to  final  orders of observation issued under this subdivision,
and (b) must dismiss the indictment filed  in  such  court  against  the
defendant,  and  such  dismissal constitutes a bar to any further prose-
cution of the charge or charges contained in such indictment.  When  the
indictment  charges a felony or when the defendant has been convicted of
a felony, it must issue an order of commitment committing the  defendant
to the [custody] JURISDICTION of the commissioner for care and treatment
in  an  appropriate  institution OR ON AN OUT-PATIENT BASIS for a period
not to exceed one year from the date of such order. Upon the issuance of
an order of commitment, the court must exonerate the defendant's bail if
he OR SHE was previously at liberty on  bail;  PROVIDED,  HOWEVER,  THAT
EXONERATION OF BAIL IS NOT REQUIRED WHEN A DEFENDANT IS COMMITTED TO THE
JURISDICTION  OF  THE  COMMISSIONER FOR CARE AND TREATMENT ON AN OUT-PA-
TIENT BASIS.
  S 4. This act shall take effect immediately.

                                 PART R

S. 6256                            104                           A. 9056

  Section 1.  Section 1 of part D of chapter 111 of  the  laws  of  2010
relating to the recovery of exempt income by the office of mental health
for  community residences and family-based treatment programs is amended
to read as follows:
  Section  1. The office of mental health is authorized to recover fund-
ing from  community  residences  and  family-based  treatment  providers
licensed  by  the  office  of mental health, consistent with contractual
obligations of such providers, and notwithstanding any other  inconsist-
ent  provision  of law to the contrary, in an amount equal to 50 percent
of the income received by such providers which exceeds the fixed  amount
of  annual  Medicaid  revenue limitations, as established by the commis-
sioner of mental health. Recovery of such excess income shall be for the
following fiscal periods: for programs in counties  located  outside  of
the  city of New York, the applicable fiscal periods shall be January 1,
2003 through December 31, 2009 AND JANUARY 1, 2011 THROUGH DECEMBER  31,
2013; and for programs located within the city of New York, the applica-
ble  fiscal periods shall be July 1, 2003 through June 30, 2010 AND JULY
1, 2011 THROUGH JUNE 30, 2013.
  S 2. This act shall take effect immediately.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through R of this act shall  be
as specifically set forth in the last section of such Parts.

S6256A - Bill Details

See Assembly Version of this Bill:
A9056D
Law Section:
Budget Bills
Laws Affected:
Amd Various Laws, generally

S6256A - Bill Texts

view summary

Relates to evaluations or services under the early intervention program for infants and toddlers with disabilities and their families, state aid reimbursement to municipalities for respite services, and service coordination; repeals subdivision 7 of section 2551 and subdivision 4 of section 2557 of the public health law, relating to administering early intervention services; requires that each municipality be responsible for providing early intervention services; requires health maintenance organizations to include coverage for otherwise covered services that are part of an early intervention program; relates to payment for early intervention services; repeals subsection (e) of section 3235-a of the insurance law relating to claims for early intervention program services; relates to special education services and programs for preschool children with handicapping conditions; and repeals subdivision 18 of section 4403 of the education law, relating to the power of the education department to approve the provision of early intervention services (Part A); relates to funding and operations of the Roswell Park Cancer Institute (Part B); establishes the supportive housing development reinvestment program; relates to applicability of the assisted living program; includes podiatry services and lactation services under the term medical assistance; relates to comprehensive HIV special needs plan, in relation to HEAL-NY, and in relation to the EQUAL program; relates to education, outreach services and facilitated enrollment activities for certain aged, blind and disabled persons; expands prenatal care programs, establishes the primary care service corps practitioner loan repayment program, authorizes moneys in the medical indemnity fund to be invested in obligations of the United States or the state or obligations where the principal and interest are guaranteed by the United States or the state and moneys distributed as non-Medicaid grants to non-major public academic medical centers; relates to the powers of the dormitory authority; directs a workgroup on medically fragile children; relates to notice requirement for preferred drug program, payment to the commissioner of health by third-party payors, audit of payments to the commissioner of health, electronic submission of reports by hospitals, and changing the definition of eligible applicant; relates to medical assistance where relative is absent or refuses or fails to provide necessary care; relates to third-party payor's election to make payments; relates to reserved bed days; relates to the personal care services worker recruitment and retention program; relates to the tobacco control and insurance initiatives pool distributions; relates to certain public school districts and state operated/state supported schools; relates to the licensure of home care services agencies; relates to managed care programs; relates to the distribution of the professional education pools; relates to the powers and duties of the dormitory authority of the state of New York relative to the establishment of subsidiaries for certain purposes, in relation to the effectiveness thereof; relates to costs incurred in excess of revenues by general hospitals in providing services in eligible programs to uninsured patients and patients eligible for Medicaid assistance; relates to the effectiveness of known and projected department of health state funds Medicaid expenditures; relates to certain payments with regard to local governments; relates to Medicaid reimbursement; and repeals certain provisions of the public health law relating thereto (Part D); relates to an administrative cap on reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof; relates to general hospital reimbursement for annual rates, in relation to the cap on local Medicaid expenditures; relates to the department assumption of program administration for medical assistance; and provides for the repeal of certain provisions of the social services law upon expiration thereof (Part F); relates to the regulations for computing hospital inpatient rates and to the effectiveness of the preferred drug program (Part G); establishes a cost of living adjustment for designated human services programs, in relation to foregoing such adjustment during the 2012-2013 state fiscal year (Part H); relates to the office for people with developmental disabilities and the creation of developmental disabilities regional offices and state operations offices; and provides for the repeal of certain provisions upon expiration thereof (Part J); extends certain provisions relating to comprehensive psychiatric emergency programs (Part K); permits the commissioners of the department of health, the office of mental health, the office of alcoholism and substance abuse services and the office for people with developmental disabilities the regulatory flexibility to more efficiently and effectively integrate health and behavioral health services (Part L); authorizes contracts for the provision of special education and related services for certain patients hospitalized in hospitals operated by the office of mental health and provides for the repeal of such provisions upon expiration thereof (Part M); relates to the statewide comprehensive services plan for people with mental disabilities and in relation to the local planning process; and repeals certain provisions of the mental hygiene law relating thereto (Part N); relates to the closure and the reduction in size of certain facilities serving persons with mental illness; and provides for the repeal of such provisions upon expiration thereof (Part O); amends procedures under the sex offender management and treatment act (Part P); provides for outpatient capacity restoration of felony defendants at article 28 hospitals (Part Q); relates to the effectiveness of provisions related to the recovery of exempt income by the office of mental health for community residences and family-based treatment programs (Part R); relates to the excess medical malpractice liability coverage pool (Part S); and relates to the program for elderly pharmaceutical insurance coverage; and repeals certain provisions of such law relating thereto (Part T).

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

    S. 6256--A                                            A. 9056--A

                      S E N A T E - A S S E M B L Y

                            January 17, 2012
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when  printed to be committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
  article  seven  of  the  Constitution -- read once and referred to the
  Committee on Ways and Means --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT to amend the public health law, in relation to requiring the use
  of network providers for  evaluations  or  services  under  the  early
  intervention  program,  state  aid reimbursement to municipalities for
  respite services, and service coordination; to repeal subdivision 7 of
  section 2551 and subdivision 4 of section 2557 of  the  public  health
  law,  relating  to administering early intervention services; to amend
  the public health law, in relation to requiring that each municipality
  be responsible for providing early intervention services; to amend the
  public health law, in relation to removing the  authorization  of  the
  commissioner  of  health to collect data from counties on early inter-
  vention programs for the purpose of improving efficiency, cost  effec-
  tiveness  and  quality; to amend the public health law, in relation to
  requiring health maintenance organizations  to  include  coverage  for
  otherwise  covered  services  that  are  part of an early intervention
  program; to amend the insurance law, in relation to payment for  early
  intervention  services;  to  amend  the  education law, in relation to
  special education services and programs for  preschool  children  with
  handicapping  conditions; and to repeal subdivision 18 of section 4403
  of the education law, relating to the power of the  education  depart-
  ment to approve the provision of early intervention services (Part A);
  to  amend the public authorities law, in relation to funding and oper-
  ations of the Roswell Park Cancer Institute (Part  B);  to  amend  the
  public health law, in relation to establishment of an electronic death
  registration  system  (Part  C);  to  amend  the public health law, in
  relation to establishing the supportive housing development  reinvest-
  ment  program; to amend the social services law, in relation to appli-
  cability of the assisted living program; to amend the social  services

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12671-02-2

S. 6256--A                          2                         A. 9056--A

  law, in relation to including podiatry services and lactation services
  under  the term medical assistance; to amend the public health law and
  education law,  in  relation  to  medical  prescriptions  for  limited
  English  proficient  individuals; to amend the social services law, in
  relation to education, outreach services  and  facilitated  enrollment
  activities  for certain aged, blind and disabled persons; to amend the
  public health law, in relation to including certain  violations  by  a
  pharmacy as professional misconduct; expanding prenatal care programs,
  establishing  the  primary care service corps practitioner loan repay-
  ment program, requiring changes in directors of not-for-profit  corpo-
  rations  that  operate  hospitals  to  be  approved by the department,
  authorizing the commissioner of health to temporarily suspend or limit
  hospital  operating  certificates,  revoking  of  hospital   operating
  certificates,  appointment  and  duties  of  temporary  operators of a
  general hospital  or  diagnostic  and  treatment  center,  authorizing
  moneys  in the medical indemnity fund to be invested in obligations of
  the United States or the state or obligations where the principal  and
  interest  are  guaranteed by the United States or the state and moneys
  distributed  as  non-Medicaid  grants  to  non-major  public  academic
  medical  centers;  to  amend  the  social services law, in relation to
  prescriptions of opioid analgesics and brand  name  drugs  covered  by
  medical  assistance;  to  amend  the public health law, in relation to
  notice requirement for preferred drug program, payment to the  commis-
  sioner  of  health  by  third-party  payors,  audit of payments to the
  commissioner of health, electronic submission of reports by hospitals,
  and changing the definition of eligible applicant; to amend the social
  services law, in relation to  medical  assistance  where  relative  is
  absent  or  refuses  or fails to provide necessary care;  to amend the
  public health law, in relation to third-party payor's election to make
  payments; to amend the elder law, in relation to the  elderly  pharma-
  ceutical  insurance  coverage program; to amend the public health law,
  in relation to reserved bed days; to amend the social services law, in
  relation  to  the  personal  care  services  worker  recruitment   and
  retention  program; to amend the public health law, in relation to the
  tobacco control and insurance initiatives pool distributions; to amend
  the  social  services  law,  in  relation  to  certain  public  school
  districts  and  state  operated/state  supported schools; to amend the
  public health law, in relation to the licensure of home care  services
  agencies;  to  amend  the  social services law, in relation to managed
  care programs; to amend the public health  law,  in  relation  to  the
  distribution of the professional education pools; to amend chapter 584
  of  the laws of 2011, amending the public authorities law, relating to
  the powers and duties of the dormitory authority of the state  of  New
  York  relative  to  the  establishment  of  subsidiaries  for  certain
  purposes, in relation to the effectiveness thereof; to  amend  chapter
  119  of  the  laws  of  1997 relating to authorizing the department of
  health to establish certain payments to general hospitals, in relation
  to costs incurred in  excess  of  revenues  by  general  hospitals  in
  providing  services  in  eligible  programs  to uninsured patients and
  patients eligible for Medicaid assistance; to amend subdivision  1  of
  section  92  of  part H of chapter 59 of the laws of 2011, relating to
  known and projected department of health state funds Medicaid expendi-
  tures, in relation to the effectiveness thereof; to amend  section  90
  of  part  H  of  chapter  59 of the laws of 2011, relating to types of
  appropriations exempt from certain reductions, in relation to  certain
  payments  with regard to local governments; to amend section 1 of part

S. 6256--A                          3                         A. 9056--A

  C of  chapter  58  of  the  laws  of  2005,  relating  to  authorizing
  reimbursements  for  expenditures  made  by  or  on  behalf  of social
  services districts for medical assistance for needy  persons  and  the
  administration  thereof, in relation to Medicaid reimbursement; and to
  repeal certain  provisions  of  the  public  health  law,  the  social
  services law and the elder law relating thereto (Part D); to amend the
  public authorities law and the public officers law, in relation to the
  establishment  of  the  New  York Health Benefit Exchange (Part E); to
  amend chapter 58 of the laws of 2005  authorizing  reimbursements  for
  expenditures  made  by  or  on behalf of social services districts for
  medical assistance for needy persons and the  administration  thereof,
  in relation to an administrative cap on such program; to amend chapter
  59  of the laws of 2011, amending the public health law and other laws
  relating to  general  hospital  reimbursement  for  annual  rates,  in
  relation  to  the cap on local Medicaid expenditures; and to amend the
  social services law, in  relation  to  the  department  assumption  of
  program  administration  for medical assistance (Part F); to amend the
  public health law, in relation to regulations for  computing  hospital
  inpatient  rates  and to amend chapter 58 of the laws of 2005 relating
  to the preferred drug program, in relation to the effectiveness there-
  of (Part G); 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  reimbursement  for  executive  compensation  and administrative
  costs (Part H); in relation to contracts by the office for people with
  developmental disabilities made under  section  1115  of  the  federal
  social  security  act  (Part  I); to amend the mental hygiene law, the
  public health law, the general municipal law, the education  law,  the
  social  services  law,  and  the  surrogate's  court procedure act, in
  relation to the office for people with developmental disabilities  and
  the  creation of developmental disabilities regional offices and state
  operations offices (Part J); to amend chapter 723 of the laws of  1989
  amending  the mental hygiene law and other laws relating to comprehen-
  sive psychiatric emergency programs,  in  relation  to  extending  the
  repeal  of  certain provisions thereof (Part K); to permit the commis-
  sioners of the department of health, the office of mental health,  the
  office  of  alcoholism and substance abuse services and the office for
  people with developmental disabilities the regulatory  flexibility  to
  more  efficiently  and  effectively  integrate  health  and behavioral
  health services (Part L); to permit the office of  mental  health  and
  the state education department to enter into an agreement for purposes
  of  providing education programming for patients residing in hospitals
  operated by the office of mental health who are between  the  ages  of
  five  and  twenty-one; and providing for the repeal of such provisions
  upon expiration thereof (Part M); to amend the mental hygiene law  and
  the  public  health  law,  in  relation to the statewide comprehensive
  services plan for people with mental disabilities and in  relation  to
  the  local  planning  process; and to repeal certain provisions of the
  mental hygiene law relating thereto (Part  N);  to  amend  the  mental
  hygiene  law,  in relation to the closure and the reduction in size of
  certain facilities serving persons with mental illness  (Part  O);  to
  amend the mental hygiene law, in relation to amending procedures under
  the  sex offender management and treatment act, and to amend the penal
  law,  in  relation  to  providing  criminal  penalties   for   certain
  violations  of  orders  of  commitment and strict and intensive super-

S. 6256--A                          4                         A. 9056--A

  vision and treatment (Part P); to amend the criminal procedure law, in
  relation to providing for outpatient capacity  restoration  of  felony
  defendants, or restoration at psychiatric units of jails or article 28
  hospitals  (Part  Q);  and  to  amend  chapter 111 of the laws of 2010
  relating to the recovery of exempt income  by  the  office  of  mental
  health  for  community residences and family-based treatment programs,
  in relation to the effectiveness thereof (Part R)

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

  Section  1.  This  act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2012-2013
state fiscal year. Each component is  wholly  contained  within  a  Part
identified  as Parts A through R. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that  particular  component,
shall  be  deemed  to mean and refer to the corresponding section of the
Part in which it is found. Section three of  this  act  sets  forth  the
general effective date of this act.

                                 PART A

  Section  1.    Paragraph  (a)  of subdivision 2 of section 2544 of the
public health law, as added by chapter 428  of  the  laws  of  1992,  is
amended and a new paragraph (c) is added to read as follows:
  (a)  [The]  SUBJECT  TO  THE PROVISIONS OF SECTION TWENTY-FIVE HUNDRED
FORTY-FIVE-A OF THIS TITLE, THE parent may select an evaluator from  the
list  of approved evaluators as described in section twenty-five hundred
forty-two of this title to conduct the evaluation. The parent or  evalu-
ator  shall  immediately  notify the early intervention official of such
selection.  The evaluator may begin the evaluation no sooner  than  four
working  days  after such notification, unless otherwise approved by the
initial service coordinator.
  (C) IF, IN CONSULTATION WITH THE EVALUATOR,  THE  SERVICE  COORDINATOR
IDENTIFIES A CHILD THAT IS POTENTIALLY ELIGIBLE FOR PROGRAMS OR SERVICES
OFFERED  BY OR UNDER THE AUSPICES OF THE OFFICE FOR PEOPLE WITH DEVELOP-
MENTAL DISABILITIES, THE SERVICE COORDINATOR SHALL, WITH PARENT CONSENT,
NOTIFY THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL  DISABILITIES'  REGIONAL
DEVELOPMENTAL  DISABILITIES SERVICES OFFICE OF THE POTENTIAL ELIGIBILITY
OF SUCH CHILD FOR SAID PROGRAMS OR SERVICES.
  S 2. Subdivision 1, the opening paragraph of subdivision 2 and  subdi-
vision  7  of section 2545 of the public health law, as added by chapter
428 of the laws of 1992, are amended to read as follows:
  1. If the evaluator determines that the infant or toddler is an eligi-
ble child, the early intervention official shall convene a meeting, at a
time and place convenient to the parent, consisting of the parent,  such
official,  the  evaluator,  A REPRESENTATIVE FROM THE CHILD'S INSURER OR
HEALTH MAINTENANCE ORGANIZATION, WHICH SHALL INCLUDE THE MEDICAL ASSIST-
ANCE PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTABLISHED IN  TITLE
ONE-A  OF  THIS ARTICLE, OR ANY OTHER GOVERNMENTAL THIRD PARTY PAYOR, IF
THE CHILD HAS COVERAGE THROUGH AN INSURER OR HEALTH  MAINTENANCE  ORGAN-
IZATION AND THE REPRESENTATIVE IS AVAILABLE TO ATTEND THE MEETING ON THE

S. 6256--A                          5                         A. 9056--A

DATE  AND  TIME  CHOSEN  BY THE EARLY INTERVENTION OFFICIAL, the initial
service coordinator and any other persons who the parent or the  initial
service  coordinator,  with  the parent's consent, invite, provided that
such  meeting  shall be held no later than forty-five days from the date
that the early intervention official was first contacted  regarding  the
child,  except under exceptional circumstances prescribed by the commis-
sioner. The early intervention official, at or  prior  to  the  time  of
scheduling  the  meeting, shall inform the parent of the right to invite
any person to the meeting.   IF  THE  REPRESENTATIVE  FROM  THE  CHILD'S
INSURER  OR  HEALTH  MAINTENANCE ORGANIZATION IS NOT AVAILABLE TO ATTEND
THE MEETING IN PERSON ON THE DATE AND TIME CHOSEN BY  THE  EARLY  INTER-
VENTION  OFFICIAL,  ARRANGEMENTS  MAY  BE  MADE FOR THE REPRESENTATIVE'S
INVOLVEMENT IN THE MEETING BY PARTICIPATION IN  A  TELEPHONE  CONFERENCE
CALL OR BY OTHER MEANS.
  The  early  intervention  official,  A REPRESENTATIVE FROM THE CHILD'S
INSURER OR HEALTH MAINTENANCE  ORGANIZATION,  WHICH  SHALL  INCLUDE  THE
MEDICAL  ASSISTANCE PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTAB-
LISHED IN TITLE ONE-A OF THIS ARTICLE, OR ANY OTHER  GOVERNMENTAL  THIRD
PARTY  PAYOR,  IF  THE  CHILD  HAS COVERAGE THROUGH AN INSURER OR HEALTH
MAINTENANCE ORGANIZATION AND THE REPRESENTATIVE IS AVAILABLE  TO  ATTEND
THE  MEETING ON THE DATE AND TIME CHOSEN BY THE EARLY INTERVENTION OFFI-
CIAL, initial service coordinator, parent and evaluator shall develop an
IFSP for an eligible child whose  parents  request  services.  The  IFSP
shall be in writing and shall include, but not be limited to:
  7.  The  IFSP  shall  be  reviewed at six month intervals and shall be
evaluated annually by the early intervention official, A  REPRESENTATIVE
FROM THE CHILD'S INSURER OR HEALTH MAINTENANCE ORGANIZATION, WHICH SHALL
INCLUDE  THE  MEDICAL  ASSISTANCE  PROGRAM OR THE CHILD HEALTH INSURANCE
PROGRAM ESTABLISHED IN TITLE ONE-A OF THIS ARTICLE, OR ANY OTHER GOVERN-
MENTAL THIRD PARTY PAYOR, IF THE CHILD HAS COVERAGE THROUGH  AN  INSURER
OR  HEALTH  MAINTENANCE ORGANIZATION AND THE REPRESENTATIVE IS AVAILABLE
TO PARTICIPATE IN THE REVIEW OR ATTEND ON THE DATE AND  TIME  CHOSEN  BY
THE EARLY INTERVENTION OFFICIAL, THE service coordinator, the parent and
providers  of services to the eligible child.  Upon request of a parent,
the plan may be reviewed by such persons at more frequent intervals.  IF
THE REPRESENTATIVE FROM THE CHILD'S INSURER OR HEALTH MAINTENANCE ORGAN-
IZATION IS NOT AVAILABLE TO PARTICIPATE  IN  THE  REVIEW  OR  ATTEND  IN
PERSON  ON  THE DATE AND TIME CHOSEN BY THE EARLY INTERVENTION OFFICIAL,
ARRANGEMENTS MAY BE MADE FOR THE REPRESENTATIVE'S INVOLVEMENT BY PARTIC-
IPATION IN A TELEPHONE CONFERENCE CALL OR BY OTHER MEANS.
  S 2-a. Section 2545 of the public health law is amended  by  adding  a
new subdivision 10 to read as follows:
  10.  THE SERVICE COORDINATOR SHALL ENSURE THAT THE IFSP, INCLUDING ANY
AMENDMENTS THERETO, IS IMPLEMENTED IN A TIMELY MANNER BUT NOT LATER THAN
THIRTY DAYS AFTER THE PROJECTED DATES FOR INITIATION OF THE SERVICES  AS
SET FORTH IN THE PLAN.
  S  3.  The public health law is amended by adding a new section 2545-a
to read as follows:
  S 2545-A. USE OF NETWORK PROVIDERS.   FOR  CHILDREN  REFERRED  TO  THE
EARLY INTERVENTION PROGRAM ON OR AFTER JANUARY FIRST, TWO THOUSAND THIR-
TEEN,  IF  A  CHILD  HAS  COVERAGE  UNDER  AN  INSURANCE POLICY, PLAN OR
CONTRACT, INCLUDING COVERAGE  AVAILABLE  UNDER  THE  MEDICAL  ASSISTANCE
PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTABLISHED IN TITLE ONE-A
OF  THIS  ARTICLE OR UNDER ANY OTHER GOVERNMENTAL THIRD PARTY PAYOR, AND
THE INSURANCE POLICY, PLAN OR CONTRACT PROVIDES COVERAGE FOR EVALUATIONS
OR SERVICES THAT MAY BE RENDERED TO THE CHILD  UNDER  THE  EARLY  INTER-

S. 6256--A                          6                         A. 9056--A

VENTION PROGRAM, THE SERVICE COORDINATOR, OR, IN ACCORDANCE WITH SECTION
TWENTY-FIVE  HUNDRED  FORTY-FOUR OF THIS TITLE, THE PARENT, WITH RESPECT
TO EVALUATIONS, SHALL SELECT A PROVIDER APPROVED BY THE  DEPARTMENT  AND
WITHIN  THE  INSURER'S  OR HEALTH MAINTENANCE ORGANIZATION'S NETWORK, IF
APPLICABLE, FOR THE PROVISION OF SUCH EVALUATION OR  SERVICES,  PROVIDED
HOWEVER THAT THIS SUBDIVISION SHALL NOT APPLY UNDER THE FOLLOWING CONDI-
TIONS:
  1.  THERE IS NO PROVIDER IN THE INSURER'S OR HEALTH MAINTENANCE ORGAN-
IZATION'S NETWORK THAT IS AVAILABLE OR APPROPRIATE TO RECEIVE THE REFER-
RAL AND TO CONDUCT THE EVALUATION OR TO BEGIN PROVIDING  SERVICES  IN  A
TIMELY MANNER IN ACCORDANCE WITH THE CHILD'S IFSP;
  2. INSURANCE OR HEALTH PLAN BENEFITS HAVE BEEN EXHAUSTED; OR
  3.  THE CHILD HAS A DEMONSTRATED NEED, AS DETERMINED BY THE INSURER OR
HEALTH MAINTENANCE ORGANIZATION, IF APPLICABLE,  FOR  AN  EVALUATION  OR
SERVICE  RENDERED  BY A PROVIDER WHO DOES NOT HOLD AN AGREEMENT WITH THE
CHILD'S INSURER OR HEALTH MAINTENANCE ORGANIZATION FOR THE PROVISION  OF
SUCH EVALUATION OR SERVICE.
  S  4.  Subdivision  2  of  section  2547  of the public health law, as
amended by chapter 231 of the laws  of  1993,  is  amended  to  read  as
follows:
  2.  In  addition  to respite services provided pursuant to subdivision
one of this section and subject to the  amounts  appropriated  therefor,
the  state  shall  reimburse  the  municipality  IN  ACCORDANCE WITH THE
PERCENTAGE OF STATE AID REIMBURSEMENT FOR APPROVED COSTS AS SET FORTH IN
SUBDIVISION TWO OF  SECTION  TWENTY-FIVE  HUNDRED  FIFTY-SEVEN  OF  THIS
TITLE,  for [fifty percent of] the costs of respite services provided to
eligible children and their families with  the  approval  of  the  early
intervention official.
  S  5.  Section 2548 of the public health law, as amended by section 20
of part H of chapter 686 of the laws of 2003,  is  amended  to  read  as
follows:
  S 2548. Transition plan. To the extent that a toddler with a disabili-
ty is thought to be eligible for services pursuant to section forty-four
hundred  ten  of  the  education  law, the [early intervention official]
SERVICE COORDINATOR shall notify in writing the committee  on  preschool
special  education  of  the  local  school district in which an eligible
child resides of the  potential  transition  of  such  child  and,  with
parental  consent,  arrange for a conference among the service coordina-
tor, the parent and  the  chairperson  of  the  preschool  committee  on
special  education  or  his  or her designee at least ninety days before
such child would be  eligible  for  services  under  section  forty-four
hundred  ten  of the education law to review the child's program options
and to establish a transition plan, if appropriate. If a parent does not
consent to a conference with the service coordinator and the chairperson
of the preschool committee on special education or his or  her  designee
to  determine  whether  the  child should be referred for services under
section forty-four hundred ten of the education law, and  the  child  is
not  determined  to  be  eligible  by the committee on preschool special
education for such services prior to the  child's  third  birthday,  the
child's eligibility for early intervention program services shall end at
the child's third birthday.
  S  6.  Subdivision  2  of  section  2550  of the public health law, as
amended by section 5 of part B3 of chapter 62 of the laws  of  2003,  is
amended to read as follows:

S. 6256--A                          7                         A. 9056--A

  2. In meeting the requirements of subdivision one of this section, the
lead  agency  shall  adopt  and  use proper methods of administering the
early intervention program, including:
  (a)  establishing  standards  for evaluators, service coordinators and
providers of early intervention services;
  (b) approving, and periodically re-approving evaluators, service coor-
dinators and providers of early intervention services who  meet  depart-
ment  standards;  PROVIDED  HOWEVER THAT THE DEPARTMENT MAY REQUIRE THAT
APPROVED EVALUATORS, SERVICE COORDINATORS AND PROVIDERS OF EARLY  INTER-
VENTION  SERVICES  ENTER INTO AGREEMENTS WITH THE DEPARTMENT IN ORDER TO
CONDUCT EVALUATIONS OR RENDER SERVICE COORDINATION OR EARLY INTERVENTION
SERVICES IN THE EARLY INTERVENTION PROGRAM. SUCH  AGREEMENTS  SHALL  SET
FORTH  THE  TERMS AND CONDITIONS OF PARTICIPATION IN THE PROGRAM. IF THE
DEPARTMENT REQUIRES THAT SUCH PROVIDERS ENTER INTO AGREEMENTS  WITH  THE
DEPARTMENT FOR PARTICIPATION IN THE PROGRAM, "APPROVAL" OR "APPROVED" AS
USED  IN THIS TITLE SHALL MEAN A PROVIDER WHO IS APPROVED BY THE DEPART-
MENT IN ACCORDANCE WITH DEPARTMENT REGULATIONS AND HAS ENTERED  INTO  AN
AGREEMENT  WITH THE DEPARTMENT FOR THE PROVISION OF EVALUATIONS, SERVICE
COORDINATION OR EARLY INTERVENTION SERVICES.
  A LESS-THAN-ARMS-LENGTH  RELATIONSHIP  SHALL  NOT  EXIST  BETWEEN  THE
SERVICE  COORDINATOR,  EVALUATOR  AND THE PROVIDER AUTHORIZED TO DELIVER
EARLY INTERVENTION SERVICES TO THE CHILD, UNLESS APPROVAL  OF  THE  LEAD
AGENCY,  IN  CONSULTATION  WITH  THE  EARLY  INTERVENTION  OFFICIAL,  IS
OBTAINED. PROVIDED FURTHER THAT, UNLESS AUTHORIZED BY THE  LEAD  AGENCY,
IN  CONSULTATION  WITH  THE  EARLY INTERVENTION OFFICIAL, UPON A FINDING
THAT IT HAS BEEN DEMONSTRATED THAT AN  APPROVED  PROVIDER  IS  THE  ONLY
APPROPRIATE  PROVIDER  AVAILABLE  TO RENDER THE SERVICES RECOMMENDED FOR
SUCH CHILD, THE SERVICE  COORDINATOR,  THE  EVALUATOR  SELECTED  BY  THE
PARENT  AND  THE PROVIDER RECOMMENDED TO DELIVER SERVICES TO SUCH CHILD,
AND ANY AGENCY  UNDER  WHICH  SUCH  SERVICE  COORDINATOR,  EVALUATOR  OR
PROVIDER  IS  EMPLOYED  BY OR UNDER CONTRACT WITH, SHALL NOT BE THE SAME
ENTITY.
  ALL APPROVED EVALUATORS AND PROVIDERS OF EARLY INTERVENTION  SERVICES,
HEREINAFTER  COLLECTIVELY  REFERRED  TO AS "PROVIDER" OR "PROVIDERS" FOR
PURPOSES OF THIS SUBPARAGRAPH, SHALL ESTABLISH AND MAINTAIN CONTRACTS OR
AGREEMENTS WITH A SUFFICIENT NUMBER OF INSURERS  OR  HEALTH  MAINTENANCE
ORGANIZATIONS,  INCLUDING  THE  MEDICAL  ASSISTANCE PROGRAM OR THE CHILD
HEALTH INSURANCE PROGRAM ESTABLISHED UNDER TITLE ONE-A OF THIS  ARTICLE,
AS  DETERMINED  NECESSARY  BY THE COMMISSIONER TO MEET INSURER OR HEALTH
MAINTENANCE ORGANIZATION NETWORK ADEQUACY; PROVIDED, HOWEVER,  THAT  THE
DEPARTMENT  MAY, IN ITS DISCRETION, APPROVE A PROVIDER WHO DOES NOT HAVE
A CONTRACT OR AGREEMENT WITH ONE OR MORE INSURERS OR HEALTH  MAINTENANCE
ORGANIZATIONS IF THE PROVIDER RENDERS A SERVICE THAT MEETS A UNIQUE NEED
FOR SUCH SERVICE UNDER THE EARLY INTERVENTION PROGRAM.  APPROVED PROVID-
ERS SHALL SUBMIT TO THE DEPARTMENT, INFORMATION AND DOCUMENTATION OF THE
INSURERS  AND  HEALTH MAINTENANCE ORGANIZATIONS, WITH WHICH THE PROVIDER
HOLDS AN AGREEMENT OR CONTRACT. A PROVIDER'S APPROVAL WITH  THE  DEPART-
MENT  TO DELIVER EVALUATIONS OR EARLY INTERVENTION SERVICES SHALL TERMI-
NATE IF THE PROVIDER FAILS TO PROVIDE SUCH INFORMATION OR  DOCUMENTATION
ACCEPTABLE  TO THE DEPARTMENT OF ITS CONTRACTS OR AGREEMENTS WITH INSUR-
ERS OR HEALTH MAINTENANCE ORGANIZATIONS AS REQUESTED BY THE DEPARTMENT;
  (c) [compiling  and  disseminating  to  the  municipalities  lists  of
approved  evaluators, service coordinators and providers of early inter-
vention services;
  (d)] monitoring of agencies, institutions and organizations under this
title and  agencies,  institutions  and  organizations  providing  early

S. 6256--A                          8                         A. 9056--A

intervention  services which are under the jurisdiction of a state early
intervention service agency;
  [(e)]  (D)  enforcing  any obligations imposed on those agencies under
this title or Part H of the federal individuals with disabilities educa-
tion act and its regulations;
  [(f)] (E) providing training and technical assistance to  those  agen-
cies,  institutions  and  organizations,  including  initial and ongoing
training and technical assistance to municipalities to help enable  them
to  identify,  locate  and  evaluate  eligible  children, develop IFSPs,
ensure the provision of appropriate early intervention services, promote
the development of new services, where there is a demonstrated need  for
such  services  and afford procedural safeguards to infants and toddlers
and their families;
  [(g)] (F) correcting deficiencies that are identified through monitor-
ing; and
  [(h)] (G) in monitoring early intervention services, the  commissioner
shall  provide  municipalities  with  the results of any review of early
intervention services undertaken and shall  provide  the  municipalities
with the opportunity to comment thereon.
  S  7.  Subdivision  7  of  section  2551  of  the public health law is
REPEALED, and subdivisions 8, 9 and 10 are renumbered subdivisions 7,  8
and 9.
  S  8.   Section 2552 of the public health law, as added by chapter 428
of the laws of 1992, subdivisions 2 and 3 as amended by chapter  231  of
the  laws of 1993, and subdivision 4 as added by section 6 of part B3 of
chapter 62 of the laws of 2003, is amended to read as follows:
  S 2552. Responsibility of municipality.  1. Each municipality shall be
responsible for ensuring that the early intervention services  contained
in  an  IFSP  are  provided  to eligible children and their families who
reside in such municipality [and may contract with approved providers of
early intervention services for such purpose].  THE SERVICE  COORDINATOR
SHALL  REPORT, IN A MANNER AND FORMAT AS DETERMINED BY THE MUNICIPALITY,
ON THE DELIVERY OF SERVICES TO AN ELIGIBLE CHILD IN ACCORDANCE WITH  THE
ELIGIBLE CHILD'S IFSP. A MUNICIPALITY MAY REQUEST THAT THE PARENT SELECT
A NEW SERVICE COORDINATOR OR REQUIRE THAT THE SERVICE COORDINATOR SELECT
A  NEW  PROVIDER  OF SERVICES IF THE MUNICIPALITY FINDS THAT THE SERVICE
COORDINATOR HAS NOT BEEN  PERFORMING  HIS  OR  HER  RESPONSIBILITIES  AS
REQUIRED  BY  THIS  TITLE  OR  THAT  SERVICES  HAVE NOT BEEN PROVIDED IN
ACCORDANCE WITH THE ELIGIBLE CHILD'S IFSP.
  2. [After consultation with early intervention officials, the  commis-
sioner  shall develop procedures to permit a municipality to contract or
otherwise make arrangements with other municipalities  for  an  eligible
child and the child's family to receive services from such other munici-
palities.
  3.  The  municipality  shall  monitor claims for service reimbursement
authorized by this title and shall verify such claims prior to  payment.
The municipality shall inform the commissioner of discrepancies in bill-
ing and when payment is to be denied or withheld by the municipality.
  4.]  The early intervention official shall require an eligible child's
parent to furnish the parents'  and  eligible  child's  social  security
numbers  for the purpose of the department's and municipality's adminis-
tration of the program.
  S 9. Subdivision 1 of section  2557  of  the  public  health  law,  as
amended  by  section  4  of  part C of chapter 1 of the laws of 2002, is
amended to read as follows:

S. 6256--A                          9                         A. 9056--A

  1. The approved costs, OTHER THAN  THOSE  REIMBURSABLE  IN  ACCORDANCE
WITH  SECTION  TWENTY-FIVE  HUNDRED  FIFTY-NINE  OF  THIS TITLE, for [an
eligible] A child who receives  an  evaluation  and  early  intervention
services  pursuant to this title shall be a charge upon the municipality
wherein the eligible child resides or, where the services are covered by
the  medical  assistance  program,  upon the social services district of
fiscal responsibility with respect to those eligible  children  who  are
also  eligible  for medical assistance. All approved costs shall be paid
in the first instance and at least quarterly by the appropriate  govern-
ing  body  or  officer  of  the municipality upon vouchers presented and
audited in the same manner as the case of other claims against the muni-
cipality. Notwithstanding the insurance law  or  regulations  thereunder
relating  to  the  permissible  exclusion of payments for services under
governmental programs, no such exclusion shall  apply  with  respect  to
payments  made pursuant to this title. Notwithstanding the insurance law
or any other law or agreement to the contrary, benefits under this title
shall be considered secondary to any [plan of insurance or state govern-
ment benefit program] INSURANCE POLICY, PLAN OR CONTRACT under which  an
eligible child may have coverage, INCLUDING COVERAGE AVAILABLE UNDER THE
MEDICAL  ASSISTANCE PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTAB-
LISHED IN TITLE ONE-A OF THIS ARTICLE, OR UNDER ANY  OTHER  GOVERNMENTAL
THIRD  PARTY  PAYOR.   Nothing in this section shall increase or enhance
coverages provided for within  an  insurance  contract  subject  to  the
provisions of this title.
  S  9-a.  Subdivision  4  of  section  2557 of the public health law is
REPEALED and subdivisions 2 and 5, subdivision 2 as added by chapter 428
of the laws of 1992 and subdivision 5 as added by section 7 of  part  B3
of chapter 62 of the laws of 2003, are amended to read as follows:
  2. The department shall reimburse the approved costs paid by a munici-
pality  for the purposes of this title, other than those reimbursable by
AN INSURER OR HEALTH MAINTENANCE  ORGANIZATION,  OR  GOVERNMENTAL  THIRD
PARTY  PAYOR INCLUDING the medical assistance program or [by third party
payors] THE CHILD HEALTH INSURANCE PROGRAM ESTABLISHED IN TITLE ONE-A OF
THIS ARTICLE, in an amount of fifty percent of the  amount  expended  in
accordance with the rules and regulations of the commissioner; PROVIDED,
HOWEVER,  THAT IN THE DISCRETION OF THE DEPARTMENT AND WITH THE APPROVAL
OF THE DIRECTOR OF THE DIVISION OF THE BUDGET, THE DEPARTMENT MAY  REIM-
BURSE  MUNICIPALITIES  IN  AN  AMOUNT  GREATER THAN FIFTY PERCENT OF THE
AMOUNT EXPENDED.  Such state reimbursement to the municipality shall not
be paid prior to April first of the year in which the approved costs are
paid by  the  municipality,  PROVIDED,  HOWEVER  THAT,  SUBJECT  TO  THE
APPROVAL  OF  THE  DIRECTOR  OF  THE BUDGET, THE DEPARTMENT MAY PAY SUCH
STATE AID REIMBURSEMENT TO THE MUNICIPALITY PRIOR TO SUCH DATE.
  5. [The  department  shall]  (A)  THE  COMMISSIONER,  IN  HIS  OR  HER
DISCRETION, IS AUTHORIZED TO contract with [an independent organization]
ONE  OR  MORE ENTITIES to act as the fiscal agent for the department AND
MUNICIPALITIES WITH RESPECT TO FISCAL MANAGEMENT AND  PAYMENT  OF  EARLY
INTERVENTION  CLAIMS. MUNICIPALITIES SHALL GRANT SUFFICIENT AUTHORITY TO
THE FISCAL AGENT TO ACT ON THEIR BEHALF. MUNICIPALITIES, AND  INDIVIDUAL
AND  AGENCY PROVIDERS AS DEFINED BY THE COMMISSIONER IN REGULATION SHALL
UTILIZE SUCH FISCAL AGENT FOR PAYMENT OF EARLY  INTERVENTION  CLAIMS  AS
DETERMINED  BY  THE  DEPARTMENT  AND  SHALL PROVIDE SUCH INFORMATION AND
DOCUMENTATION AS REQUIRED BY THE DEPARTMENT AND NECESSARY FOR THE FISCAL
AGENT TO CARRY OUT ITS DUTIES.
  (B) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTION ONE  HUNDRED
TWELVE OR ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, SECTIONS ONE

S. 6256--A                         10                         A. 9056--A

HUNDRED  FORTY-TWO  AND ONE HUNDRED FORTY-THREE OF THE ECONOMIC DEVELOP-
MENT LAW, OR ANY OTHER CONTRARY PROVISION OF LAW,  THE  COMMISSIONER  IS
AUTHORIZED  TO ENTER INTO A CONTRACT OR CONTRACTS UNDER PARAGRAPH (A) OF
THIS SUBDIVISION WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC-
ESS, PROVIDED, HOWEVER, THAT:
  (I)  THE DEPARTMENT SHALL POST ON ITS WEBSITE, FOR A PERIOD OF NO LESS
THAN THIRTY DAYS:
  (1) A DESCRIPTION OF THE PROPOSED SERVICES TO BE PROVIDED PURSUANT  TO
THE CONTRACT OR CONTRACTS;
  (2) THE CRITERIA FOR SELECTION OF A CONTRACTOR OR CONTRACTORS;
  (3)  THE PERIOD OF TIME DURING WHICH A PROSPECTIVE CONTRACTOR MAY SEEK
SELECTION, WHICH SHALL BE NO LESS THAN THIRTY DAYS AFTER  SUCH  INFORMA-
TION IS FIRST POSTED ON THE WEBSITE; AND
  (4)  THE  MANNER  BY  WHICH  A  PROSPECTIVE  CONTRACTOR  MAY SEEK SUCH
SELECTION, WHICH MAY INCLUDE SUBMISSION BY ELECTRONIC MEANS;
  (II) ALL REASONABLE AND RESPONSIVE SUBMISSIONS THAT ARE RECEIVED  FROM
PROSPECTIVE  CONTRACTORS  IN  A  TIMELY FASHION SHALL BE REVIEWED BY THE
COMMISSIONER; AND
  (III) THE COMMISSIONER SHALL SELECT  SUCH  CONTRACTOR  OR  CONTRACTORS
THAT, IN HIS OR HER DISCRETION, ARE BEST SUITED TO SERVE THE PURPOSES OF
THIS SECTION.
  (C)  PARAGRAPH (B) OF THIS SUBDIVISION SHALL APPLY ONLY TO THE INITIAL
CONTRACT OR CONTRACTS NECESSARY TO OBTAIN THE SERVICES OF A FISCAL AGENT
FOR EARLY INTERVENTION PROGRAM FISCAL MANAGEMENT AND  PAYMENT  OF  EARLY
INTERVENTION  CLAIMS  AND SHALL NOT APPLY TO SUBSEQUENT CONTRACTS NEEDED
TO MAINTAIN SUCH SERVICES, AS DETERMINED BY THE COMMISSIONER IN  HIS  OR
HER  DISCRETION.    [A municipality may elect to utilize the services of
such organization for early intervention program fiscal  management  and
claiming  as determined by the commissioner or may select an independent
agent to act as the fiscal agent for such municipality or may act as its
own fiscal agent.]
  S 10. Subdivision 4 of section 2558 of the public health law, as added
by chapter 428 of the laws of 1992, is amended to read as follows:
  4. Local contribution. The municipality of residence shall  be  finan-
cially  responsible  for  the  local contribution in the amount of fifty
percent of the [approved costs] AMOUNT EXPENDED PROVIDED, HOWEVER,  THAT
IN  THE DISCRETION OF THE DEPARTMENT AND WITH THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, IN ACCORDANCE WITH SUBDIVISION TWO OF
SECTION TWENTY-FIVE HUNDRED FIFTY-SEVEN OF THIS  TITLE,  THE  DEPARTMENT
MAY  REQUIRE  THAT MUNICIPALITIES BE FINANCIALLY RESPONSIBLE FOR A LOCAL
CONTRIBUTION IN  AN  AMOUNT  LESS  THAN  FIFTY  PERCENT  OF  THE  AMOUNT
EXPENDED.   The commissioner shall certify to the comptroller the amount
of the local contribution owed by each municipality to  the  state.  The
comptroller  shall  deduct  the  amount of such local contribution first
from any moneys due the municipality  pursuant  to  section  twenty-five
hundred fifty-six of this title and then from any other moneys due or to
become due to the municipality.
  S  11. Paragraphs (a), (c) and (d) of subdivision 3 of section 2559 of
the public health law, paragraph (a) as amended  and  paragraph  (d)  as
added  by chapter 231 of the laws of 1993, subparagraphs (i) and (ii) of
paragraph (a) as added by chapter 406 of the laws of 2011, and paragraph
(c) as added by chapter 428 of the laws of 1992 are amended to  read  as
follows:
  (a)  Providers  of  EVALUATIONS AND early intervention services [and],
INCLUDING transportation services, HEREINAFTER COLLECTIVELY REFERRED  TO
IN  THIS  SUBDIVISION  AS  "PROVIDER" OR "PROVIDERS", shall in the first

S. 6256--A                         11                         A. 9056--A

instance and where applicable, seek payment from all [third party payors
including governmental agencies] INSURERS AND HEALTH MAINTENANCE  ORGAN-
IZATIONS,  INCLUDING THE MEDICAL ASSISTANCE PROGRAM AND THE CHILD HEALTH
INSURANCE  PROGRAM  ESTABLISHED  IN  TITLE ONE-A OF THIS ARTICLE AND ANY
OTHER GOVERNMENTAL THIRD PARTY PAYORS prior to claiming payment  from  a
given  municipality  for EVALUATIONS CONDUCTED UNDER THE PROGRAM AND FOR
services rendered to eligible children, provided that, [for the  purpose
of  seeking  payment  from  the medical assistance program or from other
third party payors, the municipality shall be  deemed  the  provider  of
such  early  intervention  services  to the extent that the provider has
promptly furnished to the municipality adequate and complete information
necessary to support the  municipality  billing,  and  provided  further
that]  the  obligation to seek payment shall not apply to a payment from
[a third party payor] AN INSURER who is  not  prohibited  from  applying
such  payment,  and  will  apply  such payment, to an annual or lifetime
limit specified in the insured's policy.
  (i) Parents shall provide [and] the municipality  [shall  obtain]  AND
SERVICE  COORDINATOR  information  on  any [plan of insurance] INSURANCE
POLICY, PLAN OR CONTRACT under which an eligible child has coverage.
  (ii) Parents shall provide the municipality AND THE SERVICE  COORDINA-
TOR  with  a written referral from a primary care provider as documenta-
tion, for eligible children, of the medical necessity  of  early  inter-
vention services.
  (III)  PROVIDERS  SHALL UTILIZE THE DEPARTMENT'S FISCAL AGENT AND DATA
SYSTEM FOR CLAIMING PAYMENT FROM INSURERS OR HEALTH  MAINTENANCE  ORGAN-
IZATIONS  FOR  EVALUATIONS  AND SERVICES RENDERED UNDER THE EARLY INTER-
VENTION PROGRAM.
  (IV) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, RULE OR  REGU-
LATION,  PAYMENTS MADE BY ANY INSURER OR HEALTH MAINTENANCE ORGANIZATION
FOR EVALUATIONS AND  SERVICES  PROVIDED  UNDER  THE  EARLY  INTERVENTION
PROGRAM  SHALL  BE  AT  RATES  ESTABLISHED UNDER AN AGREEMENT NEGOTIATED
BETWEEN THE INSURER OR HEALTH MAINTENANCE ORGANIZATION,  IF  APPLICABLE,
PROVIDED,  HOWEVER,  THAT IF THE INSURER OR HEALTH MAINTENANCE ORGANIZA-
TION MAINTAINS A NETWORK OF PROVIDERS AND A  CHILD  HAS  A  DEMONSTRATED
NEED,  AS  DETERMINED BY THE INSURER OR HEALTH MAINTENANCE ORGANIZATION,
IF APPLICABLE, FOR AN EVALUATION OR SERVICE RENDERED BY A  PROVIDER  WHO
IS  NOT WITHIN THE INSURER OR HEALTH MAINTENANCE ORGANIZATION'S NETWORK,
PAYMENT TO SUCH OUT OF NETWORK PROVIDER SHALL BE MADE  AT  RATES  ESTAB-
LISHED BY THE COMMISSIONER IN ACCORDANCE WITH REGULATION.
  (V)  PAYMENTS  MADE BY ANY INSURER OR HEALTH MAINTENANCE PROGRAM SHALL
BE CONSIDERED PAYMENTS IN FULL FOR SUCH SERVICES AND THE PROVIDER  SHALL
NOT  SEEK ADDITIONAL PAYMENT FROM THE MUNICIPALITY, CHILD, OR HIS OR HER
PARENTS FOR ANY PORTION OF THE COSTS OF SAID  SERVICES.  NOTHING  HEREIN
SHALL PROHIBIT AN INSURER OR HEALTH MAINTENANCE ORGANIZATION FROM APPLY-
ING A COPAYMENT, COINSURANCE OR DEDUCTIBLE AS SET FORTH IN THE POLICY OR
PLAN.  PAYMENTS FOR COPAYMENTS, COINSURANCE OR DEDUCTIBLES SHALL BE MADE
IN ACCORDANCE WITH PARAGRAPH (B) OF THIS SUBDIVISION.
  (VI)  WHEN  PAYMENT UNDER AN INSURANCE POLICY, PLAN OR CONTRACT IS NOT
AVAILABLE OR HAS  BEEN  EXHAUSTED,  PROVIDERS  SHALL  SEEK  PAYMENT  FOR
SERVICES  IN  ACCORDANCE WITH SECTION TWENTY-FIVE HUNDRED FIFTY-SEVEN OF
THIS TITLE; PROVIDED, HOWEVER, THAT IF THE SERVICE PROVIDED IS A COVERED
BENEFIT UNDER THE POLICY, PLAN OR CONTRACT AND PAYMENT HAS  BEEN  DENIED
ON  GROUNDS  OTHER  THAN THAT BENEFITS HAVE BEEN EXHAUSTED, THE PROVIDER
SHALL EXHAUST ALL APPEALS OF SAID DENIAL PRIOR TO  CLAIMING  PAYMENT  TO
THE  MUNICIPALITY FOR THE SERVICE IN ACCORDANCE WITH SECTION TWENTY-FIVE
HUNDRED FIFTY-SEVEN OF THIS TITLE. PROVIDERS SHALL  NOT  DISCONTINUE  OR

S. 6256--A                         12                         A. 9056--A

DELAY  SERVICES  TO  ELIGIBLE  CHILDREN  PENDING PAYMENT OF THE CLAIM OR
DETERMINATIONS OF ANY APPEAL DENIALS.
  (c)  Payments  made for early intervention services under an insurance
policy or health benefit plan, INCLUDING PAYMENTS MADE  BY  THE  MEDICAL
ASSISTANCE  PROGRAM  OR  THE  CHILD HEALTH INSURANCE PROGRAM ESTABLISHED
UNDER TITLE ONE-A OF THIS ARTICLE  OR  OTHER  GOVERNMENTAL  THIRD  PARTY
PAYOR,  which  are provided as part of an IFSP pursuant to section twen-
ty-five hundred forty-five of this title shall not  be  applied  by  the
insurer  or  plan  administrator  against any maximum lifetime or annual
limits specified in the policy or  health  benefits  plan,  pursuant  to
section eleven of the chapter of the laws of nineteen hundred ninety-two
which added this title.
  [(d)  A  municipality,  or  its  designee, shall be subrogated, to the
extent of the expenditures by such municipality for  early  intervention
services furnished to persons eligible for benefits under this title, to
any  rights  such  person  may  have  or be entitled to from third party
reimbursement. The right of subrogation does not attach to benefits paid
or provided under any health insurance policy or  health  benefits  plan
prior to receipt of written notice of the exercise of subrogation rights
by the insurer or plan administrator providing such benefits.]
  S  12.  Subdivision  7  of  section  2510 of the public health law, as
amended by section 21 of part B of chapter 109 of the laws of  2010,  is
amended to read as follows:
  7.  "Covered  health care services" means: the services of physicians,
optometrists, nurses, nurse practitioners, midwives  and  other  related
professional  personnel  which  are  provided  on  an  outpatient basis,
including routine well-child visits; diagnosis and treatment of  illness
and injury; inpatient health care services; laboratory tests; diagnostic
x-rays;  prescription  and  non-prescription  drugs  and durable medical
equipment; radiation therapy; chemotherapy; hemodialysis; emergency room
services; hospice services; emergency,  preventive  and  routine  dental
care,  including  medically necessary orthodontia but excluding cosmetic
surgery;  emergency,  preventive  and  routine  vision  care,  including
eyeglasses;  speech  and hearing services; and, inpatient and outpatient
mental health, alcohol and substance abuse services as  defined  by  the
commissioner  in  consultation with the superintendent.  "COVERED HEALTH
CARE SERVICES" SHALL ALSO INCLUDE EARLY INTERVENTION  SERVICES  PROVIDED
PURSUANT  TO  TITLE  TWO-A  OF THIS ARTICLE UP TO THE SCOPE AND LEVEL OF
COVERAGE FOR THE SAME SERVICES PROVIDED PURSUANT TO THIS SUBDIVISION, AS
DEFINED BY THE COMMISSIONER. "Covered health care  services"  shall  not
include  drugs,  procedures  and  supplies for the treatment of erectile
dysfunction when provided to, or prescribed for use by, a person who  is
required  to register as a sex offender pursuant to article six-C of the
correction law, provided that any denial  of  coverage  of  such  drugs,
procedures  or  supplies  shall  provide  the  patient with the means of
obtaining additional information concerning  both  the  denial  and  the
means of challenging such denial.
  S 13. Intentionally omitted.
  S  14.  Paragraph  (b)  of subdivision 5 of section 4403 of the public
health law is relettered paragraph (c), paragraph (c), as added by chap-
ter 705 of the laws of 1996, is amended and a new paragraph (b) is added
to read as follows:
  (B) UPON THE EFFECTIVE DATE OF THIS PARAGRAPH AND AT THE TIME OF EVERY
THREE YEAR REVIEW BY THE COMMISSIONER AS SET FORTH IN PARAGRAPH  (A)  OF
THIS  SUBDIVISION,  AND  UPON APPLICATION FOR EXPANSION OF SERVICE AREA,
THE HEALTH MAINTENANCE ORGANIZATION SHALL DEMONSTRATE THAT IT  MAINTAINS

S. 6256--A                         13                         A. 9056--A

AN ADEQUATE NETWORK OF PROVIDERS WHO ARE APPROVED TO DELIVER EVALUATIONS
AND EARLY INTERVENTION PROGRAM SERVICES IN ACCORDANCE WITH TITLE II-A OF
ARTICLE  TWENTY-FIVE  OF THIS CHAPTER, BY SHOWING TO THE SATISFACTION OF
THE  COMMISSIONER  THAT  (I)  THERE ARE A SUFFICIENT NUMBER OF GEOGRAPH-
ICALLY ACCESSIBLE PARTICIPATING PROVIDERS; AND (II) THERE ARE SUFFICIENT
PROVIDERS IN EACH AREA OF SPECIALTY OF PRACTICE TO MEET THE NEEDS OF THE
ENROLLMENT POPULATION.
  [(c)] (D) Each organization shall report on an annual basis the number
of enrollees and the number of participating providers in each organiza-
tion.  EACH HEALTH MAINTENANCE ORGANIZATION SHALL MAKE  PUBLICLY  AVAIL-
ABLE AND UPDATE ON A QUARTERLY BASIS, THE NAMES OF PARTICIPATING PROVID-
ERS IN THE HEALTH MAINTENANCE ORGANIZATION'S NETWORK WHO ARE APPROVED TO
DELIVER  EVALUATIONS  AND EARLY INTERVENTION PROGRAM SERVICES IN ACCORD-
ANCE WITH TITLE II-A OF ARTICLE TWENTY-FIVE OF THIS CHAPTER.
  S 15. Section 4406 of the public health law is amended by adding a new
subdivision 6 to read as follows:
  6. (A) NO SUBSCRIBER CONTRACT OR BENEFIT PACKAGE SHALL EXCLUDE  COVER-
AGE FOR OTHERWISE COVERED SERVICES SOLELY ON THE BASIS THAT THE SERVICES
CONSTITUTE EARLY INTERVENTION PROGRAM SERVICES UNDER TITLE II-A OF ARTI-
CLE TWENTY-FIVE OF THIS CHAPTER.
  (B)  WHERE  A SUBSCRIBER CONTRACT OR BENEFIT PACKAGE PROVIDES COVERAGE
FOR A SERVICE THAT IS PROVIDED UNDER THE EARLY INTERVENTION PROGRAM  AND
IS  OTHERWISE  COVERED UNDER THE SUBSCRIBER CONTRACT OR BENEFIT PACKAGE,
SUCH COVERAGE SHALL NOT BE APPLIED AGAINST ANY MAXIMUM ANNUAL  OR  LIFE-
TIME  MONETARY  LIMITS  SET FORTH IN SUCH SUBSCRIBER CONTRACT OR BENEFIT
PACKAGE. VISIT  LIMITATIONS  AND  OTHER  TERMS  AND  CONDITIONS  OF  THE
SUBSCRIBER  CONTRACT  OR BENEFIT PACKAGE WILL CONTINUE TO APPLY TO EARLY
INTERVENTION SERVICES. HOWEVER, ANY VISITS USED FOR  EARLY  INTERVENTION
PROGRAM  SERVICES SHALL NOT REDUCE THE NUMBER OF VISITS OTHERWISE AVAIL-
ABLE UNDER THE SUBSCRIBER CONTRACT OR BENEFIT PACKAGE FOR SUCH  SERVICES
THAT ARE NOT PROVIDED UNDER THE EARLY INTERVENTION PROGRAM.
  (C) THE HEALTH MAINTENANCE ORGANIZATION SHALL PROVIDE THE MUNICIPALITY
AND  SERVICE  COORDINATOR  WITH  INFORMATION  ON  THE EXTENT OF BENEFITS
AVAILABLE TO AN ENROLLEE UNDER SUCH SUBSCRIBER CONTRACT OR BENEFIT PACK-
AGE WITHIN FIFTEEN DAYS OF THE HEALTH MAINTENANCE ORGANIZATION'S RECEIPT
OF WRITTEN REQUEST AND NOTICE AUTHORIZING SUCH RELEASE.
  (D) NO  HEALTH  MAINTENANCE  ORGANIZATION  SHALL  REFUSE  TO  ISSUE  A
SUBSCRIBER  CONTRACT  OR BENEFIT PACKAGE OR REFUSE TO RENEW A SUBSCRIBER
CONTRACT OR BENEFIT PACKAGE SOLELY BECAUSE THE APPLICANT OR ENROLLEE  IS
RECEIVING SERVICES UNDER THE EARLY INTERVENTION PROGRAM.
  (E) HEALTH MAINTENANCE ORGANIZATIONS SHALL ACCEPT CLAIMS SUBMITTED FOR
PAYMENT  UNDER  THE  CONTRACT  FROM  A PROVIDER THROUGH THE DEPARTMENT'S
FISCAL AGENT AND DATA  SYSTEM  FOR  SUCH  CLAIMING.  HEALTH  MAINTENANCE
ORGANIZATIONS  SHALL,  IN A MANNER AND FORMAT AS REQUIRED BY THE DEPART-
MENT, PROVIDE THE DEPARTMENT WITH INFORMATION ON  CLAIMS  SUBMITTED  FOR
EVALUATIONS  AND  EARLY INTERVENTION SERVICES PROVIDED TO CHILDREN UNDER
THE EARLY INTERVENTION PROGRAM AND DISPOSITION OF SUCH CLAIMS.
  (F) WHERE A SUBSCRIBER CONTRACT OR BENEFIT PACKAGE  PROVIDES  COVERAGE
FOR  AN  EVALUATION  OR  SERVICE  PROVIDED  UNDER THE EARLY INTERVENTION
PROGRAM, REIMBURSEMENT FOR SUCH EVALUATION OR SERVICE SHALL BE AT  RATES
NEGOTIATED BY THE HEALTH MAINTENANCE ORGANIZATION AND PROVIDER PROVIDED,
HOWEVER,  THAT  IF A CHILD HAS A DEMONSTRATED NEED, AS DETERMINED BY THE
HEALTH MAINTENANCE ORGANIZATION, FOR AN EVALUATION OR  SERVICE  RENDERED
BY  A  PROVIDER  WHO  DOES NOT HOLD AN AGREEMENT WITH THE CHILD'S HEALTH
MAINTENANCE ORGANIZATION  FOR  THE  PROVISION  OF  SERVICES  TO  COVERED

S. 6256--A                         14                         A. 9056--A

PERSONS,  PAYMENT TO SUCH OUT OF NETWORK PROVIDER SHALL BE MADE AT RATES
ESTABLISHED BY THE COMMISSIONER IN ACCORDANCE WITH REGULATION.
  (G)  HEALTH  MAINTENANCE ORGANIZATIONS SHALL ENSURE THAT THE TERMS AND
CONDITIONS CONTAINED IN SUBSCRIBER CONTRACTS OR BENEFIT PACKAGES  RELAT-
ING  TO  PROVISION  OF SERVICES TO CHILDREN UNDER THE EARLY INTERVENTION
PROGRAM COMPLIES WITH TITLE II-A OF ARTICLE TWENTY-FIVE OF THIS  CHAPTER
AND WITH STANDARDS SET FORTH IN PART C OF THE INDIVIDUALS WITH DISABILI-
TIES  EDUCATION  ACT,  AS  AMENDED  BY THE INDIVIDUALS WITH DISABILITIES
EDUCATION IMPROVEMENT ACT OF 2004.
  S 16.  Intentionally omitted.
  S 17. Subsections (c) and (e) of section 3235-a of the insurance  law,
subsection  (c) as amended and subsection (e) as added by chapter 406 of
the laws of 2011, are amended, and a new subsection (f) is added to read
as follows:
  (c) [Any right of subrogation to  benefits  which  a  municipality  is
entitled  in  accordance  with  paragraph  (d)  of  subdivision three of
section twenty-five hundred fifty-nine of the public health law shall be
valid and enforceable to the extent benefits  are  available  under  any
accident  and health insurance policy. The right of subrogation does not
attach to insurance benefits paid or provided  under  any  accident  and
health  insurance  policy  prior  to  receipt  by the insurer of written
notice from the municipality. Upon  the  insurer's  receipt  of  written
request  and notice from the municipality that such right of subrogation
has been granted to such municipality and that the insured  has  author-
ized  the  release  of information to the municipality, the] THE insurer
shall provide the municipality AND SERVICE COORDINATOR with  information
on  the  extent  of  benefits available to the covered person under such
policy WITHIN FIFTEEN DAYS OF THE INSURER'S RECEIPT OF  WRITTEN  REQUEST
AND NOTICE AUTHORIZING SUCH RELEASE.
  (e)  [Written  claim  for early intervention program services shall be
submitted by the  municipality  as  the  approved  provider  within  one
hundred fifty days from the date of service.] WHERE A POLICY OF ACCIDENT
AND  HEALTH  INSURANCE,  INCLUDING A CONTRACT ISSUED PURSUANT TO ARTICLE
FORTY-THREE OF THIS CHAPTER, UTILIZES A NETWORK OF PROVIDERS, THE INSUR-
ER SHALL DEMONSTRATE TO THE SUPERINTENDENT THAT IT MAINTAINS AN ADEQUATE
NETWORK OF PROVIDERS WHO ARE APPROVED TO DELIVER EVALUATIONS  AND  EARLY
INTERVENTION  PROGRAM  SERVICES IN ACCORDANCE WITH TITLE II-A OF ARTICLE
TWENTY-FIVE OF THE PUBLIC HEALTH LAW BY DOCUMENTING THAT (I) THERE ARE A
SUFFICIENT NUMBER OF GEOGRAPHICALLY ACCESSIBLE PARTICIPATING  PROVIDERS;
AND  (II)  THERE  ARE  SUFFICIENT PROVIDERS IN EACH AREA OF SPECIALTY OF
PRACTICE TO MEET THE NEEDS OF THE ENROLLMENT POPULATION.  WHERE A POLICY
OF ACCIDENT AND HEALTH INSURANCE, INCLUDING A CONTRACT  ISSUED  PURSUANT
TO  ARTICLE FORTY-THREE OF THIS CHAPTER, PROVIDES COVERAGE FOR AN EVALU-
ATION  OR  SERVICE  PROVIDED  UNDER  THE  EARLY  INTERVENTION   PROGRAM,
REIMBURSEMENT  FOR  SUCH EVALUATION OR SERVICE SHALL BE AT RATES NEGOTI-
ATED BY THE INSURER AND PROVIDER, IF APPLICABLE, PROVIDED, HOWEVER, THAT
IF A CHILD HAS A DEMONSTRATED NEED FOR AN EVALUATION OR SERVICE RENDERED
BY A PROVIDER WHO DOES NOT HOLD AN AGREEMENT WITH  THE  CHILD'S  INSURER
FOR  THE  PROVISION  OF  SERVICES  TO  COVERED  PERSONS, PAYMENT TO SUCH
PROVIDER SHALL BE MADE AT  RATES  ESTABLISHED  BY  THE  COMMISSIONER  OF
HEALTH IN ACCORDANCE WITH REGULATION.
  (F)  NOTHING  IN THIS SECTION SHALL BE DEEMED TO LIMIT THE SUPERINTEN-
DENT'S AUTHORITY TO IMPOSE NETWORK ADEQUACY REQUIREMENTS ON INSURERS  IN
GENERAL.
  S 18. Subdivision 18 of section 4403 of the education law is REPEALED.

S. 6256--A                         15                         A. 9056--A

  S  19. Paragraph f of subdivision 3 and the opening paragraph of para-
graph a of subdivision 9 of  section  4410  of  the  education  law,  as
amended  by  chapter  82  of  the  laws  of 1995, are amended to read as
follows:
  f.  After  notification  by [an early intervention official] A SERVICE
COORDINATOR, as defined in section twenty-five hundred forty-one of  the
public  health  law,  that  a child receiving services pursuant to title
II-A of article twenty-five of the public health  law  potentially  will
transition  to  receiving services under this section and that a confer-
ence is to be convened to review the child's program options and  estab-
lish a transition plan, which conference must occur at least ninety days
before such child would be eligible for services under this section, the
chairperson of the committee on preschool special education of the local
school district or his or her designee in which such child resides shall
participate in the conference.
  Providers  of  special services or programs shall apply to the commis-
sioner for program approval on a form prescribed  by  the  commissioner;
such  application shall include, but not be limited to, a listing of the
services to be provided, the population to be served, a plan for provid-
ing services in the least restrictive environment and a  description  of
its  evaluation  component,  if  any.  [Providers  of early intervention
services seeking approval pursuant to subdivision seven of section twen-
ty-five hundred fifty-one of the public health law shall  apply  to  the
commissioner  for  such approval on a form prescribed by the commission-
er.] The commissioner shall approve programs in  accordance  with  regu-
lations  adopted  for  such  purpose  and shall periodically review such
programs at which time the commissioner shall provide  the  municipality
in  which  the  program  is  located or for which the municipality bears
fiscal responsibility an opportunity for comment within thirty  days  of
the  review. In collaboration with municipalities and representatives of
approved  programs,  the  commissioner  shall  develop  procedures   for
conducting  such reviews. Municipalities shall be allowed to participate
in such departmental review process. Such review shall be  conducted  by
individuals with appropriate experience as determined by the commission-
er and shall be conducted not more than once every three years.
  S 20. Intentionally omitted.
  S 21. Intentionally omitted.
  S 22. Intentionally omitted.
  S  23.  This act shall take effect January 1, 2013; provided, however,
that:
  1. the amendments to subdivision 7  of  section  2510  of  the  public
health law made by section twelve of this act shall not affect the expi-
ration of such subdivision and shall be deemed to expire therewith;
  2. the requirements contained in subparagraph (iv) of paragraph (a) of
subdivision  3  of  section  2559  of the public health law, as added by
section eleven of this act, paragraph (f) of subdivision  6  of  section
4406  of the public health law, as added by section fifteen of this act,
and subsection (e) of section 3235-a of the insurance law, as amended by
section seventeen of this act, as such  sections  pertain  to  requiring
that  an  insurer  or  health maintenance organization make payment to a
provider who is not within the insurer or health  maintenance  organiza-
tion's  network  at  rates  established by the commissioner of health in
accordance with regulation, if a  child  has  a  demonstrated  need,  as
determined  by the insurer or health maintenance organization, if appli-
cable, for an evaluation or service rendered by a provider  who  is  not
within  the  insurer or health maintenance organization's network, shall

S. 6256--A                         16                         A. 9056--A

apply only to policies, benefit packages and contracts issued,  renewed,
modified,  altered  or  amended  on  or after the effective date of such
sections of this act; and
  3. sections two-a, four, five, seven, eight, nine-a, ten, eighteen and
nineteen of this act shall take effect April 1, 2013.

                                 PART B

  Section  1.  Subdivisions  9,  10 and 11 of section 3555 of the public
authorities law, as added by chapter 5 of the laws of 1997, are  amended
to read as follows:
  9. to determine the conditions under which a physician may be extended
the privilege of practicing within a health facility under the jurisdic-
tion of the corporation, to promulgate internal policies for the conduct
of  all  persons, physicians and allied health practitioners within such
facility, and to appoint and grant privileges to qualified and competent
clinical practitioners; [and]
  10. except as provided in this subdivision or as expressly limited  by
any  applicable  state  law  or regulation, and in support of the powers
granted by subdivisions five and six of this section,  to  form  and  to
participate  in  the formation of one or more corporations, and to exer-
cise and perform such purposes, powers, duties, functions or  activities
through  one  or more subsidiary corporations or other entities owned or
controlled wholly or in part by the corporation, which shall  be  formed
pursuant  to the business corporation law, the limited liability company
law, the not-for-profit corporation law, or  the  partnership  law;  any
such subsidiary may be authorized to act as a general or limited partner
in  a  partnership  or  as  a member of a limited liability company, and
enter into an arrangement calling for an initial and subsequent  payment
or  payments or contributions to capital by such subsidiary in consider-
ation of an interest in revenues or other contractual rights.  An entity
shall be deemed a subsidiary corporation whenever and  so  long  as  (a)
more than half of any voting shares or other membership interest of such
subsidiary are owned or held by the corporation or (b) a majority of the
directors,  trustees  or members of such subsidiary are designees of the
corporation[.];
  11. TO ACCEPT FUNDING FROM THE STATE  PURSUANT  TO  PARAGRAPH  (O)  OF
SUBDIVISION  ONE  OF  SECTION TWENTY-EIGHT HUNDRED SEVEN-V OF THE PUBLIC
HEALTH LAW OR PURSUANT TO SECTION TWENTY-EIGHT HUNDRED EIGHTEEN  OF  THE
PUBLIC HEALTH LAW, PROVIDED, HOWEVER, THAT AS A CONDITION FOR RECEIPT OF
SUCH  FUNDS THE CORPORATION IS REQUIRED TO TAKE ALL NECESSARY AND APPRO-
PRIATE STEPS AND ARRANGEMENTS, INCLUDING BUT NOT  LIMITED  TO,  ENTERING
INTO  AN  ARRANGEMENT  FOR  MERGER OR OTHER AFFILIATION WITH ONE OR MORE
HEALTH CARE,  ACADEMIC  OR  OTHER  ENTITIES,  LOCATED  WITHIN  THE  SAME
GEOGRAPHICAL REGION AS THE CORPORATION, FOR THE PURPOSE OF PROMOTING THE
CONTINUED FINANCIAL VIABILITY OF THE CORPORATION, PROTECTING AND PROMOT-
ING  THE  HEALTH OF THE PATIENTS SERVED BY ITS HEALTH FACILITIES AND, TO
THE EXTENT POSSIBLE, CONTRIBUTING TO THE ECONOMIC REVITALIZATION OF  THE
REGION BY BECOMING OPERATIONALLY AND FISCALLY INDEPENDENT OF THE DEPART-
MENT  OF  HEALTH BY NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND FOUR-
TEEN, AND PROVIDED FURTHER, HOWEVER, THAT  THE  COMMISSIONER  OF  HEALTH
SHALL  MONITOR  SUCH  STEPS AND ARRANGEMENTS, ESTABLISH GOALS AND BENCH-
MARKS FOR THE ACHIEVEMENT OF  SUCH  INDEPENDENCE,  INTERCEDE  AS  DEEMED
NECESSARY  AND  APPROPRIATE  AND  DELAY  OR  PRECLUDE  THE CORPORATION'S
RECEIPT OF SUCH FUNDS IN THE EVENT THE COMMISSIONER OF HEALTH DETERMINES
THAT SUCH GOALS AND BENCHMARKS HAVE NOT BEEN MET.

S. 6256--A                         17                         A. 9056--A

  12. No subsidiary of the corporation shall  own,  operate,  manage  or
control  the existing research, education, acute inpatient or outpatient
facilities and services now operated by the Roswell Park  Cancer  Insti-
tute.
  S 2. This act shall take effect April 1, 2012.

                                 PART C

  Section  1.  The  public health law is amended by adding a new section
4148 to read as follows:
  S 4148. ELECTRONIC DEATH REGISTRATION SYSTEM. 1. LEGISLATIVE FINDINGS.
THE LEGISLATURE FINDS THAT IT IS NECESSARY TO UPDATE AND  MODERNIZE  THE
STATE'S  SYSTEM  OF  FILING  AND  MAINTAINING  INFORMATION AND DOCUMENTS
RELATED TO THE REGISTRATION OF DEATH. AN ELECTRONIC  DEATH  REGISTRATION
SYSTEM WILL PROMOTE ACCURACY AND PROVIDE FOR MORE TIMELY TRANSMISSION OF
DOCUMENTATION, PROMOTING EFFICIENCY IN THE OPERATIONS OF THE DEPARTMENT,
WHICH  OVERSEES THE DEATH REGISTRATION FILING PROCESS; LOCAL REGISTRARS,
WHICH ACCEPT AND FILE CERTIFICATES OF DEATH AND ISSUE BURIAL AND REMOVAL
PERMITS;  HEALTH  CARE  INSTITUTIONS  AND  PRACTITIONERS,  CORONERS  AND
MEDICAL  EXAMINERS,  WHICH  PREPARE  CERTIFICATES OF DEATH; AND LICENSED
FUNERAL DIRECTORS AND UNDERTAKERS, WHO REQUIRE PROMPT ACCESS TO  CERTIF-
ICATES  OF  DEATH  TO  CONDUCT BURIALS AND FUNERALS IN A TIMELY FASHION.
LICENSED FUNERAL DIRECTORS AND UNDERTAKERS HAVE EXPRESSED THEIR INTEREST
IN PARTNERING WITH THE DEPARTMENT TO SUPPORT THE ESTABLISHMENT AND MAIN-
TENANCE OF SUCH SYSTEM THROUGH A CONTRIBUTION, TENDERED FOR EACH  BURIAL
AND  REMOVAL PERMIT ISSUED TO A LICENSED FUNERAL DIRECTOR OR UNDERTAKER,
IN THE AMOUNT OF TWENTY DOLLARS.
  2. THE DEPARTMENT IS HEREBY AUTHORIZED AND DIRECTED TO DESIGN,  IMPLE-
MENT  AND  MAINTAIN AN ELECTRONIC DEATH REGISTRATION SYSTEM FOR COLLECT-
ING, STORING, RECORDING, TRANSMITTING, AMENDING, CORRECTING AND  AUTHEN-
TICATING  INFORMATION,  AS NECESSARY AND APPROPRIATE TO COMPLETE A DEATH
REGISTRATION, AND TO  GENERATE  SUCH  DOCUMENTS  AS  DETERMINED  BY  THE
DEPARTMENT  IN RELATION TO A DEATH OCCURRING IN THIS STATE. THE CONTRIB-
UTION REFERENCED IN SUBDIVISION ONE OF THIS SECTION SHALL  BE  COLLECTED
FOR  EACH BURIAL OR REMOVAL PERMIT ISSUED ON OR AFTER THE EFFECTIVE DATE
OF THIS SECTION FROM THE LICENSED FUNERAL DIRECTOR OR UNDERTAKER TO WHOM
SUCH PERMIT IS ISSUED, IN THE MANNER SPECIFIED  BY  THE  DEPARTMENT  AND
SHALL  BE USED SOLELY FOR THE PURPOSE SET FORTH IN SUBDIVISION 1 OF THIS
SECTION.
  3. COMMENCING ON JANUARY FIRST, TWO  THOUSAND  FOURTEEN,  OR  AS  SOON
THEREAFTER  AS  THE  COMMISSIONER  REASONABLY  DETERMINES IS FEASIBLE IN
LIGHT OF THE INTENT OF THIS SECTION, THE DEPARTMENT SHALL  REQUIRE  THAT
DEATHS  OCCURRING  WITHIN  THIS STATE MUST BE REGISTERED USING THE ELEC-
TRONIC DEATH REGISTRATION SYSTEM ESTABLISHED IN THIS SECTION. ELECTRONIC
DEATH REGISTRATION MAY BE PHASED IN, AS DETERMINED BY THE  COMMISSIONER,
FOR  DEATHS  OCCURRING IN THE STATE UNTIL THE ELECTRONIC DEATH REGISTRA-
TION SYSTEM IS FULLY IMPLEMENTED IN THE STATE.
  4. COMMENCING ON JANUARY FIRST, TWO THOUSAND FOURTEEN, OR ON SUCH DATE
DETERMINED BY  THE  COMMISSIONER  PURSUANT  TO  SUBDIVISION  3  OF  THIS
SECTION,  ALL PERSONS REQUIRED TO REGISTER A DEATH OR FILE A CERTIFICATE
OF DEATH UNDER THIS ARTICLE, AND SUCH OTHERS AS MAY BE AUTHORIZED BY THE
COMMISSIONER, SHALL HAVE ACCESS TO  THE  ELECTRONIC  DEATH  REGISTRATION
SYSTEM  FOR  THE  PURPOSE  OF  ENTERING INFORMATION REQUIRED TO EXECUTE,
COMPLETE AND FILE A CERTIFICATE OF DEATH OR TO RETRIEVE SUCH INFORMATION
OR GENERATE DOCUMENTATION FROM THE ELECTRONIC DEATH REGISTRATION SYSTEM.

S. 6256--A                         18                         A. 9056--A

THE CONFIDENTIALITY PROVISIONS IN SECTION FORTY-ONE HUNDRED  FORTY-SEVEN
OF THIS TITLE SHALL APPLY TO INFORMATION MAINTAINED IN THIS SYSTEM.
  5. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, COMMENCING ON
OR  AFTER  JANUARY  FIRST, TWO THOUSAND FOURTEEN, OR ON SUCH DATE DETER-
MINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION 3 OF THIS SECTION, ANY
REQUIREMENT OF THIS TITLE FOR A SIGNATURE OF ANY PERSON SHALL BE  DEEMED
SATISFIED  BY  THE USE BY SUCH PERSON OF DIGITAL SIGNATURE PROVIDED SUCH
PERSON IS AUTHORIZED IN ACCORDANCE WITH THIS SECTION TO  USE  THE  ELEC-
TRONIC DEATH REGISTRATION SYSTEM.
  S  2.  Subdivision  1  of  section 4100-a of the public health law, as
amended by chapter 644 of the laws of 1988, is amended and a new  subdi-
vision 5 is added to read as follows:
  1.  The term "certified copy" means a photographic reproduction in the
form of a photocopy or a microfilm print of the original certificate  OR
ELECTRONICALLY PRODUCED PRINT OF THE ORIGINAL CERTIFICATE, COMMENCING ON
OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND FOURTEEN, and certified by the
commissioner, his designated representative, a local registrar  [or  his
deputy], DEPUTY REGISTRAR OR SUB-REGISTRAR as a true copy thereof.
  5.  THE  TERM  "ELECTRONIC  DEATH  REGISTRATION SYSTEM" MEANS THE DATA
SYSTEM CREATED AND MAINTAINED BY THE DEPARTMENT FOR COLLECTING, STORING,
RECORDING, TRANSMITTING, AMENDING, CORRECTING AND AUTHENTICATING  INFOR-
MATION,  AS  NECESSARY AND APPROPRIATE TO COMPLETE A DEATH REGISTRATION,
AND TO GENERATE SUCH DOCUMENTS AS DETERMINED BY THE DEPARTMENT,  INCLUD-
ING  PERMITS  OR  CERTIFICATES,  RELATING  TO  A DEATH OCCURRING IN THIS
STATE.
  S 3. Subdivision 1 of section 4140 of the public health law is amended
to read as follows:
  1. The death of each person who has died in this state shall be regis-
tered immediately and not later than seventy-two hours  after  death  or
the  finding  of  a dead human body, by filing with the registrar of the
district in which the death occurred or the body was found a certificate
of such death, [which certificate shall be upon the form]  IN  A  MANNER
AND  FORMAT  AS  prescribed  by  the  commissioner,  WHICH SHALL INCLUDE
THROUGH ELECTRONIC MEANS IN ACCORDANCE WITH  SECTION  FORTY-ONE  HUNDRED
FORTY-EIGHT OF THIS TITLE.
  S  4.  Section  4141-a of the public health law, as amended by chapter
153 of the laws of 2011, is amended to read as follows:
  S 4141-a. Death certificate; duties of hospital administrator. When  a
death occurs in a hospital, except in those cases where certificates are
issued  by  coroners  or medical examiners, the person in charge of such
hospital or his or her designated representative shall promptly  present
the certificate to the physician or nurse practitioner in attendance, or
a physician or nurse practitioner acting in his or her behalf, who shall
promptly  certify to the facts of death, provide the medical information
required by the certificate, sign the medical certificate of death,  and
thereupon  return  such certificate to such person, so that the seventy-
two hour registration time limit prescribed in section four thousand one
hundred forty of this title can be met; PROVIDED, HOWEVER THAT  COMMENC-
ING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, OR ON SUCH DATE
DETERMINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION 3 OF SECTION 4148
OF THIS TITLE, INFORMATION AND SIGNATURES REQUIRED BY THIS SECTION SHALL
BE OBTAINED AND  MADE  IN  ACCORDANCE  WITH  SECTION  FORTY-ONE  HUNDRED
FORTY-EIGHT OF THIS TITLE.
  S  5. Section 4142 of the public health law is amended by adding a new
subdivision (e) to read as follows:

S. 6256--A                         19                         A. 9056--A

  (E) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF LAW AS MAY BE SET FORTH
IN THIS SECTION, COMMENCING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
FOURTEEN,  OR  ON  SUCH  DATE DETERMINED BY THE COMMISSIONER PURSUANT TO
SUBDIVISION 3 OF SECTION 4148 OF THIS TITLE, INFORMATION AND  SIGNATURES
REQUIRED  BY  THIS  SUBDIVISION SHALL BE OBTAINED AND MADE IN ACCORDANCE
WITH SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF THIS TITLE.
  S 6. Paragraph (b) of subdivision  2  and  subdivisions  3  and  5  of
section 4144 of the public health law, paragraph (b) of subdivision 2 as
amended  by  chapter  153  of  the  laws of 2011, are amended to read as
follows:
  (b) Verbal permission to remove a body of a deceased person  from  the
county  in  which death occurred or the body was found to a non-adjacent
county within the state of New York, as provided in subdivision  one  of
this section, shall be issued by the said registrar of vital statistics,
upon  request  by telephone of a licensed funeral director or undertaker
who holds a certificate of death signed by the  attending  physician  or
nurse  practitioner,  OR FOR DEATHS OCCURRING ON OR AFTER JANUARY FIRST,
TWO THOUSAND FOURTEEN, OR ON SUCH DATE DETERMINED  BY  THE  COMMISSIONER
PURSUANT  TO  SUBDIVISION  3 OF SECTION 4148 OF THIS TITLE, SUCH CERTIF-
ICATE OF DEATH SIGNED BY THE ATTENDING PHYSICIAN OR  NURSE  PRACTITIONER
IS AVAILABLE ELECTRONICALLY IN ACCORDANCE WITH SECTION FORTY-ONE HUNDRED
FORTY-EIGHT  OF THIS TITLE, showing that the death resulted from natural
causes and was not a result of accidental, suicidal, homicidal or  other
external causes.
  3.  No  registrar  of  vital  statistics shall receive any fee for the
issuance of burial or removal  permits  under  this  chapter  EXCEPT  AS
REFERENCED  BY  SECTION  FORTY-ONE HUNDRED FORTY-EIGHT OF THIS TITLE AND
other than the compensation provided in this article.
  5. If the interment, or other disposition of the body  of  a  deceased
person  is  to  be  made  within the state, the wording of the burial or
removal permit may be limited to a statement by the registrar, and  over
his  signature,  that  a  satisfactory certificate of death, having been
filed with him, as required by law,  permission  is  granted  to  inter,
remove  or  otherwise  dispose  of the body, stating the name, age, sex,
cause of death, and other necessary details [upon the form prescribed by
the commissioner] IN A MANNER AND FORMAT  AS  MAY  BE  REQUIRED  BY  THE
COMMISSIONER.
  S  7.  Subdivisions  1 and 4 of section 4161 of the public health law,
subdivision 1 as amended by chapter 589 of the laws of 1991 and subdivi-
sion 4 as amended by chapter 153 of the laws of  2011,  are  amended  to
read as follows:
  1.  The certificate of fetal death and the report of fetal death shall
contain such information and be in such form  as  the  commissioner  may
prescribe;  PROVIDED  HOWEVER THAT COMMENCING ON OR AFTER JANUARY FIRST,
TWO THOUSAND FOURTEEN, OR ON SUCH DATE DETERMINED  BY  THE  COMMISSIONER
PURSUANT  TO  SUBDIVISION  3 OF THIS SECTION, INFORMATION AND SIGNATURES
REQUIRED BY THIS SUBDIVISION SHALL BE OBTAINED AND  MADE  IN  ACCORDANCE
WITH  SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF THIS ARTICLE, except that
unless requested by the woman neither the certificate nor the report  of
fetal  death  shall  contain  the name of the woman, her social security
number or any other information which would permit her to be  identified
except  as  provided  in this subdivision. The report shall state that a
certificate of fetal death was filed with the commissioner and the  date
of  such  filing.  The commissioner shall develop a unique, confidential
identifier to be used on the certificate of fetal death to  be  used  in
connection  with the exercise of the commissioner's authority to monitor

S. 6256--A                         20                         A. 9056--A

the quality of care provided by any individual  or  entity  licensed  to
perform  an  abortion  in  this state and to permit coordination of data
concerning the medical history of the woman for purposes  of  conducting
surveillance  scientific studies and research pursuant to the provisions
of paragraph (j) of subdivision one of section two hundred six  of  this
chapter.
  4.  When  a  fetal  death  occurs in a hospital, except in those cases
where certificates are issued by  coroners  or  medical  examiners,  the
person  in  charge  of  such hospital or his or her designated represen-
tative shall promptly present the certificate to the physician or  nurse
practitioner  in attendance, or a physician or nurse practitioner acting
in his or her behalf, who shall promptly certify to the facts  of  birth
and  of  fetal  death,  provide  the medical information required by the
certificate, sign the medical certificate of birth and death, and there-
upon return such certificate to such person,  so  that  the  seventy-two
hour  registration  time  limit  prescribed in section four thousand one
hundred sixty of this title can be met; PROVIDED, HOWEVER THAT  COMMENC-
ING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, OR ON SUCH DATE
DETERMINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION 3 OF SECTION 4148
OF THIS ARTICLE, INFORMATION AND SIGNATURES REQUIRED BY THIS SUBDIVISION
SHALL BE OBTAINED AND MADE IN ACCORDANCE WITH SECTION FORTY-ONE  HUNDRED
FORTY-EIGHT OF THIS ARTICLE.
  S 8. Subdivision 3 of section 4171 of the public health law is amended
to read as follows:
  3.  All certificates, either of birth or death, shall be written legi-
bly, in durable black ink, [and no] PROVIDED HOWEVER, THAT COMMENCING ON
OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, OR ON  SUCH  DATE  DETER-
MINED  BY  THE COMMISSIONER PURSUANT TO SUBDIVISION 3 OF SECTION 4148 OF
THIS ARTICLE, DEATH CERTIFICATES SHALL BE COMPLETED IN  ACCORDANCE  WITH
SECTION  FORTY-ONE  HUNDRED FORTY-EIGHT OF THIS ARTICLE. NO certificate,
WHETHER FILED IN PAPER FORM OR DEATH CERTIFICATE FILED ELECTRONICALLY IN
ACCORDANCE WITH SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF  THIS  ARTICLE,
shall be held to be complete and correct that does not supply all of the
items  of  information called for therein, or satisfactorily account for
their omission.
  S 9. This act shall take effect immediately; provided,  however,  that
if  chapter  153  of the laws of 2011 is not in effect on such date then
the amendments made to section 4141-a of the public  health  law,  para-
graph  (b) of subdivision 2 of section 4144 of the public health law and
subdivision 4 of section 4161 of the public health law by sections four,
six and seven of this act shall take effect on the same  date  and  same
manner  as  chapter  153  of  the  laws  of 2011, takes effect; provided
further that the commissioner of  health  is  authorized  to  promulgate
regulations as necessary to implement the provisions of this act.

                                 PART D

  Section  1.  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
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
BASED UPON THE FOLLOWING CRITERIA:

S. 6256--A                         21                         A. 9056--A

  (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. THE COMMISSIONER IS 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
THE DEPARTMENT SHALL BE ITEMIZED IN  THE  ANNUAL  BUDGET  IN  AN  AMOUNT
DETERMINED  BY THE COMMISSIONER, 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 THE COMMISSIONER 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 THE DEPARTMENT 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. THE COMMISSIONER SHALL PROMULGATE REGULATIONS, AND  MAY  PROMULGATE
EMERGENCY REGULATIONS, TO EFFECTUATE THE PROVISIONS OF THIS SECTION.
  S  2.  Paragraph  (e)  of subdivision 1 of section 461-l of the social
services law, as added by chapter 165 of the laws of 1991, is amended to
read as follows:
  (e) "Services" shall mean all services for which full  payment  to  an
assisted  living  program  is included in the capitated rate of payment,
which shall include personal care services, home care services and  such

S. 6256--A                         22                         A. 9056--A

other  services as the commissioner in conjunction with the commissioner
of health determine by regulation must be included in the capitated rate
of payment, and which the assisted  living  program  shall  provide,  or
arrange  for  the provision of, through contracts with a social services
district, [a] long term home health care [program or a] PROGRAMS, certi-
fied home health [agency, and] AGENCIES, AND/OR other qualified  provid-
ers.
  S  3.  Paragraphs (b) and (d) of subdivision 2 of section 461-l of the
social services law, as added by chapter 165 of the  laws  of  1991  and
subparagraph  (iii)  of  paragraph  (d) as amended by chapter 569 of the
laws of 2000, are amended to read as follows:
  (b) If an assisted living program  itself  is  not  a  certified  home
health agency or long term home health care program, the assisted living
program shall contract with [a] ONE OR MORE certified home health [agen-
cy or] AGENCIES AND/OR long term home health care [program] PROGRAMS for
the  provision  of services pursuant to article thirty-six of the public
health law. [An assisted living program shall contract with no more than
one certified home health agency or long term home health care  program,
provided,  however, that the commissioner and the commissioner of health
may approve additional contracts for good cause.]
  (d) Patient services and care. (i) An assisted living program[, or  if
the  assisted  living  program  itself does not include a long term home
health care program or certified home health agency an  assisted  living
program  and  a  long  term  home  health care program or certified home
health agency,] shall conduct an initial assessment to determine whether
a person would otherwise require placement in a residential health  care
facility  if not for the availability of the assisted living program and
is appropriate for admission to an assisted living program. The assisted
living program shall forward such assessment  of  a  medical  assistance
applicant or recipient to the appropriate social services district.
  (ii)  No  person  shall  be determined eligible for and admitted to an
assisted living program unless the assisted living program [and the long
term home health care program or the certified home health  care  agency
agree, based on the initial assessment,] FINDS that the person meets the
criteria  provided  in  paragraph (d) of subdivision one of this section
and unless the appropriate social  services  district  prior  authorizes
payment for services.
  (iii)  Appropriate  services  shall  be provided to an eligible person
only in accordance with a plan of care which is based  upon  an  initial
assessment  and  periodic  reassessments conducted by an assisted living
program[, or if the assisted living program itself does  not  include  a
long  term  home  health care program or certified home health agency an
assisted living program and a long term  home  health  care  program  or
certified  home  health  agency].  A  reassessment shall be conducted as
frequently as is required to respond to changes in the resident's condi-
tion and ensure immediate access to necessary and  appropriate  services
by  the  resident,  but  in no event less frequently than once every six
months. No person shall be admitted to or retained in an assisted living
program unless [the assisted living program, and long term  home  health
care  program or certified home health agency are in agreement that] the
person can be safely and adequately cared  for  with  the  provision  of
services determined by such assessment or reassessment.
  S  4.  Paragraph  (i)  of subdivision 3 of section 461-l of the social
services law is REPEALED.
  S 5.  Notwithstanding any contrary provision of law, inpatient  hospi-
tals licensed pursuant to the Mental Hygiene Law by the Office of Mental

S. 6256--A                         23                         A. 9056--A

Health shall be subject to audit fees as set forth in regulations issued
by  the  Department  of  Health  pursuant to S2807-c(35)(b)(xiii) of the
Public Health Law, with regard to cost reports submitted to the  Depart-
ment of Health on and after April 1, 2012.
  S  6.  Subdivision  2  of  section 365-a of the social services law is
amended by adding four new paragraphs (w), (x), (y) and (z) to  read  as
follows:
  (W)  PODIATRY  SERVICES  FOR  INDIVIDUALS WITH A DIAGNOSIS OF DIABETES
MELLITUS; PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS PARAGRAPH SHALL
NOT TAKE EFFECT UNLESS ALL NECESSARY APPROVALS  UNDER  FEDERAL  LAW  AND
REGULATION HAVE BEEN OBTAINED TO RECEIVE FEDERAL FINANCIAL PARTICIPATION
IN  THE  COSTS  OF  HEALTH CARE SERVICES PROVIDED PURSUANT TO THIS PARA-
GRAPH.
  (X) LACTATION COUNSELING SERVICES FOR PREGNANT  AND  POSTPARTUM  WOMEN
WHEN  SUCH  SERVICES  ARE  ORDERED  BY A PHYSICIAN, REGISTERED PHYSICIAN
ASSISTANT,  REGISTERED  NURSE  PRACTITIONER,  OR  LICENSED  MIDWIFE  AND
PROVIDED  BY  A  CERTIFIED  LACTATION  CONSULTANT,  AS DETERMINED BY THE
COMMISSIONER OF HEALTH; PROVIDED, HOWEVER, THAT THE PROVISIONS  OF  THIS
PARAGRAPH  SHALL  NOT  TAKE  EFFECT UNLESS ALL NECESSARY APPROVALS UNDER
FEDERAL LAW AND REGULATION HAVE BEEN OBTAINED TO RECEIVE FEDERAL  FINAN-
CIAL  PARTICIPATION IN THE COSTS OF HEALTH CARE SERVICES PROVIDED PURSU-
ANT TO THIS PARAGRAPH. NOTHING IN THIS PARAGRAPH SHALL BE  CONSTRUED  TO
MODIFY ANY LICENSURE, CERTIFICATION OR SCOPE OF PRACTICE PROVISION UNDER
TITLE EIGHT OF THE EDUCATION LAW.
  (Y)  HARM  REDUCTION COUNSELING AND SERVICES TO REDUCE OR MINIMIZE THE
ADVERSE HEALTH CONSEQUENCES ASSOCIATED WITH  DRUG  USE,  PROVIDED  BY  A
QUALIFIED  DRUG  TREATMENT  PROGRAM  OR COMMUNITY-BASED ORGANIZATION, AS
DETERMINED BY THE COMMISSIONER OF HEALTH; PROVIDED,  HOWEVER,  THAT  THE
PROVISIONS  OF THIS PARAGRAPH SHALL NOT TAKE EFFECT UNLESS ALL NECESSARY
APPROVALS UNDER FEDERAL LAW AND REGULATION HAVE BEEN OBTAINED TO RECEIVE
FEDERAL FINANCIAL PARTICIPATION IN THE COSTS  OF  HEALTH  CARE  SERVICES
PROVIDED  PURSUANT TO THIS PARAGRAPH. NOTHING IN THIS PARAGRAPH SHALL BE
CONSTRUED TO MODIFY ANY LICENSURE, CERTIFICATION OR  SCOPE  OF  PRACTICE
PROVISION UNDER TITLE EIGHT OF THE EDUCATION LAW.
  (Z)  HEPATITIS C WRAP-AROUND SERVICES TO PROMOTE CARE COORDINATION AND
INTEGRATION WHEN ORDERED BY A PHYSICIAN, REGISTERED PHYSICIAN ASSISTANT,
REGISTERED NURSE PRACTITIONER, OR LICENSED MIDWIFE, AND  PROVIDED  BY  A
QUALIFIED  PROFESSIONAL,  AS  DETERMINED  BY THE COMMISSIONER OF HEALTH.
SUCH SERVICES MAY INCLUDE CLIENT OUTREACH, IDENTIFICATION  AND  RECRUIT-
MENT,  HEPATITIS  C  EDUCATION  AND COUNSELING, COORDINATION OF CARE AND
ADHERENCE TO TREATMENT, ASSISTANCE IN OBTAINING APPROPRIATE  ENTITLEMENT
SERVICES, PEER SUPPORT AND OTHER SUPPORTIVE SERVICES; PROVIDED, HOWEVER,
THAT  THE  PROVISIONS OF THIS PARAGRAPH SHALL NOT TAKE EFFECT UNLESS ALL
NECESSARY APPROVALS UNDER FEDERAL LAW AND REGULATION HAVE BEEN  OBTAINED
TO  RECEIVE  FEDERAL FINANCIAL PARTICIPATION IN THE COSTS OF HEALTH CARE
SERVICES PROVIDED PURSUANT TO THIS PARAGRAPH.  NOTHING IN THIS PARAGRAPH
SHALL BE CONSTRUED TO MODIFY ANY LICENSURE, CERTIFICATION  OR  SCOPE  OF
PRACTICE PROVISION UNDER TITLE EIGHT OF THE EDUCATION LAW.
  S  7.  Paragraph  (g)  of subdivision 2 of section 365-a of the social
services law, as amended by section 23 of part H of chapter  59  of  the
laws of 2011, is amended to read as follows:
  (g)  sickroom  supplies,  eyeglasses, prosthetic appliances and dental
prosthetic appliances furnished in accordance with  the  regulations  of
the department; provided further that: (i) the commissioner of health is
authorized  to implement a preferred diabetic supply program wherein the
department of  health  will  receive  enhanced  rebates  from  preferred

S. 6256--A                         24                         A. 9056--A

manufacturers  of  glucometers and test strips, and may subject non-pre-
ferred manufacturers' glucometers and test strips to prior authorization
under section two hundred seventy-three of the public health  law;  (ii)
enteral  formula  therapy  and  nutritional  supplements  are limited to
coverage only for nasogastric, jejunostomy, or gastrostomy tube  feeding
or  for  treatment of an inborn metabolic disorder, or to address growth
and development problems in children, OR, SUBJECT  TO  STANDARDS  ESTAB-
LISHED  BY  THE  COMMISSIONER,  FOR  PERSONS  WITH  A  DIAGNOSIS  OF HIV
INFECTION, AIDS OR HIV-RELATED ILLNESS; (iii) prescription footwear  and
inserts  are limited to coverage only when used as an integral part of a
lower limb orthotic appliance, as part of a diabetic treatment plan,  or
to  address  growth  and  development  problems  in  children;  and (iv)
compression and support stockings are limited to coverage only for preg-
nancy or treatment of venous stasis ulcers;
  S 8. Subdivision 9 of section 4403-c  of  the  public  health  law  is
amended to read as follows:
  9.  Notwithstanding  any  other  provision of law, a comprehensive HIV
special needs plan  certified  pursuant  to  this  section  shall  limit
enrollment  to HIV positive persons, [but may enroll related children up
to the age of nineteen] EXCEPT FOR THE  FOLLOWING  PERSONS  WHO  MAY  BE
ENROLLED regardless of their HIV status[.]:
  (A) RELATED CHILDREN UP TO THE AGE OF TWENTY-ONE; AND
  (B)  HIGH  NEED POPULATIONS THAT WOULD BENEFIT FROM RECEIVING SERVICES
THROUGH A PLAN CERTIFIED PURSUANT TO THIS SECTION, AS DETERMINED BY  THE
COMMISSIONER.
  S  9.    Paragraph (f) of subdivision 1 of section 367-a of the social
services law as added by section 1 of Part E of chapter 58 of  the  laws
of 2008, is amended to read as follows:
  (f)  Amounts  payable  under  this title for medical assistance in the
form of outpatient mental health services under  article  thirty-one  OR
OUTPATIENT  CHEMICAL  DEPENDENCE  SERVICES  INCLUDING  OPIOID  TREATMENT
SERVICES UNDER ARTICLE THIRTY-TWO of the mental hygiene law provided  to
eligible  persons who are also beneficiaries under part B of title XVIII
of the federal social security act shall not be less than  the  approved
medical assistance payment level less the amount payable under part B.
  S  10.  Paragraph  (d)  of subdivision 2 of section 3332 of the public
health law, as amended by chapter 178 of the laws of  2010,  is  amended
and a new paragraph (e) is added to read as follows:
  (d)  the  date upon which such prescription was actually signed by the
prescribing practitioner[.]; AND
  (E) IF THE PATIENT IS A  LIMITED  ENGLISH  PROFICIENT  INDIVIDUAL,  AS
DEFINED  IN  SECTION THREE THOUSAND THREE HUNDRED NINETY-EIGHT-A OF THIS
CHAPTER, INDICATION OF SUCH  STATUS  AND  INDICATION  OF  THE  PATIENT'S
PRIMARY LANGUAGE.
  S  11.    Section 3333 of the public health law is amended by adding a
new subdivision 6 to read as follows:
  6. IF THE PHARMACIST KNOWS OR HAS REASON TO KNOW THAT THE PATIENT IS A
LIMITED ENGLISH PROFICIENT INDIVIDUAL, AS DEFINED IN SECTION THREE THOU-
SAND THREE HUNDRED NINETY-EIGHT-A OF THIS CHAPTER, THE PHARMACIST  SHALL
PROVIDE  FOR  TRANSLATION  OR  OTHER  LANGUAGE  SERVICES  AS REQUIRED IN
SECTION THREE THOUSAND THREE HUNDRED  NINETY-EIGHT-A  OF  THIS  CHAPTER,
UNLESS DOING SO WOULD COMPROMISE THE CARE OF THE PATIENT.
  S  12.  Paragraphs (b) and (c) of subdivision 1 of section 3334 of the
public health law, as amended by chapter 178 of the laws  of  2010,  are
amended and a new paragraph (d) is added to read as follows:

S. 6256--A                         25                         A. 9056--A

  (b)  dispense  the  substance in conformity with the labeling require-
ments applicable to the type of prescription which would be required but
for the emergency; [and]
  (c) make a good faith effort to verify the practitioner's identity, if
the practitioner is unknown to the pharmacist[.]; AND
  (D)  IF THE PHARMACIST KNOWS OR HAS REASON TO KNOW THAT THE PATIENT IS
A LIMITED ENGLISH PROFICIENT INDIVIDUAL, AS  DEFINED  IN  SECTION  THREE
THOUSAND  THREE  HUNDRED  NINETY-EIGHT-A OF THIS CHAPTER, THE PHARMACIST
SHALL PROVIDE FOR TRANSLATION OR OTHER LANGUAGE SERVICES AS REQUIRED  IN
SECTION  THREE  THOUSAND  THREE  HUNDRED NINETY-EIGHT-A OF THIS CHAPTER,
UNLESS DOING SO WOULD COMPROMISE THE CARE OF THE PATIENT.
  S 13. Subdivision 1 of section  3337  of  the  public  health  law  is
amended by adding a new paragraph (d) to read as follows:
  (D)  IF THE PHARMACIST KNOWS OR HAS REASON TO KNOW THAT THE PATIENT IS
A LIMITED ENGLISH PROFICIENT INDIVIDUAL, AS  DEFINED  IN  SECTION  THREE
THOUSAND  THREE  HUNDRED  NINETY-EIGHT-A OF THIS CHAPTER, THE PHARMACIST
SHALL PROVIDE FOR TRANSLATION OR OTHER LANGUAGE SERVICES AS REQUIRED  IN
SECTION  THREE  THOUSAND  THREE  HUNDRED NINETY-EIGHT-A OF THIS CHAPTER,
UNLESS DOING SO WOULD COMPROMISE THE CARE OF THE PATIENT.
  S 14.  Subdivision 1 of section 3338 of  the  public  health  law,  as
amended  by  section  12 of part A of chapter 58 of the laws of 2004, is
amended to read as follows:
  1. Official New York state prescription forms shall  be  prepared  and
issued by the department in the FORMAT, manner and detail as the commis-
sioner  in consultation with the commissioner of education may, by regu-
lation, require, and, each form shall be serialized. Such forms shall be
furnished to practitioners authorized to write such prescriptions and to
institutional dispensers. Such prescription blanks shall not  be  trans-
ferable.
  S  15. Subdivision b of section 6804 of the education law, as added by
chapter 987 of the laws of 1971, is amended to read as follows:
  b. To regulate and control the sale, distribution, character and stan-
dard of drugs, poisons, cosmetics, devices and new drugs, INCLUDING, BUT
NOT LIMITED TO, IN CONJUNCTION WITH  THE  COMMISSIONER  OF  HEALTH,  THE
DEVELOPMENT  OF  REQUIREMENTS  RELATED  TO  THE  SALE, DISTRIBUTION, AND
DISPENSING OF DRUGS AND NEW  DRUGS  TO  ADDRESS  THE  SPECIAL  NEEDS  OF
PERSONS  WHO ARE ELDERLY, OF LIMITED VISION OR OF LIMITED ENGLISH PROFI-
CIENCY,
  S 16. Section 6810 of the education law is amended by adding three new
subdivisions 10, 11 and 12 to read as follows:
  10. COVERED PHARMACIES, AS DEFINED IN  SECTION  THREE  THOUSAND  THREE
HUNDRED  NINETY-EIGHT-A  OF  THE  PUBLIC HEALTH LAW, MUST PROVIDE TRANS-
LATION AND INTERPRETATION SERVICES FOR PATIENTS  HAVING  LIMITED  PROFI-
CIENCY  IN  ENGLISH,  SUBJECT TO REGULATIONS OF THE COMMISSIONER AND THE
PROVISIONS OF SECTION THREE THOUSAND THREE HUNDRED NINETY-EIGHT-A OF THE
PUBLIC HEALTH LAW.
  11. IF THE PATIENT  IS  LIMITED  ENGLISH  PROFICIENT,  AS  DEFINED  IN
SECTION THREE THOUSAND THREE HUNDRED NINETY-EIGHT-A OF THE PUBLIC HEALTH
LAW,  INDICATION  OF SUCH STATUS AND INDICATION OF THE PATIENT'S PRIMARY
LANGUAGE.
  12. IF THE PHARMACIST KNOWS OR HAS REASON TO KNOW THAT THE PATIENT  IS
OF  LIMITED  ENGLISH  PROFICIENCY,  AS DEFINED IN SECTION THREE THOUSAND
THREE HUNDRED NINETY-EIGHT-A OF THE PUBLIC HEALTH  LAW,  THE  PHARMACIST
SHALL  PROVIDE FOR TRANSLATION OR OTHER LANGUAGE SERVICES AS REQUIRED IN
SUCH SECTION, UNLESS DOING SO WOULD COMPROMISE THE CARE OF THE PATIENT.

S. 6256--A                         26                         A. 9056--A

  S 17. The public health law is amended by adding a new article 33-B to
read as follows:
                              ARTICLE 33-B
                 STANDARDS FOR PRESCRIPTION MEDICATIONS
SECTION 3398.   APPLICATION.
        3398-A. INTERPRETATION REQUIREMENTS FOR PRESCRIPTION DRUGS.
  S 3398. APPLICATION. THIS ARTICLE APPLIES TO MEDICATIONS PRESCRIBED BY
PRACTITIONERS  AUTHORIZED  TO  PRESCRIBE  MEDICATIONS, INCLUDING BUT NOT
LIMITED TO CONTROLLED SUBSTANCES, PURSUANT TO TITLE EIGHT OF THE  EDUCA-
TION  LAW;  PROVIDED,  HOWEVER, THAT TO THE EXTENT THERE IS ANY CONFLICT
BETWEEN THE PROVISIONS OF THIS ARTICLE AND  THE  PROVISIONS  OF  ARTICLE
THIRTY-THREE  OF THIS TITLE WITH RESPECT TO PRESCRIPTIONS FOR CONTROLLED
SUBSTANCES, THE PROVISIONS OF ARTICLE THIRTY-THREE OF THIS  TITLE  SHALL
CONTROL.
  S  3398-A. INTERPRETATION REQUIREMENTS FOR PRESCRIPTION DRUGS.  1. FOR
THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
ING MEANINGS:
  (A) "COVERED PHARMACY" MEANS ANY PHARMACY THAT IS PART OF A  GROUP  OF
FIVE  OR MORE PHARMACIES OWNED BY THE SAME CORPORATE ENTITY, OR WHICH IS
A MAIL ORDER PHARMACY.  FOR PURPOSES OF THIS SECTION, "CORPORATE ENTITY"
SHALL INCLUDE RELATED SUBSIDIARIES, AFFILIATES, SUCCESSORS, OR ASSIGNEES
DOING BUSINESS AS OR OPERATING UNDER A COMMON NAME OR TRADING SYMBOL;
  (B) "LIMITED ENGLISH PROFICIENT INDIVIDUAL" OR "LEP INDIVIDUAL"  MEANS
AN INDIVIDUAL WHO IDENTIFIES AS BEING, OR IS EVIDENTLY, UNABLE TO SPEAK,
READ  OR WRITE ENGLISH AT A LEVEL THAT PERMITS SUCH INDIVIDUAL TO UNDER-
STAND HEALTH RELATED  AND  PHARMACEUTICAL  INFORMATION  COMMUNICATED  IN
ENGLISH;
  (C)"TRANSLATE"  SHALL  MEAN  THE CONVERSION OF A WRITTEN TEXT FROM ONE
LANGUAGE INTO AN EQUIVALENT WRITTEN TEXT IN ANOTHER LANGUAGE BY AN INDI-
VIDUAL COMPETENT TO DO SO AND UTILIZING ALL NECESSARY PHARMACEUTICAL AND
HEALTH-RELATED TERMINOLOGY;
  (D) "COMPETENT ORAL INTERPRETATION" MEANS ORAL COMMUNICATION IN  WHICH
A  PERSON  ACTING  AS  AN  INTERPRETER  COMPREHENDS A SPOKEN MESSAGE AND
RE-EXPRESSES THAT MESSAGE ACCURATELY IN ANOTHER LANGUAGE, UTILIZING  ALL
NECESSARY PHARMACEUTICAL AND HEALTH-RELATED TERMINOLOGY, SO AS TO ENABLE
AN  LEP INDIVIDUAL TO RECEIVE ALL NECESSARY INFORMATION IN THE LEP INDI-
VIDUAL'S PRIMARY LANGUAGE;
  (E) "PHARMACY PRIMARY LANGUAGES" SHALL MEAN THE  TOP  SEVEN  LANGUAGES
SPOKEN  BY LEP INDIVIDUALS IN THIS STATE AS DETERMINED BIENNIALLY BY THE
STATE BOARD OF PHARMACY BASED ON DATA  FROM  THE  MOST  RECENT  AMERICAN
COMMUNITY SURVEY FROM THE UNITED STATES CENSUS BUREAU AND OTHER RELEVANT
DATA SOURCES;
  (F) "MAIL ORDER PHARMACY" SHALL MEAN A PHARMACY THAT DISPENSES MOST OF
ITS  PRESCRIPTIONS  THROUGH  THE  UNITED  STATES POSTAL SERVICE OR OTHER
DELIVERY SERVICES.
  2. (A) EVERY COVERED PHARMACY SHALL PROVIDE FREE, COMPETENT  ORAL  AND
WRITTEN  INTERPRETATION  SERVICES,  TO  EACH  LEP  INDIVIDUAL  FILLING A
PRESCRIPTION AT OR THROUGH SUCH COVERED PHARMACY, IN  THE  LEP  INDIVID-
UAL'S  PRIMARY  LANGUAGE  FOR  THE PURPOSE OF COUNSELING SUCH INDIVIDUAL
ABOUT HIS OR HER PRESCRIPTION MEDICATIONS AND INTERPRETING LABEL  INFOR-
MATION,  OR  WHEN SOLICITING INFORMATION NECESSARY TO MAINTAIN A PATIENT
MEDICATION PROFILE, UNLESS THE LEP INDIVIDUAL  IS  OFFERED  AND  REFUSES
SUCH SERVICES;
  (B)  EVERY  COVERED PHARMACY SHALL PROVIDE FREE, COMPETENT ORAL INTER-
PRETATION OF PRESCRIPTION MEDICATION LABELS, WARNING  LABELS  AND  OTHER
WRITTEN  MATERIAL  TO  EACH  LEP INDIVIDUAL FILLING A PRESCRIPTION AT OR

S. 6256--A                         27                         A. 9056--A

THROUGH SUCH COVERED PHARMACY UNLESS THE LEP INDIVIDUAL IS  OFFERED  AND
REFUSES  SUCH SERVICES, OR THE MEDICATION LABEL WARNING LABELS AND OTHER
WRITTEN MATERIALS HAVE ALREADY BEEN TRANSLATED INTO THE LANGUAGE  SPOKEN
BY THE LEP INDIVIDUAL;
  (C)  THE  SERVICES REQUIRED BY THIS SECTION MAY BE PROVIDED BY A STAFF
MEMBER OF  THE  COVERED  PHARMACY  OR  A  THIRD-PARTY  CONTRACTOR.  SUCH
SERVICES MUST BE PROVIDED ON AN IMMEDIATE BASIS BUT NEED NOT BE PROVIDED
IN-PERSON OR FACE-TO-FACE.
  3.  EVERY COVERED PHARMACY SHALL CONSPICUOUSLY POST, AT OR ADJACENT TO
EACH COUNTER OVER WHICH PRESCRIPTION DRUGS  ARE  SOLD,  AND  EVERY  MAIL
ORDER PHARMACY, SHALL INCLUDE IN THE PACKAGE IN WHICH PRESCRIPTION DRUGS
ARE  DELIVERED,  A NOTIFICATION OF THE RIGHT TO FREE LANGUAGE ASSISTANCE
SERVICES FOR LEP INDIVIDUALS AS PROVIDED FOR IN SUBDIVISION TWO OF  THIS
SECTION.  SUCH  NOTIFICATIONS  SHALL BE PROVIDED IN THE PHARMACY PRIMARY
LANGUAGES. THE SIZE, STYLE AND PLACEMENT OF SUCH NOTICE SHALL BE  DETER-
MINED IN ACCORDANCE WITH RULES PROMULGATED BY THE COMMISSIONER.
  4.  ANY  PERSON AGGRIEVED BY A FAILURE TO RECEIVE SERVICES REQUIRED BY
THIS SECTION SHALL HAVE A CAUSE OF ACTION ONLY AGAINST THE COVERED PHAR-
MACY IN ANY COURT OF COMPETENT JURISDICTION FOR DAMAGES, INCLUDING PUNI-
TIVE DAMAGES, AND FOR INJUNCTIVE RELIEF AND SUCH OTHER REMEDIES  AS  MAY
BE APPROPRIATE.
  5.  THIS  SECTION  SHALL  PREEMPT ANY CONTRARY LOCAL LAW OR ORDINANCE,
EXCEPT THAT THIS SECTION SHALL NOT PREEMPT OR SUPERSEDE  LOCAL  LAWS  OR
ORDINANCES  IMPOSING  ADDITIONAL  OR  STRICTER  REQUIREMENTS RELATING TO
INTERPRETATION OR TRANSLATION SERVICES IN PHARMACIES.
  S 18. Section 6509 of the education law is amended  by  adding  a  new
subdivision 15 to read as follows:
  (15)  A  VIOLATION OF SUBDIVISION TWO OR THREE OF SECTION THIRTY-THREE
HUNDRED NINETY-EIGHT-A OF THE PUBLIC HEALTH LAW, BUT ONLY AS TO A  PHAR-
MACY AND NOT AS TO AN INDIVIDUAL LICENSED PHARMACIST.
  S  19.   Subdivisions (f) and (g) of section 2522 of the public health
law, as amended by chapter 484 of the laws of 2009, are  amended  and  a
new subdivision (h) is added to read as follows:
  (f)  follow-up  of  patient  participation  in prenatal care services;
[and]
  (g) identification of regional perinatal health care  system  barriers
and  limitations that lead to poor perinatal outcomes and development of
strategies to address such barriers and limitations[.]; AND
  (H) COORDINATION OF SERVICE DELIVERY BY COMMUNITY-BASED  ORGANIZATIONS
AMONG  HEALTH  CARE  PROVIDERS AND HEALTH PLANS USING HEALTH INFORMATION
TECHNOLOGY AND UNIFORM SCREENING CRITERIA FOR PERINATAL RISK.
  S 20. Intentionally Omitted.
  S 21. Intentionally Omitted.
  S 22. Section 366 of the social services law is amended  by  adding  a
new subdivision 15 to read as follows:
  15.  (A)  THE  COMMISSIONER  MAY CONTRACT WITH ONE OR MORE ENTITIES TO
ENGAGE IN  EDUCATION,  OUTREACH  SERVICES,  AND  FACILITATED  ENROLLMENT
ACTIVITIES FOR AGED, BLIND, AND DISABLED PERSONS WHO MAY BE ELIGIBLE FOR
COVERAGE UNDER THIS TITLE.
  (B) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTIONS ONE HUNDRED
TWELVE AND ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, OR SECTIONS
ONE HUNDRED FORTY-TWO AND ONE HUNDRED FORTY-THREE OF THE ECONOMIC DEVEL-
OPMENT  LAW, OR ANY OTHER CONTRARY PROVISION OF LAW, THE COMMISSIONER IS
AUTHORIZED TO ENTER INTO A CONTRACT OR CONTRACTS UNDER THIS  SUBDIVISION
WITHOUT  A  COMPETITIVE  BID  OR REQUEST FOR PROPOSAL PROCESS, PROVIDED,
HOWEVER, THAT:

S. 6256--A                         28                         A. 9056--A

  (I) THE DEPARTMENT SHALL POST ON ITS WEBSITE, FOR A PERIOD OF NO  LESS
THAN THIRTY DAYS:
  (1)  A DESCRIPTION OF THE PROPOSED SERVICES TO BE PROVIDED PURSUANT TO
THE CONTRACT OR CONTRACTS;
  (2) THE CRITERIA FOR SELECTION OF A CONTRACTOR OR CONTRACTORS;
  (3) THE PERIOD OF TIME DURING WHICH A PROSPECTIVE CONTRACTOR MAY  SEEK
SELECTION,  WHICH  SHALL BE NO LESS THAN THIRTY DAYS AFTER SUCH INFORMA-
TION IS FIRST POSTED ON THE WEBSITE; AND
  (4) THE MANNER  BY  WHICH  A  PROSPECTIVE  CONTRACTOR  MAY  SEEK  SUCH
SELECTION, WHICH MAY INCLUDE SUBMISSION BY ELECTRONIC MEANS;
  (II)  ALL REASONABLE AND RESPONSIVE SUBMISSIONS THAT ARE RECEIVED FROM
PROSPECTIVE CONTRACTORS IN TIMELY  FASHION  SHALL  BE  REVIEWED  BY  THE
COMMISSIONER; AND
  (III)  THE  COMMISSIONER  SHALL  SELECT SUCH CONTRACTOR OR CONTRACTORS
THAT, IN HIS OR HER DISCRETION, ARE BEST SUITED TO SERVE THE PURPOSES OF
THIS SUBDIVISION.
  S 23. The public health law is amended by adding a new article 9-B  to
read as follows:
                                ARTICLE 9-B
         PRIMARY CARE SERVICE CORPS PRACTITIONER LOAN REPAYMENT
                                 PROGRAM
SECTION 923. DEFINITIONS.
        924.  PRIMARY  CARE  SERVICE  CORPS  PRACTITIONER LOAN REPAYMENT
        PROGRAM.
  S 923. DEFINITIONS.  THE FOLLOWING WORDS OR PHRASES AS  USED  IN  THIS
SECTION SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "UNDERSERVED  AREA"  MEANS  AN AREA OR MEDICALLY UNDERSERVED POPU-
LATION DESIGNATED BY THE COMMISSIONER AS HAVING A  SHORTAGE  OF  PRIMARY
CARE  PHYSICIANS, OTHER PRIMARY CARE PRACTITIONERS, DENTAL PRACTITIONERS
OR MENTAL HEALTH PRACTITIONERS.
  2. "PRIMARY CARE SERVICE CORPS PRACTITIONER" MEANS A PHYSICIAN ASSIST-
ANT, NURSE PRACTITIONER, NURSE MIDWIFE, GENERAL OR  PEDODONTIC  DENTIST,
DENTAL  HYGIENIST, CLINICAL PSYCHOLOGIST, LICENSED CLINICAL SOCIAL WORK-
ER, PSYCHIATRIC NURSE PRACTITIONER, LICENSED MARRIAGE AND FAMILY  THERA-
PIST,  OR  A  LICENSED  MENTAL HEALTH COUNSELOR, WHO IS LICENSED, REGIS-
TERED, OR CERTIFIED TO PRACTICE IN  NEW  YORK  STATE  AND  WHO  PROVIDES
COORDINATED  PRIMARY  CARE SERVICES, INCLUDING, BUT NOT LIMITED TO, ORAL
HEALTH AND MENTAL HEALTH SERVICES.
  3. "PHYSICIAN ASSISTANT" MEANS A PERSON WHO  HAS  BEEN  REGISTERED  AS
SUCH PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE-B OF THE EDUCATION LAW.
  4.  "NURSE PRACTITIONER" MEANS A PERSON WHO HAS BEEN CERTIFIED AS SUCH
PURSUANT TO SECTION SIXTY-NINE HUNDRED TEN OF THE EDUCATION LAW.
  5. "NURSE MIDWIFE" MEANS A PERSON WHO HAS BEEN LICENSED AS SUCH PURSU-
ANT TO SECTION SIXTY-NINE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW.
  6. "PSYCHOLOGIST" MEANS A PERSON WHO HAS BEEN LICENSED AS SUCH  PURSU-
ANT TO SECTION SEVENTY-SIX HUNDRED THREE OF THE EDUCATION LAW.
  7.  "LICENSED  CLINICAL  SOCIAL  WORKER"  MEANS  A PERSON WHO HAS BEEN
LICENSED AS SUCH PURSUANT TO SECTION SEVENTY-SEVEN HUNDRED  TWO  OF  THE
EDUCATION LAW.
  8. "PSYCHIATRIC NURSE PRACTITIONER" MEANS A NURSE PRACTITIONER WHO, BY
REASON OF TRAINING AND EXPERIENCE, PROVIDES A FULL SPECTRUM OF PSYCHIAT-
RIC  CARE, ASSESSING, DIAGNOSING, AND MANAGING THE PREVENTION AND TREAT-
MENT OF PSYCHIATRIC DISORDERS AND MENTAL HEALTH PROBLEMS.
  9. "LICENSED MARRIAGE AND FAMILY THERAPIST" MEANS  A  PERSON  WHO  HAS
BEEN  LICENSED  AS SUCH PURSUANT TO SECTION EIGHTY-FOUR HUNDRED THREE OF
THE EDUCATION LAW.

S. 6256--A                         29                         A. 9056--A

  10. "LICENSED MENTAL HEALTH COUNSELOR" MEANS A  PERSON  WHO  HAS  BEEN
LICENSED  AS  SUCH  PURSUANT  TO  SECTION EIGHTY-FOUR HUNDRED TWO OF THE
EDUCATION LAW.
  11.  "GENERAL  OR  PEDODONTIC  DENTIST"  MEANS  A  PERSON WHO HAS BEEN
LICENSED OR OTHERWISE AUTHORIZED TO PRACTICE DENTISTRY PURSUANT TO ARTI-
CLE ONE HUNDRED THIRTY-THREE OF THE EDUCATION  LAW  EXCLUDING  ORTHODON-
TISTS, ENDODONTISTS AND PERIODONTISTS.
  12.  "DENTAL  HYGIENIST"  MEANS  A  PERSON WHO IS LICENSED TO PRACTICE
DENTAL HYGIENE PURSUANT TO SECTION SIXTY-SIX HUNDRED NINE OF THE  EDUCA-
TION LAW.
  S 924. PRIMARY CARE SERVICE CORPS PRACTITIONER LOAN REPAYMENT PROGRAM.
1. THE COMMISSIONER IS AUTHORIZED, WITHIN AMOUNTS AVAILABLE THEREFOR, TO
MAKE  LOAN REPAYMENT AWARDS TO ELIGIBLE PRIMARY CARE SERVICE CORPS PRAC-
TITIONERS WHO AGREE TO PRACTICE FULL-TIME IN AN UNDERSERVED AREA IN  NEW
YORK  STATE, IN AMOUNTS TO BE DETERMINED BY THE COMMISSIONER, BUT NOT TO
EXCEED THIRTY-TWO THOUSAND DOLLARS PER YEAR FOR ANY YEAR IN  WHICH  SUCH
PRACTITIONERS PROVIDE FULL-TIME ELIGIBLE OBLIGATED SERVICE.
  2.  LOAN REPAYMENT AWARDS MADE TO A PRIMARY CARE SERVICE CORPS PRACTI-
TIONER PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL NOT EXCEED  THE
TOTAL QUALIFYING OUTSTANDING DEBT OF THE PRACTITIONER FROM STUDENT LOANS
TO  COVER  TUITION  AND  OTHER  RELATED EDUCATIONAL EXPENSES, MADE BY OR
GUARANTEED BY THE FEDERAL OR STATE GOVERNMENT, OR MADE BY A  LENDING  OR
EDUCATIONAL  INSTITUTION  APPROVED  UNDER TITLE IV OF THE FEDERAL HIGHER
EDUCATION ACT. LOAN REPAYMENT AWARDS SHALL BE USED SOLELY TO REPAY  SUCH
OUTSTANDING DEBT.
  3.  IN  THE EVENT THAT ANY COMMITMENT PURSUANT TO THE AGREEMENT REFER-
ENCED IN SUBDIVISION ONE OF THIS SECTION IS NOT FULFILLED, THE RECIPIENT
SHALL BE RESPONSIBLE FOR REPAYMENT IN AMOUNTS WHICH SHALL BE  CALCULATED
IN  ACCORDANCE  WITH THE FORMULA SET FORTH IN SUBDIVISION (B) OF SECTION
TWO HUNDRED FIFTY-FOUR-O OF TITLE FORTY-TWO OF THE UNITED  STATES  CODE,
AS AMENDED.
  4.  THE  COMMISSIONER  IS  AUTHORIZED TO APPLY ANY FUNDS AVAILABLE FOR
PURPOSES OF SUBDIVISION ONE OF THIS SECTION FOR USE  AS  MATCHING  FUNDS
FOR  ANY AVAILABLE FEDERAL GRANTS FOR THE PURPOSE OF ASSISTING STATES IN
OPERATING LOAN REPAYMENT PROGRAMS.
  5. THE COMMISSIONER MAY POSTPONE, CHANGE OR WAIVE  THE  SERVICE  OBLI-
GATION AND REPAYMENTS AMOUNTS SET FORTH IN SUBDIVISIONS ONE AND THREE OF
THIS  SECTION,  RESPECTIVELY, IN INDIVIDUAL CIRCUMSTANCES WHERE THERE IS
COMPELLING NEED OR HARDSHIP.
  6. IN ORDER TO BE ELIGIBLE TO RECEIVE A  LOAN  REPAYMENT  AWARD  UNDER
THIS  SECTION,  A PRIMARY CARE SERVICE CORPS PRACTITIONER MUST MEET SITE
AND SERVICE ELIGIBILITY CRITERIA AS DETERMINED BY THE COMMISSIONER.
  7. THE COMMISSIONER SHALL PROMULGATE REGULATIONS NECESSARY TO EFFECTU-
ATE THE PROVISIONS AND PURPOSES OF THIS ARTICLE.
  S 24.  Paragraph (a) of subdivision 4 of section 2801-a of the  public
health law, as amended by section 57 of part A of chapter 58 of the laws
of 2010, is amended to read as follows:
  (a)  Any  change in the person who is the operator of a hospital shall
be approved by the public health and health planning council in  accord-
ance  with the provisions of subdivisions two and three of this section.
NO CHANGE IN THE DIRECTORS OF A NOT-FOR-PROFIT CORPORATION THAT  IS  THE
OPERATOR  OF  A HOSPITAL SHALL BE EFFECTIVE UNLESS, AT LEAST ONE HUNDRED
TWENTY DAYS PRIOR TO THE INTENDED EFFECTIVE  DATE  THEREOF,  THE  CORPO-
RATION  FULLY  COMPLETES AND FILES WITH THE DEPARTMENT NOTICE ON A FORM,
TO BE DEVELOPED BY THE DEPARTMENT, WHICH SHALL DISCLOSE SUCH INFORMATION
AS MAY REASONABLY BE NECESSARY FOR THE DEPARTMENT TO  DETERMINE  WHETHER

S. 6256--A                         30                         A. 9056--A

IT  SHOULD BAR THE CHANGE IN DIRECTORS. Notwithstanding any inconsistent
provision of this paragraph, any change by a natural person who  is  the
operator  of  a hospital seeking to transfer part of his or her interest
in such hospital to another person or persons so as to create a partner-
ship  shall  be  approved in accordance with the provisions of paragraph
(b) of this subdivision.
  S 25. Section 2806 of the public health law is amended by adding a new
subdivision 2-a to read as follows:
  2-A. (A) THE COMMISSIONER MAY TEMPORARILY SUSPEND OR LIMIT AN  OPERAT-
ING  CERTIFICATE OF A NOT-FOR-PROFIT CORPORATION WITHOUT A HEARING UPON:
(I) THE COMMENCEMENT BY THE DEPARTMENT OF AN ACTION TO REVOKE,  SUSPEND,
LIMIT  OR  ANNUL  THE OPERATING CERTIFICATE PURSUANT TO PARAGRAPH (A) OF
SUBDIVISION ONE OF THIS SECTION DUE TO REPEATED VIOLATIONS OF THIS ARTI-
CLE OR RULES AND REGULATIONS PROMULGATED THEREUNDER; (II) THE INDICTMENT
ON FELONY CHARGES OF ANY MEMBER OF THE CORPORATION'S BOARD OF  DIRECTORS
OR  (III)  NOTICE  FROM  THE ATTORNEY GENERAL OF AN ACTION TO REMOVE ANY
MEMBER OF THE CORPORATION'S BOARD OF DIRECTORS PURSUANT TO PARAGRAPH (D)
OF SECTION SEVEN HUNDRED SIX OF THE NOT-FOR-PROFIT CORPORATION LAW. SUCH
SUSPENSION OR LIMITATION  OF  THE  OPERATING  CERTIFICATE  SHALL  REMAIN
EFFECTIVE  UNTIL  THE  RESOLUTION  OF  THE  CRIMINAL  ACTION THAT IS THE
SUBJECT OF THE INDICTMENT OR UNTIL THE RESOLUTION OF THE ACTION  OF  THE
ATTORNEY GENERAL, AS APPLICABLE.
  (B)  IN  THE  EVENT  ONE  OR MORE MEMBERS OF A BOARD OF DIRECTORS OF A
NOT-FOR-PROFIT CORPORATION ARE THE SUBJECT OF  AN  ACTION  TO  LIMIT  AN
OPERATING  CERTIFICATE  PURSUANT  TO PARAGRAPH (A) OF SUBDIVISION ONE OF
THIS SECTION, HAVE BEEN INDICTED ON FELONY CHARGES, OR ARE  THE  SUBJECT
OF  AN  ACTION FOR REMOVAL BY THE ATTORNEY GENERAL AS DESCRIBED IN PARA-
GRAPH (A) OF THIS SUBDIVISION, THE COMMISSIONER MAY, IN ADDITION TO  HIS
OR  HER  OTHER  POWERS, LIMIT THE EXISTING OPERATING CERTIFICATE OF SUCH
CORPORATION SO THAT IT SHALL APPLY ONLY TO THE REMAINING MEMBERS OF  THE
BOARD  OF  DIRECTORS  PROVIDED THAT: (I) EVERY SUCH PERSON SUBJECT TO AN
ACTION TO LIMIT THE OPERATING CERTIFICATE PURSUANT TO PARAGRAPH  (A)  OF
SUBDIVISION  ONE  OF  THIS SECTION, EVERY SUCH INDICTED PERSON, OR EVERY
SUCH PERSON SUBJECT TO AN  ACTION  FOR  REMOVAL  SHALL  IMMEDIATELY  AND
COMPLETELY  CEASE  AND  WITHDRAW FROM PARTICIPATION, IN ANY CAPACITY, IN
THE MANAGEMENT, GOVERNANCE OR OPERATION OF THE HOSPITAL;  AND  (II)  THE
COMMISSIONER HAS FOUND THAT THE REMAINING MEMBERS OF THE BOARD OF DIREC-
TORS ARE OF SUCH CHARACTER, EXPERIENCE, COMPETENCE AND STANDING SO AS TO
GIVE REASONABLE ASSURANCE OF THEIR ABILITY TO CONDUCT THE AFFAIRS OF THE
CORPORATION  IN  ITS  BEST  INTERESTS AND IN THE PUBLIC INTEREST. IF THE
CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH ARE
NOT MET, OR IF THE LIMITATION OF THE OPERATING  CERTIFICATE  UNDER  THIS
PARAGRAPH  RESULTS  IN  A BOARD OF DIRECTORS OF LESS THAN THREE MEMBERS,
THE COMMISSIONER SHALL TEMPORARILY  SUSPEND  THE  OPERATING  CERTIFICATE
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
  (C)  NOTWITHSTANDING PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, WHERE
THE COMMISSIONER HAS FOUND THAT THE SUSPENSION OF A  HOSPITAL  OPERATING
CERTIFICATE  PURSUANT  TO  THIS  SECTION  WOULD  JEOPARDIZE  EXISTING OR
CONTINUED ACCESS TO NECESSARY SERVICES WITHIN THE COMMUNITY, THE COMMIS-
SIONER MAY APPOINT TEMPORARY MEMBERS OF THE BOARD OF DIRECTORS TO  OPER-
ATE  AND  MANAGE  THE HOSPITAL UNDER THE EXISTING OPERATING CERTIFICATE,
UNTIL THE RESOLUTION OF THE CRIMINAL ACTION, ATTORNEY GENERAL ACTION  OR
ACTION BY THE DEPARTMENT DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION,
AS APPLICABLE.
  S  26.  Paragraphs (a) and (b) of subdivision 5 of section 2806 of the
public health law, paragraph (a) as amended by section 20 of part LL  of

S. 6256--A                         31                         A. 9056--A

chapter  56  of the laws of 2010 and paragraph (b) as amended by chapter
607 of the laws of 1981, are amended to read as follows:
  (a)  Except as provided in paragraphs (b) and (d) of this subdivision,
anything contained in this section or in a certificate  of  relief  from
disabilities or a certificate of good conduct issued pursuant to article
twenty-three  of  the  correction law to the contrary notwithstanding, a
hospital operating certificate of a hospital under control of a control-
ling person as defined in paragraph (a) of subdivision twelve of section
twenty-eight hundred one-a of this article,  or  under  control  of  any
other  entity,  shall  be  revoked upon a finding by the department that
such controlling person or any  individual,  member  of  a  partnership,
MEMBER  OF  A LIMITED LIABILITY COMPANY, MEMBER OF A BOARD OF DIRECTORS,
or shareholder of a corporation to whom or to which an operating certif-
icate has been issued, has been convicted of a class A, B or  C  felony,
or a felony related in any way to any activity or program subject to the
regulations,  supervision, or administration of the department or of the
office of temporary and disability assistance or  in  violation  of  the
public  officers  law in a court of competent jurisdiction in the state,
or of a crime outside the state which, if committed  within  the  state,
would  have been a class A, B or C felony or a felony related in any way
to any activity or program subject to the regulations,  supervision,  or
administration of the department or of the office of temporary and disa-
bility assistance or in violation of the public officers law.
  (b)  In  the  event  one or more members of a partnership, MEMBER OF A
LIMITED LIABILITY COMPANY, MEMBER OF A BOARD OF DIRECTORS, or sharehold-
ers of a corporation shall have been convicted of a felony as  described
in  paragraph  (a) of this subdivision, the commissioner shall, in addi-
tion to his other powers, limit the existing  operating  certificate  of
such  partnership  or  corporation  so  that  it shall apply only to the
remaining partner, MEMBER OF A LIMITED LIABILITY COMPANY,  MEMBER  OF  A
BOARD  OF  DIRECTORS, or shareholders, as the case may be, provided that
every such convicted person immediately and completely ceases and  with-
draws  from participation, IN ANY CAPACITY, in the management and opera-
tion of the hospital, and  further  provided  that  an  application  for
approval of change of ownership, CHANGE OF BOARD MEMBERSHIP, or transfer
of  stock  is  filed  without  delay  in  accordance  with the pertinent
provisions of section twenty-eight hundred one-a of this [chapter] ARTI-
CLE.
  S 27. The public health law is amended by adding a new section  2806-a
to read as follows:
  S  2806-A.  TEMPORARY  OPERATOR.  1. FOR THE PURPOSES OF THIS SECTION:
(A) THE TERM "ADULT CARE FACILITY" SHALL MEAN AN ADULT HOME OR  ENRICHED
HOUSING  PROGRAM  LICENSED  PURSUANT  TO  ARTICLE  SEVEN  OF  THE SOCIAL
SERVICES LAW OR AN ASSISTED LIVING RESIDENCE LICENSED PURSUANT TO  ARTI-
CLE  FORTY-SIX-B  OF  THIS  CHAPTER; (B) THE TERM "ESTABLISHED OPERATOR"
SHALL MEAN THE OPERATOR OF AN ADULT CARE FACILITY, A GENERAL HOSPITAL OR
A DIAGNOSTIC AND TREATMENT CENTER THAT HAS BEEN ESTABLISHED  AND  ISSUED
AN  OPERATING CERTIFICATE AS SUCH PURSUANT TO THIS ARTICLE; (C) THE TERM
"FACILITY" SHALL MEAN (I) A GENERAL HOSPITAL OR A DIAGNOSTIC AND  TREAT-
MENT CENTER THAT HAS BEEN ISSUED AN OPERATING CERTIFICATE AS SUCH PURSU-
ANT  TO  THIS  ARTICLE; OR (II) AN ADULT CARE FACILITY; AND (D) THE TERM
"TEMPORARY OPERATOR" SHALL MEAN ANY PERSON OR ENTITY THAT:
  (I) AGREES TO OPERATE A FACILITY ON A  TEMPORARY  BASIS  IN  THE  BEST
INTERESTS  OF  ITS RESIDENTS OR PATIENTS AND THE COMMUNITY SERVED BY THE
FACILITY; AND

S. 6256--A                         32                         A. 9056--A

  (II) HAS DEMONSTRATED THAT HE OR SHE HAS THE CHARACTER, COMPETENCE AND
FINANCIAL ABILITY TO OPERATE THE FACILITY IN COMPLIANCE WITH  APPLICABLE
STANDARDS.
  2. (A) WHEN A STATEMENT OF DEFICIENCIES HAS BEEN ISSUED BY THE DEPART-
MENT  AND  UPON  A  DETERMINATION  BY  THE COMMISSIONER THAT THERE EXIST
SIGNIFICANT MANAGEMENT FAILURES, INCLUDING BUT NOT LIMITED  TO  ADMINIS-
TRATIVE,  OPERATIONAL OR CLINICAL DEFICIENCIES OR FINANCIAL INSTABILITY,
IN A FACILITY THAT (I) SERIOUSLY ENDANGER THE LIFE, HEALTH OR SAFETY  OF
RESIDENTS OR PATIENTS OR (II) JEOPARDIZE EXISTING OR CONTINUED ACCESS TO
NECESSARY  SERVICES  WITHIN  THE  COMMUNITY,  HE  OR SHE SHALL APPOINT A
TEMPORARY OPERATOR TO ASSUME SOLE CONTROL OVER AND  SOLE  RESPONSIBILITY
FOR  THE  OPERATIONS  OF THAT FACILITY.   THE APPOINTMENT OF A TEMPORARY
OPERATOR SHALL BE IN ADDITION TO ANY OTHER REMEDIES PROVIDED BY LAW.
  (B) THE ESTABLISHED OPERATOR OF A FACILITY MAY AT ANY TIME REQUEST THE
COMMISSIONER TO APPOINT A TEMPORARY  OPERATOR.  UPON  RECEIVING  SUCH  A
REQUEST,  THE  COMMISSIONER  MAY,  IF  HE OR SHE DETERMINES THAT SUCH AN
ACTION IS NECESSARY TO RESTORE OR MAINTAIN THE PROVISION OF QUALITY CARE
TO THE RESIDENTS OR PATIENTS, ENTER INTO AN AGREEMENT  WITH  THE  ESTAB-
LISHED  OPERATOR  FOR  THE APPOINTMENT OF A TEMPORARY OPERATOR TO ASSUME
SOLE CONTROL OVER AND SOLE RESPONSIBILITY FOR  THE  OPERATIONS  OF  THAT
FACILITY.
  3.  A  TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION SHALL USE
HIS OR HER BEST  EFFORTS  TO  CORRECT  OR  ELIMINATE  ANY  DEFICIENCIES,
MANAGEMENT  FAILURES  OR  FINANCIAL  INSTABILITY  IN THE FACILITY AND TO
PROMOTE THE QUALITY AND ACCESSIBILITY OF HEALTH  CARE  SERVICES  IN  THE
COMMUNITY  SERVED  BY  THE  FACILITY.  SUCH CORRECTION OR ELIMINATION OF
DEFICIENCIES, MANAGEMENT FAILURES OR  FINANCIAL  INSTABILITY  SHALL  NOT
INCLUDE  MAJOR  ALTERATIONS  OF  THE PHYSICAL STRUCTURE OF THE FACILITY.
DURING THE TERM OF HIS OR HER APPOINTMENT, THE TEMPORARY OPERATOR  SHALL
HAVE  THE  AUTHORITY  TO  DIRECT  THE  MANAGEMENT OF THE FACILITY IN ALL
ASPECTS OF OPERATION AND SHALL BE AFFORDED FULL ACCESS TO  THE  ACCOUNTS
AND  RECORDS  OF THE FACILITY. THE TEMPORARY OPERATOR SHALL, DURING THIS
PERIOD, OPERATE THE FACILITY IN SUCH A MANNER AS TO PROMOTE  SAFETY  AND
TO  PROMOTE  THE  QUALITY  AND  ACCESSIBILITY OF HEALTH CARE SERVICES OR
RESIDENTIAL CARE IN THE COMMUNITY SERVED BY THE FACILITY. THE  TEMPORARY
OPERATOR  SHALL  HAVE  THE  POWER  TO  LET  CONTRACTS  THEREFOR OR INCUR
EXPENSES ON BEHALF OF THE FACILITY, PROVIDED THAT WHERE INDIVIDUAL ITEMS
OF REPAIRS, IMPROVEMENTS OR SUPPLIES EXCEED TEN  THOUSAND  DOLLARS,  THE
TEMPORARY  OPERATOR  SHALL  OBTAIN  PRICE QUOTATIONS FROM AT LEAST THREE
REPUTABLE SOURCES. THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO  FILE
ANY BOND. NO SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRIS-
ING  THE FACILITY OR CONTAINED WITHIN THE FACILITY, OR IN ANY FIXTURE OF
THE FACILITY, SHALL BE IMPAIRED OR DIMINISHED IN PRIORITY BY THE  TEMPO-
RARY  OPERATOR.  NEITHER THE TEMPORARY OPERATOR NOR THE DEPARTMENT SHALL
ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION OF PROPERTY WITH-
OUT THE PAYMENT OF FAIR COMPENSATION.
  4. THE TEMPORARY OPERATOR SHALL BE ENTITLED TO A  REASONABLE  FEE,  AS
DETERMINED  BY  THE COMMISSIONER, AND NECESSARY EXPENSES INCURRED DURING
HIS OR HER PERFORMANCE AS TEMPORARY OPERATOR, TO BE PAID FROM THE REVEN-
UE OF THE FACILITY.   THE  TEMPORARY  OPERATOR  SHALL  COLLECT  INCOMING
PAYMENTS FROM ALL SOURCES AND APPLY THEM FIRST TO THE REASONABLE FEE AND
TO  COSTS  INCURRED IN THE PERFORMANCE OF HIS OR HER FUNCTIONS AS TEMPO-
RARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE ONLY IN HIS OR HER
CAPACITY AS TEMPORARY OPERATOR FOR INJURY  TO  PERSON  AND  PROPERTY  BY
REASON  OF  CONDITIONS  OF  THE  FACILITY IN A CASE WHERE AN ESTABLISHED
OPERATOR WOULD HAVE BEEN LIABLE; HE OR SHE SHALL NOT HAVE ANY  LIABILITY

S. 6256--A                         33                         A. 9056--A

IN  HIS OR HER PERSONAL CAPACITY, EXCEPT FOR GROSS NEGLIGENCE AND INTEN-
TIONAL ACTS.
  5.  (A)  THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR
SHALL NOT EXCEED ONE HUNDRED EIGHTY DAYS. AFTER ONE HUNDRED EIGHTY DAYS,
IF THE COMMISSIONER DETERMINES THAT TERMINATION OF THE TEMPORARY  OPERA-
TOR  WOULD  CAUSE SIGNIFICANT DETERIORATION OF THE QUALITY OF, OR ACCESS
TO, HEALTH CARE OR RESIDENTIAL CARE IN THE COMMUNITY OR THAT  REAPPOINT-
MENT  IS  NECESSARY  TO  CORRECT THE DEFICIENCIES, MANAGEMENT FAILURE OR
FINANCIAL INSTABILITY THAT REQUIRED THE  APPOINTMENT  OF  THE  TEMPORARY
OPERATOR, THE COMMISSIONER MAY AUTHORIZE UP TO TWO ADDITIONAL NINETY DAY
TERMS.    WITHIN  FOURTEEN DAYS PRIOR TO THE TERMINATION OF EACH TERM OF
THE APPOINTMENT OF THE TEMPORARY OPERATOR, THE TEMPORARY OPERATOR  SHALL
SUBMIT  TO  THE  COMMISSIONER  AND  TO THE ESTABLISHED OPERATOR A REPORT
DESCRIBING THE ACTIONS TAKEN DURING  THE  APPOINTMENT  TO  ADDRESS  SUCH
DEFICIENCIES,  MANAGEMENT  FAILURES  AND/OR  FINANCIAL  INSTABILITY. THE
REPORT SHALL REFLECT  BEST  EFFORTS  TO  PRODUCE  A  FULL  AND  COMPLETE
ACCOUNTING.
  (B)  UPON  THE  COMPLETION  OF  THE TWO NINETY DAY TERMS REFERENCED IN
PARAGRAPH (A) OF THIS SUBDIVISION, IF THE COMMISSIONER  DETERMINES  THAT
TERMINATION  OF  THE  TEMPORARY OPERATOR WOULD CAUSE SIGNIFICANT DETERI-
ORATION OF THE QUALITY OF, OR ACCESS TO, HEALTH CARE OR RESIDENTIAL CARE
IN THE COMMUNITY OR THAT REAPPOINTMENT  IS  NECESSARY  TO  CONTINUE  THE
CORRECTION  OF  THE DEFICIENCIES, MANAGEMENT FAILURE OR FINANCIAL INSTA-
BILITY THAT REQUIRED THE APPOINTMENT  OF  THE  TEMPORARY  OPERATOR,  THE
COMMISSIONER  MAY REAPPOINT THE TEMPORARY OPERATOR FOR ADDITIONAL NINETY
DAY TERMS, PROVIDED THAT THE COMMISSIONER SHALL PROVIDE FOR  NOTICE  AND
THE  OPPORTUNITY  FOR  A HEARING AS SET FORTH IN SUBDIVISION SIX OF THIS
SECTION.
  (C) THE TERM OF THE INITIAL APPOINTMENT AND OF  ANY  SUBSEQUENT  REAP-
POINTMENT  MAY  BE  TERMINATED PRIOR TO THE EXPIRATION OF THE DESIGNATED
TERM, IF THE ESTABLISHED OPERATOR AND THE COMMISSIONER AGREE ON  A  PLAN
OF CORRECTION AND THE IMPLEMENTATION OF SUCH PLAN.
  6.  THE  COMMISSIONER  SHALL, UPON MAKING A DETERMINATION TO APPOINT A
TEMPORARY OPERATOR PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF  THIS
SECTION OR REAPPOINT A TEMPORARY OPERATOR FOR THE FIRST ADDITIONAL NINE-
TY  DAY  TERM  PURSUANT  TO  PARAGRAPH  (A)  OF SUBDIVISION FIVE OF THIS
SECTION, CAUSE THE ESTABLISHED OPERATOR OF THE FACILITY TO  BE  NOTIFIED
OF  THE  DETERMINATION  BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE
PRINCIPAL OFFICE OF THE ESTABLISHED OPERATOR. IF THE COMMISSIONER DETER-
MINES THAT ADDITIONAL REAPPOINTMENTS PURSUANT TO PARAGRAPH (B) OF SUBDI-
VISION FIVE OF THIS SECTION ARE REQUIRED, THE COMMISSIONER  SHALL  AGAIN
CAUSE  THE  ESTABLISHED  OPERATOR OF THE FACILITY TO BE NOTIFIED OF SUCH
DETERMINATION BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE PRINCIPAL
OFFICE OF THE ESTABLISHED OPERATOR AT THE COMMENCEMENT OF THE  FIRST  OF
EVERY  TWO  ADDITIONAL TERMS.   UPON RECEIPT OF SUCH NOTIFICATION AT THE
PRINCIPAL OFFICE OF THE ESTABLISHED OPERATOR AND BEFORE  THE  EXPIRATION
OF TEN DAYS THEREAFTER, THE ESTABLISHED OPERATOR MAY REQUEST AN ADMINIS-
TRATIVE  HEARING  ON THE DETERMINATION TO BEGIN NO LATER THAN SIXTY DAYS
FROM THE DATE OF THE APPOINTMENT OR REAPPOINTMENT OF THE TEMPORARY OPER-
ATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED TO THE ISSUE OF WHETHER
THE DETERMINATION OF THE COMMISSIONER WHICH RESULTED IN THE  APPOINTMENT
OR REAPPOINTMENT IS SUPPORTED BY SUBSTANTIAL EVIDENCE.
  7.  NO  PROVISION CONTAINED IN THIS SECTION SHALL BE DEEMED TO RELIEVE
THE ESTABLISHED OPERATOR OR ANY OTHER PERSON OF ANY  CIVIL  OR  CRIMINAL
LIABILITY  INCURRED,  OR  ANY  DUTY IMPOSED BY LAW, BY REASON OF ACTS OR
OMISSIONS OF THE ESTABLISHED OPERATOR OR ANY OTHER PERSON PRIOR  TO  THE

S. 6256--A                         34                         A. 9056--A

APPOINTMENT  OF  ANY  TEMPORARY  OPERATOR  HEREUNDER; NOR SHALL ANYTHING
CONTAINED IN THIS SECTION BE CONSTRUED TO SUSPEND DURING THE TERM OF THE
APPOINTMENT OF THE TEMPORARY OPERATOR ANY OBLIGATION OF THE  ESTABLISHED
OPERATOR OR ANY OTHER PERSON FOR THE PAYMENT OF TAXES OR OTHER OPERATING
AND MAINTENANCE EXPENSES OF THE FACILITY NOR OF THE ESTABLISHED OPERATOR
OR ANY OTHER PERSON FOR THE PAYMENT OF MORTGAGES OR LIENS.
  S  28.  Section  2  of  chapter  584 of the laws of 2011, amending the
public authorities law, relating to the powers and duties of the  dormi-
tory authority of the state of New York relative to the establishment of
subsidiaries for certain purposes, is amended to read as follows:
  S  2.  This  act shall take effect immediately and shall expire and be
deemed repealed ON July 1, [2012] 2015; provided however, that the expi-
ration of this act shall not impair  or  otherwise  affect  any  of  the
powers,  duties,  responsibilities,  functions, rights or liabilities of
any subsidiary duly  created  pursuant  to  subdivision  twenty-five  of
section 1678 of the public authorities law prior to such expiration.
  S  29.    Subdivision 1 of section 2999-i of the public health law, as
added by section 52 of part H of chapter 59 of  the  laws  of  2011,  is
amended to read as follows:
  1. (A) The commissioner of taxation and finance shall be the custodian
of  the  fund  and  the  special account established pursuant to section
ninety-nine-t of the state finance law. All payments from the fund shall
be made by the commissioner of taxation and  finance  upon  certificates
signed by the superintendent of financial services, or his or her desig-
nee,  as hereinafter provided. The fund shall be separate and apart from
any other fund and from all other state monies; PROVIDED, HOWEVER,  THAT
MONIES OF THE FUND MAY BE INVESTED AS SET FORTH IN PARAGRAPH (B) OF THIS
SUBDIVISION.   No monies from the fund shall be transferred to any other
fund, nor shall any such monies be applied to the making of any  payment
for any purpose other than the purpose set forth in this title.
  (B)  ANY MONIES OF THE FUND NOT REQUIRED FOR IMMEDIATE USE MAY, AT THE
DISCRETION OF THE COMMISSIONER OF  FINANCIAL  SERVICES  IN  CONSULTATION
WITH  THE  COMMISSIONER  OF  HEALTH  AND  THE DIRECTOR OF THE BUDGET, BE
INVESTED BY THE COMMISSIONER OF TAXATION AND FINANCE IN  OBLIGATIONS  OF
THE UNITED STATES OR THE STATE OR OBLIGATIONS THE PRINCIPAL AND INTEREST
OF  WHICH ARE GUARANTEED BY THE UNITED STATES OR THE STATE. THE PROCEEDS
OF ANY SUCH INVESTMENT SHALL BE RETAINED BY THE FUND  AS  ASSETS  TO  BE
USED FOR THE PURPOSES OF THE FUND.
  S  30.  Subdivision  9  of  section  2803  of the public health law is
REPEALED.
  S 31. Paragraph (b) of subdivision 1-a of section 2802 of  the  public
health law, as amended by chapter 174 of the laws of 2011, is amended to
read as follows:
  (b)  repair  or  maintenance,  regardless  of  cost, including routine
purchases and the acquisition  of  minor  equipment  undertaken  in  the
course  of  a  hospital's inventory control functions; PROVIDED THAT FOR
PROJECTS UNDER THIS PARAGRAPH WITH A TOTAL COST OF  UP  TO  SIX  MILLION
DOLLARS, NO WRITTEN NOTICE SHALL BE REQUIRED;
  S  32.   Subdivision 1 of section 1 of chapter 119 of the laws of 1997
relating to authorizing the department of health  to  establish  certain
payments  to  general  hospitals,  as amended by section 1 of part S2 of
chapter 62 of the laws of 2003, is amended to read as follows:
  1. Notwithstanding any inconsistent provision of  law  or  regulation,
effective for the period [April 1, 1997 through March 31, 1998] APRIL 1,
2012  THROUGH DECEMBER 31, 2012 and for annual periods beginning [April]
JANUARY 1 thereafter, the [department] DEPARTMENT of [health] HEALTH  is

S. 6256--A                         35                         A. 9056--A

authorized  to  pay voluntary non-profit general hospitals as defined in
subdivision 10 of section 2801  of  the  public  health  law  additional
payments  for inpatient hospital services as medical assistance payments
pursuant to title 11 of article 5 of the social services law and federal
law  and regulations governing disproportionate share payments, based on
the [amount of state aid for which such general hospitals  are  eligible
pursuant  to  articles  25,  26  and 41 of the mental hygiene law and as
identified in subdivision 2 of this section] COSTS INCURRED IN EXCESS OF
REVENUES BY GENERAL HOSPITALS IN PROVIDING SERVICES IN ELIGIBLE PROGRAMS
TO UNINSURED PATIENTS AND  PATIENTS  ELIGIBLE  FOR  MEDICAL  ASSISTANCE.
Payment made pursuant to this section shall not exceed each such general
hospital's cost of providing services to uninsured patients and patients
eligible for medical assistance pursuant to title 11 of article 5 of the
social  services  law  after taking into consideration all other medical
assistance received, including disproportionate share payments  made  to
such  general hospital, and payments from or on behalf of such uninsured
patients, and shall also not exceed the total amount of state aid, iden-
tified by subdivision 2 of  this  section,  available  to  such  general
hospital  by  law.  Payments  made to such general hospitals pursuant to
this section shall be made in lieu of any state aid  payments  available
to such general hospital by law.
  S  33.  Subdivision  1  of section 241 of the elder law, as amended by
section 29 of part A of chapter 58 of the laws of 2008,  is  amended  to
read as follows:
  1.  "Covered  drug"  shall  mean a drug dispensed subject to a legally
authorized prescription pursuant to section sixty-eight hundred  ten  of
the  education  law,  and  insulin,  an  insulin  syringe, or an insulin
needle. Such term shall not include: (a)  any  drug  determined  by  the
commissioner  of the federal food and drug administration to be ineffec-
tive or unsafe; (b) any drug dispensed in a package, or form  of  dosage
or administration, as to which the commissioner of health finally deter-
mines in accordance with the provisions of section two hundred fifty-two
of this title that a less expensive package, or form of dosage or admin-
istration,  is  available that is pharmaceutically equivalent and equiv-
alent in its therapeutic effect for the general  health  characteristics
of  the  eligible program participant population; (c) any device for the
aid or correction of vision; (d) any drug, including vitamins, which  is
generally  available  without  a physician's prescription; and (e) drugs
for the treatment of sexual or erectile dysfunction, unless  such  drugs
are  used  to  treat a condition, other than sexual or erectile dysfunc-
tion, for which the drugs have been approved by  the  federal  food  and
drug  administration; and (f) a brand name drug for which a multi-source
therapeutically and generically equivalent drug, as  determined  by  the
federal  food  and  drug administration, is available, unless previously
authorized by the elderly  pharmaceutical  insurance  coverage  program,
provided,  however,  that the [elderly pharmaceutical insurance coverage
panel] COMMISSIONER is authorized to exempt, for good cause  shown,  any
brand  name  drug  from such restriction, and provided further that such
restriction shall not  apply  to  any  drug  that  is  included  on  the
preferred  drug list under section two hundred seventy-two of the public
health law or is in the clinical drug review program under  section  two
hundred  seventy-four  of  the  public health law to the extent that the
preferred drug program and the clinical drug review program are  applied
to  the  elderly  pharmaceutical  insurance coverage program pursuant to
section two hundred seventy-five of the public health  law,  or  to  any
drug  covered  under  a  program  participant's Medicare part D or other

S. 6256--A                         36                         A. 9056--A

primary insurance plan. Any of the drugs  enumerated  in  the  preceding
sentence  shall  be considered a covered drug or a prescription drug for
purposes of this article if it is added to the preferred drug list under
article  two-A of the public health law.  For the purpose of this title,
except as otherwise provided in this section, a covered  drug  shall  be
dispensed  in  quantities  no  greater  than  a thirty day supply or one
hundred units, whichever is greater. In the case of a drug dispensed  in
a  form  of  administration  other than a tablet or capsule, the maximum
allowed quantity shall be a thirty day supply; the [panel]  COMMISSIONER
is  authorized  to  approve  exceptions  to  these  limits  for specific
products following consideration of recommendations from  pharmaceutical
or medical experts regarding commonly packaged quantities, unusual forms
of  administration,  length  of  treatment or cost effectiveness. In the
case of a drug prescribed pursuant to section thirty-three hundred thir-
ty-two of the public health law to treat one of the conditions that have
been enumerated by the commissioner of health pursuant to regulation  as
warranting  the  prescribing  of  greater than a thirty day supply, such
drug shall be dispensed in  quantities  not  to  exceed  a  three  month
supply.
  S  33-a.  Subdivision 1 of section 241 of the elder law, as amended by
section 12 of part B of chapter 57 of the laws of 2006,  is  amended  to
read as follows:
  1.  "Covered  drug"  shall  mean a drug dispensed subject to a legally
authorized prescription pursuant to section sixty-eight hundred  ten  of
the  education  law,  and  insulin,  an  insulin  syringe, or an insulin
needle. Such term shall not include: (a)  any  drug  determined  by  the
commissioner  of the federal food and drug administration to be ineffec-
tive or unsafe; (b) any drug dispensed in a package, or form  of  dosage
or administration, as to which the commissioner of health finally deter-
mines in accordance with the provisions of section two hundred fifty-two
of this title that a less expensive package, or form of dosage or admin-
istration,  is  available that is pharmaceutically equivalent and equiv-
alent in its therapeutic effect for the general  health  characteristics
of  the  eligible program participant population; (c) any device for the
aid or correction of vision, or any drug, including vitamins,  which  is
generally  available  without  a physician's prescription; and (d) drugs
for the treatment of sexual or erectile dysfunction, unless  such  drugs
are  used  to  treat a condition, other than sexual or erectile dysfunc-
tion, for which the drugs have been approved by  the  federal  food  and
drug  administration. For the purpose of this title, except as otherwise
provided in this section, a covered drug shall be dispensed  in  quanti-
ties no greater than a thirty day supply or one hundred units, whichever
is  greater. In the case of a drug dispensed in a form of administration
other than a tablet or capsule, the maximum allowed quantity shall be  a
thirty  day  supply;  the  [panel] COMMISSIONER is authorized to approve
exceptions to these limits for specific products following consideration
of recommendations from  pharmaceutical  or  medical  experts  regarding
commonly packaged quantities, unusual forms of administration, length of
treatment or cost effectiveness. In the case of a drug prescribed pursu-
ant  to section thirty-three hundred thirty-two of the public health law
to treat one of the conditions that have been enumerated by the  commis-
sioner of health pursuant to regulation as warranting the prescribing of
greater  than a thirty day supply, such drug shall be dispensed in quan-
tities not to exceed a three month supply.

S. 6256--A                         37                         A. 9056--A

  S 33-b. Paragraph (f) of subdivision 3 of section  242  of  the  elder
law,  as  amended  by section 3-d of part A of chapter 59 of the laws of
2011, is amended to read as follows:
  (f)  As  a  condition  of eligibility for benefits under this title, a
program participant is required to be enrolled in Medicare part D and to
maintain such enrollment.   FOR UNMARRIED PARTICIPANTS  WITH  INDIVIDUAL
ANNUAL  INCOME  LESS  THAN OR EQUAL TO TWENTY-THREE THOUSAND DOLLARS AND
MARRIED PARTICIPANTS WITH JOINT ANNUAL INCOME  LESS  THAN  OR  EQUAL  TO
TWENTY-NINE  THOUSAND  DOLLARS,  THE  ELDERLY  PHARMACEUTICAL  INSURANCE
COVERAGE PROGRAM SHALL PAY FOR THE PORTION OF THE PART D MONTHLY PREMIUM
THAT IS THE RESPONSIBILITY OF THE PARTICIPANT.  SUCH  PAYMENT  SHALL  BE
LIMITED  TO  THE  LOW-INCOME BENCHMARK PREMIUM AMOUNT ESTABLISHED BY THE
FEDERAL CENTERS FOR MEDICARE AND MEDICAID SERVICES AND ANY OTHER  AMOUNT
WHICH  SUCH  AGENCY  ESTABLISHES  UNDER  ITS  DE MINIMUS PREMIUM POLICY,
EXCEPT THAT SUCH PAYMENTS MADE ON BEHALF OF PARTICIPANTS ENROLLED  IN  A
MEDICARE  ADVANTAGE  PLAN  MAY  EXCEED  THE LOW-INCOME BENCHMARK PREMIUM
AMOUNT IF DETERMINED TO BE COST EFFECTIVE TO THE PROGRAM.
  S 33-c. Paragraph (b) of subdivision 2 of section  243  of  the  elder
law,  as  amended  by section 3-g of part A of chapter 59 of the laws of
2011, is amended to read as follows:
  (b) notifying [each eligible program participant in writing  upon  the
commencement  of  the annual coverage period of such participant's cost-
sharing responsibilities pursuant to section two hundred forty-seven  of
this  title.  The  contractor  shall  also notify] each eligible program
participant of any adjustment of the co-payment schedule by mail no less
than thirty days prior to the effective date  of  such  adjustments  and
shall inform such eligible program participants of the date such adjust-
ments shall take effect;
  S 33-d. Section 245 of the elder law is REPEALED.
  S  33-e.  Subdivision  1  of section 247 of the elder law, as added by
section 3-j of part A of chapter 59 of the laws of 2011, is  amended  to
read as follows:
  1.  As  a  condition  of  eligibility  for  benefits under this title,
participants must [maintain Medicare part D  coverage  and  pay  monthly
premiums  to  their  Medicare  part D drug plan] BE ENROLLED IN MEDICARE
PART D AND MAINTAIN SUCH ENROLLMENT.
  S 33-f. Subdivision 1 of section 249 of the elder law, as  amended  by
section  111  of part C of chapter 58 of the laws of 2009, is amended to
read as follows:
  1. The state shall offer an opportunity to participate in this program
to all provider pharmacies as defined in section two  hundred  forty-one
of  this  title, provided, however, that the participation of pharmacies
registered in the state pursuant to section sixty-eight hundred  eight-b
of the education law shall be limited to state assistance provided under
this  title  for  prescription  drugs covered by a program participant's
medicare [or other] drug plan.
  S 33-g. Subdivisions 1 and 2 of section  253  of  the  elder  law  are
amended to read as follows:
  1.  In  counties  having a population of seventy-five thousand or less
that are in proximity to the state boundary and which are determined  by
the  [executive  director]  COMMISSIONER  OF HEALTH to be not adequately
served by provider pharmacies registered in New  York,  and  in  Fishers
Island in the town of Southold, Suffolk county, the [executive director]
COMMISSIONER  may  approve as provider pharmacies, pharmacies located in
New Jersey, Connecticut, Vermont, Pennsylvania  or  Massachusetts.  Such
approvals  shall  be made after (a) consideration of the convenience and

S. 6256--A                         38                         A. 9056--A

necessity of New York residents in the rural areas served by such  phar-
macies,  (b)  consideration of the quality of service of such pharmacies
and the standing of such pharmacies with the governmental board or agen-
cy  of  the  state in which such pharmacy is located, (c) the [executive
director] COMMISSIONER shall give all  licensed  pharmacies  within  the
county  notice  of  his  or  her  intention to approve such out-of-state
provider pharmacies, and (d) the [executive director]  COMMISSIONER  has
held  a  public hearing at which he or she has determined factually that
the licensed pharmacies within such county are not adequately serving as
provider pharmacies.
  2. The [executive director] COMMISSIONER OF HEALTH  shall  investigate
and  determine whether certification shall be granted within ninety days
of the filing of an application for certification by the governing  body
of  any city, town or village, within a county determined by the [execu-
tive director] COMMISSIONER to be  not  adequately  served  by  provider
pharmacies  registered  in  New York pursuant to subdivision one of this
section, claiming to be lacking adequate pharmaceutical service.
  S 34.  Subdivision 25 of section 2808 of the  public  health  law,  as
added  by  section  31  of  part  B  of chapter 109 of the laws of 2010,
subparagraph (iii) of paragraph (b) as amended and subparagraph (iv)  of
paragraph (b) as added by section 69 of part H of chapter 59 of the laws
of 2011, is amended to read as follows:
  25.  Reserved  bed  days.  (a)  For  purposes  of  this subdivision, a
"reserved bed day" is a day for which a governmental agency pays a resi-
dential health care facility to reserve a bed for a person eligible  for
medical  assistance  pursuant  to  title  eleven  of article five of the
social services law while he or she is temporarily  hospitalized  or  on
leave of absence from the facility.
  (b)  Notwithstanding any other provisions of this section or any other
law or regulation to the contrary, for reserved  bed  days  provided  on
behalf of persons twenty-one years of age or older:
  (i)  payments  for  reserved  bed  days  shall  be made at ninety-five
percent of the Medicaid rate  otherwise  payable  to  the  facility  for
services provided on behalf of such person;
  (ii) payment to a facility for reserved bed days provided on behalf of
such  person for temporary hospitalizations may not exceed fourteen days
in any twelve month period;
  (iii) payment to a facility for reserved bed days provided  on  behalf
of  such person for non-hospitalization leaves of absence may not exceed
ten days in any twelve month period[; and
  (iv) payments for reserved bed  days  for  temporary  hospitalizations
shall  only  be  made  to a residential health care facility if at least
fifty percent of the facility's residents eligible to participate  in  a
Medicare managed care plan are enrolled in such a plan].
  (C)(I)  NOTWITHSTANDING  ANY CONTRARY PROVISION OF THIS SUBDIVISION OR
ANY OTHER LAW AND SUBJECT  TO  THE  AVAILABILITY  OF  FEDERAL  FINANCIAL
PARTICIPATION,  FOR  RATE PERIODS ON AND AFTER APRIL FIRST, TWO THOUSAND
TWELVE, WITH REGARD TO SERVICES  PROVIDED  TO  RESIDENTIAL  HEALTH  CARE
FACILITY  RESIDENTS  TWENTY-ONE YEARS OF AGE AND OLDER, THE COMMISSIONER
SHALL PROMULGATE REGULATIONS, AND MAY PROMULGATE EMERGENCY  REGULATIONS,
EFFECTIVE  FOR  PERIODS  ON  AND AFTER APRIL FIRST, TWO THOUSAND TWELVE,
ESTABLISHING REIMBURSEMENT RATES FOR RESERVED BED DAYS, PROVIDED, HOWEV-
ER,  THAT  SUCH  REGULATIONS  SHALL  ACHIEVE  AN  AGGREGATE   ANNUALIZED
REDUCTION  IN  REIMBURSEMENT  FOR SUCH RESERVED BED DAYS OF NO LESS THAN
FORTY MILLION DOLLARS, AS DETERMINED BY THE COMMISSIONER.

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  (II) IN THE EVENT THE COMMISSIONER DETERMINES THAT  FEDERAL  FINANCIAL
PARTICIPATION  WILL  NOT BE AVAILABLE FOR RATE ADJUSTMENTS MADE PURSUANT
TO SUBPARAGRAPH (I) OF THIS PARAGRAPH OR REGULATIONS PROMULGATED  THERE-
UNDER,  THEN,  FOR  RATE  PERIODS ON AND AFTER APRIL FIRST, TWO THOUSAND
TWELVE,  MEDICAID  RATES  FOR  INPATIENT  SERVICES SHALL NOT INCLUDE ANY
FACTOR OR PAYMENT AMOUNT FOR SUCH RESERVED BED DAYS WITH REGARD TO RESI-
DENTS TWENTY-ONE YEARS OF AGE AND OLDER.
  (III) IN THE EVENT THE PROVISIONS OF SUBPARAGRAPH (II) OF  THIS  PARA-
GRAPH  ARE INVOKED AND IMPLEMENTED BY THE COMMISSIONER, THEN THE COMMIS-
SIONER SHALL PROMULGATE REGULATIONS, AND MAY PROMULGATE EMERGENCY  REGU-
LATIONS,  EFFECTIVE  FOR  RATE  PERIODS  ON  OR  AFTER  APRIL FIRST, TWO
THOUSAND TWELVE, PROVIDING UPWARD REVISIONS  TO  MEDICAID  RATES  ISSUED
PURSUANT  TO  SUBDIVISION TWO-C OF THIS SECTION, PROVIDED, HOWEVER, THAT
SUCH UPWARD REVISIONS SHALL NOT  IN  AGGREGATE,  AS  DETERMINED  BY  THE
COMMISSIONER,  EXCEED,  ON  AN  ANNUAL BASIS, AN AMOUNT EQUAL TO CURRENT
ANNUAL MEDICAID PAYMENTS FOR  RESERVED  BED  DAYS,  LESS  FORTY  MILLION
DOLLARS.
  S  35. Paragraphs (l) and (m) of subdivision 1 of section 367-q of the
social services law, as added by section 22 of part C of chapter  59  of
the laws of 2011, are amended to read as follows:
  (l)  for  the  period  April  first, two thousand twelve through March
thirty-first, two thousand thirteen, UP  TO  twenty-eight  million  five
hundred thousand dollars; and
  (m)  for  the  period April first, two thousand thirteen through March
thirty-first, two thousand fourteen, UP  TO  twenty-eight  million  five
hundred thousand dollars.
  S  35-a.  Clause (K) of subparagraph (i) of paragraph (bb) of subdivi-
sion 1 of section 2807-v of the public health law, as amended by section
8 of part C of chapter 59 of the laws of 2011, is  amended  to  read  as
follows:
  (K)  UP  TO  one  hundred thirty-six million dollars each state fiscal
year for the period April first, two thousand eleven through March thir-
ty-first, two thousand fourteen.
  S 35-b. Subparagraph (xi)  of  paragraph  (cc)  of  subdivision  1  of
section 2807-v of the public health law, as amended by section 8 of part
C of chapter 59 of the laws of 2011, is amended to read as follows:
  (xi)  UP  TO  eleven  million  two hundred thousand dollars each state
fiscal year for the period April  first,  two  thousand  eleven  through
March thirty-first, two thousand fourteen.
  S  35-c.  Subparagraph  (vii)  of  paragraph (ccc) of subdivision 1 of
section 2807-v of the public health law, as amended by section 8 of part
C of chapter 59 of the laws of 2011, is amended to read as follows:
  (vii) UP TO fifty million dollars each state fiscal year for the peri-
od April first, two thousand  eleven  through  March  thirty-first,  two
thousand fourteen.
  S 36.  Paragraph (g-1) of subdivision 2 of section 365-a of the social
services  law,  as  amended by section 23 of part H of chapter 59 of the
laws of 2011, is amended to read as follows:
  (g-1) drugs provided on an in-patient basis, those drugs contained  on
the  list established by regulation of the commissioner of health pursu-
ant to subdivision four of this section, and those drugs which  may  not
be  dispensed  without a prescription as required by section sixty-eight
hundred ten of the education law and which the  commissioner  of  health
shall determine to be reimbursable based upon such factors as the avail-
ability  of  such  drugs  or  alternatives at low cost if purchased by a
medicaid recipient, or the essential nature of such drugs  as  described

S. 6256--A                         40                         A. 9056--A

by such commissioner in regulations, provided, however, that such drugs,
exclusive  of long-term maintenance drugs, shall be dispensed in quanti-
ties no greater than a thirty day supply or one hundred doses, whichever
is  greater; provided further that the commissioner of health is author-
ized to require prior authorization for any  refill  of  a  prescription
when  less  than seventy-five percent of the previously dispensed amount
per fill should have been used were the product used as  normally  indi-
cated; provided further that the commissioner of health is authorized to
require  prior  authorization  of  prescriptions of opioid analgesics in
excess of four prescriptions in a thirty-day period in  accordance  with
section  two hundred seventy-three of the public health law, EXCEPT THAT
PRIOR AUTHORIZATION MAY BE DENIED IF THE DEPARTMENT,  AFTER  GIVING  THE
PRESCRIBER  A  REASONABLE OPPORTUNITY TO PRESENT A JUSTIFICATION, DETER-
MINES THAT THE  ADDITIONAL  PRESCRIPTION  IS  NOT  MEDICALLY  NECESSARY;
medical  assistance shall not include any drug provided on other than an
in-patient basis for which a recipient is charged or a claim is made  in
the  case  of a prescription drug, in excess of the maximum reimbursable
amounts to be established by department regulations in  accordance  with
standards  established  by the secretary of the United States department
of health and human services, or, in the case of a drug not requiring  a
prescription,  in  excess of the maximum reimbursable amount established
by the commissioner of health pursuant to paragraph (a)  of  subdivision
four of this section;
  S  37.  Subdivision  6 of section 368-d of the social services law, as
added by section 6 of part H of chapter 59  of  the  laws  of  2011,  is
amended to read as follows:
  6.  The commissioner shall evaluate the results of the study conducted
pursuant to subdivision four of this section to determine,  after  iden-
tification of actual direct and indirect costs incurred by public school
districts  and  state  operated[/] AND state supported schools FOR BLIND
AND DEAF STUDENTS, whether it is advisable to claim  federal  reimburse-
ment  for  expenditures  under this section as certified public expendi-
tures. In the event such claims are submitted, if federal  reimbursement
received  for certified public expenditures on behalf of medical assist-
ance recipients whose assistance and care are the  responsibility  of  a
social  services  district  [in  a  city  with  a population of over two
million,] results in a decrease in the state share  of  annual  expendi-
tures  pursuant  to this section for such recipients, then to the extent
that the amount of any such decrease when combined with any decrease  in
the  state share of annual expenditures described in subdivision five of
section three hundred sixty-eight-e of this title exceeds fifty  million
dollars  IN  STATE  FISCAL  YEAR 2011-12, OR EXCEEDS ONE HUNDRED MILLION
DOLLARS IN STATE FISCAL YEAR 2012-13 OR ANY FISCAL YEAR THEREAFTER,  the
excess  amount  shall  be  transferred  to  such  [city]  PUBLIC  SCHOOL
DISTRICTS AND STATE OPERATED AND STATE SUPPORTED SCHOOLS FOR  BLIND  AND
DEAF  STUDENTS  IN AMOUNTS PROPORTIONAL TO THEIR PERCENTAGE CONTRIBUTION
TO THE STATEWIDE SAVINGS.  Any such excess amount transferred shall  not
be  considered  a  revenue  received by such social services district in
determining the district's actual medical  assistance  expenditures  for
purposes  of  paragraph  (b)  of section one of part C of chapter fifty-
eight of the laws of two thousand five.
  S 38. Subdivision 5 of section 368-e of the social  services  law,  as
added  by  section  7  of  part  H of chapter 59 of the laws of 2011, is
amended to read as follows:
  5. The commissioner shall evaluate the results of the study  conducted
pursuant  to subdivision three of this section to determine, after iden-

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tification of actual direct and indirect costs incurred by counties  for
medical  care,  services,  and supplies furnished to pre-school children
with handicapping conditions, whether it is advisable to  claim  federal
reimbursement  for  expenditures  under this section as certified public
expenditures. In  the  event  such  claims  are  submitted,  if  federal
reimbursement  received  for  certified public expenditures on behalf of
medical assistance recipients whose assistance and care are the  respon-
sibility  of  a social services district [in a city with a population of
over two million], results in a decrease in the state  share  of  annual
expenditures  pursuant  to this section for such recipients, then to the
extent that the amount of any  such  decrease  when  combined  with  any
decrease in the state share of annual expenditures described in subdivi-
sion  six  of  section three hundred sixty-eight-d of this title exceeds
fifty million dollars IN STATE  FISCAL  YEAR  2011-12,  OR  EXCEEDS  ONE
HUNDRED  MILLION DOLLARS IN STATE FISCAL YEAR 2012-13 OR ANY FISCAL YEAR
THEREAFTER, the excess amount shall be transferred to such [city]  COUN-
TIES  IN  AMOUNTS  PROPORTIONAL  TO THEIR PERCENTAGE CONTRIBUTION TO THE
STATEWIDE SAVINGS.   Any such excess amount  transferred  shall  not  be
considered a revenue received by such social services district in deter-
mining   the  district's  actual  medical  assistance  expenditures  for
purposes of paragraph (b) of section one of part  C  of  chapter  fifty-
eight of the laws of two thousand five.
  S  39. Subparagraph (i) of paragraph (a-1) of subdivision 4 of section
365-a of the social services law, as amended by section 46 of part C  of
chapter 58 of the laws of 2009, is amended to read as follows:
  (i)  a  brand  name  drug for which a multi-source therapeutically and
generically equivalent drug, as determined by the federal food and  drug
administration,  is  available,  unless  previously  authorized  by  the
department of health.  The  commissioner  of  health  is  authorized  to
exempt,  for good cause shown, any brand name drug from the restrictions
imposed by this subparagraph[. This subparagraph shall not apply to  any
drug  that is in a therapeutic class included on the preferred drug list
under section two hundred seventy-two of the public health law or is  in
the  clinical drug review program under section two hundred seventy-four
of the public health law];
  S 40.   Subdivision 8 of section 272 of  the  public  health  law,  as
amended  by  section  5 of part B of chapter 109 of the laws of 2010, is
amended to read as follows:
  8. The commissioner shall provide notice of any recommendations devel-
oped by the committee regarding the preferred  drug  program,  at  least
five  days before any final determination by the commissioner, by making
such information available on the  department's  website.  [Such  public
notice shall include: a summary of the deliberations of the committee; a
summary  of the positions of those making public comments at meetings of
the committee; the response of the committee to those comments, if  any;
and the findings and recommendations of the committee.]
  S 41. Paragraphs (e), (f) and (g) of subdivision 1 of section 367-a of
the  social  services  law, paragraph (e) as added by chapter 433 of the
laws of 1997, paragraph (f) as added by section 1 of part E  of  chapter
58 of the laws of 2008, paragraph (g) as added by section 65-a of part H
of chapter 59 of the laws of 2011, are amended to read as follows:
  (e)  Amounts  payable  under  this title for medical assistance in the
form of clinic services pursuant to article twenty-eight of  the  public
health  law  and  article  sixteen of the mental hygiene law provided to
eligible persons DIAGNOSED WITH A DEVELOPMENTAL DISABILITY who are  also
beneficiaries  under  part  [b]  B of title [xviii] XVIII of the federal

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social security act [and who are also], OR PROVIDED TO PERSONS diagnosed
with a DEVELOPMENTAL disability WHO ARE QUALIFIED MEDICARE BENEFICIARIES
UNDER PART B OF TITLE XVIII OF SUCH ACT  shall  not  be  less  than  the
approved  medical assistance payment level less the amount payable under
part [b] B.
  (f) Amounts payable under this title for  medical  assistance  in  the
form  of  outpatient  mental health services under article thirty-one of
the mental hygiene law provided to eligible persons who are also benefi-
ciaries under part B of title XVIII of the federal social  security  act
OR  PROVIDED  TO  QUALIFIED MEDICARE BENEFICIARIES UNDER PART B OF TITLE
XVIII OF SUCH ACT shall not be less than the approved medical assistance
payment level less the amount payable under part B.
  (g) Notwithstanding any provision of this  section  to  the  contrary,
amounts  payable  under this title for medical assistance in the form of
hospital outpatient services or diagnostic and treatment center services
pursuant to article twenty-eight of the public health  law  provided  to
eligible  persons who are also beneficiaries under part B of title XVIII
of the federal social security act OR  PROVIDED  TO  QUALIFIED  MEDICARE
BENEFICIARIES  UNDER  PART B OF TITLE XVIII OF SUCH ACT shall not exceed
the approved medical assistance payment level less  the  amount  payable
under part B.
  S 42. Subdivision 6 of section 2818 of the public health law, as added
by  section 25-a of part A of chapter 59 of the laws of 2011, is amended
to read as follows:
  6. Notwithstanding any contrary provision of  this  section,  sections
one hundred twelve and one hundred sixty-three of the state finance law,
or  any  other contrary provision of law, subject to available appropri-
ations, funds available for expenditure pursuant to this section may  be
distributed by the commissioner without a competitive bid or request for
proposal  process for grants to general hospitals, DIAGNOSTIC AND TREAT-
MENT CENTERS, and residential health care facilities for the purpose  of
facilitating  closures,  mergers and restructuring of such facilities in
order to strengthen and protect continued  access  to  essential  health
care resources. Prior to an [awarded] AWARD being granted to an eligible
applicant without a competitive bid or request for proposal process, the
commissioner shall notify the chair of the senate finance committee, the
chair  of  the assembly ways and means committee and the director of the
division of budget of the intent to grant such  an  award.  Such  notice
shall  include  information  regarding  how the eligible applicant meets
criteria established pursuant to this section.
  S 43. Paragraph (a) of subdivision 8-a of section 2807-j of the public
health law, as amended by section 16 of part D of chapter 57 of the laws
of 2006, is amended to read as follows:
  (a) Payments and reports submitted or required to be submitted to  the
commissioner  or to the commissioner's designee pursuant to this section
and section twenty-eight hundred seven-s of this article  by  designated
providers  of  services  and by third-party payors which have elected to
make payments directly to the  commissioner  or  to  the  commissioner's
designee in accordance with subdivision five-a of this section, shall be
subject to audit by the commissioner for a period of six years following
the  close  of  the calendar year in which such payments and reports are
due, after which such payments shall be deemed final and not subject  to
further  adjustment  or reconciliation, INCLUDING THROUGH OFFSET ADJUST-
MENTS OR RECONCILIATIONS MADE BY DESIGNATED PROVIDERS OF SERVICES OR  BY
THIRD-PARTY  PAYORS WITH REGARD TO SUBSEQUENT PAYMENTS, provided, howev-
er, that nothing herein shall be construed as precluding the commission-

S. 6256--A                         43                         A. 9056--A

er from pursuing collection of any such payments which are identified as
delinquent within such six year  period,  or  which  are  identified  as
delinquent  as a result of an audit commenced within such six year peri-
od, or from conducting an audit of any adjustment or reconciliation made
by a designated provider of services or by a third party payor which has
elected  to  make  such  payments  directly  to  the commissioner or the
commissioner's designee, OR FROM CONDUCTING AN AUDIT  OF  PAYMENTS  MADE
PRIOR  TO  SUCH  SIX  YEAR  PERIOD WHICH ARE FOUND TO BE COMMINGLED WITH
PAYMENTS WHICH ARE OTHERWISE SUBJECT TO TIMELY AUDIT  PURSUANT  TO  THIS
SECTION.
  S 44.  Paragraph (a) of subdivision 10 of section 2807-t of the public
health law, as amended by section 17 of part D of chapter 57 of the laws
of 2006, is amended to read as follows:
  (a)  Payments and reports submitted or required to be submitted to the
commissioner or to the commissioner's designee pursuant to this  section
by specified third-party payors shall be subject to audit by the commis-
sioner  for  a  period  of six years following the close of the calendar
year in which such payments  and  reports  are  due,  after  which  such
payments  shall be deemed final and not subject to further adjustment or
reconciliation, INCLUDING THROUGH OFFSET ADJUSTMENTS OR  RECONCILIATIONS
MADE  BY  SUCH  SPECIFIED  THIRD-PARTY  PAYORS WITH REGARD TO SUBSEQUENT
PAYMENTS, provided, however, that nothing herein shall be  construed  as
precluding  the  commissioner  from  pursuing  collection  of  any  such
payments which are identified as delinquent within such six year period,
or which are identified as delinquent as a result of an audit  commenced
within  such six year period, or from conducting an audit of any adjust-
ments and reconciliation made by a specified third  party  payor  within
such six year period, OR FROM CONDUCTING AN AUDIT OF PAYMENTS MADE PRIOR
TO  SUCH  SIX YEAR PERIOD WHICH ARE FOUND TO BE COMMINGLED WITH PAYMENTS
WHICH ARE OTHERWISE SUBJECT TO TIMELY AUDIT PURSUANT TO THIS SECTION.
  S 45. Subdivision 7 of section 2807-d of  the  public  health  law  is
amended by adding a new paragraph (f) to read as follows:
  (F)  PAYMENTS AND REPORTS SUBMITTED OR REQUIRED TO BE SUBMITTED TO THE
COMMISSIONER OR TO THE COMMISSIONER'S DESIGNEE PURSUANT TO THIS  SECTION
SHALL  BE SUBJECT TO AUDIT BY THE COMMISSIONER FOR A PERIOD OF SIX YEARS
FOLLOWING THE CLOSE OF THE CALENDAR YEAR  IN  WHICH  SUCH  PAYMENTS  AND
REPORTS ARE DUE, AFTER WHICH SUCH PAYMENTS SHALL BE DEEMED FINAL AND NOT
SUBJECT  TO  FURTHER  ADJUSTMENT  OR  RECONCILIATION,  INCLUDING THROUGH
OFFSET ADJUSTMENTS OR RECONCILIATIONS MADE TO SUBSEQUENT  PAYMENTS  MADE
PURSUANT  TO  THIS SECTION, PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL
BE CONSTRUED AS PRECLUDING THE COMMISSIONER FROM PURSUING COLLECTION  OF
ANY  SUCH  PAYMENTS  WHICH  ARE IDENTIFIED AS DELINQUENT WITHIN SUCH SIX
YEAR PERIOD, OR WHICH ARE IDENTIFIED AS DELINQUENT AS  A  RESULT  OF  AN
AUDIT COMMENCED WITHIN SUCH SIX YEAR PERIOD, OR FROM CONDUCTING AN AUDIT
OF ANY ADJUSTMENT OR RECONCILIATION MADE BY A HOSPITAL.
  S 46.  Paragraph (f) of subdivision 18 of section 2807-c of the public
health law, as amended by section 15 of part D of chapter 57 of the laws
of 2006, is amended to read as follows:
  (f) Payments of assessments and allowances required to be submitted by
general hospitals pursuant to this subdivision and subdivisions fourteen
and  fourteen-b  of this section and paragraph (a) of subdivision two of
section twenty-eight hundred seven-d of this article shall be subject to
audit by the commissioner for a period of six years following the  close
of  the  calendar  year in which such payments are due, after which such
payments shall be deemed final and not subject to further adjustment  or
reconciliation,  INCLUDING THROUGH OFFSET ADJUSTMENTS OR RECONCILIATIONS

S. 6256--A                         44                         A. 9056--A

MADE BY GENERAL HOSPITALS WITH REGARD TO SUBSEQUENT PAYMENTS,  provided,
however,  that  nothing  herein  shall  be  construed  as precluding the
commissioner from pursuing collection of any such assessments and allow-
ances which are identified as delinquent within such six year period, or
which  are  identified  as  delinquent as a result of an audit commenced
within such six year audit period, or from conducting an  audit  of  any
adjustment  or reconciliation made by a general hospital within such six
year period, OR FROM CONDUCTING AN AUDIT OF PAYMENTS MADE PRIOR TO  SUCH
SIX YEAR PERIOD WHICH ARE FOUND TO BE COMMINGLED WITH PAYMENTS WHICH ARE
OTHERWISE  SUBJECT  TO  TIMELY  AUDIT  PURSUANT TO THIS SECTION. General
hospitals which, in the course of such an audit, fail to produce data or
documentation requested in furtherance of such an audit,  within  thirty
days  of such request may be assessed a civil penalty of up to ten thou-
sand dollars for each such failure, provided, however, that  such  civil
penalty shall not be imposed if the hospital demonstrates good cause for
such  failure.   The imposition of such civil penalties shall be subject
to the provisions of section twelve-a of this chapter.
  S 47.  Paragraph (e) of subdivision 2-a of section 2807 of the  public
health  law  is  amended  by  adding a new subparagraph (iii) to read as
follows:
  (III) REGULATIONS ISSUED PURSUANT TO THIS  PARAGRAPH  MAY  INCORPORATE
QUALITY  RELATED MEASURES LIMITING OR EXCLUDING REIMBURSEMENT RELATED TO
POTENTIALLY PREVENTABLE CONDITIONS AND COMPLICATIONS.
  S 48.  Paragraph (c) of subdivision 7 of section 2807-d of the  public
health  law,  as added by chapter 938 of the laws of 1990, is amended to
read as follows:
  (c) The reports shall be in such form as  may  be  prescribed  by  the
commissioner  to  accurately  disclose information required to implement
this section, PROVIDED, HOWEVER, THAT FOR  PERIODS  ON  AND  AFTER  JULY
FIRST,  TWO  THOUSAND  TWELVE,  SUCH  REPORTS AND ANY ASSOCIATED CERTIF-
ICATIONS SHALL BE SUBMITTED ELECTRONICALLY IN A FORM AS MAY BE  REQUIRED
BY THE COMMISSIONER.
  S  48-a. Subparagraph (i) of paragraph (a) of subdivision 7 of section
2807-j of the public health law, as amended by section 36 of part  B  of
chapter 58 of the laws of 2008, is amended to read as follows;
  (i)  Every designated provider of services shall submit reports of net
patient service revenues received for or on account of patient  services
for  each  month which shall be in such form as may be prescribed by the
commissioner to accurately disclose information  required  to  implement
this section. For periods on and after January first, two thousand five,
reports by designated providers of services shall be submitted electron-
ically  in  a  form  as  may  be required by the commissioner; provided,
however, any designated provider of  services  is  not  prohibited  from
submitting  reports  electronically  on  a voluntary basis prior to such
date,  AND  PROVIDED  FURTHER,  HOWEVER,  THAT   ALL   SUCH   ELECTRONIC
SUBMISSIONS SUBMITTED ON AND AFTER JULY FIRST, TWO THOUSAND TWELVE SHALL
BE  VERIFIED  WITH  AN ELECTRONIC SIGNATURE AS PRESCRIBED BY THE COMMIS-
SIONER.
  S 48-b. Subparagraph (ii) of paragraph (b) of subdivision 7 of section
2807-j of the public health law, as amended by section 25 of part A3  of
chapter 62 of the laws of 2003, is amended to read as follows:
  (ii)  For  periods on and after July first, two thousand four, reports
submitted on a monthly basis by third-party payors  in  accordance  with
subparagraph (i) of this paragraph and reports submitted on a monthly or
annual  basis by payors acting in an administrative services capacity on
behalf of electing third-party payors in  accordance  with  subparagraph

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(i)  of  this paragraph shall be made electronically in a form as may be
required by the commissioner; provided, however, any third-party  payor,
except payors acting in an administrative services capacity on behalf of
electing third-party payors, which, on or after January first, two thou-
sand  four,  elects to make payments directly to the commissioner or the
commissioner's designee pursuant to subdivision five  of  this  section,
shall  be  subject to this subparagraph only after one full year of pool
payment experience which results in reports being submitted on a monthly
basis,  AND  PROVIDED  FURTHER,  HOWEVER,  THAT  ALL   SUCH   ELECTRONIC
SUBMISSIONS SUBMITTED ON AND AFTER JULY FIRST, TWO THOUSAND TWELVE SHALL
BE  VERIFIED  WITH  AN ELECTRONIC SIGNATURE AS PRESCRIBED BY THE COMMIS-
SIONER.   This subparagraph shall not be  interpreted  to  prohibit  any
third-party  payor from submitting reports electronically on a voluntary
basis.
  S 48-c. Subparagraph (ii)  of  paragraph  (b)  of  subdivision  20  of
section  2807-c of the public health law, as added by section 26 of part
A3 of chapter 62 of the laws of 2003, is amended to read as follows:
  (ii) For periods on  and  after  January  first,  two  thousand  five,
reports  submitted  by general hospitals to implement the assessment set
forth in subdivision eighteen of this section shall be  submitted  elec-
tronically  in  a form as may be required by the commissioner; provided,
however, general hospitals are not prohibited  from  submitting  reports
electronically  on  a  voluntary  basis prior to such date, AND PROVIDED
FURTHER, HOWEVER, THAT ALL SUCH ELECTRONIC SUBMISSIONS SUBMITTED ON  AND
AFTER  JULY  FIRST,  TWO THOUSAND TWELVE SHALL BE VERIFIED WITH AN ELEC-
TRONIC SIGNATURE AS PRESCRIBED BY THE COMMISSIONER.
  S 49.  Subdivision 8 of section 3605 of  the  public  health  law,  as
added by chapter 959 of the laws of 1984, is amended to read as follows:
  8. Agencies licensed pursuant to this section but not certified pursu-
ant  to  section three thousand six hundred eight of this article, shall
not be qualified to participate  as  a  home  health  agency  under  the
provisions  of  title  XVIII  or  XIX of the federal Social Security Act
provided, however, an agency which has a contract with a state agency or
its locally designated office OR, AS SPECIFIED BY THE COMMISSIONER, WITH
A MANAGED CARE ORGANIZATION PARTICIPATING IN THE  MANAGED  CARE  PROGRAM
ESTABLISHED PURSUANT TO SECTION THREE HUNDRED SIXTY-FOUR-J OF THE SOCIAL
SERVICES  LAW OR WITH A MANAGED LONG TERM CARE PLAN ESTABLISHED PURSUANT
TO SECTION FORTY-FOUR HUNDRED  THREE-F  OF  THIS  CHAPTER,  may  receive
reimbursement under title XIX of the federal Social Security Act.
  S  50.  Subdivision  6  of section 365-f of the social services law is
renumbered subdivision 7 and a new subdivision 6 is  added  to  read  as
follows:
  6.  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF THIS SECTION OR ANY
OTHER CONTRARY PROVISION  OF  LAW,  MANAGED  CARE  PROGRAMS  ESTABLISHED
PURSUANT TO SECTION THREE HUNDRED SIXTY-FOUR-J OF THIS TITLE AND MANAGED
LONG  TERM  CARE  PLANS  AND  OTHER CARE COORDINATION MODELS ESTABLISHED
PURSUANT TO SECTION FOUR THOUSAND FOUR HUNDRED  THREE-F  OF  THE  PUBLIC
HEALTH LAW SHALL OFFER CONSUMER DIRECTED PERSONAL ASSISTANCE PROGRAMS TO
ENROLLEES.
  S  51.  Subparagraph (ii) of paragraph (e) of subdivision 4 of section
364-j of the social services law, as amended by section 14 of part C  of
chapter 58 of the laws of 2004, is amended to read as follows:
  (ii) In any social services district which has implemented a mandatory
managed  care program pursuant to this section, the requirements of this
subparagraph shall apply to the extent consistent with federal  law  and
regulations.  The  department  of  health, may contract with one or more

S. 6256--A                         46                         A. 9056--A

independent organizations to provide enrollment counseling  and  enroll-
ment  services,  for  participants  required  to  enroll in managed care
programs, for each social services district [requesting the services  of
an  enrollment  broker]  WHICH  HAS IMPLEMENTED A MANDATORY MANAGED CARE
PROGRAM. To select such organizations, the department  of  health  shall
issue  a request for proposals (RFP), shall evaluate proposals submitted
in response to such RFP  and,  pursuant  to  such  RFP,  shall  award  a
contract  to  one  or  more qualified and responsive organizations. Such
organizations shall not be owned, operated, or controlled by any govern-
mental agency, managed care provider, comprehensive  HIV  special  needs
plan, mental health special needs plan, or medical services provider.
  S  52.  Paragraph (b) of subdivision 1 of section 4403-f of the public
health law is REPEALED and paragraphs (c)  and  (d),  paragraph  (c)  as
relettered by section 7 of part C of chapter 58 of the laws of 2007, are
relettered paragraphs (b) and (c).
  S 53.  The opening paragraph of subdivision 2 of section 4403-f of the
public  health  law,  as amended by section 8 of part C of chapter 58 of
the laws of 2007, is amended to read as follows:
  An [eligible] applicant shall submit an application for a  certificate
of  authority  to  operate  a  managed  long  term  care plan upon forms
prescribed by the commissioner. Such [eligible] applicant  shall  submit
information  and  documentation to the commissioner which shall include,
but not be limited to:
  S 54.  Paragraph (b) of subdivision 4 of section 4403-f of the  public
health law, as added by section 5 of part C of chapter 58 of the laws of
2010, is amended to read as follows:
  (b)  Standards  established  pursuant  to  this  subdivision  shall be
adequate to protect the interests of enrollees in managed long term care
plans.  The commissioner shall be satisfied that the  [eligible]  appli-
cant  is  financially sound, and has made adequate provisions to pay for
services.
  S 55.  Paragraph (c) of subdivision 6 of section 4403-f of the  public
health  law,  as  amended by section 41-b of part H of chapter 59 of the
laws of 2011, is amended to read as follows:
  (c) For the period beginning April  first,  two  thousand  twelve  and
ending  March thirty-first, two thousand fifteen, the majority leader of
the senate and the speaker of the assembly may  each  recommend  to  the
commissioner, in writing, up to four [eligible] applicants to convert to
be  approved  managed  long  term care plans. An applicant shall only be
approved and issued a  certificate  of  authority  if  the  commissioner
determines  that  the  applicant  meets  the requirements of subdivision
three of this section. The majority leader of the senate or the  speaker
of  the  assembly  may  assign  their authority to recommend one or more
applicants under this section to the commissioner.
  S 56.  Paragraph (a) of subdivision 3 of section  366  of  the  social
services  law, as amended by chapter 110 of the laws of 1971, is amended
to read as follows:
  (a) Medical assistance shall  be  furnished  to  applicants  in  cases
where,  although  such  applicant has a responsible relative with suffi-
cient income and resources to provide medical assistance  as  determined
by  the  regulations  of the department, the income and resources of the
responsible relative are not available to such applicant because of  the
absence  of such relative [or] AND the refusal or failure of such ABSENT
relative to provide the necessary care and assistance.   In such  cases,
however,  the  furnishing  of  such  assistance  shall create an implied
contract with such relative, and the cost thereof may be recovered  from

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such  relative  in  accordance  with  title six of article three OF THIS
CHAPTER and other applicable provisions of law.
  S  57. Subdivision 1 of section 92 of part H of chapter 59 of the laws
of 2011, amending the public health law and other laws relating to known
and projected department of health state funds Medicaid expenditures, is
amended to read as follows:
  1. For state fiscal years 2011-12 [and 2012-13] THROUGH  2013-14,  the
director  of the budget, in consultation with the commissioner of health
referenced as "commissioner" for purposes of this section, shall  assess
on a monthly basis, as reflected in monthly reports pursuant to subdivi-
sion five of this section known and projected department of health state
funds  medicaid  expenditures  by  category of service and by geographic
regions, as defined by the commissioner, and  if  the  director  of  the
budget  determines that such expenditures are expected to cause medicaid
disbursements for such period to  exceed  the  projected  department  of
health  medicaid  state funds disbursements in the enacted budget finan-
cial plan pursuant to subdivision 3 of section 23 of the  state  finance
law,  the  commissioner  of health, in consultation with the director of
the budget, shall develop a medicaid savings allocation  plan  to  limit
such  spending  to  the  aggregate  limit level specified in the enacted
budget financial  plan,  provided,  however,  such  projections  may  be
adjusted by the director of the budget to account for any changes in the
New  York state federal medical assistance percentage amount established
pursuant to the federal social security act, changes in provider  reven-
ues,  REDUCTIONS  TO  LOCAL  SOCIAL SERVICES DISTRICT MEDICAL ASSISTANCE
ADMINISTRATION, and beginning April 1, 2012 the operational costs of the
New York state medical indemnity fund.
  S 58.  Paragraph (b) of section 90 of part H of chapter 59 of the laws
of 2011, amending the public health law and other laws relating to types
of appropriations exempt from certain reductions, is amended to read  as
follows:
  (b)  The  following  types  of  appropriations  shall  be  exempt from
reductions pursuant to this section:
  (i) any reductions that would violate federal law including,  but  not
limited to, payments required pursuant to the federal Medicare program;
  (ii)  any reductions related to payments pursuant to article 32, arti-
cle 31 and article 16 of the mental hygiene law;
  (iii) payments the state is obligated to make pursuant to court orders
or judgments;
  (iv) payments for which the non-federal share  does  not  reflect  any
state funding; [and]
  (v)  at  the discretion of the commissioner of health and the director
of the budget, payments with regard to which it  is  determined  by  the
commissioner  of  health and the director of the budget that application
of reductions pursuant to this section would  result,  by  operation  of
federal law, in a lower federal medical assistance percentage applicable
to such payments; AND
  (VI)  PAYMENTS  MADE  WITH  REGARD  TO  THE EARLY INTERVENTION PROGRAM
PURSUANT TO SECTION 2540 OF THE PUBLIC HEALTH LAW.
  S 59. Subparagraph (ii) of paragraph (a) of subdivision 5  of  section
2807-j of the public health law, as amended by section 23 of part A-3 of
chapter 62 of the laws of 2003, is amended to read as follows:
  (ii) An election shall remain in effect unless revoked in writing by a
specified  third-party payor, which revocation shall be effective on the
first day of the next [calendar year quarter] MONTH, provided that  such

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payor  has provided notice of its intention to so revoke at least [thir-
ty] TWENTY days prior to the beginning of such [calendar quarter] MONTH.
  S 60. Paragraph (b) of subdivision 5-a of section 2807-m of the public
health law is amended by adding a new clause (H) to read as follows:
  (H)  NOTWITHSTANDING  ANY  INCONSISTENT PROVISION OF THIS SUBDIVISION,
FOR PERIODS ON AND AFTER APRIL FIRST, TWO THOUSAND THIRTEEN, ECRIP GRANT
AWARDS SHALL BE MADE IN ACCORDANCE WITH RULES AND REGULATIONS PROMULGAT-
ED BY THE COMMISSIONER.
  S 61. Section 1 of part C of chapter 58 of the laws of 2005,  relating
to  authorizing  reimbursements for expenditures made by or on behalf of
social services districts for medical assistance for needy  persons  and
the  administration  thereof, is amended by adding a new subdivision (h)
to read as follows:
  (H) NOTWITHSTANDING THE PROVISIONS OF  SECTION  368-A  OF  THE  SOCIAL
SERVICES  LAW  OR  ANY OTHER CONTRARY PROVISION OF LAW, NO REIMBURSEMENT
SHALL BE MADE FOR SOCIAL SERVICES DISTRICTS'  CLAIMS  SUBMITTED  ON  AND
AFTER  THE  EFFECTIVE  DATE OF THIS PARAGRAPH, FOR DISTRICT EXPENDITURES
INCURRED PRIOR TO JANUARY  1,  2006,  INCLUDING,  BUT  NOT  LIMITED  TO,
EXPENDITURES  FOR SERVICES PROVIDED TO INDIVIDUALS WHO WERE ELIGIBLE FOR
MEDICAL ASSISTANCE PURSUANT TO SECTION THREE HUNDRED  SIXTY-SIX  OF  THE
SOCIAL  SERVICES  LAW  AS  A  RESULT  OF  A  MENTAL DISABILITY, FORMERLY
REFERRED TO AS HUMAN SERVICES OVERBURDEN AID TO COUNTIES.
  S 62.   Notwithstanding any inconsistent provision  of  law,  rule  or
regulation,  for  purposes  of implementing the provisions of the public
health law and the social services law, references to titles XIX and XXI
of the federal social security act in the  public  health  law  and  the
social  services  law  shall  be  deemed to include and also to mean any
successor titles thereto under the federal social security act.
  S 63. Notwithstanding any inconsistent provision of law, rule or regu-
lation, the effectiveness of the provisions of sections 2807 and 3614 of
the public health law, section 18 of chapter 2 of the laws of 1988,  and
18  NYCRR  505.14(h), as they relate to time frames for notice, approval
or certification of rates of payment, are hereby suspended  and  without
force or effect for purposes of implementing the provisions of this act.
  S 64.  Severability clause. If any clause, sentence, paragraph, subdi-
vision,  section  or  part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair or invalidate the remainder thereof, but shall be confined in its
operation  to  the  clause, sentence, paragraph, subdivision, section or
part thereof directly involved in the controversy in which such judgment
shall have been rendered. It is hereby declared to be the intent of  the
legislature  that  this act would have been enacted even if such invalid
provisions had not been included herein.
  S 65. This act shall take effect immediately, and shall be  deemed  to
have been in full force and effect on and after April 1, 2012, provided,
however, that:
  (a)  the  commissioner  of health may promulgate emergency regulations
necessary to effectuate the provisions of sections two, three  and  four
of this act; and
  (a-1)  provided,  further, that the amendments to section 1 of chapter
119 of the laws of 1997 made by section thirty-two of this act, relating
to authorizing the department of health to establish certain payments to
general hospitals, shall be subject to the expiration  of  such  chapter
and shall be deemed expired therewith;
  (a-2)  provided,  further,  that  the  amendments  to subdivision 1 of
section 241 of the elder law made by section thirty-three  of  this  act

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shall  be  subject  to  the expiration and reversion of such subdivision
pursuant to section 79 of part C of chapter 58 of the laws of  2005,  as
amended, when upon such date the provisions of section thirty-three-a of
this act shall take effect;
  (b)  the  amendments  to  paragraph  (a-1) of subdivision 4 of section
365-a of the social services law made by section thirty-nine of this act
shall not affect the expiration and  reversion  of  such  paragraph  and
shall be deemed to expire therewith;
  (c)  provided,  further,  that  the  amendments  to section 272 of the
public health law made by section forty of this act shall not affect the
repeal of such section and shall be deemed repealed therewith;
  (d) provided, further, that the amendments to section  2807-j  of  the
public  health  law  made by sections forty-three, forty-eight-a, forty-
eight-b and fifty-nine of this act shall not affect  the  expiration  of
such section and shall be deemed to expire therewith;
  (e)  provided,  further,  that the amendments to section 2807-t of the
public health law made by section  forty-four  of  this  act  shall  not
affect  the  expiration  of  such  section and shall be deemed to expire
therewith;
  (f) provided, further, that the amendments to section  4403-f  of  the
public  health  law, made by sections fifty-two, fifty-three, fifty-four
and fifty-five of this act shall not affect the repeal of  such  section
and shall be deemed to repeal therewith;
  (g)  provided,  further,  that  the amendments to subparagraph (ii) of
paragraph (e) of subdivision 4 of section 364-j of the  social  services
law made by section fifty-one of this act shall not affect the repeal of
such section and shall be deemed repealed therewith;
  (h)  provided,  further,  that sections ten, eleven, twelve, thirteen,
fourteen, fifteen, sixteen, seventeen and eighteen  of  this  act  shall
take effect April 1, 2013;
  (i)  provided,  further,  that  any  rules or regulations necessary to
implement the provisions of this act may be promulgated and  any  proce-
dures,  forms,  or instructions necessary for such implementation may be
adopted and issued on or after the date this act  shall  have  become  a
law;
  (j)  provided, further, that this act shall not be construed to alter,
change, affect, impair or defeat  any  rights,  obligations,  duties  or
interests  accrued, incurred or conferred prior to the effective date of
this act;
  (k) provided, further, that the commissioner of health and the  super-
intendent of financial services and any appropriate council may take any
steps necessary to implement this act prior to its effective date;
  (k-1)  provided,  further,  that the amendments to section 2802 of the
public health law made by section thirty-one  of  this  act  shall  take
effect  on  the same date and in the same manner as section 1 of chapter
174 of the laws of 2011 takes effect, whichever is later;
  (l) provided, further, that notwithstanding any inconsistent provision
of the state administrative procedure act or any other provision of law,
rule or regulation, the commissioner of health and the superintendent of
financial services and any appropriate council is authorized to adopt or
amend or promulgate on an emergency basis any regulation he  or  she  or
such council determines necessary to implement any provision of this act
on its effective date; and
  (m)  provided,  further,  that the provisions of this act shall become
effective notwithstanding the failure of the commissioner of  health  or

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the  superintendent  of  financial  services  or any council to adopt or
amend or promulgate regulations implementing this act.

                                 PART E

  Section  1.  This act shall be known and may be cited as the "New York
Health Benefit Exchange Act".
  S 2. The public authorities law is amended by  adding  a  new  article
10-E to read as follows:
                               ARTICLE 10-E
                    NEW YORK HEALTH BENEFIT EXCHANGE
SECTION 3980. STATEMENT OF POLICY AND PURPOSES.
        3981. DEFINITIONS.
        3982. ESTABLISHMENT OF THE NEW YORK HEALTH BENEFIT EXCHANGE.
        3983. GENERAL POWERS OF THE EXCHANGE.
        3984. FUNCTIONS OF THE EXCHANGE.
        3985. SPECIAL  FUNCTIONS  OF THE EXCHANGE RELATED TO HEALTH PLAN
                 CERTIFICATION AND QUALIFIED HEALTH PLAN OVERSIGHT.
        3986. REGIONAL ADVISORY COMMITTEES.
        3987. FUNDING OF THE EXCHANGE.
        3988. STUDIES AND RECOMMENDATIONS.
        3989. TAX EXEMPTION AND TAX CONTRACT BY THE STATE.
        3990. OFFICERS AND EMPLOYEES.
        3991. LIMITATION OF LIABILITY; INDEMNIFICATION.
        3992. CONTINGENCY FOR FEDERAL FUNDING.
        3993. CONSTRUCTION.
  S 3980. STATEMENT OF POLICY AND PURPOSES. THE PURPOSE OF THIS  ARTICLE
IS  TO  ESTABLISH  AN  AMERICAN  HEALTH BENEFIT EXCHANGE IN NEW YORK, IN
CONFORMANCE WITH THE FEDERAL PATIENT PROTECTION AND AFFORDABLE CARE ACT,
PUBLIC LAW 111-148, AS AMENDED BY THE HEALTH CARE AND  EDUCATION  RECON-
CILIATION  ACT  OF 2010, PUBLIC LAW 111-152.  THE EXCHANGE SHALL FACILI-
TATE ENROLLMENT IN HEALTH COVERAGE, THE PURCHASE AND SALE  OF  QUALIFIED
HEALTH PLANS IN THE INDIVIDUAL MARKET IN THIS STATE, AND ENROLL INDIVID-
UALS  IN  HEALTH COVERAGE FOR WHICH THEY ARE ELIGIBLE IN ACCORDANCE WITH
FEDERAL LAW. THE EXCHANGE ALSO SHALL INCORPORATE A SMALL BUSINESS HEALTH
OPTIONS PROGRAM ("SHOP") TO ASSIST QUALIFIED EMPLOYERS  IN  FACILITATING
THE  ENROLLMENT  OF THEIR EMPLOYEES IN QUALIFIED HEALTH PLANS OFFERED IN
THE GROUP MARKET.   IT IS THE INTENT OF  THE  LEGISLATURE,  THROUGH  THE
ESTABLISHMENT  OF THE EXCHANGE, TO PROMOTE QUALITY AND AFFORDABLE HEALTH
COVERAGE AND CARE, REDUCE THE NUMBER OF  UNINSURED  PERSONS,  PROVIDE  A
TRANSPARENT  MARKETPLACE,  EDUCATE CONSUMERS AND ASSIST INDIVIDUALS WITH
ACCESS TO COVERAGE, PREMIUM  ASSISTANCE  TAX  CREDITS  AND  COST-SHARING
REDUCTIONS.
  S 3981. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
NITIONS SHALL APPLY:
  1. "BOARD" OR "BOARD OF DIRECTORS" MEANS THE BOARD OF DIRECTORS OF THE
EXCHANGE.
  2.  "REGIONAL  ADVISORY  COMMITTEES" MEANS THE NEW YORK HEALTH BENEFIT
EXCHANGE REGIONAL ADVISORY COMMITTEES ESTABLISHED PURSUANT TO THIS ARTI-
CLE.
  3. "COMMISSIONER" MEANS THE COMMISSIONER OF HEALTH.
  4. "EXCHANGE" MEANS THE NEW YORK HEALTH BENEFIT  EXCHANGE  ESTABLISHED
PURSUANT TO THIS ARTICLE.
  5. "FEDERAL ACT" MEANS THE PATIENT PROTECTION AND AFFORDABLE CARE ACT,
PUBLIC  LAW  111-148, AS AMENDED BY THE HEALTH CARE AND EDUCATION RECON-

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CILIATION ACT OF 2010, PUBLIC LAW 111-152, AND ANY REGULATIONS OR  GUID-
ANCE ISSUED THEREUNDER.
  6.  "HEALTH  PLAN" MEANS A POLICY, CONTRACT OR CERTIFICATE, OFFERED OR
ISSUED BY AN INSURER TO PROVIDE, DELIVER, ARRANGE FOR, PAY FOR OR  REIM-
BURSE  ANY  OF  THE COSTS OF HEALTH CARE SERVICES. HEALTH PLAN SHALL NOT
INCLUDE THE FOLLOWING:
  (A) ACCIDENT INSURANCE OR DISABILITY INCOME INSURANCE, OR ANY COMBINA-
TION THEREOF;
  (B) COVERAGE ISSUED AS A SUPPLEMENT TO LIABILITY INSURANCE;
  (C) LIABILITY INSURANCE, INCLUDING  GENERAL  LIABILITY  INSURANCE  AND
AUTOMOBILE LIABILITY INSURANCE;
  (D) WORKERS' COMPENSATION OR SIMILAR INSURANCE;
  (E) AUTOMOBILE NO-FAULT INSURANCE;
  (F) CREDIT INSURANCE;
  (G)  OTHER  SIMILAR  INSURANCE COVERAGE, AS SPECIFIED IN FEDERAL REGU-
LATIONS, UNDER WHICH BENEFITS FOR MEDICAL CARE ARE  SECONDARY  OR  INCI-
DENTAL TO OTHER INSURANCE BENEFITS;
  (H)  LIMITED  SCOPE  DENTAL OR VISION BENEFITS, BENEFITS FOR LONG-TERM
CARE INSURANCE, NURSING HOME INSURANCE,  HOME  CARE  INSURANCE,  OR  ANY
COMBINATION  THEREOF,  OR  SUCH  OTHER  SIMILAR, LIMITED BENEFITS HEALTH
INSURANCE AS SPECIFIED IN  FEDERAL  REGULATIONS,  IF  THE  BENEFITS  ARE
PROVIDED  UNDER  A SEPARATE POLICY, CERTIFICATE OR CONTRACT OF INSURANCE
OR ARE OTHERWISE NOT AN INTEGRAL PART OF THE PLAN;
  (I) COVERAGE ONLY FOR A SPECIFIED DISEASE OR ILLNESS, HOSPITAL  INDEM-
NITY, OR OTHER FIXED INDEMNITY COVERAGE;
  (J)  MEDICARE  SUPPLEMENTAL INSURANCE AS DEFINED IN SECTION 1882(G)(1)
OF THE FEDERAL SOCIAL SECURITY ACT, COVERAGE SUPPLEMENTAL TO THE  COVER-
AGE  PROVIDED UNDER CHAPTER 55 OF TITLE 10 OF THE UNITED STATES CODE, OR
SIMILAR SUPPLEMENTAL COVERAGE PROVIDED UNDER A GROUP HEALTH PLAN  IF  IT
IS  OFFERED  AS A SEPARATE POLICY, CERTIFICATE OR CONTRACT OF INSURANCE;
OR
  (K) THE MEDICAL INDEMNITY FUND ESTABLISHED PURSUANT TO TITLE  FOUR  OF
ARTICLE TWENTY-NINE-D OF THE PUBLIC HEALTH LAW.
  7.  "INSURER" MEANS AN INSURANCE COMPANY SUBJECT TO ARTICLE THIRTY-TWO
OR FORTY-THREE OF THE INSURANCE LAW, OR A HEALTH  MAINTENANCE  ORGANIZA-
TION  CERTIFIED  PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW
THAT CONTRACTS OR OFFERS TO CONTRACT TO PROVIDE, DELIVER,  ARRANGE,  PAY
OR REIMBURSE ANY OF THE COSTS OF HEALTH CARE SERVICES.
  8.  "QUALIFIED  DENTAL PLAN" MEANS A LIMITED SCOPE DENTAL PLAN THAT IS
ISSUED  BY  AN  INSURER  AND  CERTIFIED  IN  ACCORDANCE   WITH   SECTION
THIRTY-NINE HUNDRED EIGHTY-FIVE OF THIS ARTICLE.
  9. "QUALIFIED EMPLOYER" MEANS A SMALL EMPLOYER THAT ELECTS TO MAKE ITS
FULL-TIME  EMPLOYEES  ELIGIBLE  FOR  ONE  OR MORE QUALIFIED HEALTH PLANS
THROUGH THE EXCHANGE.
  10. "QUALIFIED HEALTH PLAN" MEANS A HEALTH PLAN THAT IS ISSUED  BY  AN
INSURER  AND  CERTIFIED  IN  ACCORDANCE WITH SECTION THIRTY-NINE HUNDRED
EIGHTY-FIVE OF THIS ARTICLE.
  11. "QUALIFIED INDIVIDUAL" MEANS AN  INDIVIDUAL,  INCLUDING  A  MINOR,
WHO:
  (A)  IS  SEEKING TO ENROLL IN A QUALIFIED HEALTH PLAN OFFERED TO INDI-
VIDUALS THROUGH THE EXCHANGE;
  (B) RESIDES IN THIS STATE;
  (C) AT THE TIME OF ENROLLMENT, IS NOT INCARCERATED, OTHER THAN  INCAR-
CERATION PENDING THE DISPOSITION OF CHARGES; AND

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  (D)  IS,  AND  IS REASONABLY EXPECTED TO BE, FOR THE ENTIRE PERIOD FOR
WHICH ENROLLMENT IS SOUGHT, A CITIZEN OR NATIONAL OF THE  UNITED  STATES
OR AN ALIEN LAWFULLY PRESENT IN THE UNITED STATES.
  12. "SECRETARY" MEANS THE SECRETARY OF THE UNITED STATES DEPARTMENT OF
HEALTH AND HUMAN SERVICES.
  13. "SHOP" MEANS THE SMALL BUSINESS HEALTH OPTIONS PROGRAM DESIGNED TO
ASSIST  QUALIFIED EMPLOYERS IN THIS STATE IN FACILITATING THE ENROLLMENT
OF THEIR EMPLOYEES IN QUALIFIED HEALTH PLANS OFFERED IN THE GROUP MARKET
IN THIS STATE.
  14. "SMALL EMPLOYER" MEANS, FOR PLAN YEARS PRIOR TO JANUARY FIRST, TWO
THOUSAND SIXTEEN, AN EMPLOYER THAT EMPLOYED AN AVERAGE OF AT  LEAST  ONE
BUT  NOT MORE THAN FIFTY EMPLOYEES ON BUSINESS DAYS DURING THE PRECEDING
CALENDAR YEAR. FOR PLAN YEARS BEGINNING ON AND AFTER JANUARY FIRST,  TWO
THOUSAND  SIXTEEN,  SMALL  EMPLOYER  MEANS  AN EMPLOYER THAT EMPLOYED AN
AVERAGE OF AT LEAST ONE BUT NOT MORE THAN ONE HUNDRED EMPLOYEES ON BUSI-
NESS DAYS DURING THE PRECEDING CALENDAR YEAR. FOR PURPOSES OF THE  DEFI-
NITION OF SMALL EMPLOYER:
  (A)  ALL  PERSONS  TREATED  AS A SINGLE EMPLOYER UNDER SUBSECTION (B),
(C), (M) OR (O) OF SECTION 414 OF THE  INTERNAL  REVENUE  CODE  OF  1986
SHALL BE TREATED AS A SINGLE EMPLOYER;
  (B)  AN  EMPLOYER  AND  ANY PREDECESSOR EMPLOYER SHALL BE TREATED AS A
SINGLE EMPLOYER;
  (C) ALL EMPLOYEES SHALL BE COUNTED, INCLUDING PART-TIME EMPLOYEES  AND
EMPLOYEES WHO ARE NOT ELIGIBLE FOR COVERAGE THROUGH THE EMPLOYER;
  (D)  IF  AN  EMPLOYER  WAS  NOT  IN EXISTENCE THROUGHOUT THE PRECEDING
CALENDAR YEAR, THEN THE DETERMINATION OF  WHETHER  THAT  EMPLOYER  IS  A
SMALL  EMPLOYER SHALL BE BASED UPON THE AVERAGE NUMBER OF EMPLOYEES THAT
THE EMPLOYER REASONABLY EXPECTS  TO  EMPLOY  ON  BUSINESS  DAYS  IN  THE
CURRENT CALENDAR YEAR;
  (E)  IF A QUALIFIED EMPLOYER THAT MAKES ENROLLMENT IN QUALIFIED HEALTH
PLANS AVAILABLE TO ITS EMPLOYEES THROUGH THE EXCHANGE  CEASES  TO  BE  A
SMALL  EMPLOYER BY REASON OF AN INCREASE IN THE NUMBER OF ITS EMPLOYEES,
THEN THE EMPLOYER SHALL CONTINUE TO BE TREATED AS A  QUALIFIED  EMPLOYER
FOR  PURPOSES OF THIS ARTICLE FOR THE PERIOD BEGINNING WITH THE INCREASE
AND ENDING WITH THE FIRST DAY ON WHICH THE EMPLOYER DOES NOT  MAKE  SUCH
ENROLLMENT AVAILABLE TO ITS EMPLOYEES; AND
  (F) NOTWITHSTANDING PARAGRAPHS (A) THROUGH (E) OF THIS SUBDIVISION, AN
EMPLOYER  ALSO  SHALL  BE CONSIDERED A SMALL EMPLOYER IF THE COVERAGE IT
OFFERS WOULD BE CONSIDERED SMALL GROUP COVERAGE UNDER THE INSURANCE  LAW
AND REGULATIONS PROMULGATED THEREUNDER PROVIDED THAT IT IS NOT OTHERWISE
PROHIBITED UNDER THE FEDERAL ACT.
  15. "SMALL GROUP MARKET" MEANS THE HEALTH INSURANCE MARKET UNDER WHICH
INDIVIDUALS  RECEIVE  HEALTH  INSURANCE COVERAGE ON BEHALF OF THEMSELVES
AND THEIR DEPENDENTS THROUGH A GROUP HEALTH PLAN MAINTAINED BY  A  SMALL
EMPLOYER.
  16. "SUPERINTENDENT" MEANS THE SUPERINTENDENT OF FINANCIAL SERVICES.
  S  3982.  ESTABLISHMENT  OF  THE NEW YORK HEALTH BENEFIT EXCHANGE.  1.
THERE IS HEREBY CREATED A PUBLIC BENEFIT CORPORATION TO BE KNOWN AS  THE
NEW  YORK  HEALTH  BENEFIT  EXCHANGE.  SUCH  CORPORATION SHALL BE A BODY
CORPORATE AND POLITIC.
  2. THE PURPOSE OF THE EXCHANGE IS TO FACILITATE THE PURCHASE AND  SALE
OF  QUALIFIED  HEALTH  PLANS, ASSIST QUALIFIED EMPLOYERS IN FACILITATING
THE ENROLLMENT OF THEIR EMPLOYEES IN QUALIFIED HEALTH PLANS THROUGH  THE
SMALL  BUSINESS  HEALTH  OPTIONS  PROGRAM,  ENROLL INDIVIDUALS IN HEALTH
COVERAGE FOR WHICH THEY ARE ELIGIBLE IN ACCORDANCE WITH FEDERAL LAW  AND
CARRY OUT OTHER FUNCTIONS SET FORTH IN THIS ARTICLE.

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  3. (A) THE EXCHANGE SHALL BE GOVERNED BY A BOARD OF DIRECTORS CONSIST-
ING  OF NINE VOTING DIRECTORS, INCLUDING THE COMMISSIONER AND THE SUPER-
INTENDENT, WHO SHALL SERVE AS EX OFFICIO DIRECTORS.
  (B)  SEVEN  DIRECTORS  SHALL BE APPOINTED BY THE GOVERNOR, TWO OF WHOM
SHALL BE APPOINTED UPON THE RECOMMENDATION OF THE TEMPORARY PRESIDENT OF
THE SENATE AND TWO OF WHOM SHALL BE APPOINTED UPON THE RECOMMENDATION OF
THE SPEAKER OF THE ASSEMBLY.  EACH PERSON APPOINTED AS A DIRECTOR PURSU-
ANT TO THIS PARAGRAPH SHALL HAVE EXPERTISE IN ONE OR MORE OF THE FOLLOW-
ING AREAS:
  (I) INDIVIDUAL HEALTH CARE COVERAGE;
  (II) SMALL EMPLOYER HEALTH CARE COVERAGE;
  (III) HEALTH BENEFITS ADMINISTRATION;
  (IV) HEALTH CARE FINANCE;
  (V) PUBLIC OR PRIVATE HEALTH CARE DELIVERY SYSTEMS; AND
  (VI) PURCHASING HEALTH PLAN COVERAGE.
  (C) RECOMMENDATIONS AND APPOINTMENTS SHALL TAKE INTO CONSIDERATION THE
EXPERTISE OF OTHER DIRECTORS RECOMMENDED AND APPOINTED PURSUANT TO  THIS
SUBDIVISION, SO THAT THE BOARD COMPOSITION REFLECTS A DIVERSITY OF EXPE-
RIENCE  AND COMPLIES WITH ANY REGULATIONS ISSUED BY THE SECRETARY PURSU-
ANT TO THE FEDERAL ACT.
  (D) RECOMMENDATIONS BY THE TEMPORARY PRESIDENT OF THE SENATE  AND  THE
SPEAKER  OF  THE ASSEMBLY SHALL BE MADE WITHIN THIRTY DAYS OF THE EFFEC-
TIVE DATE OF THIS ARTICLE, WITHIN SIXTY DAYS  OF  THE  OCCURRENCE  OF  A
VACANCY OR WITHIN SIXTY DAYS PRIOR TO THE EXPIRATION OF A TERM.
  4.  THE  GOVERNOR  SHALL  APPOINT  A CHAIR OF THE BOARD FROM AMONG THE
DIRECTORS WHO SHALL BE SUBJECT TO THE ADVICE AND CONSENT OF THE  SENATE.
ANY  DIRECTOR  APPOINTED BY THE GOVERNOR AS CHAIR OF THE BOARD MAY SERVE
AS ACTING CHAIR UNTIL SUCH TIME AS A VOTE FOR CONFIRMATION IS  TAKEN  BY
THE  SENATE.  NO  DIRECTOR  APPOINTED  AS CHAIR SHALL SERVE AS CHAIR, OR
CONTINUE TO SERVE AS ACTING CHAIR,  IF  THE  SENATE  HAS  VOTED  NOT  TO
CONFIRM SUCH DIRECTOR AS CHAIR.
  5.  (A)  THE  TERMS OF THE DIRECTORS, OTHER THAN THE EX OFFICIO DIREC-
TORS, SHALL BE THREE YEARS, PROVIDED, HOWEVER, THAT THE INITIAL TERMS OF
ONE OF THE DIRECTORS APPOINTED  UPON  RECOMMENDATION  OF  THE  TEMPORARY
PRESIDENT OF THE SENATE, ONE OF THE DIRECTORS APPOINTED UPON RECOMMENDA-
TION  OF THE SPEAKER OF THE ASSEMBLY, AND ONE OF THE DIRECTORS APPOINTED
BY THE GOVERNOR WITHOUT RECOMMENDATION SHALL BE FOR TWO YEARS.
  (B) VACANCIES OCCURRING OTHERWISE THAN BY EXPIRATION OF TERM OF OFFICE
SHALL BE FILLED FOR THE  UNEXPIRED  TERM  IN  THE  MANNER  PROVIDED  FOR
ORIGINAL APPOINTMENT.
  6. THE DIRECTORS SHALL NOT RECEIVE ANY COMPENSATION FOR THEIR SERVICES
AS DIRECTORS.
  7.  (A)  EACH  DIRECTOR SHALL HAVE THE RESPONSIBILITY AND DUTY TO MEET
THE REQUIREMENTS OF THIS ARTICLE, THE FEDERAL ACT,  AND  ALL  APPLICABLE
STATE  AND  FEDERAL LAWS AND REGULATIONS TO SERVE THE PUBLIC INTEREST OF
THE INDIVIDUALS  AND  SMALL  BUSINESSES  SEEKING  HEALTH  CARE  COVERAGE
THROUGH THE EXCHANGE, CONSISTENT WITH SECTION TWENTY-EIGHT HUNDRED TWEN-
TY-FOUR OF THIS CHAPTER.
  (B)  EACH  DIRECTOR  SHALL  BE  A  STATE  OFFICER  OR EMPLOYEE FOR THE
PURPOSES OF SECTIONS SEVENTY-THREE AND SEVENTY-FOUR OF THE PUBLIC  OFFI-
CERS LAW.
  (C) NO DIRECTOR MAY BE EMPLOYED OR OTHERWISE RETAINED BY THE EXCHANGE.
  8.  (A) THE BOARD MAY CREATE SUCH COMMITTEES AS THE BOARD DEEMS NECES-
SARY. THE FIRST MEETING OF THE BOARD SHALL BE HELD WITHIN FOURTEEN  DAYS
AFTER  ALL  DIRECTORS  ARE INITIALLY APPOINTED.  AT THE FIRST MEETING OF
THE BOARD, AND AT THE FIRST MEETING IN EACH SUBSEQUENT YEAR,  THE  BOARD

S. 6256--A                         54                         A. 9056--A

SHALL  ELECT  FROM  AMONG  ITS  MEMBERS A SECRETARY AND A TREASURER. THE
BOARD ALSO SHALL ELECT SUCH OTHER OFFICERS AS IT SHALL  DEEM  NECESSARY.
THE  OFFICERS  SO  ELECTED  SHALL  HAVE  SUCH  POWERS  AND DUTIES AS ARE
ASSIGNED BY THE BY-LAWS AND THIS CHAPTER.
  (B)  THE  BOARD, AND ANY COMMITTEE THEREOF, MAY HOLD MEETINGS BY ELEC-
TRONIC MEANS CONSISTENT WITH ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW.
  S 3983. GENERAL POWERS OF THE EXCHANGE. THE EXCHANGE  SHALL  HAVE  THE
FOLLOWING POWERS TO BE USED IN FURTHERANCE OF ITS CORPORATE PURPOSES:
  1.  TO  SUE AND BE SUED AND TO PARTICIPATE IN ACTIONS AND PROCEEDINGS,
WHETHER JUDICIAL, ADMINISTRATIVE, ARBITRATIVE OR OTHERWISE;
  2. TO HAVE A CORPORATE SEAL, AND TO ALTER SUCH SEAL AT  PLEASURE,  AND
TO  USE  IT  BY  CAUSING IT OR A FACSIMILE TO BE AFFIXED OR IMPRESSED OR
REPRODUCED IN ANY OTHER MANNER;
  3. TO PURCHASE, RECEIVE, TAKE  BY  GRANT,  GIFT,  DEVISE,  BEQUEST  OR
OTHERWISE,  LEASE, OR OTHERWISE ACQUIRE, OWN, HOLD, IMPROVE, EMPLOY, USE
AND OTHERWISE DEAL IN AND WITH, REAL OR PERSONAL PROPERTY, OR ANY INTER-
EST THEREIN, WHEREVER SITUATED;
  4. TO SELL, CONVEY, LEASE, EXCHANGE, TRANSFER OR OTHERWISE DISPOSE OF,
OR MORTGAGE OR PLEDGE, OR CREATE A SECURITY INTEREST IN, ALL OR  ANY  OF
ITS PROPERTY, OR ANY INTEREST THEREIN, WHEREVER SITUATED;
  5.  TO  MAKE  CONTRACTS,  GIVE  GUARANTEES  AND INCUR LIABILITIES, AND
BORROW MONEY; PROVIDED, HOWEVER,  THAT  THE  EXCHANGE  SHALL  NOT  ISSUE
BONDS;
  6.  TO  INVEST  AND  REINVEST  ITS  FUNDS,  AND TAKE AND HOLD REAL AND
PERSONAL PROPERTY AS SECURITY FOR THE PAYMENT  OF  FUNDS  SO  LOANED  OR
INVESTED;
  7. TO MAKE AND ALTER BY-LAWS FOR ITS ORGANIZATION AND MANAGEMENT;
  8.  TO  MAKE AND ALTER RULES AND REGULATIONS AS NECESSARY TO IMPLEMENT
THE PROVISIONS OF THIS ARTICLE, SUBJECT TO THE PROVISIONS OF  THE  STATE
ADMINISTRATIVE PROCEDURE ACT;
  9.  TO  HIRE  EMPLOYEES,  CONSISTENT  WITH SECTION THIRTY-NINE HUNDRED
NINETY OF THIS ARTICLE;
  10. TO DESIGNATE THE DEPOSITORIES OF ITS MONEY;
  11. TO ESTABLISH ITS FISCAL YEAR;
  12. TO INSURE OR OTHERWISE PROVIDE FOR THE INSURANCE OF THE EXCHANGE'S
PROPERTY OR OPERATIONS AND AGAINST SUCH OTHER RISKS AS THE EXCHANGE  MAY
DEEM ADVISABLE;
  13.  TO  RECEIVE  AND SPEND MONEY FOR ANY OF ITS CORPORATE PURPOSES IN
ACCORDANCE WITH THIS ARTICLE; AND
  14. TO APPLY FOR, ACCEPT THE AWARD OF, AND SPEND ANY  AVAILABLE  GRANT
MONEY.
  S 3984. FUNCTIONS OF THE EXCHANGE.  THE EXCHANGE SHALL:
  1.  (A) MAKE AVAILABLE QUALIFIED HEALTH PLANS TO QUALIFIED INDIVIDUALS
AND QUALIFIED EMPLOYERS BEGINNING ON OR BEFORE JANUARY FIRST, TWO  THOU-
SAND  FOURTEEN,  PROVIDED THAT COVERAGE UNDER SUCH QUALIFIED PLANS SHALL
NOT BECOME EFFECTIVE PRIOR TO SUCH DATE AND SHALL NOT MAKE AVAILABLE ANY
HEALTH PLAN THAT IS NOT A QUALIFIED HEALTH PLAN;
  (B) MAKE AVAILABLE QUALIFIED DENTAL PLANS TO QUALIFIED INDIVIDUALS AND
QUALIFIED EMPLOYERS BEGINNING ON OR BEFORE JANUARY FIRST,  TWO  THOUSAND
FOURTEEN, PROVIDED THAT COVERAGE UNDER SUCH QUALIFIED DENTAL PLANS SHALL
NOT  BECOME  EFFECTIVE  PRIOR  TO  SUCH  DATE,  EITHER  SEPARATELY OR IN
CONJUNCTION WITH A QUALIFIED HEALTH PLAN, IF SUCH PLAN  PROVIDES  PEDIA-
TRIC  DENTAL  BENEFITS MEETING THE REQUIREMENTS OF SECTION 1302(B)(1)(J)
OF THE FEDERAL ACT;
  2. ASSIGN A RATING TO EACH QUALIFIED HEALTH PLAN OFFERED  THROUGH  THE
EXCHANGE  IN  ACCORDANCE  WITH  THE  CRITERIA DEVELOPED BY THE SECRETARY

S. 6256--A                         55                         A. 9056--A

PURSUANT TO SECTION 1311(C)(3) OF THE FEDERAL ACT,  AND  DETERMINE  EACH
QUALIFIED HEALTH PLAN'S LEVEL OF COVERAGE IN ACCORDANCE WITH REGULATIONS
ISSUED BY THE SECRETARY PURSUANT TO SECTION 1302(D)(2)(A) OF THE FEDERAL
ACT;
  3. UTILIZE A STANDARDIZED FORMAT FOR PRESENTING HEALTH BENEFIT OPTIONS
IN  THE  EXCHANGE,  INCLUDING THE USE OF THE UNIFORM OUTLINE OF COVERAGE
ESTABLISHED UNDER SECTION 2715 OF THE FEDERAL PUBLIC HEALTH SERVICE ACT;
  4. PROVIDE FOR ENROLLMENT PERIODS PURSUANT TO THE FEDERAL ACT  OR  THE
INSURANCE  LAW,  WHICHEVER IS IN THE BEST INTEREST OF QUALIFIED INDIVID-
UALS AND QUALIFIED EMPLOYERS, AFTER THE INITIAL  ENROLLMENT  PERIOD  HAS
BEEN ESTABLISHED AS REQUIRED IN THE FEDERAL ACT; PROVIDED, HOWEVER, THAT
IF  ENROLLMENT PERIODS PURSUANT TO THE INSURANCE LAW CONFLICT WITH RULES
ADOPTED BY THE SECRETARY, THEN ENROLLMENT PERIODS PURSUANT TO THE FEDER-
AL ACT SHALL APPLY;
  5. IMPLEMENT PROCEDURES FOR  THE  CERTIFICATION,  RECERTIFICATION  AND
DECERTIFICATION  OF  HEALTH  PLANS AS QUALIFIED HEALTH PLANS, CONSISTENT
WITH GUIDELINES DEVELOPED BY THE SECRETARY PURSUANT TO  SECTION  1311(C)
OF  THE  FEDERAL ACT AND SECTION THIRTY-NINE HUNDRED EIGHTY-FIVE OF THIS
ARTICLE;
  6. REQUIRE QUALIFIED HEALTH PLANS TO OFFER THOSE  BENEFITS  DETERMINED
BY  THE  SECRETARY  TO  BE ESSENTIAL HEALTH BENEFITS PURSUANT TO SECTION
1302(B) OF THE FEDERAL ACT (EXCEPT  AS  PROVIDED  IN  PARAGRAPH  (B)  OF
SUBDIVISION  ONE  OF  SECTION THREE THOUSAND NINE HUNDRED EIGHTY-FIVE OF
THIS ARTICLE) AND SUCH ADDITIONAL BENEFITS AS MAY BE  REQUIRED  PURSUANT
TO  THE  INSURANCE  LAW, PROVIDED THAT THE STATE HAS ASSUMED THE COST OF
SUCH ADDITIONAL BENEFITS AS REQUIRED UNDER SECTION 1311(D)(3)(B) OF  THE
FEDERAL ACT;
  7.  ENSURE THAT INSURERS OFFERING HEALTH PLANS THROUGH THE EXCHANGE DO
NOT CHARGE AN INDIVIDUAL A FEE OR PENALTY FOR TERMINATION OF COVERAGE;
  8. PROVIDE FOR THE OPERATION  OF  A  TOLL-FREE  TELEPHONE  HOTLINE  TO
RESPOND TO REQUESTS FOR ASSISTANCE;
  9.  MAINTAIN  AN INTERNET WEBSITE THROUGH WHICH ENROLLEES AND PROSPEC-
TIVE ENROLLEES OF QUALIFIED HEALTH PLANS MAY OBTAIN STANDARDIZED COMPAR-
ATIVE INFORMATION ON SUCH PLANS AND PUBLIC HEALTH PROGRAMS;
  10. ESTABLISH AND MAKE AVAILABLE BY ELECTRONIC MEANS A  CALCULATOR  TO
DETERMINE  THE  ACTUAL  COST  OF  COVERAGE  AFTER THE APPLICATION OF ANY
PREMIUM TAX CREDIT UNDER SECTION 36B OF THE  INTERNAL  REVENUE  CODE  OF
1986  AND  ANY  COST-SHARING REDUCTION UNDER SECTION 1402 OF THE FEDERAL
ACT;
  11. ESTABLISH A PROGRAM UNDER WHICH  THE  EXCHANGE  AWARDS  GRANTS  TO
ENTITIES  TO  SERVE AS NAVIGATORS, IN ACCORDANCE WITH SECTION 1311(I) OF
THE FEDERAL ACT AND REGULATIONS ADOPTED THEREUNDER;
  12. IN ACCORDANCE WITH SECTION 1413 OF THE FEDERAL ACT,  INFORM  INDI-
VIDUALS OF ELIGIBILITY REQUIREMENTS FOR THE MEDICAID PROGRAM UNDER TITLE
XIX  OF THE SOCIAL SECURITY ACT, THE CHILDREN'S HEALTH INSURANCE PROGRAM
(CHIP) UNDER TITLE XXI OF THE SOCIAL  SECURITY  ACT  OR  ANY  APPLICABLE
STATE OR LOCAL PUBLIC HEALTH INSURANCE PROGRAM AND IF, THROUGH SCREENING
OF  THE  APPLICATION  BY THE EXCHANGE, THE EXCHANGE DETERMINES THAT SUCH
INDIVIDUALS ARE ELIGIBLE FOR ANY SUCH PROGRAM, ENROLL  SUCH  INDIVIDUALS
IN SUCH PROGRAM;
  13. PURSUANT TO SECTION 1411 OF THE FEDERAL ACT, GRANT A CERTIFICATION
ATTESTING  THAT,  FOR  PURPOSES OF THE INDIVIDUAL RESPONSIBILITY PENALTY
UNDER SECTION 5000A OF THE INTERNAL REVENUE CODE OF 1986, AN  INDIVIDUAL
IS  EXEMPT  FROM  THE  INDIVIDUAL RESPONSIBILITY REQUIREMENT OR FROM THE
PENALTY IMPOSED BY THAT SECTION BECAUSE:

S. 6256--A                         56                         A. 9056--A

  (A) THERE IS NO AFFORDABLE QUALIFIED HEALTH PLAN AVAILABLE THROUGH THE
EXCHANGE OR THE INDIVIDUAL'S EMPLOYER, COVERING THE INDIVIDUAL; OR
  (B) THE INDIVIDUAL MEETS THE REQUIREMENTS FOR ANY OTHER SUCH EXEMPTION
FROM THE INDIVIDUAL RESPONSIBILITY REQUIREMENT OR PENALTY;
  14.  TRANSMIT  TO THE SECRETARY OF THE UNITED STATES DEPARTMENT OF THE
TREASURY:
  (A) A LIST OF THE INDIVIDUALS TO WHOM THE EXCHANGE GRANTED  A  CERTIF-
ICATION  UNDER  SUBDIVISION THIRTEEN OF THIS SECTION, INCLUDING THE NAME
AND TAXPAYER IDENTIFICATION NUMBER OF EACH INDIVIDUAL;
  (B) THE NAME AND TAXPAYER IDENTIFICATION NUMBER OF EACH INDIVIDUAL WHO
WAS AN EMPLOYEE OF AN EMPLOYER WHO WAS DETERMINED TO BE ELIGIBLE FOR THE
PREMIUM TAX CREDIT UNDER SECTION 36B OF THE  INTERNAL  REVENUE  CODE  OF
1986 BECAUSE:
  (I)  THE EMPLOYER DID NOT PROVIDE MINIMUM ESSENTIAL COVERAGE AS DETER-
MINED BY THE SECRETARY PURSUANT TO SECTION 1311(D) OF THE  FEDERAL  ACT;
OR
  (II)  THE  EMPLOYER  PROVIDED THE MINIMUM ESSENTIAL COVERAGE AS DETER-
MINED BY THE SECRETARY PURSUANT TO SECTION 1311(D) OF THE  FEDERAL  ACT,
BUT IT WAS DETERMINED UNDER SECTION 36B(C)(2)(C) OF THE INTERNAL REVENUE
CODE OF 1986 TO EITHER BE UNAFFORDABLE TO THE EMPLOYEE OR TO NOT PROVIDE
THE REQUIRED MINIMUM ACTUARIAL VALUE; AND
  (C) THE NAME AND TAXPAYER IDENTIFICATION NUMBER OF:
  (I)  EACH  INDIVIDUAL  WHO  NOTIFIES  THE EXCHANGE PURSUANT TO SECTION
1411(B)(4) OF THE FEDERAL ACT THAT HE OR SHE HAS CHANGED EMPLOYERS; AND
  (II) EACH INDIVIDUAL WHO CEASES COVERAGE UNDER A QUALIFIED HEALTH PLAN
DURING A PLAN YEAR AND THE EFFECTIVE DATE OF THAT CESSATION;
  15. PROVIDE TO EACH EMPLOYER THE NAME OF EACH EMPLOYEE OF THE EMPLOYER
DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION FOURTEEN OF THIS  SECTION  WHO
CEASES COVERAGE UNDER A QUALIFIED HEALTH PLAN DURING A PLAN YEAR AND THE
EFFECTIVE DATE OF THE CESSATION;
  16.  OPERATE A SMALL BUSINESS HEALTH OPTIONS PROGRAM ("SHOP") PURSUANT
TO SECTION 1311 OF THE FEDERAL ACT  THROUGH  WHICH  QUALIFIED  EMPLOYERS
ACCESS COVERAGE FOR THEIR EMPLOYEES, AND MAY:
  (A) PERMIT QUALIFIED EMPLOYERS TO SPECIFY A LEVEL OF COVERAGE SO THEIR
EMPLOYEES  MAY  ENROLL  IN ANY QUALIFIED HEALTH PLAN OFFERED THROUGH THE
SHOP AT THE SPECIFIED LEVEL OF COVERAGE OR,  UNLESS  PROHIBITED  BY  THE
FEDERAL  ACT,  PROVIDE  A SPECIFIC AMOUNT OR OTHER PAYMENT FORMULATED IN
ACCORDANCE WITH THE FEDERAL ACT TO BE USED AS PART OF AN EMPLOYEE CHOICE
PLAN; AND
  (B) PROVIDE PREMIUM AGGREGATION AND OTHER RELATED SERVICES TO MINIMIZE
ADMINISTRATIVE BURDENS FOR QUALIFIED EMPLOYERS;
  17. ENTER INTO AGREEMENTS AS NECESSARY WITH:  (A)  FEDERAL  AND  STATE
AGENCIES  AND  OTHER  STATE  EXCHANGES TO CARRY OUT ITS RESPONSIBILITIES
UNDER  THIS  ARTICLE,  PROVIDED   SUCH   AGREEMENTS   INCLUDE   ADEQUATE
PROTECTIONS WITH RESPECT TO THE CONFIDENTIALITY OF ANY INFORMATION TO BE
SHARED AND COMPLY WITH ALL STATE AND FEDERAL LAWS AND REGULATIONS; AND
  (B)  LOCAL  DEPARTMENTS OF SOCIAL SERVICES TO COORDINATE ENROLLMENT IN
OTHER SOCIAL SERVICES PROGRAMS, AS APPROPRIATE, PROVIDED SUCH AGREEMENTS
INCLUDE ADEQUATE PROTECTIONS WITH RESPECT TO THE CONFIDENTIALITY OF  ANY
INFORMATION  TO BE SHARED AND COMPLY WITH ALL STATE AND FEDERAL LAWS AND
REGULATIONS;
  18. PERFORM DUTIES REQUIRED BY THE SECRETARY OR THE SECRETARY  OF  THE
UNITED  STATES  DEPARTMENT OF THE TREASURY RELATED TO DETERMINING ELIGI-
BILITY FOR PREMIUM TAX  CREDITS,  REDUCED  COST-SHARING,  OR  INDIVIDUAL
RESPONSIBILITY REQUIREMENT EXEMPTIONS;

S. 6256--A                         57                         A. 9056--A

  19.  MEET  FINANCIAL  INTEGRITY REQUIREMENTS UNDER SECTION 1313 OF THE
FEDERAL ACT AND THIS CHAPTER, INCLUDING:
  (A)  KEEPING  AN  ACCURATE ACCOUNTING OF ALL ACTIVITIES, RECEIPTS, AND
EXPENDITURES AND ANNUALLY SUBMITTING TO THE SECRETARY A REPORT  CONCERN-
ING  SUCH ACCOUNTINGS, WITH A COPY OF SUCH REPORT PROVIDED TO THE GOVER-
NOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEM-
BLY; AND
  (B) FULLY COOPERATING WITH ANY INVESTIGATION CONDUCTED BY  THE  SECRE-
TARY  PURSUANT  TO  THE  SECRETARY'S AUTHORITY UNDER SECTION 1313 OF THE
FEDERAL ACT AND ALLOWING THE SECRETARY, IN COORDINATION WITH THE INSPEC-
TOR GENERAL  OF  THE  UNITED  STATES  DEPARTMENT  OF  HEALTH  AND  HUMAN
SERVICES, TO:
  (I) INVESTIGATE THE AFFAIRS OF THE EXCHANGE;
  (II) EXAMINE THE PROPERTIES AND RECORDS OF THE EXCHANGE; AND
  (III) REQUIRE PERIODIC REPORTS IN RELATION TO THE ACTIVITIES UNDERTAK-
EN BY THE EXCHANGE;
  20.  (A)  CONSULT  WITH  THE  REGIONAL ADVISORY COMMITTEES ESTABLISHED
PURSUANT TO SECTION THIRTY-NINE HUNDRED EIGHTY-SIX OF THIS ARTICLE; AND
  (B) CONSULT WITH STAKEHOLDERS RELEVANT TO CARRYING OUT THE  ACTIVITIES
REQUIRED UNDER THIS ARTICLE, INCLUDING BUT NOT LIMITED TO:
  (I) HEALTH CARE CONSUMERS WHO ARE ENROLLEES IN HEALTH PLANS;
  (II)  INDIVIDUALS AND ENTITIES WITH EXPERIENCE IN FACILITATING ENROLL-
MENT IN HEALTH PLANS;
  (III) REPRESENTATIVES OF SMALL BUSINESSES AND  SELF-EMPLOYED  INDIVID-
UALS;
  (IV)  STATE  MEDICAID  OFFICES,  INCLUDING LOCAL DEPARTMENTS OF SOCIAL
SERVICES;
  (V) ADVOCATES FOR ENROLLING HARD TO REACH POPULATIONS;
  (VI) HEALTH CARE PROVIDERS; AND
  (VII) INSURERS;
  21. SUBMIT INFORMATION PROVIDED BY EXCHANGE APPLICANTS  FOR  VERIFICA-
TION AS REQUIRED BY SECTION 1411(C) OF THE FEDERAL ACT;
  22.  ESTABLISH RULES AND REGULATIONS, PURSUANT TO SUBDIVISION EIGHT OF
SECTION THIRTY-NINE HUNDRED EIGHTY-THREE OF THIS ARTICLE,  THAT  DO  NOT
CONFLICT  WITH  OR PREVENT THE APPLICATION OF REGULATIONS PROMULGATED BY
THE SECRETARY; AND
  23. DETERMINE ELIGIBILITY, PROVIDE NOTICES, AND PROVIDE  OPPORTUNITIES
FOR  APPEAL  AND  REDETERMINATION IN ACCORDANCE WITH THE REQUIREMENTS OF
SECTIONS 1411 AND 1413 OF THE FEDERAL ACT.
  S 3985. SPECIAL FUNCTIONS OF  THE  EXCHANGE  RELATED  TO  HEALTH  PLAN
CERTIFICATION  AND  QUALIFIED  HEALTH  PLAN OVERSIGHT.   1. HEALTH PLANS
CERTIFIED BY THE EXCHANGE SHALL MEET THE FOLLOWING REQUIREMENTS:
  (A) THE INSURER OFFERING THE HEALTH PLAN:
  (I) IS LICENSED OR CERTIFIED BY THE SUPERINTENDENT OR COMMISSIONER AND
MEETS THE REQUIREMENTS OF SECTION 1301(A)(1)(C)(I) OF  THE  FEDERAL  ACT
AND ANY GUIDANCE ISSUED THEREUNDER;
  (II)  OFFERS  AT LEAST ONE QUALIFIED HEALTH PLAN IN EACH OF THE SILVER
AND GOLD LEVELS;
  (III) HAS FILED WITH AND RECEIVED APPROVAL FROM THE SUPERINTENDENT  OF
ITS PREMIUM RATES AND POLICY OR CONTRACT FORMS PURSUANT TO THE INSURANCE
LAW AND THE PUBLIC HEALTH LAW;
  (IV)  DOES  NOT CHARGE ANY CANCELLATION FEES OR PENALTIES IN VIOLATION
OF SUBDIVISION SEVEN OF SECTION THIRTY-NINE HUNDRED EIGHTY-FOUR OF  THIS
ARTICLE; AND

S. 6256--A                         58                         A. 9056--A

  (V)  COMPLIES  WITH  THE  REGULATIONS DEVELOPED BY THE SECRETARY UNDER
SECTION 1311(C) OF THE FEDERAL ACT AND SUCH OTHER  REQUIREMENTS  AS  THE
EXCHANGE MAY ESTABLISH;
  (B)  THE HEALTH PLAN: (I) PROVIDES THE ESSENTIAL HEALTH BENEFITS PACK-
AGE DESCRIBED IN SECTION 1302(A) OF THE FEDERAL ACT  AND  INCLUDES  SUCH
ADDITIONAL  BENEFITS  AS  MAY BE REQUIRED PURSUANT TO THE INSURANCE LAW,
PROVIDED THAT THE STATE HAS ASSUMED THE COST OF SUCH ADDITIONAL BENEFITS
AS REQUIRED UNDER SECTION 1311(D)(3)(B) OF THE FEDERAL ACT, EXCEPT  THAT
THE HEALTH PLAN SHALL NOT BE REQUIRED TO PROVIDE ESSENTIAL BENEFITS THAT
DUPLICATE THE MINIMUM BENEFITS OF QUALIFIED DENTAL PLANS IF:
  (A)  THE  EXCHANGE  HAS  DETERMINED THAT AT LEAST ONE QUALIFIED DENTAL
PLAN IS AVAILABLE TO SUPPLEMENT THE HEALTH PLAN'S COVERAGE; AND
  (B) THE INSURER MAKES PROMINENT DISCLOSURE AT THE TIME IT  OFFERS  THE
HEALTH  PLAN, IN A FORM APPROVED BY THE EXCHANGE, THAT THE PLAN DOES NOT
PROVIDE THE FULL RANGE OF ESSENTIAL PEDIATRIC BENEFITS, AND THAT  QUALI-
FIED DENTAL PLANS PROVIDING THOSE BENEFITS AND OTHER DENTAL BENEFITS NOT
COVERED BY THE PLAN ARE OFFERED THROUGH THE EXCHANGE;
  (II)  PROVIDES  AT  LEAST  A  BRONZE  LEVEL  OF COVERAGE AS DEFINED IN
SECTION 1302(D) OF THE FEDERAL ACT, UNLESS THE PLAN IS  CERTIFIED  AS  A
QUALIFIED CATASTROPHIC PLAN, AS DEFINED IN SECTION 1302(E) OF THE FEDER-
AL   ACT,  AND  SHALL  ONLY  BE  OFFERED  TO  INDIVIDUALS  ELIGIBLE  FOR
CATASTROPHIC COVERAGE;
  (III) HAS COST-SHARING REQUIREMENTS, INCLUDING DEDUCTIBLES,  WHICH  DO
NOT  EXCEED  THE LIMITS ESTABLISHED UNDER SECTION 1302(C) OF THE FEDERAL
ACT AND ANY REQUIREMENTS OF THE EXCHANGE;
  (IV) COMPLIES WITH REGULATIONS PROMULGATED BY THE  SECRETARY  PURSUANT
TO  SECTION  1311(C) OF THE FEDERAL ACT, WHICH INCLUDE MINIMUM STANDARDS
IN THE AREAS OF MARKETING PRACTICES, NETWORK ADEQUACY, ESSENTIAL  COMMU-
NITY PROVIDERS IN UNDERSERVED AREAS, ACCREDITATION, QUALITY IMPROVEMENT,
UNIFORM ENROLLMENT FORMS AND DESCRIPTIONS OF COVERAGE AND INFORMATION ON
QUALITY MEASURES FOR HEALTH BENEFIT PLAN PERFORMANCE;
  (V) COMPLIES WITH THE INSURANCE LAW AND THE PUBLIC HEALTH LAW REQUIRE-
MENTS  APPLICABLE TO HEALTH INSURANCE ISSUED IN THIS STATE AND ANY REGU-
LATIONS PROMULGATED PURSUANT  THERETO  THAT  DO  NOT  CONFLICT  WITH  OR
PREVENT THE APPLICATION OF FEDERAL REQUIREMENTS; AND
  (C)  THE  EXCHANGE  DETERMINES  THAT  MAKING THE HEALTH PLAN AVAILABLE
THROUGH THE EXCHANGE IS IN THE INTEREST  OF  QUALIFIED  INDIVIDUALS  AND
QUALIFIED EMPLOYERS IN THIS STATE.
  2. THE EXCHANGE SHALL NOT EXCLUDE A HEALTH PLAN:
  (A) ON THE BASIS THAT THE HEALTH PLAN IS A FEE-FOR-SERVICE PLAN;
  (B)  THROUGH THE IMPOSITION OF PREMIUM PRICE CONTROLS BY THE EXCHANGE;
OR
  (C) ON THE BASIS THAT THE HEALTH PLAN PROVIDES TREATMENTS NECESSARY TO
PREVENT PATIENTS' DEATHS IN CIRCUMSTANCES THE  EXCHANGE  DETERMINES  ARE
INAPPROPRIATE OR TOO COSTLY.
  3.  THE  EXCHANGE  SHALL  REQUIRE  EACH  INSURER  CERTIFIED OR SEEKING
CERTIFICATION OF A HEALTH PLAN AS A QUALIFIED HEALTH PLAN TO:
  (A) SUBMIT A JUSTIFICATION FOR ANY PREMIUM INCREASE  TO  THE  EXCHANGE
PRIOR TO IMPLEMENTATION OF SUCH INCREASE.  THE INSURER SHALL PROMINENTLY
POST THE INFORMATION ON ITS INTERNET WEBSITE; PROVIDED, HOWEVER, THAT IF
INFORMATION  SUBMITTED  TO  THE  SUPERINTENDENT AS A JUSTIFICATION FOR A
PREMIUM RATE ADJUSTMENT PURSUANT TO THE INSURANCE  LAW,  OR  INFORMATION
POSTED  TO  AN  INSURER'S  INTERNET  WEBSITE,  OTHERWISE  MEETS  FEDERAL
REQUIREMENTS, THEN SUBMISSION OF A COPY OF THE SAME JUSTIFICATION TO THE
EXCHANGE OR USE OF THE SAME POSTING SHALL BE DEEMED SUFFICIENT  TO  MEET
THE REQUIREMENTS OF THIS SECTION.  THE EXCHANGE SHALL TAKE THIS INFORMA-

S. 6256--A                         59                         A. 9056--A

TION,  AND  THE  INFORMATION  AND  THE  RECOMMENDATIONS  PROVIDED TO THE
EXCHANGE BY THE SUPERINTENDENT UNDER SECTION 1003  OF  THE  FEDERAL  ACT
(RELATING  TO  PATTERNS OR PRACTICES OF EXCESSIVE OR UNJUSTIFIED PREMIUM
INCREASES),  INTO  CONSIDERATION  WHEN  DETERMINING WHETHER TO ALLOW THE
INSURER TO MAKE HEALTH PLANS AVAILABLE THROUGH THE EXCHANGE.  SUCH  RATE
INCREASES  SHALL  BE SUBJECT TO THE PRIOR APPROVAL OF THE SUPERINTENDENT
PURSUANT TO THE INSURANCE LAW;
  (B)(I) MAKE AVAILABLE TO THE PUBLIC AND SUBMIT TO  THE  EXCHANGE,  THE
SECRETARY AND THE SUPERINTENDENT, ACCURATE AND TIMELY DISCLOSURE OF:
  (A) CLAIMS PAYMENT POLICIES AND PRACTICES;
  (B) PERIODIC FINANCIAL DISCLOSURES;
  (C) DATA ON ENROLLMENT AND DISENROLLMENT;
  (D) DATA ON THE NUMBER OF CLAIMS THAT ARE DENIED;
  (E) DATA ON RATING PRACTICES;
  (F)  INFORMATION ON COST-SHARING AND PAYMENTS WITH RESPECT TO ANY OUT-
OF-NETWORK COVERAGE;
  (G) INFORMATION ON ENROLLEE AND PARTICIPANT RIGHTS UNDER  TITLE  I  OF
THE FEDERAL ACT; AND
  (H) OTHER INFORMATION AS DETERMINED APPROPRIATE BY THE SECRETARY;
  (II) THE INFORMATION SHALL BE PROVIDED IN PLAIN LANGUAGE, AS THAT TERM
IS  DEFINED IN SECTION 1311(E)(3)(B) OF THE FEDERAL ACT, AND IN GUIDANCE
JOINTLY ISSUED THEREUNDER BY THE SECRETARY AND THE FEDERAL SECRETARY  OF
LABOR; AND
  (C) PROVIDE TO INDIVIDUALS, IN A TIMELY MANNER UPON THE REQUEST OF THE
INDIVIDUAL,  THE  AMOUNT  OF COST-SHARING, INCLUDING DEDUCTIBLES, COPAY-
MENTS, AND COINSURANCE, UNDER THE INDIVIDUAL'S HEALTH PLAN  OR  COVERAGE
THAT  THE INDIVIDUAL WOULD BE RESPONSIBLE FOR PAYING WITH RESPECT TO THE
FURNISHING OF A SPECIFIC ITEM OR SERVICE BY A PARTICIPATING PROVIDER. AT
A MINIMUM, THIS INFORMATION SHALL BE MADE AVAILABLE  TO  THE  INDIVIDUAL
THROUGH  AN  INTERNET  WEBSITE  AND  THROUGH OTHER MEANS FOR INDIVIDUALS
WITHOUT ACCESS TO THE INTERNET; PROVIDED, HOWEVER, THAT  TO  THE  EXTENT
THAT  REQUIREMENTS UNDER THE INSURANCE LAW OR THE PUBLIC HEALTH LAW MEET
THE STANDARDS OF THE FEDERAL ACT,  AN  INSURER'S  COMPLIANCE  WITH  SUCH
STATE  REQUIREMENTS SHALL BE SUFFICIENT TO MEET THE REQUIREMENTS OF THIS
SECTION.
  4. (A) THE PROVISIONS OF THIS ARTICLE THAT APPLY TO  QUALIFIED  HEALTH
PLANS  ALSO SHALL APPLY TO THE EXTENT RELEVANT TO QUALIFIED DENTAL PLANS
EXCEPT AS MODIFIED IN ACCORDANCE WITH THE PROVISIONS OF  PARAGRAPHS  (B)
AND (C) OF THIS SUBDIVISION OR OTHERWISE REQUIRED BY THE EXCHANGE.
  (B)  THE  QUALIFIED  DENTAL  PLAN  SHALL BE LIMITED TO DENTAL AND ORAL
HEALTH BENEFITS, WITHOUT SUBSTANTIALLY DUPLICATING THE BENEFITS TYPICAL-
LY OFFERED BY HEALTH BENEFIT PLANS WITHOUT DENTAL  COVERAGE,  AND  SHALL
INCLUDE,   AT   A  MINIMUM,  THE  ESSENTIAL  PEDIATRIC  DENTAL  BENEFITS
PRESCRIBED BY THE SECRETARY PURSUANT TO  SECTION  1302(B)(1)(J)  OF  THE
FEDERAL ACT, AND SUCH OTHER DENTAL BENEFITS AS THE EXCHANGE OR SECRETARY
MAY SPECIFY IN REGULATIONS.
  (C)  INSURERS  MAY  JOINTLY  OFFER  A  COMPREHENSIVE  PLAN THROUGH THE
EXCHANGE IN WHICH AN INSURER PROVIDES  THE  DENTAL  BENEFITS  THROUGH  A
QUALIFIED DENTAL PLAN AND AN INSURER PROVIDES THE OTHER BENEFITS THROUGH
A  QUALIFIED  HEALTH PLAN, PROVIDED THAT THE PLANS ARE PRICED SEPARATELY
AND ALSO ARE MADE AVAILABLE FOR PURCHASE SEPARATELY AT THE SAME PRICE.
  S 3986. REGIONAL ADVISORY COMMITTEES. 1. THERE ARE HEREBY CREATED  THE
NEW YORK HEALTH BENEFIT EXCHANGE REGIONAL ADVISORY COMMITTEES ("ADVISORY
COMMITTEES"). ONE REGIONAL ADVISORY COMMITTEE SHALL BE ESTABLISHED WITH-
IN  EACH  OF  FIVE  REGIONS,  TO BE KNOWN AS THE "NEW YORK CITY REGION,"
"METROPOLITAN SUBURBAN REGION," "NORTHERN REGION," "CENTRAL REGION"  AND

S. 6256--A                         60                         A. 9056--A

"WESTERN  REGION."  THE  BOARD SHALL DETERMINE THE COUNTIES THAT MAKE UP
SUCH REGIONS.
  2. EACH REGIONAL ADVISORY COMMITTEE SHALL BE COMPRISED OF FIVE MEMBERS
APPOINTED  BY  THE  GOVERNOR,  ONE  OF  WHOM SHALL BE APPOINTED UPON THE
RECOMMENDATION OF THE TEMPORARY PRESIDENT OF THE SENATE AND ONE OF  WHOM
SHALL  BE APPOINTED UPON THE RECOMMENDATION OF THE SPEAKER OF THE ASSEM-
BLY.
  3. TERMS SHALL BE THREE  YEARS.    MEMBERS  SHALL  SERVE  UNTIL  THEIR
SUCCESSORS ARE APPOINTED. MEMBERS MAY SERVE UP TO TWO CONSECUTIVE TERMS.
  4.  VACANCIES  SHALL BE FILLED IN THE SAME MANNER AS ORIGINAL APPOINT-
MENTS, AND SUCCESSORS SHALL SERVE FOR THE  REMAINDER  OF  THE  UNEXPIRED
TERM TO WHICH THEY ARE APPOINTED.
  5.  RECOMMENDATIONS  BY  THE TEMPORARY PRESIDENT OF THE SENATE AND THE
SPEAKER OF THE ASSEMBLY SHALL BE MADE WITHIN SIXTY DAYS OF THE EFFECTIVE
DATE OF THIS ARTICLE OR THE OCCURRENCE OF A  VACANCY,  OR  WITHIN  SIXTY
DAYS PRIOR TO THE EXPIRATION OF A TERM.
  6. THE MEMBERS OF EACH REGIONAL ADVISORY COMMITTEE SHALL INCLUDE:
  (A)  REPRESENTATIVES  FROM THE FOLLOWING CATEGORIES, BUT NOT MORE THAN
TWO FROM ANY SINGLE CATEGORY:
  (I) HEALTH PLAN CONSUMER ADVOCATES;
  (II) SMALL BUSINESS CONSUMER REPRESENTATIVES;
  (III) HEALTH CARE PROVIDER REPRESENTATIVES;
  (IV) REPRESENTATIVES OF THE HEALTH INSURANCE INDUSTRY;
  (B) REPRESENTATIVES FROM THE FOLLOWING CATEGORIES, BUT NOT  MORE  THAN
ONE FROM EITHER CATEGORY:
  (I) LICENSED INSURANCE PRODUCERS; AND
  (II) REPRESENTATIVES OF LABOR ORGANIZATIONS.
  7.  THE BOARD SHALL SELECT THE CHAIR OF EACH REGIONAL ADVISORY COMMIT-
TEE FROM AMONG THE MEMBERS OF SUCH  COMMITTEE.  THE  BOARD  SHALL  ADOPT
RULES  FOR  THE  GOVERNANCE OF THE REGIONAL ADVISORY COMMITTEES AND EACH
REGIONAL ADVISORY COMMITTEE SHALL MEET AT LEAST ONCE EACH QUARTER AND AT
SUCH OTHER TIMES AS DETERMINED BY THE BOARD TO BE NECESSARY.
  8. MEMBERS OF THE REGIONAL ADVISORY  COMMITTEES  SHALL  SERVE  WITHOUT
COMPENSATION.
  9.  THE REGIONAL ADVISORY COMMITTEES SHALL MAKE FINDINGS AND RECOMMEN-
DATIONS REGARDING REGIONAL VARIATIONS IN THE OPERATION OF THE  EXCHANGE,
WHICH  SHALL  BE  SUBMITTED  TO  THE  BOARD  OF DIRECTORS, POSTED ON THE
WEBSITE OF THE EXCHANGE, AND CONSIDERED BY THE  BOARD  IN  A  REASONABLY
TIMELY  FASHION.  SUCH  FINDINGS AND RECOMMENDATIONS SHALL BE MADE ON AN
ANNUAL BASIS, ON A DATE DETERMINED BY THE BOARD, AND AT SUCH OTHER TIMES
AS THE BOARD OR ANY REGIONAL ADVISORY COMMITTEE DEEMS APPROPRIATE.
  S 3987. FUNDING OF THE EXCHANGE.  1. THE EXCHANGE SHALL BE FINANCIALLY
SELF-SUFFICIENT BY JANUARY FIRST, TWO THOUSAND FIFTEEN.
  2. THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF, AND
SHALL REPORT ITS RECOMMENDATIONS UPON, THE OPTIONS TO  GENERATE  FUNDING
FOR  THE  ONGOING OPERATION OF THE EXCHANGE, AS PROVIDED FOR IN SUBDIVI-
SION EIGHT OF SECTION THIRTY-NINE HUNDRED EIGHTY-EIGHT OF  THIS  ARTICLE
AND  SUBJECT  TO  THE PROVISIONS OF SUBDIVISIONS FOURTEEN AND FIFTEEN OF
SUCH SECTION.
  3.  THE EXCHANGE SHALL PUBLISH ON ITS INTERNET WEBSITE  THE  FEES  AND
ANY  OTHER  PAYMENTS  REQUIRED  BY  THE EXCHANGE, AND THE ADMINISTRATIVE
COSTS OF THE EXCHANGE, TO EDUCATE CONSUMERS ON SUCH COSTS AND THE AMOUNT
OF MONIES LOST TO WASTE, FRAUD AND ABUSE.
  4. THE EXCHANGE SHALL NOT UTILIZE ANY FUNDS INTENDED FOR THE  ADMINIS-
TRATIVE  AND  OPERATIONAL  EXPENSES  OF THE EXCHANGE FOR STAFF RETREATS,
PROMOTIONAL GIVEAWAYS, EXCESSIVE EXECUTIVE COMPENSATION, OR PROMOTION OF

S. 6256--A                         61                         A. 9056--A

FEDERAL OR STATE LEGISLATIVE AND REGULATORY  MODIFICATIONS  PURSUANT  TO
SECTION 1411(C) OF THE FEDERAL ACT.
  5.  THE  MONEYS OF THE EXCHANGE SHALL, EXCEPT AS OTHERWISE PROVIDED IN
THIS SECTION, BE DEPOSITED IN A GENERAL  ACCOUNT  CALLED  THE  NEW  YORK
HEALTH  BENEFIT EXCHANGE ACCOUNT AND SUCH OTHER ACCOUNTS AS THE EXCHANGE
MAY DEEM NECESSARY, PURSUANT TO RESOLUTION OF THE BOARD, FOR THE  TRANS-
ACTION  OF ITS BUSINESS AND SHALL BE PAID OUT AS AUTHORIZED BY THE CHAIR
OF THE BOARD OR BY SUCH OTHER PERSON OR PERSONS AS THE CHAIR MAY  DESIG-
NATE.
  6.  NO  FUNDS OF THE EXCHANGE SHALL BE TRANSFERRED TO THE GENERAL FUND
OR ANY SPECIAL REVENUE FUND OR SHALL BE USED FOR ANY PURPOSE OTHER  THAN
THE  PURPOSES  SET FORTH IN THIS ARTICLE.  NO FUNDS SHALL BE TRANSFERRED
FROM THE GENERAL FUND OR ANY SPECIAL REVENUE FUND TO THE EXCHANGE  WITH-
OUT AN APPROPRIATION.
  7. THE ACCOUNTS OF THE EXCHANGE SHALL BE SUBJECT TO SUPERVISION OF THE
COMPTROLLER  AND  SUCH  ACCOUNTS  SHALL  INCLUDE RECEIPTS, EXPENDITURES,
CONTRACTS AND OTHER MATTERS WHICH PERTAIN TO THE FISCAL SOUNDNESS OF THE
EXCHANGE.
  8. NOTWITHSTANDING ANY LAW TO THE CONTRARY,  AND  IN  ACCORDANCE  WITH
SECTION  FOUR  OF THE STATE FINANCE LAW, UPON REQUEST OF THE DIRECTOR OF
THE BUDGET, IN CONSULTATION WITH THE  COMMISSIONER,  THE  SUPERINTENDENT
AND  THE  CHAIR  OF  THE BOARD, THE COMPTROLLER IS HEREBY AUTHORIZED AND
DIRECTED TO SUBALLOCATE OR TRANSFER SPECIAL REVENUE FEDERAL FUNDS APPRO-
PRIATED TO THE DEPARTMENT OF HEALTH FOR PLANNING AND IMPLEMENTING  VARI-
OUS  HEALTHCARE  AND  INSURANCE REFORM INITIATIVES AUTHORIZED BY FEDERAL
LEGISLATION, INCLUDING, BUT NOT LIMITED TO, THE PATIENT  PROTECTION  AND
AFFORDABLE  CARE  ACT  (P.L.  111-148) AND THE HEALTH CARE AND EDUCATION
RECONCILIATION ACT OF 2010 (P.L. 111-152) TO THE NEW YORK  STATE  HEALTH
BENEFIT  EXCHANGE.  MONEYS  SUBALLOCATED OR TRANSFERRED PURSUANT TO THIS
SECTION SHALL BE PAID OUT OF THE FUND UPON  AUDIT  AND  WARRANT  OF  THE
STATE COMPTROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE EXCHANGE.
  S  3988.  STUDIES  AND  RECOMMENDATIONS.    1.  (A) THE EXCHANGE SHALL
CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF, AND SHALL MAKE  RECOMMENDA-
TIONS  UPON,  THE  ESSENTIAL HEALTH BENEFITS IDENTIFIED BY THE SECRETARY
PURSUANT TO SECTION 1302(B) OF THE  FEDERAL  ACT  AND  OF  THE  BENEFITS
REQUIRED  UNDER  THE INSURANCE LAW OR REGULATIONS PROMULGATED THEREUNDER
THAT ARE NOT DETERMINED BY THE SECRETARY TO BE  ESSENTIAL  HEALTH  BENE-
FITS. SUCH STUDY AND RECOMMENDATIONS SHALL ADDRESS MATTERS INCLUDING BUT
NOT LIMITED TO:
  (I)  WHETHER  THE ESSENTIAL HEALTH BENEFITS REQUIRED TO BE INCLUDED IN
POLICIES AND CONTRACTS SOLD THROUGH THE EXCHANGE SHOULD BE SOLD TO SIMI-
LARLY SITUATED INDIVIDUALS AND GROUPS PURCHASING COVERAGE OUTSIDE OF THE
EXCHANGE;
  (II) WHETHER ANY BENEFITS REQUIRED UNDER THE INSURANCE  LAW  OR  REGU-
LATIONS  PROMULGATED  THEREUNDER  THAT  ARE  NOT IDENTIFIED AS ESSENTIAL
HEALTH BENEFITS BY THE SECRETARY SHOULD NO LONGER BE REQUIRED  IN  POLI-
CIES OR CONTRACTS SOLD EITHER THROUGH THE EXCHANGE OR TO SIMILARLY SITU-
ATED INDIVIDUALS AND GROUPS OUTSIDE OF THE EXCHANGE;
  (III) THE COSTS OF EXTENDING ANY BENEFITS REQUIRED UNDER THE INSURANCE
LAW OR REGULATIONS PROMULGATED THEREUNDER TO POLICIES AND CONTRACTS SOLD
THROUGH THE EXCHANGE; AND
  (IV)   MECHANISMS   TO   FINANCE   ANY   COSTS   PURSUANT  TO  SECTION
1311(D)(3)(B)(II) OF THE FEDERAL ACT OF EXTENDING ANY BENEFITS  REQUIRED
UNDER  THE  INSURANCE LAW OR REGULATIONS PROMULGATED THEREUNDER TO POLI-
CIES AND CONTRACTS SOLD THROUGH THE EXCHANGE.

S. 6256--A                         62                         A. 9056--A

  (B) IN MAKING ITS RECOMMENDATIONS, THE  EXCHANGE  SHALL  CONSIDER  THE
INDIVIDUAL  AND SMALL GROUP MARKETS OUTSIDE OF THE EXCHANGE AND CONSIDER
APPROACHES TO PREVENT MARKETPLACE DISRUPTION, REMAIN CONSISTENT WITH THE
EXCHANGE AND AVOID ANTI-SELECTION.
  (C) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  2. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON: (I) WHETHER INSURERS  PARTICIPATING
IN THE EXCHANGE SHOULD BE REQUIRED TO OFFER ALL HEALTH PLANS SOLD IN THE
EXCHANGE  TO  INDIVIDUALS OR SMALL GROUPS PURCHASING COVERAGE OUTSIDE OF
THE EXCHANGE;
  (II) WHETHER THE INDIVIDUAL AND SMALL GROUP MARKETS SHOULD  BE  PLACED
ENTIRELY INSIDE THE EXCHANGE;
  (III)  WHETHER  THE BENEFITS IN THE INDIVIDUAL AND SMALL GROUP MARKETS
SHOULD BE STANDARDIZED INSIDE THE EXCHANGE OR  INSIDE  AND  OUTSIDE  THE
EXCHANGE;
  (IV) HOW TO DEVELOP AND IMPLEMENT THE TRANSITIONAL REINSURANCE PROGRAM
FOR  THE  INDIVIDUAL  MARKET  AND  ANY  OTHER RISK ADJUSTMENT MECHANISMS
DEVELOPED IN ACCORDANCE WITH SECTIONS 1341, 1342 AND 1343 OF THE FEDERAL
ACT;
  (V) WHETHER TO MERGE THE INDIVIDUAL AND SMALL GROUP  HEALTH  INSURANCE
MARKETS  FOR  RATING  PURPOSES  INCLUDING AN ANALYSIS OF THE IMPACT SUCH
MERGER WOULD HAVE ON PREMIUMS;
  (VI) WHETHER TO INCREASE THE SIZE OF SMALL EMPLOYERS FROM  AN  AVERAGE
OF  AT  LEAST  ONE BUT NOT MORE THAN FIFTY EMPLOYEES TO AN AVERAGE OF AT
LEAST ONE BUT NOT MORE THAN  ONE  HUNDRED  EMPLOYEES  PRIOR  TO  JANUARY
FIRST, TWO THOUSAND SIXTEEN;
  (VII)  HOW  TO ACCOUNT FOR SOLE PROPRIETORS IN DEFINING "SMALL EMPLOY-
ERS"; AND
  (VIII) WHETHER TO REVISE THE DEFINITION OF  "SMALL  EMPLOYER"  OUTSIDE
THE  EXCHANGE  TO BE CONSISTENT WITH THE DEFINITION AS IT APPLIES WITHIN
THE EXCHANGE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  3. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND  SHALL MAKE RECOMMENDATIONS UPON, WHETHER THE STATE SHOULD ESTABLISH
A BASIC HEALTH PLAN PROGRAM IDENTIFIED  BY  THE  SECRETARY  PURSUANT  TO
SECTION 1331 OF THE FEDERAL ACT.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  4. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON, THE ADVANTAGES AND DISADVANTAGES OF
THE EXCHANGE SERVING AS AN ACTIVE PURCHASER, A SELECTIVE CONTRACTOR,  OR
CLEARINGHOUSE OF INSURANCE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  5. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON, (I) THE ANTICIPATED ANNUAL  OPERAT-
ING  EXPENSES OF THE EXCHANGE, INCLUDING BUT NOT LIMITED TO THE DEVELOP-
MENT OF ANY MULTI-YEAR FINANCIAL MODELS; AND (II) THE OPTIONS TO  GENER-
ATE  FUNDING  FOR  THE  ONGOING  OPERATION  AND  SELF-SUFFICIENCY OF THE

S. 6256--A                         63                         A. 9056--A

EXCHANGE INCLUDING BUT NOT LIMITED  TO  ASSESSMENTS  UPON  INSURERS  AND
PROVIDERS.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  6. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON, THE BENCHMARK  BENEFITS  IDENTIFIED
BY  THE  SECRETARY  AND OF THE BENEFITS REQUIRED UNDER THE PUBLIC HEALTH
LAW OR THE SOCIAL SERVICES LAW  OR  REGULATIONS  PROMULGATED  THEREUNDER
THAT  ARE NOT DETERMINED BY THE SECRETARY TO BE BENCHMARK BENEFITS. SUCH
STUDY AND RECOMMENDATIONS SHALL ADDRESS MATTERS INCLUDING BUT NOT LIMIT-
ED TO:
  (I) WHETHER ANY BENEFITS REQUIRED UNDER THE PUBLIC HEALTH LAW  OR  THE
SOCIAL  SERVICES  LAW OR REGULATIONS PROMULGATED THEREUNDER THAT ARE NOT
IDENTIFIED AS BENCHMARK BENEFITS BY THE SECRETARY SHOULD CONTINUE TO  BE
REQUIRED  AS COVERED BENEFITS AVAILABLE TO NEWLY MEDICAID-ELIGIBLE INDI-
VIDUALS INSIDE THE EXCHANGE;
  (II) THE COSTS OF EXTENDING ANY BENEFITS  REQUIRED  UNDER  THE  PUBLIC
HEALTH  LAW OR THE SOCIAL SERVICES LAW OR REGULATIONS PROMULGATED THERE-
UNDER AS COVERED BENEFITS AVAILABLE TO NEWLY MEDICAID-ELIGIBLE  INDIVID-
UALS THROUGH THE EXCHANGE; AND
  (III)  MECHANISMS  TO FINANCE ANY COSTS PURSUANT TO THE FEDERAL ACT OF
EXTENDING ANY BENEFITS REQUIRED UNDER  THE  PUBLIC  HEALTH  LAW  OR  THE
SOCIAL  SERVICES  LAW  OR REGULATIONS PROMULGATED THEREUNDER TO POLICIES
AND CONTRACTS SOLD THROUGH THE EXCHANGE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  7.  (A) THE EXCHANGE SHALL MAKE RECOMMENDATIONS UPON THE IMPACT OF THE
ESTABLISHMENT AND OPERATION OF THE EXCHANGE  ON  THE  HEALTHY  NEW  YORK
PROGRAM  ESTABLISHED  PURSUANT TO SECTION FORTY-THREE HUNDRED TWENTY-SIX
OF THE INSURANCE LAW AND THE FAMILY  HEALTH  PLUS  EMPLOYER  PARTNERSHIP
PROGRAM  ESTABLISHED  PURSUANT TO SECTION THREE HUNDRED SIXTY-NINE-FF OF
THE SOCIAL SERVICES LAW.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  8. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND  SHALL  MAKE  RECOMMENDATIONS  UPON, PROCEDURES UNDER WHICH LICENSED
HEALTH INSURANCE PRODUCERS, CHAMBERS OF COMMERCE  AND  BUSINESS  ASSOCI-
ATIONS MAY ENROLL INDIVIDUALS AND EMPLOYERS IN ANY QUALIFIED HEALTH PLAN
IN  THE  INDIVIDUAL OR SMALL GROUP MARKET AS SOON AS THE PLAN IS OFFERED
THROUGH THE EXCHANGE; AND TO ASSIST INDIVIDUALS IN APPLYING FOR  PREMIUM
TAX  CREDITS  AND  COST-SHARING  REDUCTIONS  FOR  PLANS SOLD THROUGH THE
EXCHANGE; AND
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER  OF  THE  ASSEMBLY  ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  9. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND  SHALL  MAKE  RECOMMENDATIONS  UPON, THE CRITERIA FOR ELIGIBILITY TO
SERVE AS A NAVIGATOR FOR PURPOSES OF SECTION 1311(I) OF THE FEDERAL ACT,
ANY GUIDANCE ISSUED THEREUNDER AND SUBDIVISION FOURTEEN OF SECTION THIR-
TY-NINE HUNDRED EIGHTY-FOUR OF THIS ARTICLE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.

S. 6256--A                         64                         A. 9056--A

  10.  (A)  THE  EXCHANGE SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY
OF, AND SHALL MAKE RECOMMENDATIONS UPON, THE ROLE  OF  THE  EXCHANGE  IN
DECREASING  HEALTH  DISPARITIES IN HEALTH CARE SERVICES AND PERFORMANCE,
INCLUDING BUT NOT LIMITED TO DISPARITIES ON THE BASIS OF RACE OR ETHNIC-
ITY,  IN  ACCORDANCE WITH SECTION FORTY-THREE HUNDRED TWO OF THE FEDERAL
ACT.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  11.  (A)  THE  EXCHANGE SHALL MAKE RECOMMENDATIONS UPON WHETHER AND TO
WHAT EXTENT HEALTH  SAVINGS  ACCOUNTS  SHOULD  BE  OFFERED  THROUGH  THE
EXCHANGE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR
BEFORE AUGUST FIRST, TWO THOUSAND TWELVE.
  12. (A) THE EXCHANGE SHALL CONDUCT OR CAUSE TO BE  CONDUCTED  A  STUDY
OF,  AND SHALL MAKE RECOMMENDATIONS UPON, WHETHER TO ALLOW LARGE EMPLOY-
ERS TO PARTICIPATE IN THE EXCHANGE BEGINNING JANUARY FIRST, TWO THOUSAND
SEVENTEEN, AND SHALL TAKE INTO ACCOUNT  ANY  EXCESS  OF  PREMIUM  GROWTH
OUTSIDE  OF  THE  EXCHANGE AS COMPARED TO THE RATE OF SUCH GROWTH INSIDE
THE EXCHANGE.
  (B) THE EXCHANGE SHALL SUBMIT ITS RECOMMENDATIONS TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON  OR
BEFORE DECEMBER FIRST, TWO THOUSAND FIFTEEN.
  13.  THE  EXCHANGE  SHALL CONDUCT OR CAUSE TO BE CONDUCTED A STUDY OF,
AND SHALL MAKE RECOMMENDATIONS UPON, THE INTEGRATION  OF  PUBLIC  HEALTH
INSURANCE  PROGRAMS,  INCLUDING  MEDICAID, CHILD HEALTH PLUS, AND FAMILY
HEALTH PLUS WITHIN THE EXCHANGE, WHICH MAY INCLUDE SUCH REPORTS  AS  ARE
PERIODICALLY  SUBMITTED TO THE SECRETARY, ON OR BEFORE AUGUST FIRST, TWO
THOUSAND TWELVE.
  14. NOTWITHSTANDING ANY PROVISION OF SUBDIVISIONS ONE THROUGH THIRTEEN
OF THIS SECTION, IF THE EXCHANGE  DETERMINES  THAT  ANY  RECOMMENDATIONS
REQUIRED UNDER ANY SUCH SUBDIVISION CANNOT BE SUBMITTED BY THE SPECIFIED
DATE  BECAUSE FEDERAL GUIDANCE OR REGULATIONS NECESSARY TO COMPLETE SUCH
RECOMMENDATIONS HAS NOT BEEN ISSUED, THE EXCHANGE MAY  ESTABLISH  A  NEW
AND REASONABLE DATE FOR SUCH COMPLETION AND SUBMISSION.
  15. (A) ANY OF THE STUDIES REQUIRED UNDER THIS SECTION MAY BE COMBINED
WITH  OTHER  STUDIES REQUIRED UNDER THIS SECTION OR OTHERWISE UNDERTAKEN
BY THE EXCHANGE TO THE EXTENT FEASIBLE AND TIMELY.
  (B) IN LIEU OF CONDUCTING OR  CAUSING  TO  BE  CONDUCTED  ANY  OF  THE
STUDIES  REQUIRED  UNDER  THIS  SECTION,  THE EXCHANGE MAY RELY UPON ANY
OTHER STUDY OR STUDIES, IN WHOLE OR IN PART, COMPLETED PRIOR TO THE DATE
ON WHICH THE EXCHANGE  SUBMITS  ITS  RECOMMENDATIONS,  IF  THE  EXCHANGE
DETERMINES THAT SUCH STUDY OR STUDIES ARE SUFFICIENTLY RELIABLE.
  16.  THE EXCHANGE SHALL HAVE NO AUTHORITY, WHETHER EXPRESS OR IMPLIED,
TO IMPLEMENT ANY RECOMMENDATION ON THE ISSUES SET FORTH IN  SUBDIVISIONS
ONE  THROUGH TWELVE OF THIS SECTION WITHOUT FURTHER STATUTORY AUTHORITY;
PROVIDED, HOWEVER, THAT NOTHING IN THIS SUBDIVISION SHALL BE  DEEMED  TO
ALTER ANY POWERS EXPRESSLY GRANTED ELSEWHERE IN THIS ARTICLE.
  S  3989. TAX EXEMPTION AND TAX CONTRACT BY THE STATE.  1. IT IS HEREBY
DETERMINED THAT THE CREATION OF THE EXCHANGE AND THE FULFILLMENT OF  ITS
CORPORATE  PURPOSES  IS IN ALL RESPECTS FOR THE BENEFIT OF THE PEOPLE OF
THIS STATE AND IS A PUBLIC PURPOSE. ACCORDINGLY, THE EXCHANGE  SHALL  BE
REGARDED  AS  PERFORMING AN ESSENTIAL GOVERNMENTAL FUNCTION IN THE EXER-
CISE OF THE POWERS CONFERRED UPON IT BY THIS ARTICLE, AND  THE  EXCHANGE
SHALL  NOT BE REQUIRED TO PAY ANY FEES, TAXES, SPECIAL AD VALOREM LEVIES

S. 6256--A                         65                         A. 9056--A

OR ASSESSMENTS OF ANY KIND, WHETHER STATE OR LOCAL,  INCLUDING  BUT  NOT
LIMITED TO FEES, TAXES, SPECIAL AD VALOREM LEVIES OR ASSESSMENTS ON REAL
PROPERTY,  FRANCHISE  TAXES, SALES TAXES, TRANSFER TAXES, MORTGAGE TAXES
OR  OTHER  TAXES,  UPON  OR  WITH RESPECT TO ANY PROPERTY OWNED BY IT OR
UNDER ITS JURISDICTION, CONTROL OR SUPERVISION, OR UPON THE USES  THERE-
OF,  OR UPON OR WITH RESPECT TO ITS ACTIVITIES OR OPERATIONS IN FURTHER-
ANCE OF THE POWERS CONFERRED UPON IT BY THIS ARTICLE, OR  UPON  OR  WITH
RESPECT  TO ANY FARES, TOLLS, RENTALS, RATES, CHARGES, FEES, REVENUES OR
OTHER INCOME RECEIVED BY THE EXCHANGE.
  2. THE EXCHANGE MAY PAY, OR MAY ENTER INTO AGREEMENTS WITH ANY  COUNTY
OR  MUNICIPALITY  TO  PAY,  A  SUM  OR  SUMS ANNUALLY OR OTHERWISE OR TO
PROVIDE OTHER CONSIDERATIONS WITH RESPECT TO REAL PROPERTY OWNED BY  THE
EXCHANGE LOCATED WITHIN SUCH COUNTY OR MUNICIPALITY.
  S  3990.  OFFICERS AND EMPLOYEES. 1. THE BOARD SHALL HAVE THE POWER TO
APPOINT EMPLOYEES TO SERVE AS SENIOR MANAGERIAL STAFF OF THE EXCHANGE AS
NECESSARY, WHO SHALL BE DESIGNATED TO BE IN THE EXEMPT  CLASS  OF  CIVIL
SERVICE. THE BOARD SHALL ALSO HAVE THE POWER TO FIX THE SALARIES OF SUCH
EMPLOYEES.
  2.  ANY  NEWLY  HIRED  EMPLOYEES  WHO  ARE NOT DESIGNATED TO BE IN THE
EXEMPT CLASS OF CIVIL  SERVICE  PURSUANT  TO  SUBDIVISION  ONE  OF  THIS
SECTION  AND WHO ARE NOT SUBJECT TO THE TRANSFER PROVISIONS SET FORTH IN
SUBDIVISIONS FOUR, FIVE AND SIX OF THIS SECTION SHALL BE CONSIDERED  FOR
PURPOSES  OF  ARTICLE  FOURTEEN  OF  THE  CIVIL SERVICE LAW TO BE PUBLIC
EMPLOYEES IN THE CIVIL SERVICE OF THE STATE, AND SHALL  BE  ASSIGNED  TO
THE  APPROPRIATE  COLLECTIVE BARGAINING UNIT BY THE EXCHANGE IN THE SAME
MANNER AND CONSISTENT WITH THOSE EMPLOYEES DESCRIBED IN SUBDIVISION  SIX
OF THIS SECTION.
  3.  ANY  PUBLIC  OFFICER  OR EMPLOYEE OF A STATE DEPARTMENT, AGENCY OR
COMMISSION MAY BE TRANSFERRED TO THE EXCHANGE  WITHOUT  EXAMINATION  AND
WITHOUT  LOSS  OF  ANY  CIVIL  SERVICE  STATUS OR RIGHTS TO A COMPARABLE
OFFICE, POSITION OR EMPLOYMENT WITH THE EXCHANGE; PROVIDED, HOWEVER,  NO
SUCH TRANSFER MAY BE MADE WITHOUT THE CONSENT OF THE HEAD OF THE DEPART-
MENT,  AGENCY OR COMMISSION.  TRANSFERS SHALL BE MADE PURSUANT TO SUBDI-
VISION TWO OF SECTION SEVENTY OF THE CIVIL SERVICE LAW.
  4. THE SALARY OR COMPENSATION OF ANY SUCH OFFICER OR  EMPLOYEE,  AFTER
SUCH TRANSFER, SHALL BE PAID BY THE EXCHANGE.
  5.  ANY  OFFICER  OR  EMPLOYEE TRANSFERRED TO THE EXCHANGE PURSUANT TO
THIS SECTION, WHO ARE MEMBERS OF OR BENEFIT UNDER ANY  EXISTING  PENSION
OR  RETIREMENT FUND OR SYSTEM, SHALL CONTINUE TO HAVE ALL RIGHTS, PRIVI-
LEGES, OBLIGATIONS AND STATUS WITH RESPECT TO SUCH FUND OR SYSTEM AS ARE
NOW PRESCRIBED BY LAW, BUT DURING THE PERIOD OF THEIR EMPLOYMENT BY  THE
EXCHANGE,  ALL  CONTRIBUTIONS TO SUCH FUNDS OR SYSTEMS TO BE PAID BY THE
EMPLOYER ON ACCOUNT OF SUCH OFFICERS OR EMPLOYEES SHALL BE PAID  BY  THE
EXCHANGE.
  6. A TRANSFERRED EMPLOYEE SHALL REMAIN IN THE SAME COLLECTIVE BARGAIN-
ING UNIT AS WAS THE CASE PRIOR TO HIS OR HER TRANSFER; SUCCESSOR EMPLOY-
EES  TO THE POSITIONS HELD BY SUCH TRANSFERRED EMPLOYEES SHALL, CONSIST-
ENT WITH THE PROVISIONS OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW, BE
INCLUDED IN THE SAME UNIT AS THEIR PREDECESSORS.  EMPLOYEES  SERVING  IN
POSITIONS  IN NEWLY CREATED TITLES SHALL BE ASSIGNED TO THE SAME COLLEC-
TIVE BARGAINING UNIT AS THEY WOULD  HAVE  BEEN  ASSIGNED  TO  WERE  SUCH
TITLES  CREATED  PRIOR  TO  THE  ESTABLISHMENT  OF THE EXCHANGE. NOTHING
CONTAINED IN THIS ARTICLE SHALL BE CONSTRUED (A) TO DIMINISH THE  RIGHTS
OF  EMPLOYEES  PURSUANT  TO  A COLLECTIVE BARGAINING AGREEMENT OR (B) TO
AFFECT EXISTING LAW WITH RESPECT TO AN APPLICATION TO THE PUBLIC EMPLOY-

S. 6256--A                         66                         A. 9056--A

MENT RELATIONS BOARD SEEKING A DESIGNATION BY  THE  BOARD  THAT  CERTAIN
PERSONS ARE MANAGERIAL OR CONFIDENTIAL.
  S  3991.  LIMITATION OF LIABILITY; INDEMNIFICATION.  THE PROVISIONS OF
SECTIONS SEVENTEEN AND NINETEEN OF THE  PUBLIC  OFFICERS  LAW  SHALL  BE
APPLICABLE  TO  EXCHANGE  EMPLOYEES, AS SUCH TERM IS DEFINED IN SECTIONS
SEVENTEEN AND NINETEEN OF THE PUBLIC OFFICERS  LAW;  PROVIDED,  HOWEVER,
THAT NOTHING CONTAINED WITHIN THIS SECTION SHALL BE DEEMED TO PERMIT THE
EXCHANGE  TO EXTEND THE PROVISIONS OF SECTIONS SEVENTEEN AND NINETEEN OF
THE PUBLIC OFFICERS LAW UPON ANY INDEPENDENT CONTRACTOR.
  S 3992. CONTINGENCY FOR FEDERAL FUNDING.   THE IMPLEMENTATION  OF  THE
PROVISIONS  OF  THIS  ARTICLE  SHALL BE CONTINGENT, AS DETERMINED BY THE
DIRECTOR OF THE BUDGET, ON THE AVAILABILITY OF SUFFICIENT FEDERAL FINAN-
CIAL SUPPORT FOR THE PLANNING AND  IMPLEMENTATION  OF  HEALTH  CARE  AND
INSURANCE REFORM INITIATIVES AUTHORIZED BY FEDERAL LEGISLATION TO ESTAB-
LISH AND IMPLEMENT THE HEALTH BENEFIT EXCHANGE.
  S 3993. CONSTRUCTION.  NOTHING IN THIS ARTICLE, AND NO ACTION TAKEN BY
THE EXCHANGE PURSUANT HERETO, SHALL BE CONSTRUED TO:
  1.  PREEMPT  OR  SUPERSEDE  THE AUTHORITY OF THE SUPERINTENDENT OR THE
COMMISSIONER; OR
  2. EXEMPT INSURERS, INSURANCE PRODUCERS OR QUALIFIED HEALTH PLANS FROM
THE PUBLIC HEALTH LAW OR THE INSURANCE LAW AND  REGULATIONS  PROMULGATED
THEREUNDER.
  S 3. Subdivision 1 of section 17 of the public officers law is amended
by adding a new paragraph (x) to read as follows:
  (X)  FOR  PURPOSES  OF THIS SECTION, THE TERM "EMPLOYEE" SHALL INCLUDE
DIRECTORS, OFFICERS  AND  EMPLOYEES  OF  THE  NEW  YORK  HEALTH  BENEFIT
EXCHANGE ESTABLISHED PURSUANT TO ARTICLE TEN-E OF THE PUBLIC AUTHORITIES
LAW.
  S 4. Subdivision 1 of section 19 of the public officers law is amended
by adding a new paragraph (j) to read as follows:
  (J)  FOR  PURPOSES  OF THIS SECTION, THE TERM "EMPLOYEE" SHALL INCLUDE
DIRECTORS, OFFICERS  AND  EMPLOYEES  OF  THE  NEW  YORK  HEALTH  BENEFIT
EXCHANGE ESTABLISHED PURSUANT TO ARTICLE TEN-E OF THE PUBLIC AUTHORITIES
LAW.
  S  5.  If any provision or application of this act shall be held to be
invalid, or to violate or be inconsistent with  any  applicable  federal
law  or  regulation,  that shall not affect other provisions or applica-
tions of this act which can be given effect without  that  provision  or
application;  and  to  that end, the provisions and applications of this
act are severable; provided, however, that nothing in this section shall
be deemed to invalidate the provisions of section  3992  of  the  public
authorities law, as added by section two of this act.
  S  6. If the federal act is held to be unconstitutional by the supreme
court of the United States or repealed by the  United  States  Congress,
the  legislature  shall  convene  within  180  days  of such decision or
congressional act to consider appropriate legislative options.
  S 7. This act shall take effect immediately; provided,  however,  that
until such time as the members of the board of directors of the New York
health benefit exchange are initially appointed pursuant to section 3982
of  the public authorities law, as added by section two of this act, and
the first meeting of such board is convened, nothing in this  act  shall
be deemed to prevent the commissioner of health or the superintendent of
financial services from applying for, accepting the award of, and spend-
ing  any available grant money pertaining to the establishment or opera-
tion of such exchange for purposes consistent with this act or,  at  any

S. 6256--A                         67                         A. 9056--A

time, from accepting or spending grant money awarded prior to the enact-
ment of this act.

                                 PART F

  Section  1.  Section  1  of  part C of chapter 58 of the laws of 2005,
authorizing reimbursements for expenditures made  by  or  on  behalf  of
social  services  districts for medical assistance for needy persons and
the administration thereof, is amended by adding a new subdivision (c-1)
to read as follows:
  (C-1) NOTWITHSTANDING  ANY  PROVISIONS  OF  SUBDIVISION  (C)  OF  THIS
SECTION TO THE CONTRARY, EFFECTIVE APRIL 1, 2013, FOR THE PERIOD JANUARY
1, 2013 THROUGH DECEMBER 31, 2013 AND FOR EACH CALENDAR YEAR THEREAFTER,
THE  MEDICAL  ASSISTANCE  EXPENDITURE  AMOUNT  FOR  THE  SOCIAL SERVICES
DISTRICT FOR SUCH PERIOD SHALL BE EQUAL TO THE PREVIOUS CALENDAR  YEAR'S
MEDICAL ASSISTANCE EXPENDITURE AMOUNT, EXCEPT THAT:
  (1)  FOR  THE  PERIOD  JANUARY  1, 2013 THROUGH DECEMBER 31, 2013, THE
PREVIOUS CALENDAR YEAR MEDICAL ASSISTANCE  EXPENDITURE  AMOUNT  WILL  BE
INCREASED BY 2%;
  (2)  FOR  THE  PERIOD  JANUARY  1, 2014 THROUGH DECEMBER 31, 2014, THE
PREVIOUS CALENDAR YEAR MEDICAL ASSISTANCE  EXPENDITURE  AMOUNT  WILL  BE
INCREASED BY 1%.
  S  2.  Paragraph  (iii)  of  subdivision (g) of section 1 of part C of
chapter 58 of the laws of 2005, authorizing reimbursements for  expendi-
tures  made  by  or  on  behalf of social services districts for medical
assistance for needy persons and the administration thereof, as  amended
by section 59 of part A of chapter 57 of the laws of 2006, is amended to
read as follows:
  (iii)  During each state fiscal year subject to the provisions of this
section AND PRIOR TO STATE FISCAL YEAR 2015-16, the  commissioner  shall
maintain  an  accounting,  for each social services district, of the net
amounts that would have been expended by, or on behalf of, such district
had the social services district medical assistance shares provisions in
effect on January 1, 2005 been applied to such district.   For  purposes
of  this paragraph, fifty percent of the payments made by New York State
to the secretary of the federal department of health and human  services
pursuant  to  section 1935(c) of the social security act shall be deemed
to be payments made on behalf of social services districts;  such  fifty
percent share shall be apportioned to each district in the same ratio as
the  number of "full-benefit dual eligible individuals," as that term is
defined in section 1935(c)(6) of such act, for whom  such  district  has
fiscal  responsibility  pursuant  to  section 365 of the social services
law, relates to the total of such individuals for  whom  districts  have
fiscal  responsibility.   As soon as practicable after the conclusion of
each such fiscal year, but in no event later than six months  after  the
conclusion  of  each  such fiscal year, the commissioner shall reconcile
such net amounts  with  such  fiscal  year's  social  services  district
expenditure  cap  amount.  Such  reconciliation shall be based on actual
expenditures made by or on behalf  of  social  services  districts,  and
revenues  received by social services districts, during such fiscal year
and shall be made without regard  to  expenditures  made,  and  revenues
received, outside such fiscal year that are related to services provided
during,  or  prior  to,  such fiscal year. The commissioner shall pay to
each social  services  district  the  amount,  if  any,  by  which  such
district's expenditure cap amount exceeds such net amount.

S. 6256--A                         68                         A. 9056--A

  S  3. Paragraph (i) of subdivision (b) of section 2 of part C of chap-
ter 58 of the laws of 2005, authorizing reimbursements for  expenditures
made by or on behalf of social services districts for medical assistance
for  needy  persons and the administration thereof, is amended and a new
paragraph (iii) is added to read as follows:
  (i)  A social services district shall exercise the option described in
this section through the adoption of a resolution by its local  legisla-
tive body, in the form set forth in subparagraph (ii) of this paragraph,
to  elect  the medical assistance reimbursement methodology set forth in
paragraph (a) of this section and to elect the tax intercept methodology
set forth in subdivision (f) of section 1261 of the tax law or  subdivi-
sion  (g) of section 1261 and subdivision (h) of section 1313 of the tax
law, as applicable. A social services district, acting through its local
legislative body, is hereby authorized to adopt such a resolution.  Such
a  resolution  shall  be  effective only if it is adopted exactly as set
forth in subparagraph (ii) of this paragraph no later than September 30,
2007, and a certified copy of such resolution is mailed to  the  commis-
sioner  of  health  by  certified mail by such date. The commissioner of
health shall, no later than October 31, 2007, certify to the commission-
er of taxation and finance a list of  those  social  services  districts
which  have  elected  the  option  described  in  this section. A social
services district [shall have no authority to rescind the  exercise  of]
THAT  ELECTED  the  option described in this section, ACTING THROUGH ITS
LOCAL LEGISLATIVE BODY, MAY REPEAL THAT ELECTION BY  ADOPTING  A  RESOL-
UTION  EXACTLY  AS  SET FORTH IN PARAGRAPH (III) OF THIS SUBDIVISION AND
MAILING A CERTIFIED COPY OF SUCH REPEAL RESOLUTION TO  THE  COMMISSIONER
OF  HEALTH  NO  LATER  THAN JANUARY 1, 2013.  THE COMMISSIONER OF HEALTH
SHALL, WITHIN TWO WEEKS OF RECEIVING ANY SUCH COPY OF A CERTIFIED REPEAL
RESOLUTION BY CERTIFIED MAIL FROM A SOCIAL SERVICES DISTRICT, CERTIFY IN
WRITING TO THE COMMISSIONER OF TAXATION AND FINANCE THE NAME OF ANY SUCH
SOCIAL SERVICES DISTRICT THAT ADOPTED SUCH A RESOLUTION  TO  REPEAL  ITS
ELECTION. UPON RECEIVING SUCH WRITTEN CERTIFICATION, THE COMMISSIONER OF
TAXATION  AND  FINANCE  SHALL NO LONGER CALCULATE THE MEDICAID AMOUNT OF
SUCH COUNTY UNDER SUBDIVISION (F) OF SECTION 1261 OF THE  TAX  LAW,  AND
THE  AMOUNT  DUE  SUCH COUNTY UNDER SUBDIVISION (C) OF SUCH SECTION 1261
SHALL NO LONGER BE REDUCED BY SUCH MEDICAID AMOUNT, EFFECTIVE THE  FIRST
DAY OF THE MONTH NEXT COMMENCING AT LEAST 10 DAYS AFTER THE COMMISSIONER
OF  TAXATION  AND  FINANCE  HAS  RECEIVED SUCH WRITTEN CERTIFICATION. IF
EVERY SOCIAL SERVICE DISTRICT  THAT  ELECTED  SUCH  OPTION  REPEALS  ITS
ELECTION  AND  THE  COMMISSIONER  OF  HEALTH CERTIFIES IN WRITING TO THE
COMMISSIONER OF TAXATION AND FINANCE THAT  EVERY  SUCH  SOCIAL  SERVICES
DISTRICT  HAS  REPEALED  ITS  ELECTION, THEN SUBDIVISIONS (F) AND (G) OF
SECTION 1261 AND SUBDIVISION (H) OF SECTION 1313  OF  THE  TAX  LAW  TAX
SHALL  BE  REPEALED  AND  THE  PHRASE "OR A TAX REVENUE INTERCEPT AMOUNT
CALCULATED PURSUANT TO SUBDIVISION (F) OR (G) OF SECTION 1261 OF THE TAX
LAW" IN SECTION FOUR OF THIS ACT SHALL BE DELETED, EFFECTIVE  THE  FIRST
DAY  OF  THE  MONTH  NEXT  COMMENCING AT LEAST 10 DAYS AFTER THE DATE ON
WHICH THE COMMISSIONER OF TAXATION AND  FINANCE  RECEIVES  SUCH  WRITTEN
CERTIFICATION FROM THE COMMISSIONER OF HEALTH. AT THE SAME TIME THAT THE
COMMISSIONER  OF  HEALTH MAKES SUCH CERTIFICATION TO THE COMMISSIONER OF
TAXATION AND FINANCE THAT EVERY COUNTY HAS REPEALED  ITS  ELECTION,  THE
COMMISSIONER  OF  HEALTH SHALL ALSO NOTIFY THE LEGISLATIVE BILL DRAFTING
COMMISSION THAT EVERY SOCIAL SERVICE DISTRICT THAT ELECTED  SUCH  OPTION
HAS  REPEALED  ITS  ELECTION IN ORDER THAT THE LEGISLATIVE BILL DRAFTING
COMMISSION MAY MAINTAIN AN ACCURATE AND TIMELY DATA BASE OF THE OFFICIAL
TEXT OF THE LAWS OF THE STATE OF NEW YORK IN  FURTHERANCE  OF  EFFECTING

S. 6256--A                         69                         A. 9056--A

THE  PROVISIONS OF SECTION 44 OF THE LEGISLATIVE LAW AND SECTION 70-B OF
THE PUBLIC OFFICERS LAW.
  (III) FORM OF RESOLUTION.
  BE IT ENACTED BY THE (COUNTY) OF (INSERT COUNTY'S NAME) AS FOLLOWS:
  SECTION ONE. THE (COUNTY) OF (INSERT COUNTY'S NAME) HEREBY REPEALS ITS
ELECTION  IN  2007  OF  THE  MEDICAL ASSISTANCE REIMBURSEMENT OPTION AND
REVENUE INTERCEPT FOR MEDICAID PURPOSES DESCRIBED IN SECTION 2 OF  CHAP-
TER 58 OF THE LAWS OF 2005.
  SECTION 2. THIS RESOLUTION SHALL TAKE EFFECT IMMEDIATELY.
  S  4. Part C of chapter 58 of the laws of 2005, authorizing reimburse-
ments for expenditures made by or on behalf of social services districts
for medical assistance for needy persons and the administration thereof,
is amended by adding a new section 4-a to read as follows:
  S 4-A. (A) FOR STATE FISCAL YEAR 2012-13, AND FOR  EACH  STATE  FISCAL
YEAR  THEREAFTER,  A  SOCIAL SERVICES DISTRICT WILL BE REIMBURSED BY THE
STATE FOR THE FULL NON-FEDERAL SHARE OF EXPENDITURES BY THE DISTRICT FOR
THE ADMINISTRATION OF THE MEDICAL ASSISTANCE PROGRAM, NOT TO EXCEED  THE
ADMINISTRATIVE  CAP AMOUNT DETERMINED IN ACCORDANCE WITH SUBDIVISION (B)
OF THIS SECTION. ANY PORTION OF THE NON-FEDERAL SHARE OF  SUCH  EXPENDI-
TURES  IN EXCESS OF THE ADMINISTRATIVE CAP AMOUNT SHALL BE THE RESPONSI-
BILITY OF THE SOCIAL SERVICES DISTRICT AND SHALL BE IN ADDITION  TO  THE
MEDICAL  ASSISTANCE  EXPENDITURE  AMOUNT  CALCULATED  IN ACCORDANCE WITH
SUBDIVISIONS (B), (C), (C-1), AND (D) OF SECTION ONE OF THIS ACT. BEGIN-
NING IN STATE FISCAL YEAR 2013-14, NO REIMBURSEMENT  WILL  BE  MADE  FOR
ADMINISTRATIVE EXPENDITURES IN EXCESS OF SUCH CAP.
  (B) THE ADMINISTRATIVE CAP AMOUNT FOR A SOCIAL SERVICES DISTRICT SHALL
BE EQUAL TO A PERCENTAGE OF THE AMOUNT INCLUDED IN THE STATE FISCAL YEAR
2011-12  ENACTED  BUDGET FOR THE NON-FEDERAL SHARE OF MEDICAL ASSISTANCE
ADMINISTRATIVE COSTS PURSUANT TO  THIS  SECTION.  EACH  SOCIAL  SERVICES
DISTRICT'S  PERCENTAGE  SHALL  BE  EQUAL  TO  THE  PERCENTAGE OF MEDICAL
ASSISTANCE ADMINISTRATIVE COSTS CLAIMED BY SUCH  DISTRICT  IN  THE  2011
CALENDAR YEAR IN RELATION TO ALL OTHER SOCIAL SERVICES DISTRICTS.
  (C) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (B) OF THIS SECTION,
THE  COMMISSIONER OF HEALTH MAY, AT HIS OR HER SOLE DISCRETION, REDUCE A
SOCIAL SERVICES DISTRICT'S ADMINISTRATIVE CAP AMOUNT TO  ACCOUNT  FOR  A
REDUCTION  IN  THE  SCOPE  OR  VOLUME  OF  THE DISTRICT'S ADMINISTRATIVE
RESPONSIBILITIES, INCLUDING BUT NOT LIMITED TO SUCH A REDUCTION  RESULT-
ING  FROM  THE PROCESS OF CONVERTING THE MEDICAL ASSISTANCE PROGRAM TO A
DEPARTMENT-ADMINISTERED PROGRAM PURSUANT TO SECTION 365-N OF THE  SOCIAL
SERVICES LAW.
  S  5.  Section 91 of part H of chapter 59 of the laws of 2011 amending
the public health law  and  other  laws  relating  to  general  hospital
reimbursement for annual rates is amended to read as follows:
  S 91. 1. Notwithstanding any inconsistent provision of state law, rule
or  regulation to the contrary, subject to federal approval, the year to
year rate of growth of department of health state funds Medicaid  spend-
ing  shall not exceed the ten year rolling average of the medical compo-
nent of the consumer price index  as  published  by  the  United  States
department  of  labor, bureau of labor statistics, for the preceding ten
years.
  2. EXCEPT AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION, FOR  STATE
FISCAL  YEAR  2013-14  AND FOR EACH FISCAL YEAR THEREAFTER, THE SPENDING
LIMIT CALCULATED PURSUANT TO SUBDIVISION ONE OF THIS  SECTION  SHALL  BE
INCREASED  BY AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE TOTAL SOCIAL
SERVICES DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS CALCULATED  FOR
SUCH PERIOD IN CONFORMANCE WITH SUBDIVISIONS (B), (C), (C-1), AND (D) OF

S. 6256--A                         70                         A. 9056--A

SECTION  1  OF  PART  C  OF CHAPTER 58 OF THE LAWS OF 2005 AND THE TOTAL
SOCIAL SERVICES DISTRICT MEDICAL EXPENDITURE  AMOUNTS  THAT  WOULD  HAVE
RESULTED  IF THE PROVISIONS OF SUBDIVISION (C-1) OF SUCH SECTION HAD NOT
BEEN APPLIED.
  3.  WITH RESPECT TO A SOCIAL SERVICES DISTRICT THAT RESCINDS THE EXER-
CISE OF THE OPTION PROVIDED IN  PARAGRAPH  (I)  OF  SUBDIVISION  (B)  OF
SECTION  2 OF PART C OF CHAPTER 58 OF THE LAWS OF 2005, FOR STATE FISCAL
YEAR 2013-14 AND FOR EACH FISCAL YEAR  THEREAFTER,  THE  SPENDING  LIMIT
CALCULATED  PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL BE REDUCED
BY THE AMOUNT OF THE MEDICAL ASSISTANCE  EXPENDITURE  AMOUNT  CALCULATED
FOR SUCH DISTRICT FOR SUCH PERIOD.
  S  6. The social services law is amended by adding a new section 365-n
to read as follows:
  S 365-N. DEPARTMENT ASSUMPTION OF PROGRAM ADMINISTRATION.  1. LEGISLA-
TIVE INTENT. (A) THE  LEGISLATURE  FINDS  THAT  TO  ENSURE  THE  MEDICAL
ASSISTANCE  PROGRAM CONTINUES TO FUNCTION IN AN EFFICIENT MANNER TO MAKE
HIGH QUALITY MEDICAL CARE, SERVICES, AND SUPPLIES AVAILABLE TO  ELIGIBLE
PERSONS,  AND  TO ACHIEVE TIMELY COMPLIANCE WITH THE REQUIREMENTS OF THE
PATIENT PROTECTION AND AFFORDABLE CARE ACT RELATED TO THE  EXPANSION  OF
THE  MEDICAL  ASSISTANCE  PROGRAM  AND  THE  CREATION  OF  A HEALTH CARE
EXCHANGE, IT IS NECESSARY TO CONVERT THE PROGRAM OF  MEDICAL  ASSISTANCE
FROM  ONE PRIMARILY ADMINISTERED BY SOCIAL SERVICES DISTRICTS, UNDER THE
SUPERVISION OF THE DEPARTMENT OF HEALTH ("DEPARTMENT"), TO ONE  ADMINIS-
TERED  BY  THE  DEPARTMENT,  WITH  SUCH  ASSISTANCE FROM SOCIAL SERVICES
DISTRICTS AS THE COMMISSIONER OF HEALTH ("COMMISSIONER")  MAY  DETERMINE
NECESSARY,  AND THAT SUCH CONVERSION SHOULD BE COMPLETED BY APRIL FIRST,
TWO THOUSAND EIGHTEEN.   RECOGNIZING THE COMPLEXITY  AND  DIFFICULTY  OF
COMPLETING  THIS  CONVERSION WITHIN SUCH TIME FRAME, IT IS THE INTENT OF
THE LEGISLATURE TO GRANT THE COMMISSIONER BROAD AUTHORITY AND FLEXIBILI-
TY TO TAKE ACTIONS NECESSARY TO ACHIEVE THIS GOAL, AS DETERMINED BY  THE
COMMISSIONER,  AND  TO  HAVE THE PROVISIONS OF THIS SECTION CONSTRUED IN
LIGHT OF THE AUTHORITY AND FLEXIBILITY SO GRANTED. THE ADMINISTRATION OF
THE PROGRAM BY THE DEPARTMENT MAY BE ACCOMPLISHED  THROUGH  THE  USE  OF
DEPARTMENT  STAFF,  CONTRACTED ENTITIES, OR SOME COMBINATION THEREOF, AS
DETERMINED ADVISABLE BY THE COMMISSIONER TO ACHIEVE THE  GOALS  OF  THIS
SECTION,  SUBJECT TO THE LIMITATIONS PRESCRIBED HEREIN. THE COMMISSIONER
WILL CONSULT WITH SOCIAL SERVICES DISTRICTS IN FORMULATING  THE  OPTIMAL
PLAN FOR IMPLEMENTING THIS CONVERSION.
  (B)  THE  LEGISLATURE FURTHER FINDS THAT THE CONTINUED, UNINTERRUPTED,
ADEQUATE AND EFFICIENT OPERATION OF FUNCTIONS RELATED TO MEDICAL ASSIST-
ANCE ELIGIBILITY AND COVERED  BENEFITS  IS  NECESSARY  FOR  THE  GENERAL
WELFARE  OF  THE  PEOPLE  OF THE STATE; THAT SUCH OPERATION INVOLVES AND
REQUIRES PERSONNEL WITH TRAINING, PRACTICAL EXPERIENCE AND KNOWLEDGE  IN
MEDICAL  ASSISTANCE ELIGIBILITY AND COVERED BENEFITS; AND THAT REQUIRING
COMPETITIVE EXAMINATION FOR APPOINTMENT OF PERSONS CURRENTLY  PERFORMING
SUCH  FUNCTIONS  IN COUNTIES IN THE STATE TO POSITIONS IN THE CLASSIFIED
SERVICE OF THE STATE UPON  THE  ASSUMPTION  OF  SUCH  FUNCTIONS  BY  THE
DEPARTMENT  WOULD  IRREPARABLY  DISRUPT, DELAY AND IMPEDE OPERATIONS AND
INTERRUPT THE CONTINUANCE AND PERFORMANCE OF IMPORTANT SERVICES.
  2. NOTWITHSTANDING THE PROVISIONS OF TITLE TWO  OF  ARTICLE  THREE  OF
THIS  CHAPTER OR OF SECTION THREE HUNDRED SIXTY-FIVE OF THIS TITLE OR OF
ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER IS  AUTHORIZED  TO  TAKE
ANY  AND ALL ACTIONS NECESSARY TO TRANSFER RESPONSIBILITY FOR THE ADMIN-
ISTRATION  OF  THE  MEDICAL  ASSISTANCE  PROGRAM  FROM  SOCIAL  SERVICES
DISTRICTS TO THE DEPARTMENT.

S. 6256--A                         71                         A. 9056--A

  3. FOR PURPOSES OF THIS SECTION, ADMINISTRATION OF THE MEDICAL ASSIST-
ANCE  PROGRAM INCLUDES PROCESSING APPLICATIONS FOR BENEFITS AND SERVICES
AVAILABLE UNDER THIS TITLE AND TITLE ELEVEN-D OF  THIS  ARTICLE,  MAKING
DETERMINATIONS  OF INITIAL AND ONGOING ELIGIBILITY FOR SUCH BENEFITS AND
SERVICES AND MAKING COVERAGE DETERMINATIONS WITH RESPECT TO BENEFITS AND
SERVICES REQUIRING PRIOR AUTHORIZATION, NOTIFYING APPLICANTS AND RECIPI-
ENTS  OF  THESE DETERMINATIONS AND OF THEIR RIGHTS AND RESPONSIBILITIES,
AUTHORIZING BENEFITS AND SERVICES FOR PERSONS FOUND ELIGIBLE, EXERCISING
SUBROGATION RIGHTS WITH  RESPECT  TO  AMOUNTS  RECEIVED  FROM  INSURANCE
CARRIERS  OR  OTHER  LIABLE  THIRD  PARTIES, IMPOSING LIENS AND PURSUING
RECOVERIES, AND ANY OTHER TASKS AND FUNCTIONS IDENTIFIED BY THE  COMMIS-
SIONER.
  4.  NOTWITHSTANDING  THE  PROVISIONS  OF  THE CIVIL SERVICE LAW OR ANY
PROVISIONS TO THE CONTRARY CONTAINED IN ANY GENERAL, SPECIAL,  OR  LOCAL
LAWS,  ALL LAWFUL APPOINTEES OF A COUNTY PERFORMING FUNCTIONS RELATED TO
MEDICAL ASSISTANCE ELIGIBILITY AND COVERED BENEFITS AS OF THE  EFFECTIVE
DATE  OF  THIS SECTION WILL BE ELIGIBLE TO TRANSFER TO APPROPRIATE POSI-
TIONS IN THE DEPARTMENT OF HEALTH CLASSIFIED TO PERFORM  SUCH  FUNCTIONS
WITHOUT  FURTHER  EXAMINATION  OR QUALIFICATION AND, UPON SUCH TRANSFER,
WILL HAVE ALL THE RIGHTS AND PRIVILEGES OF  THE  JURISDICTIONAL  CLASSI-
FICATION  TO  WHICH  SUCH  POSITIONS  MAY BE ALLOCATED IN THE CLASSIFIED
SERVICE OF THE STATE.
  5. SUBJECT TO THE PROVISIONS OF SUBDIVISIONS SIX  AND  SEVEN  OF  THIS
SECTION,  THE  COMMISSIONER  MAY  CONTRACT  WITH  ONE  OR MORE ENTITIES,
INCLUDING UNITS OF LOCAL GOVERNMENT, FOR THE PURPOSE OF  EXERCISING  HIS
OR  HER AUTHORITY UNDER THIS SECTION. SUCH ENTITIES MAY BE CONTRACTED TO
PERFORM ALL OR A PORTION OF THE FUNCTIONS DESCRIBED IN SUBDIVISION THREE
OF THIS SECTION, AND MAY PERFORM SUCH  FUNCTIONS  WITH  RESPECT  TO  THE
ENTIRE  STATE OR WITH RESPECT TO A SPECIFIC REGION OR REGIONS, AS DETER-
MINED BY THE COMMISSIONER. IN NO EVENT, HOWEVER, SHALL  THE  DEPARTMENT,
BY MEANS OF SUCH A CONTRACT, DELEGATE ITS AUTHORITY TO EXERCISE ADMINIS-
TRATIVE  DISCRETION  IN  THE  ADMINISTRATION OR SUPERVISION OF THE STATE
PLAN FOR MEDICAL ASSISTANCE SUBMITTED PURSUANT TO SECTION THREE  HUNDRED
SIXTY-THREE-A  OF  THIS  TITLE,  OR  TO ISSUE POLICIES, RULES, AND REGU-
LATIONS ON PROGRAM MATTERS, NOR MAY ANY CONTRACTED ENTITY BE  GIVEN  THE
AUTHORITY  TO  CHANGE  OR  DISAPPROVE ANY ADMINISTRATIVE DECISION OF THE
DEPARTMENT, OR OTHERWISE SUBSTITUTE THE ENTITY'S JUDGMENT  FOR  THAT  OF
THE  DEPARTMENT  WITH RESPECT TO THE APPLICATION OF POLICIES, RULES, AND
REGULATIONS ISSUED BY THE DEPARTMENT.
  6. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTIONS ONE  HUNDRED
TWELVE AND ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, OR SECTIONS
ONE HUNDRED FORTY-TWO AND ONE HUNDRED FORTY-THREE OF THE ECONOMIC DEVEL-
OPMENT  LAW, OR ANY OTHER CONTRARY PROVISION OF LAW, THE COMMISSIONER IS
AUTHORIZED TO  AMEND  THE  TERMS  OF  EXISTING  CONTRACTS,  INCLUDING  A
CONTRACT ENTERED INTO PURSUANT TO SUBDIVISION TWENTY-FOUR OF SECTION TWO
HUNDRED SIX OF THE PUBLIC HEALTH LAW, AS ADDED BY SECTION THIRTY-NINE OF
PART C OF CHAPTER FIFTY-EIGHT OF THE LAWS OF TWO THOUSAND EIGHT, WITHOUT
A  COMPETITIVE BID OR REQUEST FOR PROPOSAL PROCESS, UPON A DETERMINATION
THAT THE EXISTING CONTRACTOR IS QUALIFIED TO PROVIDE ASSISTANCE WITH ONE
OR MORE FUNCTIONS RELATED TO THE ADMINISTRATION OF THE  MEDICAL  ASSIST-
ANCE PROGRAM OR TO ACHIEVING THE GOALS OF THIS SECTION.
  7.  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTIONS ONE HUNDRED
TWELVE AND ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, OR SECTIONS
ONE HUNDRED FORTY-TWO AND ONE HUNDRED FORTY-THREE OF THE ECONOMIC DEVEL-
OPMENT LAW, OR ANY OTHER CONTRARY PROVISION OF LAW, THE COMMISSIONER  IS
AUTHORIZED  TO ENTER INTO A CONTRACT OR CONTRACTS UNDER THIS SUBDIVISION

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WITHOUT A COMPETITIVE BID OR REQUEST  FOR  PROPOSAL  PROCESS,  PROVIDED,
HOWEVER,  THAT  WITH  RESPECT  TO A CONTRACT WITH AN ENTITY OTHER THAN A
LOCAL UNIT OF GOVERNMENT:
  (A)  THE DEPARTMENT SHALL POST ON ITS WEBSITE, FOR A PERIOD OF NO LESS
THAN THIRTY DAYS:
  (I) A DESCRIPTION OF THE PROPOSED SERVICES TO BE PROVIDED PURSUANT  TO
THE CONTRACT OR CONTRACTS;
  (II) THE CRITERIA FOR SELECTION OF A CONTRACTOR OR CONTRACTORS;
  (III)  THE  PERIOD  OF  TIME DURING WHICH A PROSPECTIVE CONTRACTOR MAY
SEEK SELECTION, WHICH SHALL BE NO  LESS  THAN  THIRTY  DAYS  AFTER  SUCH
INFORMATION IS FIRST POSTED ON THE WEBSITE; AND
  (IV)  THE  MANNER  BY  WHICH  A  PROSPECTIVE  CONTRACTOR MAY SEEK SUCH
SELECTION, WHICH MAY INCLUDE SUBMISSION BY ELECTRONIC MEANS;
  (B) ALL REASONABLE AND RESPONSIVE SUBMISSIONS THAT ARE  RECEIVED  FROM
PROSPECTIVE  CONTRACTORS  IN  TIMELY  FASHION  SHALL  BE REVIEWED BY THE
COMMISSIONER; AND
  (C) THE COMMISSIONER SHALL SELECT SUCH CONTRACTOR OR CONTRACTORS THAT,
IN HIS OR HER DISCRETION, ARE BEST SUITED TO SERVE THE PURPOSES OF  THIS
SECTION.
  8. THE COMMISSIONER SHALL PROMULGATE SUCH REGULATIONS AS MAY BE NECES-
SARY  TO CARRY OUT THE PROVISIONS OF THIS SECTION, WHICH REGULATIONS MAY
BE PROMULGATED ON AN EMERGENCY  BASIS.  IN  ADDITION,  THE  COMMISSIONER
SHALL  MAKE  ANY AMENDMENTS TO THE STATE PLAN FOR MEDICAL ASSISTANCE, OR
DEVELOP AND SUBMIT AN APPLICATION FOR ANY WAIVER OR APPROVAL  UNDER  THE
FEDERAL  SOCIAL  SECURITY  ACT,  THAT  MAY BE NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS SECTION.
  S 7. Subdivision 7 of section 369 of the social services law, as added
by section 71-a of part C of chapter 58 of the laws of 2008, is  amended
to read as follows:
  7.  Notwithstanding  any provision of law to the contrary, the depart-
ment [may commence] SHALL, WHEN IT DETERMINES NECESSARY PROGRAM FEATURES
ARE IN PLACE, ASSUME  SOLE  RESPONSIBILITY  FOR  COMMENCING  actions  or
proceedings  in accordance with the provisions of this section, sections
one hundred one, one hundred four, one hundred four-b, paragraph (a)  of
subdivision  three  of section three hundred sixty-six, subparagraph one
of paragraph (h) of subdivision four of section three hundred sixty-six,
and paragraph (b) of subdivision two of section three hundred sixty-sev-
en-a of  this  chapter,  to  recover  the  cost  of  medical  assistance
furnished pursuant to this title and title eleven-D of this article. The
department  is  authorized to contract with an entity that shall conduct
activities on behalf of the department  pursuant  to  this  subdivision.
PRIOR  TO  ASSUMING SUCH RESPONSIBILITY FROM A SOCIAL SERVICES DISTRICT,
THE DEPARTMENT OF HEALTH  SHALL,  IN  CONSULTATION  WITH  THE  DISTRICT,
DEFINE  THE  SCOPE  OF  THE  SERVICES  THE  DISTRICT WILL BE REQUIRED TO
PERFORM ON BEHALF OF THE DEPARTMENT OF HEALTH PURSUANT TO THIS  SUBDIVI-
SION.
  S  8. Notwithstanding any inconsistent provision of law, rule or regu-
lation, for purposes of implementing the provisions of the public health
law and the social services law, references to titles XIX and XXI of the
federal social security act in the public  health  law  and  the  social
services  law  shall be deemed to include and also to mean any successor
titles thereto under the federal social security act.
  S 9. Notwithstanding any inconsistent provision of law, rule or  regu-
lation, the effectiveness of the provisions of sections 2807 and 3614 of
the  public health law, section 18 of chapter 2 of the laws of 1988, and
18 NYCRR 505.14(h), as they relate to time frames for  notice,  approval

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or  certification  of rates of payment, are hereby suspended and without
force or effect for purposes of implementing the provisions of this act.
  S  10. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair or invalidate the remainder thereof, but shall be confined in its
operation to the clause, sentence, paragraph,  subdivision,  section  or
part thereof directly involved in the controversy in which such judgment
shall  have been rendered. It is hereby declared to be the intent of the
legislature that this act would have been enacted even if  such  invalid
provisions had not been included herein.
  S  11.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2012,  provided
that:
  1. section one of this act shall take effect April 1, 2013;
  2.  any  rules or regulations necessary to implement the provisions of
this act may be promulgated and any procedures, forms,  or  instructions
necessary  for such implementation may be adopted and issued on or after
the date this act shall have become a law;
  3. this act shall not be construed to alter, change, affect, impair or
defeat any rights, obligations, duties or interests accrued, incurred or
conferred prior to the effective date of this act;
  4. the commissioner of health  and  the  superintendent  of  financial
services  and  any  appropriate  council may take any steps necessary to
implement this act prior to its effective date;
  5. notwithstanding any inconsistent provision of the state administra-
tive procedure act or any other provision of law,  rule  or  regulation,
the  commissioner of health and the superintendent of financial services
and any appropriate council is authorized to adopt or amend  or  promul-
gate  on  an  emergency  basis  any regulation he or she or such council
determines necessary to implement any  provision  of  this  act  on  its
effective date;
  6.  the amendment to section 91 of part H of chapter 59 of the laws of
2011, amending the public health law and other laws relating to  general
hospital  reimbursement  for  annual rates, made by section five of this
act shall take effect on the same date and in the same  manner  as  such
section takes effect;
  7.  the  provisions of this act shall become effective notwithstanding
the failure of the commissioner  of  health  or  the  superintendent  of
financial  services or any council to adopt or amend or promulgate regu-
lations implementing this act.

                                 PART G

  Section 1. Subdivision 1 of section 79 of part C of chapter 58 of  the
laws of 2005 relating to the preferred drug program is amended and a new
subdivision 1-a is added  to read as follows:
  1.  sections  ten  [through],  ELEVEN,  TWELVE AND fifteen of this act
shall expire and be deemed repealed on and after June 15, [2012] 2019;
  1-A. SECTION FOURTEEN OF THIS ACT SHALL EXPIRE AND BE DEEMED  REPEALED
ON AND AFTER JUNE 15, 2012;
  S  2.  Subparagraph  (v) of paragraph (b) of subdivision 35 of section
2807-c of the public health law, as amended by section 35-a of part H of
chapter 59 of the laws of 2011, is amended to read as follows:
  (v) such  regulations  shall  incorporate  quality  related  measures,
including,  but  not  limited  to, potentially preventable re-admissions

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(PPRs) and provide for rate adjustments or payment disallowances related
to PPRs and other potentially  preventable  negative  outcomes  (PPNOs),
which shall be calculated in accordance with methodologies as determined
by the commissioner, provided, however, that such methodologies shall be
based on a comparison of the actual and risk adjusted expected number of
PPRs and other PPNOs in a given hospital and with benchmarks established
by  the  commissioner and provided further that such rate adjustments or
payment disallowances shall result in an aggregate reduction in Medicaid
payments of no less than thirty-five million dollars for the period July
first, two thousand ten through March thirty-first, two thousand  eleven
and no less than fifty-one million dollars for [the period] ANNUAL PERI-
ODS  BEGINNING  April  first,  two thousand eleven through March thirty-
first, two thousand [twelve] THIRTEEN, provided further that such aggre-
gate reductions shall be offset by Medicaid payment reductions occurring
as a result of decreased PPRs during the period July first, two thousand
ten through March thirty-first, two thousand eleven and the period April
first, two thousand eleven  through  March  thirty-first,  two  thousand
[twelve]  THIRTEEN  and as a result of decreased PPNOs during the period
April first, two thousand eleven through March thirty-first,  two  thou-
sand  [twelve]  THIRTEEN;  and provided further that for the period July
first,  two  thousand  ten  through  March  thirty-first,  two  thousand
[twelve]  THIRTEEN, such rate adjustments or payment disallowances shall
not apply to behavioral health PPRs; or to readmissions that occur on or
after fifteen days following an initial admission. By no later than July
first, two thousand eleven the commissioner shall enter  into  consulta-
tions with representatives of the health care facilities subject to this
section  regarding potential prospective revisions to applicable method-
ologies and benchmarks set forth in regulations issued pursuant to  this
subparagraph;
  S  3.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2012.

                                 PART H

  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
be  based on performance metrics to be developed by the commissioners of
such agencies which shall include, but not be limited to  the  following

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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 of the director of the budget.
  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 the director of the budget, to  promulgate  regu-
lations  or to address by other means the extent and nature of a provid-
er's administrative costs and  executive  compensation  which  shall  be
eligible  to  be reimbursed with state financial assistance or state-au-
thorized payments for operating expenses. Each agency shall require that
providers of services that receive reimbursements directly or indirectly
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
the director of the budget, but in no event  shall  such  figure  exceed
Level I of the federal government's Rates of Basic Pay for the Executive
Schedule  promulgated  by  the United States Office of Personnel Manage-
ment.  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 may, in the sole discretion of the commis-
sioner of each state agency, form the basis for termination or non-rene-
wal 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 the director of the budget.
  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, 2012.

                                 PART I

  Section 1. Notwithstanding any inconsistent provision of sections  one
hundred  twelve and one hundred sixty-three of the state finance law, or
section one hundred forty-two of the economic development  law,  or  any
other  law  to the contrary, the commissioner of developmental disabili-
ties, pursuant to a pilot program  established  in  accordance  with  an
application  made under section 1115 of the federal social security act,
42 U.S.C. 1315, is authorized to enter  into  a  contract  or  contracts
without  a  competitive  bid  or  request for proposal process, with the
approval of the director of the budget, provided, however, that:

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  (a) the office for people with developmental disabilities  shall  post
on  its  website,  for  a  period  of not less than thirty days, a pilot
application, and the following information:
  (i)  a description of the proposed services to be provided pursuant to
the pilot program;
  (ii) the procedure for application to participate in the pilot program
and criteria for selection of an applicant to participate in  the  pilot
program;
  (iii) the period of time during which an applicant may seek selection,
which  shall be no less than thirty days after such information is first
posted on the website; and
  (iv) the manner by which an applicant may seek such  selection,  which
may include submission by electronic means;
  (b)  all  reasonable and responsive submissions that are received from
applicants in a timely fashion shall be reviewed  by  the  commissioner;
and
  (c)  the  commissioner of developmental disabilities shall select such
applicant or applicants that, in  the  commissioner's  discretion,  have
demonstrated  the  ability to effectively, efficiently, and economically
provide services pursuant to  the  pilot  program;  have  the  requisite
expertise  and  financial resources; have demonstrated that their direc-
tors, sponsors, members, managers, partners or operators have the requi-
site character, competence and standing in the community, and  are  best
suited to serve the purposes of this section.
  S 2. This act shall take effect immediately.

                                 PART J

  Section  1. Section 13.17 of the mental hygiene law, as added by chap-
ter 978 of the laws of 1977, the section heading as amended  by  chapter
168  of the laws of 2010, subdivisions (b) and (d) as amended by chapter
37 of the laws of 2011, and subdivision (c) as amended by chapter 538 of
the laws of 1987, is amended to read as follows:
S 13.17 Programs, services, and operations [of facilities] in the office
          for people with developmental disabilities.
  (a) The commissioner shall establish policy  and  procedures  for  the
organization,  administration, and [operation of the facilities] SERVICE
DELIVERY SYSTEM under his OR  HER  jurisdiction[.  He]  AND  shall  make
provision  for  the  effective  rendition  of  SUPPORTS  AND services to
[patients by such  facilities  or  office  personnel]  INDIVIDUALS  WITH
DEVELOPMENTAL DISABILITIES.
  (b)  [There  shall  be  in  the  office the developmental disabilities
services offices named below  serving  the  areas  either  currently  or
previously  served  by  a  school, for the care and treatment of persons
with developmental disabilities and for research  and  teaching  in  the
science  and  skills required for the care and treatment of such persons
with developmental disabilities:
  Bernard M. Fineson Developmental Disabilities Services Office
  Brooklyn Developmental Disabilities Services Office
  Broome Developmental Disabilities Services Office
  Capital District Developmental Disabilities Services Office
  Central New York Developmental Disabilities Services Office
  Finger Lakes Developmental Disabilities Services Office
  Institute for Basic Research in Developmental Disabilities
  Hudson Valley Developmental Disabilities Services Office
  Metro New York Developmental Disabilities Services Office

S. 6256--A                         77                         A. 9056--A

  Long Island Developmental Disabilities Services Office
  Sunmount Developmental Disabilities Services Office
  Taconic Developmental Disabilities Services Office
  Western New York Developmental Disabilities Services Office
  Staten Island Developmental Disabilities Services Office
  The New York State Institute for Basic Research in Developmental Disa-
bilities  is  designated  as  an  institute  for  the conduct of medical
research and other scientific investigation directed towards  furthering
knowledge of the etiology, diagnosis, treatment and prevention of devel-
opmental disabilities.
  (c)]  The  commissioner shall establish [the areas which each facility
or], AT HIS OR  HER  DISCRETION,  developmental  disabilities  [services
office  under his jurisdiction shall serve and the categories of clients
which shall be served thereby]  REGIONAL  OFFICES  AND  SHALL  ESTABLISH
STATE  OPERATIONS  OFFICES  THAT  PROVIDE  FOR  THE  DIRECT  DELIVERY OF
SUPPORTS AND SERVICES BY THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL  DISA-
BILITIES.
  [(d)] (C) The commissioner may [permit] AUTHORIZE other offices of the
department  and  any  public or private non-profit organization or poli-
tical subdivision of the state to [operate programs for persons] DELIVER
SUPPORTS AND SERVICES TO INDIVIDUALS with  developmental  disabilities[,
not  inconsistent  with the programs and objectives of the office in any
facility under his jurisdiction. The commissioner may permit any facili-
ty under his jurisdiction to operate programs for  persons  with  mental
disabilities,  not  inconsistent  with  programs  and  objectives of the
department, under contracts or agreements with other offices within  the
department].
  S  2. Section 13.19 of the mental hygiene law, as added by chapter 978
of the laws of 1977, subdivisions (a) and (d) as amended by chapter  168
of  the laws of 2010, and subdivision (e) as added by chapter 307 of the
laws of 1979, is amended to read as follows:
S 13.19 Personnel of the office; regulations.
  (a) The commissioner may, within the  amounts  appropriated  therefor,
appoint  and  remove  in accordance with law and applicable rules of the
state civil service commission,  such  officers  and  employees  of  the
office for people with developmental disabilities [and school and facil-
ity officers and employees who are designated managerial or confidential
pursuant  to article fourteen of the civil service law] as are necessary
for efficient administration.  THE COMMISSIONER SHALL, IN EXERCISING HIS
OR   HER   APPOINTING   AUTHORITY,   TAKE,   CONSISTENT   WITH   ARTICLE
TWENTY-THREE-A OF THE CORRECTION LAW, ALL REASONABLE AND NECESSARY STEPS
TO  ENSURE  THAT ANY SUCH PERSON SO APPOINTED HAS NOT PREVIOUSLY ENGAGED
IN ANY ACT IN VIOLATION OF ANY LAW WHICH COULD COMPROMISE THE HEALTH AND
SAFETY OF INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES.
  (b) [The director of a hospital or institute in the office shall  have
professional  qualifications  and  experience  to  be  prescribed by the
commissioner.
  (c)] Notwithstanding the provisions of any other law, the  [positions]
POSITION  of  [psychiatrist  III and] deputy director in [any] AN office
facility may be filled BY NEW HIRE OR by promotion open to employees [of
all such facilities] who possess  the  minimum  qualifications  for  the
[respective  positions.  Promotion lists which are established for those
positions shall be general eligible promotion lists from which names are
certified in the order of final earned ratings and  from  which  certif-
ication  shall  not be subdivided by the facility or department in which

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such persons are employed. Nothing in this subdivision shall prevent the
use of open competitive examinations] POSITION.
  [(d)]  (C)  The  use  of  volunteers [at facilities] in the office for
people with developmental disabilities shall be encouraged. The  commis-
sioner may establish regulations governing such volunteer services.
  [(e)]  (D)  Where,  and  to  the extent that, an agreement between the
state and an employee organization  entered  into  pursuant  to  article
fourteen  of  the  civil  service  law  so provides, the commissioner is
authorized to implement the provisions of  such  agreement  relating  to
discipline consistent with the terms thereof.
  S  3. Section 13.21 of the mental hygiene law, as added by chapter 978
of the laws of 1977, the section heading and subdivisions (a) and (c) as
amended by chapter 168 of the laws of 2010, subdivision (b)  as  amended
by  chapter 558 of the laws of 2011, subdivision (d) as added by chapter
355 of the laws of 1987 and subdivision (e) as added by chapter  492  of
the  laws  of 1978 and as relettered by chapter 355 of the laws of 1987,
is amended to read as follows:
S 13.21 Directors of [schools] STATE  OPERATIONS  OFFICES  AND  DEVELOP-
          MENTAL  DISABILITIES REGIONAL OFFICES in the office for people
          with developmental disabilities.
  (a) The [director] DIRECTORS of [a school] BOTH THE  STATE  OPERATIONS
OFFICES  AND  DEVELOPMENTAL  DISABILITIES REGIONAL OFFICES in the office
for people with developmental disabilities shall  be  appointed  by  the
commissioner  [and shall be its chief executive officer. The director of
a school  shall  be  the  director  of  the  developmental  disabilities
services  office  serving  the  areas  designated by the commissioner in
regulation, and in such context, the term facility shall also  refer  to
such  developmental  disabilities  services  office]. Each such director
shall be in the non-competitive class and designated as confidential  as
defined  by  subdivision two-a of section forty-two of the civil service
law and shall serve at the pleasure of  the  commissioner.  [Except  for
school  and facility officers and employees for which subdivision (a) of
section 13.19 of this article makes the commissioner the appointing  and
removing authority, the director of a school shall have the power, with-
in  amounts  appropriated  therefor, to appoint and remove in accordance
with law and applicable rules of the state civil service commission such
officers and employees of the facility of which he or she is director as
are necessary for its efficient administration. He or she shall in exer-
cising his or her appointing authority  take,  consistent  with  article
twenty-three-A of the correction law, all reasonable and necessary steps
to  insure  that any such person so appointed has not previously engaged
in any act in violation of any law which could compromise the health and
safety of patients in the facility of which he or she is  director.]  He
or she shall manage the [facility, and administer its personnel system,]
STATE  OPERATIONS  OFFICE  OR DEVELOPMENTAL DISABILITIES REGIONAL OFFICE
subject to applicable law, the regulations of the commissioner, and  the
rules  of  the  state civil service commission. [Before the commissioner
shall issue any such regulation or any amendment or revision thereof, he
or she shall consult with the directors of schools in the office regard-
ing its suitability.] The  [director]  DIRECTORS  OF  THE  DEVELOPMENTAL
DISABILITIES  REGIONAL  OFFICES AND STATE OPERATIONS OFFICES shall main-
tain effective [supervision] OVERSIGHT of all parts of [the facility and
over all persons employed therein or coming thereon and]  THEIR  RESPEC-
TIVE  OFFICES. THE DIRECTORS OF STATE OPERATIONS OFFICES shall generally
[direct] PROVIDE FOR the [care  and  treatment  of  patients.  Directors
presently  serving  at  facilities of the office shall continue to serve

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under  the  terms  of  their  original  appointment]  ADMINISTRATION  OF
SUPPORTS  AND SERVICES TO INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES IN
STATE OPERATED PROGRAMS. DIRECTORS OF REGIONAL OFFICES  SHALL  GENERALLY
OVERSEE  THE ADMINISTRATION OF SUPPORTS AND SERVICES TO INDIVIDUALS WITH
DEVELOPMENTAL  DISABILITIES  IN  SETTINGS  OUTSIDE  THE  STATE  OPERATED
PROGRAMS.
  (b)  Such [director] DIRECTORS shall have the responsibility of seeing
that there is humane treatment of [the  patients  at  his  facility  and
shall  investigate  every case of alleged patient abuse or mistreatment]
INDIVIDUALS  WITH  DEVELOPMENTAL  DISABILITIES  RECEIVING  SERVICES   IN
SETTINGS  OPERATED,  LICENSED,  CERTIFIED,  FUNDED  OR  APPROVED BY THIS
OFFICE.  [The] A director OF STATE OPERATIONS shall notify  immediately,
and  in any event within three working days the board of visitors of the
facility and the mental hygiene legal service located in the same  judi-
cial department as [the hospital, school or institution] THE STATE OPER-
ATIONS  OFFICE  of  every complaint of patient abuse or mistreatment and
shall inform the board and the  mental  hygiene  legal  service  of  the
results of his OR HER investigation. If it appears that a crime may have
been  committed, the STATE OPERATIONS director shall give notice thereof
to the district attorney or other appropriate law  enforcement  official
as  soon  as possible, and in any event within three working days unless
it appears that the  crime  includes  an  employee,  intern,  volunteer,
consultant,  contractor, or visitor and the alleged conduct caused phys-
ical injury or the patient was subject to unauthorized  sexual  contact,
or  if it appears the crime is endangering the welfare of an incompetent
or physically disabled person pursuant to section 260.25  of  the  penal
law, or if the crime was any felony under state or federal law, then the
district  attorney or other appropriate law enforcement official must be
contacted immediately, and in any event no later than twenty-four hours.
  (c) In any investigation into the treatment  and  care  of  [patients]
INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES or the conduct, performance,
or  neglect  of duty of officers or employees, the [director of a school
in the office for people with developmental  disabilities]  COMMISSIONER
OR HIS OR HER DESIGNEE shall be authorized to subpoena witnesses, compel
their attendance, administer oaths to witnesses, examine witnesses under
oath,  and require the production of any books or papers deemed relevant
to the inquiry or investigation. A subpoena issued  under  this  section
shall be regulated by the civil practice law and rules.
  (d) [Such] THE director of a [school] STATE OPERATIONS OFFICE shall be
responsible  for the provision of STATE OPERATED community developmental
disabilities services, in those areas that the commissioner may  assign.
Such  responsibility  shall,  consistent  with article forty-one of this
chapter, include the operation of STATE OPERATED facilities[,]  AND  the
development  of  needed  facilities[, and the provision of assistance to
service providers in such areas and any necessarily related  activities.
All  powers  and duties as set forth in this section shall apply to such
responsibilities]. REGIONAL  DIRECTORS  SHALL  BE  RESPONSIBLE  FOR  THE
PROVISION  OF  COMMUNITY DEVELOPMENTAL DISABILITIES SERVICES TO INDIVID-
UALS IN SETTINGS OTHER THEN STATE OPERATED PROGRAMS. THE REGIONAL DIREC-
TOR'S RESPONSIBILITY SHALL, CONSISTENT WITH ARTICLE  FORTY-ONE  OF  THIS
CHAPTER,  INCLUDE  THE  OVERSIGHT  OF FACILITIES AND PROGRAMS OTHER THAN
THOSE OPERATED BY THE STATE.
  (e) Each [facility] STATE OPERATIONS director  of  the  office  shall,
upon  notice  from  the  commissioner or upon knowledge that programs of
such facility may be contracted or terminated, implement  procedures  to

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ensure  timely notification to affected employees. Such procedures shall
include, but not be limited to:
  (1)  dissemination  and  posting of all decisions, policies and proce-
dures with respect to all aspects of such actions and  their  impact  on
facility staff; and
  (2) compliance with all requirements and protection of employee rights
pursuant  to  collective bargaining agreements with the designated legal
representative of the employees and the civil service law.
  S 4. Section 13.33 of the mental hygiene law, as added by chapter  978
of  the  laws  of  1977, subdivision (a) as amended by chapter 37 of the
laws of 2011, subdivision (d) as amended by chapter 686 of the  laws  of
1995,  subdivisions (f) and (h) as amended by chapter 175 of the laws of
1986, subdivision (i) as amended by chapter 14  of  the  laws  of  1990,
paragraph  1  of subdivision (i) as amended by chapter 75 of the laws of
1992, paragraph 2 of subdivision (i) and subdivision (m) as  amended  by
chapter  168  of the laws of 2010, subdivision (j) as amended by chapter
264 of the laws of 1980 and subdivisions (j) and (k)  as  relettered  by
chapter  84  of  the laws of 1980, subdivision (l) as amended by chapter
406 of the laws of 1994, and subdivision (n) as amended by  chapter  662
of the laws of 1995, is amended to read as follows:
S 13.33 Boards of visitors.
  (a) Each [developmental disabilities services] STATE OPERATIONS office
under  the  jurisdiction of the commissioner shall have a MINIMUM OF ONE
board of visitors consisting of at least seven but not more  than  four-
teen  members[;  provided,  however,  that the Central New York develop-
mental disabilities services office  shall  have  a  board  of  visitors
consisting  of  at  least  ten, but not more than seventeen members; and
that the Finger Lakes developmental disabilities services  office  shall
have  a  board of visitors consisting of at least fourteen, but not more
than twenty-one members. When a school is replaced  by  a  developmental
disabilities  services  office,  the  members  of that school's board of
visitors shall continue to serve their terms as the  board  of  visitors
for   the  new  developmental  disabilities  services  office].  Members
appointed or reappointed after the effective date of this chapter  shall
be  appointed by the governor, by and with the advice and consent of the
senate.  Members shall be appointed for four year terms to expire on the
thirty-first day of December of the fourth year of the  term  of  office
provided  however,  when  more  than three terms expire in any one year,
members may be appointed for terms of fewer years as designated  by  the
governor  so  that  no  more than three members' terms expire in any one
year. All terms of office shall expire on the thirty-first day of Decem-
ber of the designated year. A  member  whose  term  has  expired  shall,
however,  remain  in  office  until  such  member's  successor  has been
appointed and has taken office, or until such member shall have resigned
or have been removed from office in  the  manner  hereinafter  provided.
Should  any  member resign or be removed from office, the governor shall
promptly submit, for senate consent, a successor candidate to  fill  the
remaining  term  of  the vacated office. A visitor may be removed by the
governor for cause after notice and an opportunity for a hearing on  the
charges.  In  making  appointments  to  boards of visitors, the governor
shall endeavor to ensure that the membership of each  such  board  shall
adequately  reflect  the  composition  of  the  community or communities
served by the [facility] STATE OPERATIONS OFFICE, that the membership of
each such board includes at least three individuals who are  parents  or
relatives  of  patients  or  of  former  patients and that the remainder
includes only those persons, including former patients, who  shall  have

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expressed  an  active  interest  in, or shall have obtained professional
knowledge in the care of persons with developmental disabilities  or  in
developmental disability endeavors generally.
  (b) No elected state officer or member of the legislature may serve as
a visitor.
  (c)  If  the  [facility]  STATE  OPERATIONS  OFFICE serves an area, as
established by the regulations of the commissioner, the  visitors  shall
reside  at the time of appointment or reappointment in such area. [If no
specific area is designated, the visitors shall reside at  the  time  of
appointment  or  reappointment  in  the developmental disabilities area,
established by the commissioner, in which the facility is located.]
  (d) Each board shall, at the first meeting of each calendar year elect
one member to serve as president of the board and one member to serve as
secretary; provided however, that no member may serve for more than  two
consecutive years as president.
  (e)  Visitors  shall  not receive compensation but shall be reimbursed
for their actual expenses in connection with their service as visitors.
  (f) (1) Each board of visitors shall hold six bi-monthly regular meet-
ings annually, but a greater number of regular meetings may be scheduled
by the board. Each board of visitors shall establish in their by-laws or
otherwise, in writing, whether these six meetings shall be  held  during
months represented by odd numbers or months represented by even numbers.
The  president  of the board shall notify the chairman of the commission
on quality of care [for the mentally disabled] AND ADVOCACY FOR  PERSONS
WITH  DISABILITIES  and  the [facility] STATE OPERATIONS director of the
determination  made  concerning  the  designated  months  for  the   six
bi-monthly regular meetings. The president of the board, the commission-
er, the director, or the members as determined by the rules of the board
may  call special meetings. The board may require the director to submit
a report at each  meeting.  Each  board  shall  keep  a  record  of  its
proceedings  and  activities.  A  member  of a board of visitors who has
failed to attend three consecutive bi-monthly regular meetings shall  be
considered  to  have  vacated his office unless otherwise ordered by the
governor. The board shall cause notice of any of its public meetings  to
be sent to the mental hygiene legal service located in the same judicial
department  as  the  school. The mental hygiene legal service may send a
representative to any such public meeting, and may request the board  to
review  patient  complaints or investigate alleged incidents of abuse or
mistreatment. The board shall notify the appropriate  representative  of
the  mental hygiene legal service of the board's actions and findings in
relation to any such request.
  (2) The president of the board of visitors shall notify  a  member  by
certified  or  registered mail return receipt requested when such member
of the board has failed to attend any two consecutive bi-monthly regular
meetings. This notice shall be sent within ten days following the second
meeting and shall include the dates  of  the  two  meetings  which  were
missed, the date of the next bi-monthly regular meeting, and a statement
concerning the consequences of failure to attend the next meeting.
  (3)  Within  three  days  after  the  third  consecutive  absence at a
bi-monthly regular meeting by a member, the president of  the  board  of
visitors  shall  notify, in writing, the governor, the commissioner, the
chairman of the commission on quality of care [for  the  mentally  disa-
bled]  AND  ADVOCACY  FOR  PERSONS  WITH DISABILITIES and the [facility]
STATE OPERATIONS director of such absences. The president of  the  board
of  visitors shall send a copy of this notice by registered or certified
mail return receipt requested to the member to  whom  it  pertains.  The

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member may petition the governor to excuse his absences. If the governor
does  not  excuse the absences within forty-five days of the date of the
third consecutive meeting absence, the office of  the  member  shall  be
deemed vacated.
  (g)  Upon the request of the commissioner or the director, or upon the
board's initiative, the board shall consult, advise, and work  with  the
director  with  respect  to community relations, conditions at the STATE
OPERATED facility, preliminary plans for construction  and  alterations,
and programs and activities of the STATE OPERATED facility.
  (h)  Each board or any member of the board may visit and inspect [the]
A STATE OPERATED facility WHICH IS IN THE CATCHMENT AREA  OF  THE  STATE
OPERATIONS  REGION  IN  WHICH  SUCH  MEMBER OR MEMBERS SERVE at any time
without prior notice and may report on conditions to  the  governor,  to
the  commissioner and to the chairman of the state commission on quality
of care [for the mentally disabled] AND ADVOCACY FOR PERSONS WITH  DISA-
BILITIES.  In addition, each board shall ensure that a member or commit-
tee of members shall inspect [the] SUCH facility once every three months
without prior notice. A report on conditions may  be  submitted  to  the
governor, to the commissioner or to the chairman of the state commission
on  quality of care [for the mentally disabled] AND ADVOCACY FOR PERSONS
WITH DISABILITIES. Each board member shall visit and inspect  [the]  ANY
SUCH  facility  at  least twice during each calendar year. Within thirty
days after the conclusion of each calendar year, the  president  of  the
board  of  visitors  shall  notify  the  governor, the commissioner, the
chairman of the commission on quality of care [for  the  mentally  disa-
bled]  AND  ADVOCACY  FOR  PERSONS WITH DISABILITIES, and the [facility]
STATE OPERATIONS director, if any member of  the  board  has  failed  to
visit  and  inspect  [the]  ANY SUCH facility at least twice during that
year. The president of the board of visitors shall send a copy  of  this
notice  by  certified or registered mail return receipt requested to the
member to whom it pertains. A member of a  board  of  visitors  who  has
failed to visit and inspect [the] A facility at least twice a year shall
be considered to have vacated his OR HER office unless otherwise ordered
by  the  governor  within  forty-five days after the end of the calendar
year. The board shall have the power to investigate all charges  against
the  STATE OPERATIONS director and all cases of alleged patient abuse or
mistreatment made against any employee  and  shall  have  the  power  to
interview patients and employees of the [facility] FACILITIES in pursuit
of  such  investigations. In conducting such an investigation, the board
shall have the power, in accordance with  the  civil  practice  law  and
rules,  to  subpoena witnesses, compel their testimony, administer oaths
to witnesses, examine witnesses under oath, and require  the  production
of  any books or papers deemed relevant to the investigation. A board or
a member may include in the report or separately at any time any  matter
pertaining  to the management and affairs of [the facility] SUCH FACILI-
TIES and may make recommendations to the governor, to  the  commissioner
and  to the chairman of the state commission on quality of care [for the
mentally disabled] AND ADVOCACY  FOR  PERSONS  WITH  DISABILITIES.  Each
board  member shall enter in a book, kept at each SUCH facility for that
purpose, the date of each visit.
  (i) (1) Any member or members of the board may  visit  and  inspect  a
family  care  home, which is within the catchment area of the [school on
the board of] STATE OPERATIONS REGION IN which such  member  or  members
serve.  Such  member or members shall be granted access to such facility
and to all books, records and data pertaining to  such  facility  deemed
necessary  for  carrying  out  the  purposes of such visit. Information,

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books, records or data which are confidential as provided by  law  shall
be  kept confidential and any limitations on the release thereof imposed
by law upon the party furnishing the information, books, records or data
shall  apply  to  such  member  or  members of the board. After any such
visits or inspections, a report containing findings and  recommendations
may  be  submitted  to the governor, to the commissioner or to the state
commission on quality of care [for the mentally disabled]  AND  ADVOCACY
FOR PERSONS WITH DISABILITIES.
  (2)  Any member or members of the board may visit and inspect a commu-
nity residence operated by the  office  for  people  with  developmental
disabilities,  which  is within the catchment area of the [school on the
board of] STATE OPERATIONS REGION IN which such member or members serve.
Such member or members shall be granted access to such facility  and  to
all books, records and data pertaining to such facility deemed necessary
for carrying out the purposes of such visit and inspection. Information,
books,  records  or data which are confidential as provided by law shall
be kept confidential and any limitations on the release thereof  imposed
by law upon the party furnishing the information, books, records or data
shall  apply  to  such  member  or  members of the board. After any such
visits or inspection, a report containing findings  and  recommendations
shall  be  submitted promptly to the commissioner and to the chairman of
the state commission on quality of care and advocacy  for  persons  with
disabilities.
  (j) Once each year, each board shall make an independent assessment of
conditions  at  [the facility] SUCH FACILITIES and shall submit a report
on the assessment and recommendations to the governor,  to  the  commis-
sioner  and  to  the chairman of the state commission on quality of care
[for the mentally disabled] AND ADVOCACY FOR PERSONS WITH DISABILITIES.
  (k) The commissioner shall notify the board of visitors of a  [school]
FACILITY  under his OR HER jurisdiction of the proposed appointment of a
STATE OPERATIONS director [to such facility] or the proposed transfer of
a STATE OPERATIONS director [from such facility], with  a  request  that
the  board  report  an  expression  of its opinion of the appointment or
transfer and, if it objects thereto, the reasons for such objection.
  (l) The commissioner  shall  appoint  representatives  of  the  office
[department]  to  serve  as liaison between the office and the boards of
visitors. At least once each year the commissioner shall meet  with  the
boards  collectively.  The  commissioner,  or his OR HER designee, shall
meet quarterly with representatives of boards of visitors.
  (m) Members of the boards of visitors shall be considered officers  of
the  office  for people with developmental disabilities for the purposes
of sections seventy-three, to the extent provided therein, and  seventy-
four  of  the  public  officers law relating to business or professional
activities by state officers and employees and the code of ethics.
  (n) Each member shall attend, within one year of the initial  appoint-
ment  or  any  subsequent reappointment, an orientation training program
provided by the commission on quality of care [for  the  mentally  disa-
bled]  AND  ADVOCACY FOR PERSONS WITH DISABILITIES for members of boards
of visitors. The chairman of the commission on quality of care [for  the
mentally  disabled]  AND  ADVOCACY  FOR  PERSONS WITH DISABILITIES shall
notify the governor and the appointed member of any such member's  fail-
ure to attend such a training program. A member who has failed to attend
such a training program scheduled for such member shall be considered to
have  vacated his office unless otherwise ordered by the governor within
forty-five days after the notice.

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  S 5. Paragraph (c) of subdivision 3 of  section  2963  of  the  public
health  law,  as added by chapter 818 of the laws of 1987, is amended to
read as follows:
  (c) If the attending physician determines that a patient lacks capaci-
ty  because  of a developmental disability, the concurring determination
required by paragraph (a) of this subdivision shall  be  provided  by  a
physician  or  psychologist employed by [a school named in section 13.17
of the mental hygiene law] THE  OFFICE  FOR  PEOPLE  WITH  DEVELOPMENTAL
DISABILITIES,  or  who  has  been employed for a minimum of two years to
render care and service in a facility operated or licensed by the office
[of mental retardation and] FOR PEOPLE WITH developmental  disabilities,
or who has been approved by the commissioner of [mental retardation and]
developmental disabilities in accordance with regulations promulgated by
such  commissioner.  Such  regulations shall require that a physician or
psychologist possess specialized training or three years  experience  in
treating developmental disabilities.
  S  6.  Paragraph  (c)  of  subdivision 2 of section 2981 of the public
health law, as added by chapter 752 of the laws of 1990, is  amended  to
read as follows:
  (c)  For  persons  who reside in a mental hygiene facility operated or
licensed by the office [of  mental  retardation  and]  FOR  PEOPLE  WITH
developmental  disabilities, at least one witness shall be an individual
who is not affiliated with the facility and at least one  witness  shall
be  a  physician  or  clinical psychologist who either is employed by [a
school named in section 13.17 of the mental hygiene law] THE OFFICE  FOR
PEOPLE  WITH  DEVELOPMENTAL  DISABILITIES or who has been employed for a
minimum of two years to render care and service in a  facility  operated
or  licensed  by  the office [of mental retardation and] FOR PEOPLE WITH
developmental disabilities, or who has been approved by the commissioner
of [mental retardation and]  developmental  disabilities  in  accordance
with  regulations  approved  by the commissioner. Such regulations shall
require that a physician or clinical  psychologist  possess  specialized
training  or  three years experience in treating developmental disabili-
ties.
  S 7. Paragraph (c) of subdivision 1 of  section  2983  of  the  public
health  law,  as added by chapter 752 of the laws of 1990, is amended to
read as follows:
  (c) If the attending physician determines that a patient lacks capaci-
ty because of a developmental disability, the  attending  physician  who
makes  the  determination  must  be, or must consult, for the purpose of
confirming the determination, with a physician or clinical  psychologist
who either is employed by [a school named in section 13.17 of the mental
hygiene  law]  THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, or
who has been employed for a minimum of two  years  to  render  care  and
service  in  a  facility  operated  or licensed by the office [of mental
retardation and] FOR PEOPLE WITH developmental disabilities, or who  has
been  approved  by the commissioner of [mental retardation and] develop-
mental disabilities in accordance with regulations promulgated  by  such
commissioner.  Such  regulations shall require that a physician or clin-
ical psychologist possess specialized training or three years experience
in treating developmental disabilities. A record  of  such  consultation
shall be included in the patient's medical record.
  S 8. Subparagraph ii of paragraph c of subdivision 3 of section 2994-c
of  the public health law, as added by chapter 8 of the laws of 2010, is
amended to read as follows:

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  (ii) If the attending physician makes an initial determination that  a
patient  lacks decision-making capacity because of mental retardation or
a developmental disability, either such physician must have the  follow-
ing  qualifications,  or  another professional with the following quali-
fications  must  independently determine whether the patient lacks deci-
sion-making capacity: a physician or clinical psychologist who either is
employed by [a school named in section 13.17 of the mental hygiene  law,
or  who  has been employed for a minimum of two years to render care and
service in a facility operated or licensed by]  the  office  [of  mental
retardation  and] FOR PEOPLE WITH developmental disabilities, or who has
been approved by the commissioner of [mental retardation  and]  develop-
mental  disabilities  in accordance with regulations promulgated by such
commissioner. Such regulations shall require that a physician  or  clin-
ical psychologist possess specialized training or three years experience
in  treating  developmental  disabilities. A record of such consultation
shall be included in the patient's medical record.
  S 9. Subdivision 10 of section 2994-aa of the public  health  law,  as
added by chapter 8 of the laws of 2010, is amended to read as follows:
  10.  "Hospital" means a general hospital as defined in subdivision ten
of section twenty-eight hundred one of this chapter  and  a  residential
health  care facility as defined in subdivision three of section twenty-
eight hundred one of this chapter or a hospital as defined  in  subdivi-
sion ten of section 1.03 of the mental hygiene law [or a school named in
section 13.17 of the mental hygiene law].
  S  10.  Subdivision  6 of section 2994-dd of the public health law, as
added by chapter 8 of the laws of 2010, is amended to read as follows:
  6. The commissioner may authorize the use of one or  more  alternative
forms  for  issuing  a nonhospital order not to resuscitate (in place of
the standard form prescribed by the commissioner under  subdivision  two
of  this  section).  Such  alternative form or forms may also be used to
issue a non-hospital do not intubate order. Any such  alternative  forms
intended  for use for persons with [mental retardation or] developmental
disabilities or persons with mental illness who are incapable of  making
their  own  health  care  decisions or who have a guardian of the person
appointed pursuant to article eighty-one of the mental  hygiene  law  or
article  seventeen-A of the surrogate's court procedure act must also be
approved by the commissioner of [mental retardation  and]  developmental
disabilities  or  the  commissioner of mental health, as appropriate. An
alternative form under this subdivision  shall  otherwise  conform  with
applicable  federal  and  state  law.  This  subdivision does not limit,
restrict or impair the use of an alternative form for issuing  an  order
not  to  resuscitate  in  a  general hospital or residential health care
facility under article twenty-eight of this chapter or a hospital  under
subdivision  ten  of section 1.03 of the mental hygiene law [or a school
under section 13.17 of the mental hygiene law].
  S 11. Subparagraph (B) of paragraph (vi) of subdivision (c) of section
958 of the general municipal law, as amended by chapter 708 of the  laws
of 1993, is amended to read as follows:
  (B) a state-operated hospital or facility listed in [sections] SECTION
7.17  [or 13.17] of the mental hygiene law OR A FACILITY OPERATED BY THE
OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, which has been desig-
nated by either the commissioner of mental health or the commissioner of
[mental retardation and] developmental disabilities for  contraction  or
discontinuance.    Provided however, that not more than one-third of the
zones designated pursuant to paragraph (iii) or (iv) of subdivision  (b)

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of  section nine hundred sixty OF THIS ARTICLE, shall be based on appli-
cations filed pursuant to THIS paragraph [(vi) of this subdivision].
  S  12. Paragraph (b) of subdivision 4 of section 6810 of the education
law, as added by chapter 519 of the laws of 2002, is amended to read  as
follows:
  (b)  Oral  prescriptions  for  patients  in general hospitals, nursing
homes, residential health care facilities as defined in section  twenty-
eight  hundred  one  of  the  public health law, hospitals as defined in
subdivision ten of section 1.03 of the mental hygiene law, or  [develop-
mental  centers or developmental disabilities services offices listed in
subdivision (b) of section 13.17 of the mental hygiene  law]  FACILITIES
OPERATED  BY  THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, may
be communicated to a pharmacist serving as a  vendor  of  pharmaceutical
services  based upon a contractual arrangement by an agent designated by
and under the direction of the prescriber or the institution. Such agent
shall be a health care practitioner currently  licensed  and  registered
under this title.
  S  13. Paragraph (b) of subdivision 7 of section 6810 of the education
law, as amended by chapter 519 of the laws of 2002, is amended  to  read
as follows:
  (b)  With  respect  to  drugs  other  than  controlled substances, the
provisions of this subdivision shall not apply to  pharmacists  employed
by  or  providing  services under contract to general hospitals, nursing
homes, residential health care facilities as defined in section  twenty-
eight  hundred  one  of  the  public health law, hospitals as defined in
subdivision ten of section 1.03 of the mental hygiene law, or  [develop-
mental  centers or developmental disabilities services offices listed in
subdivision (b) of section 13.17 of the mental hygiene  law]  FACILITIES
OPERATED  BY  THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, who
dispense drugs in the course of said employment  or  in  the  course  of
providing  such  services  under  contract. With respect to such pharma-
cists, each prescription shall be  transcribed  on  a  patient  specific
prescription form.
  S  14.  Paragraph  1  of subdivision (b) of section 5.05 of the mental
hygiene law, as amended by chapter 168 of the laws of 2010,  is  amended
to read as follows:
  (1)  The  commissioners of the office of mental health, the office for
people with developmental disabilities and the office of alcoholism  and
substance  abuse  services shall constitute an inter-office coordinating
council which, consistent with the autonomy of each office  for  matters
within  its  jurisdiction,  shall  ensure  that the state policy for the
prevention, care,  treatment  and  rehabilitation  of  individuals  with
mental  illness  and  developmental  disabilities,  alcoholism,  alcohol
abuse, substance abuse, substance dependence, and chemical dependence is
planned,  developed  and  implemented  comprehensively;  that  gaps   in
services  to  individuals  with multiple disabilities are eliminated and
that no person is denied treatment and services because he  or  she  has
more than one disability; that procedures for the regulation of programs
which  offer  care and treatment for more than one class of persons with
mental disabilities be coordinated between the offices having  jurisdic-
tion  over  such programs; and that research projects of the institutes,
as identified in section 7.17 [or 13.17] of this chapter OR AS  OPERATED
BY  THE  OFFICE  FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES, are coordi-
nated to maximize the success and cost effectiveness  of  such  projects
and to eliminate wasteful duplication.

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  S  15.  Subdivision (b) of section 13.11 of the mental hygiene law, as
added by chapter 978 of the laws of 1977, is amended to read as follows:
  (b)  The commissioner shall control the organization of the office and
may continue, establish, discontinue, expand,  and  contract  facilities
under  his  OR  HER  jurisdiction.  [The facilities set forth in section
13.17 may not be discontinued by the commissioner.] Units and facilities
shall have such  functions,  duties,  and  responsibilities  as  may  be
assigned to them by the commissioner.
  S 16. Subdivisions 1 and 2 of section 13.34 of the mental hygiene law,
as  amended  by  chapter 542 of the laws of 2011, are amended to read as
follows:
  1. There shall be at each developmental  center  facility  [listed  in
section 13.17 of this article], an ombudsman who shall be an employee of
the commission on quality of care and advocacy for persons with disabil-
ities  under article forty-five of this chapter and who shall be respon-
sible for receiving and responding to any complaints regarding  individ-
ual  clients  residing  in  such  facility. The ombudsman shall have the
following powers and duties:
  i. to advise and consult with parents, guardians,  correspondents  and
other  interested  persons  with  respect  to  any complaints, or issues
related to the conditions of clients' residents;
  ii. to review and attempt to remedy specific complaints with responsi-
ble and appropriate staff;
  iii. where it appears that care has not been rendered as  required  by
applicable standards to refer the complaint to the appropriate agency or
body for its attention;
  iv.  to  receive  and  keep confidential any complaint, information or
inquiry from any source. The records of the ombudsman shall be confiden-
tial, and shall not be available to the public;
  v. to advise and consult with the board of visitors  of  the  develop-
mental  center served by the ombudsman with respect to any complaints or
issues relating to conditions of client's  residence  and  to  regularly
attend the meetings of such board; and
  vi.  to meet with the commissioner, or a representative of the commis-
sioner, on a quarterly basis regarding systemic issues  in  the  ombuds-
man's jurisdiction.
  2.  The  president  of  the  board  of visitors of each [developmental
center facility listed in section 13.17 of this article] REGION  IN  THE
CATCHMENT  AREA  OF  THE  STATE  OPERATIONS  REGION IN WHICH SUCH MEMBER
SERVES, shall, in consultation with the members of such board, recommend
three persons to serve as ombudsman at  the  facility.  In  making  such
recommendation,  the president shall also consider the expressed opinion
of parents, guardians and correspondents of  clients  residing  at  such
facility.  The  persons so recommended as ombudsman shall have expressed
an active interest or shall have had professional knowledge in  advocat-
ing  for persons who are mentally disabled. The commission on quality of
care and advocacy for persons with disabilities shall select one of  the
recommended persons as ombudsman. The ombudsman may only be removed from
office for just cause.  An individual appointed as ombudsman shall be an
exempt  class  employee  as  defined  by  section forty-one of the civil
service law and may be removed by the commissioner upon the  recommenda-
tion  of  the president of the board of visitors, for cause after notice
and opportunity for a hearing on the charges.
  S 17. Subdivision 1 of section 157 of  the  social  services  law,  as
amended  by  section 43 of part B of chapter 436 of the laws of 1997, is
amended to read as follows:

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  1. Safety net assistance means  allowances  pursuant  to  section  one
hundred  thirty-one-a  OF  THIS ARTICLE for all support, maintenance and
need, and costs of suitable training in a trade to enable  a  person  to
become  self-supporting,  furnished eligible needy persons in accordance
with applicable provisions of law, by a municipal corporation, or a town
where safety net assistance is a town charge, to persons or their depen-
dents  in  their abode or habitation whenever possible and includes such
relief granted to veterans under existing  laws  but  does  not  include
hospital  or  institutional  care,  except as otherwise provided in this
subdivision, or family assistance    or  medical  assistance  for  needy
persons granted under titles ten and eleven OF THIS ARTICLE, respective-
ly,  or  aid  to  persons receiving federal supplemental security income
payments and/or additional state payments.   Safety net  assistance  may
also  be provided in a family home or boarding home, operated in compli-
ance with the regulations of the department, and on  and  after  January
first, nineteen hundred seventy-four, in facilities in which a person is
receiving  family  care  or residential care, as those terms are used in
title six of [article five of] this [chapter] ARTICLE,  and  to  persons
receiving  care in a facility supervised by the office of alcoholism and
substance abuse SERVICES or in a residential facility for  the  mentally
disabled  approved,  licensed or operated by the office of mental health
or the office [of mental retardation and] FOR PEOPLE WITH  developmental
disabilities,  other than those facilities defined in [sections] SECTION
7.17 [and 13.17] of the mental hygiene law, IN  A  DEVELOPMENTAL  CENTER
FACILITY  OPERATED BY THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILI-
TIES or residential care centers for adults operated by  the  office  of
mental  health,  when such type of care is deemed necessary. Payments to
such homes and facilities for care  and  maintenance  provided  by  them
shall  be  at  rates  established pursuant to law and regulations of the
department. The  department,  however,  shall  not  establish  rates  of
payment  to such homes or facilities without approval of the director of
the budget.
  S 18. Subparagraph (i) of paragraph (a) and clause A  of  subparagraph
(i)  of  paragraph  (e) of subdivision 4 of section 1750-b of the surro-
gate's court procedure act, as added by chapter 500 of the laws of 2002,
are amended to read as follows:
  (i) be employed by [a developmental disabilities services office named
in section 13.17 of the mental hygiene law] THE OFFICE FOR  PEOPLE  WITH
DEVELOPMENTAL DISABILITIES, or
  A.  be employed by [a developmental disabilities services office named
in section 13.17 of the mental hygiene law] THE OFFICE FOR  PEOPLE  WITH
DEVELOPMENTAL DISABILITIES, or
  S  19.  (a)  Wherever  the  terms  "directors of office facilities" or
"directors of schools" or "director of facilities" appear in the  mental
hygiene law in reference to a facility operated by the office for people
with  developmental  disabilities,  such  terms  are  hereby  changed to
"directors of state operations offices".
  (b) Wherever the term "developmental  disabilities  services  offices"
appears in the mental hygiene law, such term is hereby changed to "state
operations office".
  (c)  The  legislative  bill  drafting commission is hereby directed to
effectuate this provision, and  shall  be  guided  by  a  memorandum  of
instruction  setting forth the specific provisions of law to be amended.
Such memorandum shall be transmitted to the  legislative  bill  drafting
commission within sixty days of enactment of this provision.  Such memo-
randum  shall be issued jointly by the governor, the temporary president

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of the senate and the speaker of the assembly, or  by  the  delegate  of
each.
  S 20. This act shall take effect immediately.

                                 PART K

  Section  1.  Sections  19  and  21  of chapter 723 of the laws of 1989
amending the mental hygiene law and other laws relating to comprehensive
psychiatric emergency programs, as amended by section 1  of  part  F  of
chapter 58 of the laws of 2008, are amended to read as follows:
  S  19. Notwithstanding any other provision of law, the commissioner of
mental health shall, until July 1, [2012] 2016, be solely authorized, in
his or her discretion,  to  designate  those  general  hospitals,  local
governmental units and voluntary agencies which may apply and be consid-
ered  for the approval and issuance of an operating certificate pursuant
to article 31 of the mental hygiene law for the operation of  a  compre-
hensive psychiatric emergency program.
  S  21.  This  act shall take effect immediately, and sections one, two
and four through twenty of this act  shall  remain  in  full  force  and
effect,  until  July  1,  [2012]  2016, at which time the amendments and
additions made by such sections of  this  act  shall  be  deemed  to  be
repealed,  and  any  provision of law amended by any of such sections of
this act shall revert to its text as it existed prior to  the  effective
date of this act.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2012.

                                 PART L

  Section 1. Legislative findings. It is the finding of the  legislature
that  the integration and coordination of physical and behavioral health
services results in an improvement in  the  quality  of  services  being
provided  to  recipients,  with  a resultant improvement in outcomes and
reduction in the costs of care. It is the further finding of the  legis-
lature  that  the  reduction  or elimination of redundant or unnecessary
licensing and oversight requirements and procedures will facilitate  the
provision  of integrated and coordinated care and result in a more effi-
cient use of governmental resources.
  S 2. (a) Notwithstanding any law, rule or regulation to the  contrary,
two or more of the commissioners of the department of health, the office
of  mental health, the office of alcoholism and substance abuse services
or the office for people with  developmental  disabilities  are  jointly
authorized  to  establish operating, reporting and construction require-
ments, as well as joint survey requirements and procedures for  entities
that:
  (1)  can  demonstrate  experience  and  competence  in the delivery of
health, mental health,  alcohol  and  substance  abuse  services  and/or
services  to persons with developmental disabilities and the capacity to
offer the integrated delivery of such services at locations  as  may  be
approved by two or more of the respective commissioners; and
  (2)  meet  the  standards  that  may  be established by the respective
commissioners for the provision of  such  services;  provided,  however,
that  an  entity  meeting  the  standards  established  pursuant to this
section shall not be required  to  be  an  integrated  service  provider
pursuant to subdivision 7 of section 365-l of the social services law.

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  (b)  In  establishing one or more sets of joint requirements or proce-
dures for entities described in this section, the commissioners  of  the
department  of  health, the office of mental health, the office of alco-
holism and substance abuse services, and/or the office for  people  with
developmental  disabilities  are  authorized  to  waive  any  regulatory
requirements, or to determine that compliance with  another  commission-
er's  regulatory  requirements  shall  be  deemed to meet the regulatory
requirements of his or her agency, as may be necessary or  desirable  to
avoid duplication of requirements and/or to permit the integrated deliv-
ery  of health and behavioral health services in an efficient and effec-
tive manner.
  (c) The  authority  granted  the  commissioners  in  this  section  is
intended  to  complement  and  supplement  the authority granted to such
commissioners pursuant to subdivision 7 of section 365-l of  the  social
services law.
  S  3.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2012.

                                 PART M

  Section 1. Legislative findings. It is the finding of the  legislature
that  patients  hospitalized  in  facilities  operated  by the office of
mental health who are between the ages of five and twenty-one are  enti-
tled  to receive an education comparable to that which they would other-
wise be entitled to receive in their local school districts pursuant  to
the education law and the regulations of the commissioner of education.
  S  2.  (a) Notwithstanding any other provision of law to the contrary,
the office of mental health shall be authorized to enter into an  agree-
ment  with  the state education department for the purposes of providing
education programming and services for patients  residing  in  hospitals
operated by the office of mental health who are between the ages of five
and twenty-one, that is comparable to that which they would otherwise be
entitled  to  receive  in  their  local school districts pursuant to the
education law and the regulations of the commissioner.  The commissioner
of education shall be authorized  to  require  local  school  districts,
including  the  school district located in a city with a million persons
or more, and/or boards of cooperative educational  services  to  provide
such comparable educational programming and services, provided, however,
the  commissioner  of  mental  health  shall  be  authorized to contract
directly with local school  districts,  including  the  school  district
located in a city with a million persons or more, and/or boards of coop-
erative  educational  services  to  provide  such comparable educational
programming and services.   Such comparable  education  programming  and
services  for  such  children shall be authorized to be provided, in the
2012-2013 and 2013-2014 and 2014-2015 school years within a city with  a
population  of a million persons or more, and in the 2013-2014 and 2014-
2015 school year in the rest of the state, in accordance with  implemen-
tation standards issued by the commissioner of education, and in accord-
ance  with  a  plan  for  educational  services  jointly approved by the
commissioners of education and mental health.
  (b) The commissioner of education, or pursuant to contract the commis-
sioner of mental health, shall reimburse districts and boards of cooper-
ative educational services for unreimbursed, approved expenses  for  the
cost of such programming and services for such children pursuant to this
section, as may be determined through a reimbursement methodology devel-

S. 6256--A                         91                         A. 9056--A

oped  by  the  commissioner of education and approved by the director of
the budget.
  (c) The commissioner of mental health, with the approval of the direc-
tor  of  the  budget,  shall  be  authorized  to transfer funding to the
commissioner of education for the provision of  educational  programming
and services to patients residing in hospitals operated by the office of
mental health who are between the ages of five and twenty-one.
  S  3.  The  commissioners of education and mental health shall jointly
submit to the governor and to the temporary president of the senate  and
the  speaker  of  the assembly a report by February 1, 2015, which shall
state whether additional actions should be taken to ensure that children
who are patients residing in hospitals operated by the office of  mental
health receive education programming and services that are comparable to
that  which  they  would otherwise be entitled to receive in their local
school districts pursuant to education law and the  regulations  of  the
commissioner.  Such  commissioners shall also recommend whether this act
should be amended and whether it should be made permanent.
  S 4. This act shall take effect July 1, 2012 and shall expire June 30,
2015 when upon such date the provisions of  this  act  shall  be  deemed
repealed.

                                 PART N

  Section 1. Section 1.03 of the mental hygiene law is amended by adding
two new subdivisions 56 and 57 to read as follows:
  56.   "SUBSTANCE  USE  DISORDER"  MEANS  THE  MISUSE,  DEPENDENCE,  OR
ADDICTION TO ALCOHOL AND/OR LEGAL OR ILLEGAL DRUGS  LEADING  TO  EFFECTS
THAT  ARE DETRIMENTAL TO THE INDIVIDUAL'S PHYSICAL AND MENTAL HEALTH, OR
THE WELFARE OF OTHERS  AND  SHALL  INCLUDE  ALCOHOLISM,  ALCOHOL  ABUSE,
SUBSTANCE  ABUSE,  SUBSTANCE DEPENDENCE, CHEMICAL ABUSE, AND/OR CHEMICAL
DEPENDENCE.
  57. "SUBSTANCE USE DISORDER SERVICES" SHALL MEAN AND INCLUDE  EXAMINA-
TION,  EVALUATION, DIAGNOSIS, CARE, TREATMENT, REHABILITATION, OR TRAIN-
ING OF PERSONS WITH  SUBSTANCE  USE  DISORDERS  AND  THEIR  FAMILIES  OR
SIGNIFICANT OTHERS.
  S 2. The mental hygiene law is amended by adding a new section 5.06 to
read as follows:
S 5.06 BEHAVIORAL HEALTH SERVICES ADVISORY COUNCIL.
  (A)  THERE IS HEREBY CREATED WITHIN THE DEPARTMENT A BEHAVIORAL HEALTH
SERVICES ADVISORY COUNCIL, THE PURPOSE OF WHICH SHALL BE TO  ADVISE  THE
OFFICES  OF MENTAL HEALTH AND ALCOHOLISM AND SUBSTANCE ABUSE SERVICES ON
MATTERS RELATING TO THE PROVISION OF BEHAVIORAL HEALTH SERVICES;  ISSUES
OF  JOINT  CONCERN  TO THE OFFICES, INCLUDING THE INTEGRATION OF VARIOUS
BEHAVIORAL HEALTH SERVICES AND  THE  INTEGRATION  OF  BEHAVIORAL  HEALTH
SERVICES  WITH  HEALTH  SERVICES;  AND ISSUES RELATED TO THE DELIVERY OF
BEHAVIORAL HEALTH SERVICES THAT  ARE  RESPONSIVE  TO  LOCAL,  STATE  AND
FEDERAL  CONCERNS.  THE  COUNCIL  SHALL  CONSIST  OF THE COMMISSIONER OF
MENTAL HEALTH AND THE COMMISSIONER OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE
SERVICES  WHO SHALL NOT HAVE THE RIGHT TO VOTE, THE CHAIR OF THE CONFER-
ENCE OF LOCAL MENTAL HYGIENE DIRECTORS OR HIS OR HER DESIGNEE, AND TWEN-
TY-EIGHT MEMBERS APPOINTED BY THE GOVERNOR.  MEMBERS SHALL BE  APPOINTED
ONLY  IF THEY HAVE PROFESSIONAL KNOWLEDGE IN THE CARE OF PERSONS RECEIV-
ING BEHAVIORAL HEALTH SERVICES, OR AN ACTIVE INTEREST IN THE  BEHAVIORAL
HEALTH SERVICES SYSTEM.
  (B)  THE GOVERNOR SHALL DESIGNATE ONE OF THE MEMBERS OF THE COUNCIL AS
CHAIR. AT LEAST ONE-HALF OF THE MEMBERS OF  THE  COUNCIL  SHALL  NOT  BE

S. 6256--A                         92                         A. 9056--A

PROVIDERS  OF  BEHAVIORAL  HEALTH SERVICES.   MEMBERSHIP SHALL REFLECT A
BALANCED REPRESENTATION OF PERSONS WITH INTERESTS IN MENTAL  HEALTH  AND
SUBSTANCE USE DISORDER SERVICES AND SHALL INCLUDE:
  (1)  AT  LEAST  FIVE  CURRENT OR FORMER CONSUMERS OF BEHAVIORAL HEALTH
SERVICES;
  (2) AT LEAST THREE INDIVIDUALS WHO ARE PARENTS OR RELATIVES OF CURRENT
OR FORMER CONSUMERS OF BEHAVIORAL HEALTH SERVICES;
  (3) AT LEAST THREE MEMBERS WHO ARE NOT PROVIDERS OF BEHAVIORAL  HEALTH
SERVICES  AND WHO REPRESENT NON-GOVERNMENTAL ORGANIZATIONS, SUCH AS NOT-
FOR-PROFIT  ENTITIES  REPRESENTING  HEALTH  OR  BEHAVIORAL  HEALTH  CARE
EMPLOYEES, OR OTHER ORGANIZATIONS CONCERNED WITH THE PROVISION OF BEHAV-
IORAL HEALTH SERVICES;
  (4)  AT LEAST FIVE REPRESENTATIVES OF PROVIDERS OF SERVICES TO PERSONS
WITH MENTAL ILLNESS AND AT LEAST FIVE REPRESENTATIVES  OF  PROVIDERS  OF
SERVICES  TO  PERSONS WITH SUBSTANCE USE DISORDERS, AT LEAST TWO OF WHOM
SHALL BE PHYSICIANS;
  (5) ONE MEMBER APPOINTED ON THE RECOMMENDATION OF THE DIRECTOR OF  THE
DIVISION OF VETERANS' AFFAIRS;
  (6) ONE MEMBER APPOINTED ON THE RECOMMENDATION OF THE ADJUTANT GENERAL
OF THE DIVISION OF MILITARY AND NAVAL AFFAIRS;
  (7) AT LEAST THREE REPRESENTATIVES OF LOCAL GOVERNMENTS OR OTHER STATE
AND  LOCAL  AGENCIES  CONCERNED  WITH THE PROVISION OF BEHAVIORAL HEALTH
SERVICES; AND
  (8) AT LEAST TWO MEMBERS WHO ARE ALSO MEMBERS OF THE PUBLIC HEALTH AND
HEALTH PLANNING COUNCIL PURSUANT TO SECTION TWO HUNDRED  TWENTY  OF  THE
PUBLIC HEALTH LAW.
  (C)  MEMBERS  SHALL  BE  APPOINTED  FOR TERMS OF THREE YEARS PROVIDED,
HOWEVER, THAT  OF  THE  MEMBERS  FIRST  APPOINTED,  ONE-THIRD  SHALL  BE
APPOINTED  FOR  ONE  YEAR TERMS AND ONE-THIRD SHALL BE APPOINTED FOR TWO
YEAR TERMS. VACANCIES SHALL BE FILLED IN THE  SAME  MANNER  AS  ORIGINAL
APPOINTMENTS FOR THE REMAINDER OF ANY UNEXPIRED TERM. NO PERSON SHALL BE
AN APPOINTED MEMBER OF THE COUNCIL FOR MORE THAN SIX YEARS IN ANY PERIOD
OF TWELVE CONSECUTIVE YEARS.
  (D)  THE  COUNCIL SHALL MEET AT LEAST FOUR TIMES IN EACH FULL CALENDAR
YEAR. THE COUNCIL SHALL MEET AT THE  REQUEST  OF  ITS  CHAIR  OR  EITHER
COMMISSIONER.
  (E)  THE COUNCIL SHALL ESTABLISH SUCH COMMITTEES AS IT DEEMS NECESSARY
TO ADDRESS THE SERVICE NEEDS  OF  SPECIAL  POPULATIONS  AND  TO  ADDRESS
PARTICULAR  SUBJECTS  OF IMPORTANCE IN THE DEVELOPMENT AND MANAGEMENT OF
BEHAVIORAL HEALTH SERVICES.
  (F) THE COUNCIL MAY CONSIDER ANY MATTER RELATING TO THE IMPROVEMENT OF
BEHAVIORAL HEALTH SERVICES IN THE STATE AND SHALL ADVISE THE COMMISSION-
ERS ON ANY SUCH MATTER, INCLUDING, BUT NOT LIMITED TO:
  (1) CARE AND SERVICES TO PERSONS  WITH  BEHAVIORAL  HEALTH  DISORDERS,
INCLUDING  SPECIAL  AND  UNDERSERVED  POPULATIONS  AS  DETERMINED BY THE
COMMISSIONER;
  (2) FINANCING BEHAVIORAL HEALTH SERVICES;
  (3) INTEGRATION OF BEHAVIORAL HEALTH SERVICES WITH HEALTH SERVICES;
  (4) CARE AND SERVICES  FOR  PERSONS  WITH  CO-OCCURRING  DISORDERS  OR
MULTIPLE DISABILITIES;
  (5) PREVENTION OF BEHAVIORAL HEALTH DISORDERS; AND
  (6) IMPROVEMENT OF CARE IN STATE OPERATED OR COMMUNITY BASED PROGRAMS,
RECRUITMENT,  EDUCATION AND TRAINING OF QUALIFIED DIRECT CARE PERSONNEL,
AND PROTECTION OF THE INTERESTS OF EMPLOYEES AFFECTED BY ADJUSTMENTS  IN
THE BEHAVIORAL HEALTH SERVICE SYSTEM.

S. 6256--A                         93                         A. 9056--A

  (G)  THE  COUNCIL SHALL, IN COOPERATION WITH THE COMMISSIONERS, ESTAB-
LISH STATEWIDE GOALS AND OBJECTIVES FOR SERVICES TO PERSONS WITH  BEHAV-
IORAL HEALTH DISORDERS, PURSUANT TO SECTION 5.07 OF THIS ARTICLE.
  (H)  (1) THE COUNCIL SHALL REVIEW THE PORTION OF THE STATEWIDE PLAN TO
BE DEVELOPED AND UPDATED  ANNUALLY  BY  THE  COMMISSIONERS  PURSUANT  TO
SECTION  5.07  OF THIS ARTICLE AND REPORT ITS RECOMMENDATIONS THEREON TO
THE COMMISSIONERS.
  (2) THE COUNCIL SHALL REVIEW ANY MENTAL HEALTH OR SUBSTANCE USE COMPO-
NENT OF STATEWIDE HEALTH PLANS DEVELOPED IN ACCORDANCE WITH ANY APPLICA-
BLE FEDERAL LAW AND SHALL REPORT  ITS  RECOMMENDATIONS  THEREON  TO  THE
COMMISSIONERS.
  (I) THE COUNCIL SHALL REVIEW APPLICATIONS FILED IN ACCORDANCE WITH:
  (1)  SECTION  31.22  OF  THIS CHAPTER FOR APPROVAL OF INCORPORATION OR
ESTABLISHMENT OF A FACILITY, AND  SECTION  31.23  OF  THIS  CHAPTER  FOR
APPROVAL  OF  THE CONSTRUCTION OF A FACILITY FOR WHICH APPROVAL FROM THE
COMMISSIONER OF MENTAL HEALTH IS REQUIRED; AND
  (2) SECTION 32.29 OR 32.31 OF THIS CHAPTER FOR  APPROVAL  OF  INCORPO-
RATION OR ESTABLISHMENT OR CONSTRUCTION OF A FACILITY FOR WHICH APPROVAL
TO OPERATE IS REQUIRED FROM THE COMMISSIONER OF ALCOHOLISM AND SUBSTANCE
ABUSE  SERVICES  PURSUANT  TO ARTICLE THIRTY-TWO OF THIS CHAPTER, AND AS
OTHERWISE REQUESTED BY SUCH COMMISSIONER;
  (J) AT LEAST SIXTY DAYS PRIOR TO THE COMMISSIONERS' FINAL APPROVAL  OF
RULES  AND  REGULATIONS  UNDER THEIR RESPECTIVE JURISDICTION, OTHER THAN
EMERGENCY RULES AND REGULATIONS AND REGULATIONS PROMULGATED PURSUANT  TO
SECTION  43.01  OF  THIS  CHAPTER,  THE  COMMISSIONERS SHALL SUBMIT SUCH
PROPOSED RULES AND REGULATIONS TO THE COUNCIL FOR ITS REVIEW. THE  COUN-
CIL  SHALL  REVIEW  ALL  PROPOSED  RULES  AND REGULATIONS AND REPORT ITS
RECOMMENDATIONS THEREON TO THE  COMMISSIONERS  WITHIN  SIXTY  DAYS.  THE
COMMISSIONER  HAVING  STATUTORY  JURISDICTION  OVER THE PROPOSED RULE OR
REGULATION SHALL NOT ACT IN A MANNER INCONSISTENT WITH  THE  RECOMMENDA-
TIONS  OF  THE  COUNCIL  WITHOUT  FIRST  APPEARING BEFORE THE COUNCIL TO
REPORT THE REASONS THEREFOR. THE COUNCIL, UPON A MAJORITY  VOTE  OF  ITS
MEMBERS,  MAY REQUIRE THAT AN ALTERNATIVE APPROACH TO THE PROPOSED RULES
AND REGULATIONS BE PUBLISHED WITH THE NOTICE OF THE PROPOSED  RULES  AND
REGULATIONS PURSUANT TO SECTION TWO HUNDRED TWO OF THE STATE ADMINISTRA-
TIVE  PROCEDURE  ACT. WHEN AN ALTERNATIVE APPROACH IS PUBLISHED PURSUANT
TO THIS SECTION, THE COMMISSIONER HAVING STATUTORY JURISDICTION  OF  THE
SUBJECT  PROPOSED  RULE  OR  REGULATION  SHALL STATE THE REASONS FOR NOT
SELECTING SUCH ALTERNATIVE APPROACH.
  (K) THE COUNCIL, BY A MAJORITY VOTE OF ITS MEMBERS, MAY PROPOSE  RULES
AND  REGULATIONS ON ANY MATTER WITHIN THE REGULATORY JURISDICTION OF THE
OFFICES OF MENTAL HEALTH OR ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES,
OTHER  THAN  ESTABLISHMENT OF FEE SCHEDULES PURSUANT TO SECTION 43.01 OF
THIS CHAPTER, AND FORWARD SUCH PROPOSED RULES AND  REGULATIONS  TO  BOTH
COMMISSIONERS FOR REVIEW AND CONSIDERATION, PROVIDED, HOWEVER, THAT ONLY
THE  APPROVAL  OF  THE  COMMISSIONER  WITH STATUTORY JURISDICTION OF THE
PROPOSED RULE OR REGULATION SHALL BE REQUIRED. PRIOR TO SUCH COMMISSION-
ER'S FINAL APPROVAL AND PROMULGATION OF SUCH PROPOSED  RULES  AND  REGU-
LATIONS, IF SUCH RULES AND REGULATIONS ARE MODIFIED IN ANY RESPECT, THEY
SHALL  BE  SUBMITTED  TO THE COUNCIL PURSUANT TO SUBDIVISION (J) OF THIS
SECTION. IF SUCH COMMISSIONER DETERMINES NOT TO PROMULGATE SUCH PROPOSED
RULES AND REGULATIONS, THE COMMISSIONER SHALL APPEAR BEFORE THE  COUNCIL
TO REPORT THE REASONS THEREFOR.
  (L) THE MEMBERS OF THE COUNCIL SHALL RECEIVE NO COMPENSATION FOR THEIR
SERVICES  BUT  SHALL BE REIMBURSED FOR EXPENSES ACTUALLY AND NECESSARILY
INCURRED IN THE PERFORMANCE OF THEIR DUTIES.

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  (M) THE COMMISSIONERS, UPON REQUEST OF THE  COUNCIL,  SHALL  DESIGNATE
ONE OR MORE OFFICERS OR EMPLOYEES FROM EITHER OR BOTH OFFICES TO PROVIDE
ADMINISTRATIVE SUPPORT SERVICES TO THE COUNCIL, AND MAY ASSIGN FROM TIME
TO TIME SUCH OTHER EMPLOYEES AS THE COUNCIL MAY REQUEST.
  (N)  NO  CIVIL ACTION SHALL BE BROUGHT IN ANY COURT AGAINST ANY MEMBER
OF THE BEHAVIORAL HEALTH SERVICES ADVISORY COUNCIL  FOR  ANY  ACT  DONE,
FAILURE  TO  ACT, OR STATEMENT OR OPINION MADE, WHILE DISCHARGING HIS OR
HER DUTIES AS A MEMBER OF THE COUNCIL, WITHOUT LEAVE FROM A  JUSTICE  OF
THE  SUPREME  COURT,  FIRST  HAD  AND OBTAINED. IN ANY EVENT SUCH MEMBER
SHALL NOT BE LIABLE FOR DAMAGES IN ANY SUCH ACTION IF HE  OR  SHE  SHALL
HAVE  ACTED IN GOOD FAITH, WITH REASONABLE CARE AND UPON PROBABLE CAUSE.
MEMBERS OF THE COUNCIL SHALL  BE  CONSIDERED  PUBLIC  OFFICERS  FOR  THE
PURPOSES OF SECTION SEVENTEEN OF THE PUBLIC OFFICERS LAW.
  (O) THE COUNCIL MAY ESTABLISH SUCH COMMITTEES AS IT DEEMS NECESSARY.
  (P) THE COUNCIL MAY ESTABLISH WRITTEN BYLAWS.
  (Q)  FOR  PURPOSES OF THIS SECTION, "BEHAVIORAL HEALTH SERVICES" SHALL
MEAN EXAMINATION, DIAGNOSIS, CARE, TREATMENT, REHABILITATION, OR  TRAIN-
ING  FOR  PERSONS  WITH MENTAL ILLNESS AND/OR FOR PERSONS WITH SUBSTANCE
USE OR COMPULSIVE GAMBLING DISORDERS.
  S 3. The section heading, subdivision (a), the opening  paragraph  and
paragraphs  1  and  3  of subdivision (b) and subdivision (c) of section
5.07 of the mental hygiene law, the section heading as amended by  chap-
ter  55  of the laws of 1992, subdivision (a), the opening paragraph and
paragraphs 1 and 3 of subdivision (b) and subdivision (c) as amended  by
chapter  223  of  the  laws  of  1992, paragraph 1 of subdivision (a) as
amended by chapter 37 of the laws of  2011,  the  opening  paragraph  of
paragraph  1 of subdivision (b) as amended by chapter 168 of the laws of
2010, subparagraphs h and i as amended and subparagraph j of paragraph 1
of subdivision (b) as added by chapter 413 of the laws of 2009 and para-
graph 3 of subdivision (b) as renumbered by chapter 322 of the  laws  of
1992, are amended to read as follows:
Establishment  of [statewide goals and objectives;] statewide comprehen-
         sive plans of services for [the mentally disabled] PERSONS WITH
         MENTAL DISABILITIES.
  (a) (1) The [mental health] BEHAVIORAL HEALTH services ADVISORY  coun-
cil  and  the  advisory [councils] COUNCIL on developmental disabilities
[and alcoholism and substance abuse  services]  shall  [each  establish]
PROVIDE  RECOMMENDATIONS  FOR statewide PRIORITIES AND goals [and objec-
tives] to guide comprehensive planning, resource allocation  and  evalu-
ation  processes  for  state  and local services for persons with mental
illness, developmental disabilities [and], AND/OR those [suffering  from
chemical  abuse  or  dependence,  respectively]  WITH  SUBSTANCE  USE OR
COMPULSIVE GAMBLING DISORDERS. Such goals and objectives shall:
  a. be measurable in terms of attainment AND FOCUSED  ON  OUTCOMES  FOR
THOSE BEING SERVED;
  b.  be DEVELOPED IN COLLABORATION WITH, AND communicated to, providers
of services, department facilities,  consumers  and  consumer  represen-
tatives, and other appropriate state and local governmental agencies;
  c.  [require  that all state and local public and private services for
persons with mental disabilities be organized, staffed and  financed  to
best  meet  the  needs  of  all persons with mental disabilities whether
receiving in-patient or non in-patient services;
  d.] reflect the  partnership  between  state  and  local  governmental
units; and

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  [e.]  D.  emphasize [that gaps in services be filled and that services
are provided to persons with mental disabilities] THE NEED TO  INTEGRATE
BEHAVIORAL HEALTH AND HEALTH SERVICES.
  (2) Such advisory councils shall [establish, review, augment or delete
from such goals and objectives, as appropriate,] ACCOMPLISH THEIR DUTIES
by means of a [continuing annual goal-setting] process which is:
  a. open, visible and accessible to the public; and
  b.  consistent  with  the  statewide  AND FEDERALLY MANDATED planning,
appropriation and evaluation processes and activities  for  services  to
[the mentally disabled] PERSONS WITH MENTAL DISABILITIES.
  (3) The advisory councils are hereby empowered to hold public hearings
and meetings to enable them to accomplish their duties.
  Statewide  comprehensive  plan for services to [the mentally disabled]
PERSONS WITH MENTAL DISABILITIES.
  (1) The office of mental health, the office for people  with  develop-
mental  disabilities  and  the  office of alcoholism and substance abuse
services shall [each] formulate a  statewide  comprehensive  [five-year]
plan  for the provision of all state and local services for persons with
mental illness [and], developmental  disabilities,  [and]  AND/OR  those
[suffering from alcoholism and] WITH substance [abuse, respectively] USE
OR  COMPULSIVE  GAMBLING DISORDERS.   [Each] THE STATEWIDE COMPREHENSIVE
plan shall be [formulated from] BASED UPON AN ANALYSIS OF local [compre-
hensive] SERVICES plans developed by each local governmental unit,  with
participation  of  consumers, consumer groups, providers of services and
departmental facilities [furnishing] THAT FURNISH services  to  individ-
uals  with  mental disabilities [of the area] in conformance with state-
wide PRIORITIES AND goals [and objectives] established [by] WITH  RECOM-
MENDATIONS  OF  the  advisory  council  of  each office. [Each] THE plan
shall:
  a. identify [needs and problems which must  be  addressed  during  the
next  ensuing  five years which such plan encompasses] STATEWIDE PRIORI-
TIES;
  b. specify [time-limited] STATEWIDE goals [to meet those  needs]  THAT
REFLECT  THE  STATEWIDE PRIORITIES AND ARE FOCUSED ON OBTAINING POSITIVE
MEASURABLE OUTCOMES;
  c. [identify resources to achieve the goals, including but not limited
to resource reallocations;
  d. establish] PROPOSE STRATEGIES AND INITIATIVES TO ADDRESS THE prior-
ities [for resource allocation] AND FACILITATE ACHIEVEMENT OF  STATEWIDE
GOALS;
  [e.  define  the  authority  and  responsibility  for  state and local
participation in the delivery of services] D.    IDENTIFY  SERVICES  AND
SUPPORTS,  WHICH  MAY  INCLUDE  PROGRAMS  RUN  OR LED BY PEERS, THAT ARE
DESIGNED TO PROMOTE THE HEALTH  AND  WELLNESS  OF  PERSONS  WITH  MENTAL
ILLNESS,  DEVELOPMENTAL DISABILITIES, AND/OR SUBSTANCE USE OR COMPULSIVE
GAMBLING DISORDERS;
  [f. propose programs to achieve the goals, which programs may  include
direct  services, development of multi-purpose facilities, contracts for
services, and innovative financial and organizational relationships with
public and private providers;
  g. identify services and programs that assist the  informal  caregiver
to  care  for the mentally disabled; make recommendations to enhance the
ability of the informal caregiver to continue providing care; and devel-
op strategies for creating informal caregivers for clients in the commu-
nity who do not have a system in place;

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  h. analyze] E. PROVIDE ANALYSIS OF current and anticipated utilization
of state and local, and public and private facilities  [and],  programs,
SERVICES, AND/OR SUPPORTS;
  [i.] F. encourage and promote PERSON-CENTERED, CULTURALLY AND LINGUIS-
TICALLY  COMPETENT  community-based  programs, SERVICES, AND/OR SUPPORTS
which reflect the  partnership  between  state  and  local  governmental
units; and
  [j.]  G. include progress reports on the implementation of both short-
term and long-term  recommendations  of  the  children's  plan  required
pursuant  to  section four hundred eighty-three-f of the social services
law.
  (3) The commissioners of each of the offices shall be responsible  for
the  development  of such statewide [five-year] plan for services within
the jurisdiction of their respective offices and after giving due notice
shall conduct one or more public hearings on such plan.  The  BEHAVIORAL
HEALTH SERVICES advisory council [of each office] AND THE ADVISORY COUN-
CIL ON DEVELOPMENTAL DISABILITIES shall review the statewide [five year]
COMPREHENSIVE  plan  developed  by such office OR OFFICES and report its
recommendations thereon to  such  commissioner  OR  COMMISSIONERS.  Each
commissioner  shall  submit the plan, with appropriate modifications, to
the governor no later than the first day of [October] NOVEMBER  of  each
year in order that such plan may be considered with the estimates of the
offices  for the preparation of the executive budget of the state of New
York for the next succeeding state  fiscal  year.    [Each  commissioner
shall also submit such plan to the legislature. The statewide plan] SUCH
PLANS  SHALL  ALSO  BE  POSTED  TO THE WEBSITE OF EACH OFFICE. STATEWIDE
PLANS shall [be reassessed and updated at least  annually  to  encompass
the  next ensuing five years to] ensure responsiveness to changing needs
and goals and [to] SHALL reflect the development of new information  and
the  completion of program evaluations. [An interim report detailing the
commissioner's actions in fulfilling the requirements of this section in
preparation of the plan and modifications in the plan of services  being
considered  by  the  commissioner shall be submitted to the governor and
the legislature on or before the fifteenth day of February of each year.
Such interim report shall include, but need not be limited to:
  (a) actions to include participation of  consumers,  consumer  groups,
providers  of  services and departmental facilities, as required by this
subdivision; and
  (b) any modifications in the plan of services being considered by  the
commissioner,  to  include:  (i)  compelling  budgetary, programmatic or
clinical justifications  or  other  major  appropriate  reason  for  any
significant  new  statewide  programs  or  policy  changes  from a prior
(approved) five year comprehensive plan; and (ii) procedures to  involve
or inform local governmental units of such actions or plans.
  (c) Three year capital plan. (1) On or before July first of each year,
the  commissioners  of  the  offices of the department of mental hygiene
shall each submit to the advisory council of their respective offices  a
statewide three year capital plan for facilities within the jurisdiction
of  their  respective  offices.  The  capital  plan  shall set forth the
projects proposed to be designed, constructed, acquired,  reconstructed,
rehabilitated  or  otherwise substantially altered pursuant to appropri-
ation to meet the capital development needs of the  respective  agencies
for  the  next  ensuing three years; the years of such plan shall corre-
spond to the years of the statewide five year plan as required by subdi-
vision (b) of this section.

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  (2) Such plan for each office shall include but not be  limited  to  a
detailed  project  schedule indicating the location by county or borough
and estimated cost of each project, the anticipated dates on  which  the
design  and  construction  of  the  project is to commence, the proposed
method  of financing for the project, the estimated economic life of the
project  and  whether  the  proposed  project  constitutes  design,  new
construction or rehabilitation.
  (3)  Such  plan  shall  further  specify  for each project whether the
project is to be a residential or nonresidential facility,  a  state  or
voluntary  operated  facility,  and, the number of clients, by source of
clients, proposed to utilize the facility. The information on the source
of the client shall include but not  be  limited  to  identification  of
clients  currently  living  independently,  or at home with families, or
with caretakers, clients defined by their respective agencies as special
populations, or clients currently residing in an  institutional  setting
under the jurisdiction of the offices of the department.
  (4)  The  advisory council of the appropriate office shall review such
plan and report its recommendation to the  commissioner  for  inclusion,
provided, however, that the mental health services council shall forward
its  comments  on the capital plan of the office of mental health to the
mental health planning council which shall forward such  recommendations
after  review  to  the  commissioner  of mental health. The commissioner
shall submit his or her plan with  the  formal  recommendations  of  the
advisory  council  of  his  or her office and any subsequent appropriate
modifications to the governor no later than the first day of October  of
each  year  or  concurrent  with  the annual submission of estimates and
information required by section one of article seven of the constitution
in order that such plans shall be considered with the estimates  of  the
offices  for the preparation of the executive budget of the state of New
York for the next succeeding state fiscal year. The commissioners  shall
also  submit  such plans to the chairmen of the senate finance committee
and the assembly ways and means committee.
  (5) Each statewide three year capital plan  for  facilities  shall  be
evaluated  and  revised  annually  to  encompass the fiscal year then in
progress and the next ensuing two fiscal years to ensure  responsiveness
to  the  changing  needs and goals of the department, and to reflect the
development of new information and project completion.]
  S 4. Section 7.05 of the mental hygiene law is REPEALED.
  S 5. Subdivision (c) of section 13.05 of the mental  hygiene  law,  as
amended  by  chapter  37  of  the  laws  of  2011, is amended to read as
follows:
  (c) The developmental disabilities  advisory  council  shall  have  no
executive,  administrative  or appointive duties. The council shall have
the duty to foster public understanding and acceptance of  developmental
disabilities. It shall, in cooperation with the commissioner of develop-
mental  disabilities,  [establish] PROVIDE RECOMMENDATIONS FOR statewide
PRIORITIES AND goals [and objectives] for services for individuals  with
developmental  disabilities and shall advise the commissioner on matters
related to development and  implementation  of  the  [OPWDD's  triennial
state   developmental  disabilities]  STATEWIDE  comprehensive  plan  as
required under [paragraph two of subdivision (b)  of]  section  5.07  of
this  chapter. The advisory council shall have the power to consider any
matter relating to the improvement of the state developmental  disabili-
ties program and shall advise the commissioner of developmental disabil-
ities  thereon  and  on  any matter relating to the performance of their
duties with relation to individuals with developmental disabilities  and

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on  policies,  goals, budget and operation of developmental disabilities
services.
  S 6. Section 19.05 of the mental hygiene law is REPEALED.
  S  7.  Subdivision  (c) of section 41.16 of the mental hygiene law, as
amended by section 16 of part E of chapter 111 of the laws of  2010,  is
amended to read as follows:
  (c)  A  local services plan shall be developed, in accordance with the
regulations of the  commissioner  or  commissioners  of  the  office  or
offices  of  the  department  having jurisdiction of the services by the
local governmental unit or units which shall  direct  and  administer  a
local comprehensive planning process for its geographic area, consistent
with statewide goals and objectives established pursuant to section 5.07
of this chapter. The planning process shall involve the directors of any
department   facilities,  directors  of  hospital  based  mental  health
services, directors of community mental health centers, THE DIRECTOR  OF
THE  LOCAL OFFICE FOR THE AGING OR HIS OR HER REPRESENTATIVE, consumers,
consumer groups, voluntary agencies, other providers  of  services,  and
local correctional facilities and other local criminal justice agencies.
The  local  governmental  unit,  or  units, shall determine the proposed
local services plan to be submitted for approval.  If  any  provider  of
services  including  facilities in the department, or any representative
of the consumer or community interests within the local  planning  proc-
ess,  disputes  any  element  of the proposed plan for the area which it
serves, the objection shall be presented in writing to the  director  of
the  local  governmental unit. If such dispute cannot be resolved to the
satisfaction of all parties, the director shall determine the plan to be
submitted. If requested and supplied by the objecting party,  a  written
objection  to  the plan shall be appended thereto and transmitted to the
single agent of the department jointly designated by the commissioners.
  S 8.  Section 220 of the public health law, as amended by  section  45
of  part  A  of  chapter  58  of the laws of 2010, is amended to read as
follows:
  S 220. Public health  and  health  planning  council;  appointment  of
members.  There  shall  continue to be in the department a public health
and health planning council to consist of the commissioner and  fourteen
members  to  be appointed by the governor with the advice and consent of
the senate; provided that effective December first,  two  thousand  ten,
the  membership  of  the  council  shall consist of the commissioner and
twenty-four members to be appointed by the governor with the advice  and
consent  of the senate. Membership on the council shall be reflective of
the diversity of the state's population including, but not  limited  to,
the  various  geographic  areas  and population densities throughout the
state. The members shall include representatives of  the  public  health
system,  health  care  providers  that  comprise the state's health care
delivery system, individuals with expertise in the clinical and adminis-
trative aspects of health care delivery, issues  affecting  health  care
consumers,  health  planning,  health  care financing and reimbursement,
health care regulation and compliance, and public health practice and at
least two members shall also  be  members  of  the  [mental]  BEHAVIORAL
health  services ADVISORY council; at least four members shall be repre-
sentatives of general hospitals or  nursing  homes;  and  at  least  one
member  shall  be a representative of each of the following groups: home
care agencies, diagnostic and treatment  centers,  health  care  payors,
labor  organizations for health care employees, and health care consumer
advocacy organizations.

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  S 9. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2012; provided,
however,  that sections one through six of this act shall take effect on
the one hundred twentieth day after it shall have become a law.

                                 PART O

  Section  1. Subdivision (b) of section 7.17 of the mental hygiene law,
as amended by section 1 of part G of chapter 59 of the laws of 2011,  is
amended to read as follows:
  (b)  There  shall  be  in the office the hospitals named below for the
care, treatment and rehabilitation of persons with  mental  illness  and
for  research  and  teaching  in the science and skills required for the
care, treatment and rehabilitation of such persons with mental illness.
  Greater Binghamton Health Center
  Bronx Psychiatric Center
  Buffalo Psychiatric Center
  Capital District Psychiatric Center
  Central New York Psychiatric Center
  Creedmoor Psychiatric Center
  Elmira Psychiatric Center
  [Hudson River Psychiatric Center
  Kingsboro Psychiatric Center]
  Kirby Forensic Psychiatric Center
  Manhattan Psychiatric Center
  Mid-Hudson Forensic Psychiatric Center
  Mohawk Valley Psychiatric Center
  Nathan S. Kline Institute for Psychiatric Research
  New York State Psychiatric Institute
  Pilgrim Psychiatric Center
  Richard H. Hutchings Psychiatric Center
  Rochester Psychiatric Center
  Rockland Psychiatric Center
  St. Lawrence Psychiatric Center
  South Beach Psychiatric Center
  [Bronx Children's Psychiatric Center
  Brooklyn Children's Center
  Queens Children's Psychiatric Center]
  NEW YORK CITY CHILDREN'S CENTER
  Rockland Children's Psychiatric Center
  Sagamore Children's Psychiatric Center
  Western New York Children's Psychiatric Center
  The New York State Psychiatric  Institute  and  The  Nathan  S.  Kline
Institute  for Psychiatric Research are designated as institutes for the
conduct of medical research and other scientific investigation  directed
towards  furthering  knowledge of the etiology, diagnosis, treatment and
prevention of mental illness.  [The  Brooklyn  Children's  Center  is  a
facility operated by the office to provide community-based mental health
services for children with serious emotional disturbances.]
  S  2.  Notwithstanding  the  provisions of subdivisions (b) and (e) of
section 7.17 of the mental hygiene law,  section  41.55  of  the  mental
hygiene  law,  or  any  other  law to the contrary, the office of mental
health is authorized to close, consolidate, reduce, transfer  or  other-
wise redesign services of hospitals, other facilities and programs oper-
ated  by  the  office  of  mental  health,  and to implement significant
service reductions and reconfigurations according  to  this  section  as

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shall be determined by the commissioner of mental health to be necessary
for  the cost-effective and efficient operation of such hospitals, other
facilities and programs. One of the intents of actions taken that result
in   closure,  consolidation,  reduction,  transfer  or  other  redesign
services of hospitals is to reinvest appropriate levels of  funding  for
community based mental health services and programs as determined by the
commissioner  of  mental  health  with approval from the director of the
division of the budget.
  (a) In addition to the closure, consolidation or merger of one or more
facilities, the commissioner of mental health is authorized  to  perform
any  significant  service  reductions  that  would  reduce inpatient bed
capacity, which shall include but not be limited to, closures  of  wards
at  a  state-operated  psychiatric  center  or the conversion of beds to
transitional placement programs, provided that the commissioner  provide
at least 30 days notice of such reductions to the temporary president of
the  senate and the speaker of the assembly and simultaneously post such
notice upon its public website. In assessing which  significant  service
reductions to undertake, the commissioner shall consider data related to
inpatient  census,  indicating  nonutilization  or  under utilization of
beds, and the efficient operation of facilities.
  (b) At least sixty days prior  to  the  anticipated  closure,  consol-
idation  or  merger of any hospitals named in subdivision (b) of section
7.17 of the mental hygiene law, the commissioner of mental health  shall
provide notice of such closure, consolidation or merger to the temporary
president  of  the senate, and speaker of the assembly, the chief execu-
tive officer of the county in which the facility is located,  and  shall
post  such  notice  upon  its  public website. The commissioner shall be
authorized to conduct any and  all  preparatory  actions  which  may  be
required  to  effectuate such closures during such sixty day period.  In
assessing which of such  hospitals  to  close,  the  commissioner  shall
consider the following factors: (1) the size, scope and type of services
provided  by  the  hospital;  (2)  the  relative quality of the care and
treatment provided by the hospital, as may be informed  by  internal  or
external  quality  or  accreditation reviews; (3) the current and antic-
ipated long-term need for the types of services provided by the facility
within its catchment area, which may include, but  not  be  limited  to,
services  for adults or children, or other specialized services, such as
forensic services; (4) the availability of staff sufficient  to  address
the  current  and anticipated long term service needs; (5) the long term
capital investment required to ensure that the facility  meets  relevant
state  and federal regulatory and capital construction requirements, and
national accreditation standards; (6) the proximity of the  facility  to
other facilities with space that could accommodate anticipated need, the
relative  cost  of any necessary renovations of such space, the relative
potential operating efficiency of such facilities, and the  size,  scope
and  types of services provided by the other facilities; (7) anticipated
savings based upon economies of scale or other  factors;  (8)  community
mental  health services available in the facility catchment area and the
ability of such community mental health services to meet the  behavioral
health needs of the impacted consumers; (9) the obligations of the state
to  place  persons with mental disabilities in community settings rather
than in institutions, when appropriate; and (10) the anticipated  impact
of the closure on access to mental health services.
  (c)  Any  transfers of inpatient capacity or any resulting transfer of
functions shall be authorized to be made by the commissioner  of  mental
health  and  any transfer of personnel upon such transfer of capacity or

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transfer of functions shall  be  accomplished  in  accordance  with  the
provisions of section 70 of the civil service law.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  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, 2012; provided
that the date for the closure of Kingsboro psychiatric center  shall  be
on a date certified by the commissioner of mental health.

                                 PART P

  Section 1. Subdivision (o) of section 10.03 of the mental hygiene law,
as  amended  by  chapter  168 of the laws of 2010, is amended to read as
follows:
  (o) "Secure treatment facility" means a facility or  a  portion  of  a
facility,  designated  by  the commissioner, that may include a facility
located on the grounds of a correctional facility, that is staffed  with
personnel from the office of mental health or the office for people with
developmental disabilities for the purposes of providing care and treat-
ment  to  persons  confined  under  this article, and persons defined in
paragraph five of subdivision (g) of this section. Personnel from  these
same  agencies  may  provide security services, provided that such staff
are adequately trained in security methods and so equipped as  to  mini-
mize  the  risk  or  danger of escape.   THE COMMISSIONER SHALL HAVE THE
DISCRETION TO ENTER INTO AGREEMENTS FOR THE PROVISION OF CARE AND TREAT-
MENT TO PERSONS HELD AT A SECURE TREATMENT  FACILITY  PURSUANT  TO  THIS
ARTICLE, OR FOR THE PROVISION OF APPROPRIATE SECURITY SERVICES, BY INDI-
VIDUALS WHO ARE NOT PERSONNEL OF SUCH AGENCIES.
  S  2.  Subdivision  (k) of section 10.06 of the mental hygiene law, as
amended by section 118-c of subpart B of part C of  chapter  62  of  the
laws of 2011, is amended to read as follows:
  (k) At the conclusion of the hearing, the court shall determine wheth-
er  there  is  probable  cause  to  believe that the respondent is a sex
offender requiring civil management. If the court determines that proba-
ble cause has not been established,  the  court  shall  issue  an  order
dismissing  the  petition,  and  the  respondent's  release  shall be in
accordance with other applicable provisions of law. If the court  deter-
mines  that  probable  cause  has  been established: (i) the court shall
order that the respondent be committed to a  secure  treatment  facility
designated  by the commissioner for care, treatment and control upon his
or her release, provided, however, that a respondent who otherwise would
be required to be transferred to  a  secure  treatment  facility  [may,]
SHALL  REMAIN IN THE CUSTODY OF THE DEPARTMENT OF CORRECTIONS AND COMMU-
NITY SUPERVISION PENDING THE OUTCOME OF THE PROCEEDINGS UNDER THIS ARTI-
CLE UNTIL HE OR SHE HAS REACHED THE MAXIMUM EXPIRATION  OF  HIS  OR  HER
SENTENCE  OR  HAS BEEN APPROVED FOR RELEASE TO PAROLE SUPERVISION BY THE
STATE BOARD OF PAROLE, PROVIDED, FURTHER THAT A RESPONDENT MAY,  upon  a
written consent signed by the respondent and his or her counsel, consent
to  remain in the custody of the department of corrections and community

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supervision pending the outcome of the proceedings under  this  article,
and  that  such  consent may be revoked in writing at any time; (ii) the
court shall set a date for trial in accordance with subdivision  (a)  of
section  10.07  of  this  article; and (iii) the respondent shall not be
released pending the completion of such trial.
  S 3. Subdivision (f) of section 10.07 of the mental  hygiene  law,  as
added by chapter 7 of the laws of 2007, is amended to read as follows:
  (f)  If  the  jury, or the court if a jury trial is waived, determines
that the respondent is a detained sex offender who suffers from a mental
abnormality, then the court shall consider whether the respondent  is  a
dangerous sex offender requiring confinement or a sex offender requiring
strict  and  intensive  supervision.  The  parties  may offer additional
evidence, and the court shall hear argument, as to that  issue.  If  the
court  finds  by clear and convincing evidence that the respondent has a
mental abnormality involving such a strong predisposition to commit  sex
offenses, and such an inability to control behavior, that the respondent
is  likely  to  be  a danger to others and to commit sex offenses if not
confined to a secure treatment facility, then the court shall  find  the
respondent to be a dangerous sex offender requiring confinement. In such
case,  the  respondent shall be committed to a secure treatment facility
for care, treatment, and control until such time as he or she no  longer
requires  confinement.  FAILURE  OF  A  DANGEROUS SEX OFFENDER REQUIRING
CONFINEMENT TO MEANINGFULLY PARTICIPATE IN TREATMENT IN A SECURE  TREAT-
MENT  FACILITY SHALL CONSTITUTE A VIOLATION OF THE ORDER OF CONFINEMENT.
If the court does not find that the respondent is a dangerous sex offen-
der requiring confinement, then the court shall make a finding of dispo-
sition that the respondent is a sex offender requiring strict and inten-
sive supervision, and the respondent shall be subject to  a  regimen  of
strict  and  intensive  supervision  and  treatment  in  accordance with
section 10.11 of this article. In making a finding of  disposition,  the
court  shall  consider  the  conditions  that  would be imposed upon the
respondent if subject to a regimen of strict and intensive  supervision,
and  all  available information about the prospects for the respondent's
possible re-entry into the community.
  S 4. Section 10.08 of the mental hygiene law is amended  by  adding  a
new subdivision (i) to read as follows:
  (I)  AT ANY PROCEEDING CONDUCTED PURSUANT TO THIS ARTICLE OTHER THAN A
TRIAL CONDUCTED PURSUANT TO SECTION 10.07 OF THIS ARTICLE, THE  RESPOND-
ENT OR ANY WITNESS SHALL BE PERMITTED, UPON GOOD CAUSE SHOWN, TO MAKE AN
ELECTRONIC  APPEARANCE IN THE COURT BY MEANS OF AN INDEPENDENT AUDIO-VI-
SUAL SYSTEM, AS THAT TERM IS  DEFINED  IN  SUBDIVISION  ONE  OF  SECTION
182.10 OF THE CRIMINAL PROCEDURE LAW, FOR PURPOSES OF A COURT APPEARANCE
OR  FOR  GIVING TESTIMONY. IT SHALL CONSTITUTE GOOD CAUSE THAT A WITNESS
IS CURRENTLY EMPLOYED BY THE STATE AT A  SECURE  TREATMENT  FACILITY  OR
ANOTHER WORK LOCATION, UNLESS THERE ARE COMPELLING CIRCUMSTANCES REQUIR-
ING  THE  WITNESS'S  PERSONAL  PRESENCE  AT  THE COURT PROCEEDING.   FOR
PURPOSES OF  THIS  SUBDIVISION,  AN  "ELECTRONIC  APPEARANCE"  MEANS  AN
APPEARANCE  AT  WHICH  A PARTICIPANT IS NOT PRESENT IN THE COURT, BUT IN
WHICH: (I) ALL OF THE PARTICIPANTS ARE ABLE TO SEE AND HEAR  THE  SIMUL-
TANEOUS  REPRODUCTIONS  OF  THE VOICES AND IMAGES OF THE JUDGE, COUNSEL,
RESPONDENT OR ANY OTHER APPROPRIATE PARTICIPANT,  AND  (II)  COUNSEL  IS
PRESENT  WITH  THE  RESPONDENT OR THE RESPONDENT AND COUNSEL ARE ABLE TO
SEE AND HEAR EACH OTHER AND  ENGAGE  IN  PRIVATE  CONVERSATION.  WHEN  A
RESPONDENT  OR  A  WITNESS  MAKES  AN  ELECTRONIC  APPEARANCE, THE COURT
STENOGRAPHER SHALL RECORD ANY STATEMENTS IN THE SAME MANNER  AS  IF  THE
RESPONDENT  OR  WITNESS  HAD MADE A PERSONAL APPEARANCE. NOTHING IN THIS

S. 6256--A                         103                        A. 9056--A

SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT THE RESPONDENT OR ANY WITNESS
FROM MAKING AN ELECTRONIC APPEARANCE IN THE COURT AT A  TRIAL  CONDUCTED
PURSUANT  TO  SECTION  10.07  OF THIS ARTICLE BY MEANS OF AN INDEPENDENT
AUDIO-VISUAL SYSTEM, UPON GOOD CAUSE SHOWN AND CONSENT OF THE PARTIES.
  S  5. The section heading and subdivisions (a), (b), (c), (d), and (f)
of section 10.09 of the mental hygiene law, as added by chapter 7 of the
laws of 2007, are amended to read as follows:
[Annual] BIENNIAL examinations and petitions for discharge.
  (a) The commissioner shall provide  the  respondent  and  counsel  for
respondent  with  [an  annual] A BIENNIAL written notice of the right to
petition the court for discharge. The notice shall contain  a  form  for
the waiver of the right to petition for discharge.
  (b)  The commissioner shall also assure that each respondent committed
under this article shall have an examination for evaluation  of  his  or
her  mental  condition  made  at  least once every [year] TWO YEARS by a
psychiatric examiner who shall report to the  commissioner  his  or  her
written  findings  as to whether the respondent is currently a dangerous
sex offender requiring confinement. At such time,  the  respondent  also
shall have the right to be evaluated by an independent psychiatric exam-
iner.    If  the respondent is financially unable to obtain an examiner,
the court shall appoint an examiner of the  respondent's  choice  to  be
paid  within  the  limits  prescribed by law. Following such evaluation,
each psychiatric examiner shall report his or her findings in writing to
the commissioner and to counsel for respondent. The  commissioner  shall
review  relevant  records  and  reports,  along with the findings of the
psychiatric examiners, and shall make a determination in writing  as  to
whether  the  respondent is currently a dangerous sex offender requiring
confinement.
  (c) The commissioner shall [annually] BIENNIALLY  forward  the  notice
and  waiver form, along with a report including the commissioner's writ-
ten determination and the findings of the  psychiatric  examination,  to
the supreme or county court where the respondent is located.
  (d) The court shall hold an evidentiary hearing as to retention of the
respondent within forty-five days if it appears from one of the [annual]
BIENNIAL  submissions to the court under subdivision (c) of this section
(i) that the respondent has petitioned, or has not affirmatively  waived
the  right to petition, for discharge, or (ii) that even if the respond-
ent has waived the right to petition, and the  commissioner  has  deter-
mined  that  the  respondent  remains a dangerous sex offender requiring
confinement, the court finds on the basis of the materials described  in
subdivision  (b) of this section that there is a substantial issue as to
whether the  respondent  remains  a  dangerous  sex  offender  requiring
confinement. At an evidentiary hearing on that issue under this subdivi-
sion, the attorney general shall have the burden of proof.
  (f)  The  respondent  may at any time petition the court for discharge
and/or release to the community under a regimen of strict and  intensive
supervision  and  treatment.  Upon  review of the respondent's petition,
other than in connection with [annual] BIENNIAL reviews as described  in
subdivisions  (a), (b) and (d) of this section, the court may order that
an evidentiary hearing be held, or may deny an evidentiary  hearing  and
deny  the petition upon a finding that the petition is frivolous or does
not provide sufficient basis for reexamination prior to the next  [annu-
al]  BIENNIAL  review.  If the court orders an evidentiary hearing under
this subdivision, the attorney general shall have the burden of proof as
to whether the respondent is currently a dangerous sex offender  requir-
ing confinement.

S. 6256--A                         104                        A. 9056--A

  S  6.  Subdivision  (a) of section 10.10 of the mental hygiene law, as
added by chapter 7 of the laws of 2007, is amended to read as follows:
  (a)  If the respondent is found to be a dangerous sex offender requir-
ing confinement and committed  to  a  secure  treatment  facility,  that
facility  shall  provide  care, treatment, and control of the respondent
until such time that a court discharges  the  respondent  in  accordance
with the provisions of this article. FAILURE OF A DANGEROUS SEX OFFENDER
REQUIRING  CONFINEMENT  TO  MEANINGFULLY  PARTICIPATE  IN TREATMENT IN A
SECURE TREATMENT FACILITY SHALL CONSTITUTE A VIOLATION OF THE  ORDER  OF
CONFINEMENT.
  S  7.  Subdivision  (c) of section 10.11 of the mental hygiene law, as
amended by section 118-e of subpart B of part C of  chapter  62  of  the
laws of 2011, is amended to read as follows:
  (c)  An  order  for  a regimen of strict and intensive supervision and
treatment places the person in the custody and control of the department
of corrections and community supervision. A person ordered to undergo  a
regimen  of  strict  and intensive supervision and treatment pursuant to
this article is subject to lawful conditions set by the  court  and  the
department  of  corrections and community supervision.  A VIOLATION OF A
CONDITION OF THE REGIMEN OF STRICT AND INTENSIVE SUPERVISION AND  TREAT-
MENT FOR A PERSON UNDER COMMUNITY SUPERVISION, AS DEFINED IN SUBDIVISION
THREE OF SECTION TWO HUNDRED FIFTY-NINE OF THE EXECUTIVE LAW, MAY BE THE
BASIS   FOR  REVOCATION  OF  PAROLE  PURSUANT  TO  SECTION  TWO  HUNDRED
FIFTY-NINE-I OF THE EXECUTIVE LAW. A PERSON WHO INTENTIONALLY VIOLATES A
MATERIAL CONDITION OF THE REGIMEN OF STRICT  AND  INTENSIVE  SUPERVISION
AND TREATMENT SHALL BE GUILTY OF A CLASS E FELONY.
  S 8. Section 120.05 of the penal law is amended by adding a new subdi-
vision 13 to read as follows:
  13.  HAVING BEEN FOUND TO BE A SEX OFFENDER REQUIRING CIVIL MANAGEMENT
AND WHILE CONFINED IN A SECURE TREATMENT FACILITY, AS DEFINED IN SECTION
7.18 OF THE MENTAL HYGIENE LAW, WITH INTENT TO CAUSE PHYSICAL INJURY  TO
ANOTHER  PERSON,  HE  CAUSES  SUCH  INJURY  TO SUCH PERSON OR TO A THIRD
PERSON.
  S 9. This act shall take effect immediately.

                                 PART Q

  Section 1. Section 730.10 of the criminal procedure law is amended  by
adding a new subdivision 9 to read as follows:
  9.  "APPROPRIATE  INSTITUTION"  MEANS:  (A) A HOSPITAL OPERATED BY THE
OFFICE OF MENTAL HEALTH OR A DEVELOPMENTAL CENTER OPERATED BY THE OFFICE
FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES;  (B)  A  LOCAL  CORRECTIONAL
FACILITY,  AS  SUCH  TERMS  ARE DEFINED IN SECTION TWO OF THE CORRECTION
LAW, WHICH OPERATES A MENTAL HEALTH UNIT; OR (C) A HOSPITAL LICENSED  BY
THE  DEPARTMENT  OF HEALTH WHICH OPERATES A PSYCHIATRIC UNIT LICENSED BY
THE OFFICE OF MENTAL HEALTH, AS DETERMINED BY THE COMMISSIONER.
  S 2. Subdivision 1 of section 730.40 of the criminal procedure law, as
amended by chapter 231 of the laws  of  2008,  is  amended  to  read  as
follows:
  1. When a local criminal court, following a hearing conducted pursuant
to  subdivision  three  or four of section 730.30, is satisfied that the
defendant is not an incapacitated person, the  criminal  action  against
him  OR  HER  must  proceed. If it is satisfied that the defendant is an
incapacitated person, or if no motion for such a hearing is  made,  such
court  must  issue  a final or temporary order of observation committing
him OR HER to the custody of the commissioner for care and treatment  in

S. 6256--A                         105                        A. 9056--A

an  appropriate  institution for a period not to exceed ninety days from
the date of the order, provided,  however,  that  the  commissioner  may
designate  an appropriate hospital for placement of a defendant for whom
a  final  order  of  observation has been issued, where such hospital is
licensed by the office of mental health and has agreed to  accept,  upon
referral  by  the  commissioner,  defendants  subject to final orders of
observation issued under this subdivision. When a local  criminal  court
accusatory  instrument  other  than  a  felony  complaint has been filed
against the defendant, such court must issue a final order  of  observa-
tion[; when]. WHEN a felony complaint has been filed against the defend-
ant,  such  court must issue a temporary order of observation COMMITTING
HIM OR HER TO THE JURISDICTION OF THE COMMISSIONER FOR CARE  AND  TREAT-
MENT  IN  AN  APPROPRIATE  INSTITUTION  OR ON AN OUT-PATIENT BASIS FOR A
PERIOD NOT TO EXCEED NINETY DAYS FROM THE DATE  OF  SUCH  ORDER,  except
that,  with  the  consent of the district attorney, it may issue a final
order of observation.
  S 3. Subdivision 1 of section 730.50 of the criminal procedure law, as
amended by chapter 231 of the laws  of  2008,  is  amended  to  read  as
follows:
  1.  When  a  superior court, following a hearing conducted pursuant to
subdivision three or four of  section  730.30,  is  satisfied  that  the
defendant  is  not  an incapacitated person, the criminal action against
him OR HER must proceed. If it is satisfied that  the  defendant  is  an
incapacitated  person,  or  if  no motion for such a hearing is made, it
must adjudicate him OR HER an incapacitated person,  and  must  issue  a
final  order  of observation or an order of commitment. When the indict-
ment does not charge a felony or when the defendant has  been  convicted
of  an  offense  other  than a felony, such court (a) must issue a final
order of observation committing the defendant  to  the  custody  of  the
commissioner  for care and treatment in an appropriate institution for a
period not to exceed ninety days from the date of such order,  provided,
however, that the commissioner may designate an appropriate hospital for
placement  of a defendant for whom a final order of observation has been
issued, where such hospital is licensed by the office of  mental  health
and  has agreed to accept, upon referral by the commissioner, defendants
subject to final orders of observation issued  under  this  subdivision,
and  (b)  must  dismiss  the  indictment filed in such court against the
defendant, and such dismissal constitutes a bar to  any  further  prose-
cution  of  the charge or charges contained in such indictment. When the
indictment charges a felony or when the defendant has been convicted  of
a  felony, it must issue an order of commitment committing the defendant
to the [custody] JURISDICTION of the commissioner for care and treatment
in an appropriate institution OR ON AN OUT-PATIENT BASIS  for  a  period
not to exceed one year from the date of such order. Upon the issuance of
an order of commitment, the court must exonerate the defendant's bail if
he  OR  SHE  was  previously at liberty on bail; PROVIDED, HOWEVER, THAT
EXONERATION OF BAIL IS NOT REQUIRED WHEN A DEFENDANT IS COMMITTED TO THE
JURISDICTION OF THE COMMISSIONER FOR CARE AND TREATMENT  ON  AN  OUT-PA-
TIENT BASIS.
  S 4. This act shall take effect immediately.

                                 PART R

  Section  1.    Section  1 of part D of chapter 111 of the laws of 2010
relating to the recovery of exempt income by the office of mental health

S. 6256--A                         106                        A. 9056--A

for community residences and family-based treatment programs is  amended
to read as follows:
  Section  1. The office of mental health is authorized to recover fund-
ing from  community  residences  and  family-based  treatment  providers
licensed  by  the  office  of mental health, consistent with contractual
obligations of such providers, and notwithstanding any other  inconsist-
ent  provision  of law to the contrary, in an amount equal to 50 percent
of the income received by such providers which exceeds the fixed  amount
of  annual  Medicaid  revenue limitations, as established by the commis-
sioner of mental health. Recovery of such excess income shall be for the
following fiscal periods: for programs in counties  located  outside  of
the  city of New York, the applicable fiscal periods shall be January 1,
2003 through December 31, 2009 AND JANUARY 1, 2011 THROUGH DECEMBER  31,
2013; and for programs located within the city of New York, the applica-
ble  fiscal periods shall be July 1, 2003 through June 30, 2010 AND JULY
1, 2011 THROUGH JUNE 30, 2013.
  S 2. This act shall take effect immediately.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through R of this act shall  be
as specifically set forth in the last section of such Parts.

S6256B - Bill Details

See Assembly Version of this Bill:
A9056D
Law Section:
Budget Bills
Laws Affected:
Amd Various Laws, generally

S6256B - Bill Texts

view summary

Relates to evaluations or services under the early intervention program for infants and toddlers with disabilities and their families, state aid reimbursement to municipalities for respite services, and service coordination; repeals subdivision 7 of section 2551 and subdivision 4 of section 2557 of the public health law, relating to administering early intervention services; requires that each municipality be responsible for providing early intervention services; requires health maintenance organizations to include coverage for otherwise covered services that are part of an early intervention program; relates to payment for early intervention services; repeals subsection (e) of section 3235-a of the insurance law relating to claims for early intervention program services; relates to special education services and programs for preschool children with handicapping conditions; and repeals subdivision 18 of section 4403 of the education law, relating to the power of the education department to approve the provision of early intervention services (Part A); relates to funding and operations of the Roswell Park Cancer Institute (Part B); establishes the supportive housing development reinvestment program; relates to applicability of the assisted living program; includes podiatry services and lactation services under the term medical assistance; relates to comprehensive HIV special needs plan, in relation to HEAL-NY, and in relation to the EQUAL program; relates to education, outreach services and facilitated enrollment activities for certain aged, blind and disabled persons; expands prenatal care programs, establishes the primary care service corps practitioner loan repayment program, authorizes moneys in the medical indemnity fund to be invested in obligations of the United States or the state or obligations where the principal and interest are guaranteed by the United States or the state and moneys distributed as non-Medicaid grants to non-major public academic medical centers; relates to the powers of the dormitory authority; directs a workgroup on medically fragile children; relates to notice requirement for preferred drug program, payment to the commissioner of health by third-party payors, audit of payments to the commissioner of health, electronic submission of reports by hospitals, and changing the definition of eligible applicant; relates to medical assistance where relative is absent or refuses or fails to provide necessary care; relates to third-party payor's election to make payments; relates to reserved bed days; relates to the personal care services worker recruitment and retention program; relates to the tobacco control and insurance initiatives pool distributions; relates to certain public school districts and state operated/state supported schools; relates to the licensure of home care services agencies; relates to managed care programs; relates to the distribution of the professional education pools; relates to the powers and duties of the dormitory authority of the state of New York relative to the establishment of subsidiaries for certain purposes, in relation to the effectiveness thereof; relates to costs incurred in excess of revenues by general hospitals in providing services in eligible programs to uninsured patients and patients eligible for Medicaid assistance; relates to the effectiveness of known and projected department of health state funds Medicaid expenditures; relates to certain payments with regard to local governments; relates to Medicaid reimbursement; and repeals certain provisions of the public health law relating thereto (Part D); relates to an administrative cap on reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof; relates to general hospital reimbursement for annual rates, in relation to the cap on local Medicaid expenditures; relates to the department assumption of program administration for medical assistance; and provides for the repeal of certain provisions of the social services law upon expiration thereof (Part F); relates to the regulations for computing hospital inpatient rates and to the effectiveness of the preferred drug program (Part G); establishes a cost of living adjustment for designated human services programs, in relation to foregoing such adjustment during the 2012-2013 state fiscal year (Part H); relates to the office for people with developmental disabilities and the creation of developmental disabilities regional offices and state operations offices; and provides for the repeal of certain provisions upon expiration thereof (Part J); extends certain provisions relating to comprehensive psychiatric emergency programs (Part K); permits the commissioners of the department of health, the office of mental health, the office of alcoholism and substance abuse services and the office for people with developmental disabilities the regulatory flexibility to more efficiently and effectively integrate health and behavioral health services (Part L); authorizes contracts for the provision of special education and related services for certain patients hospitalized in hospitals operated by the office of mental health and provides for the repeal of such provisions upon expiration thereof (Part M); relates to the statewide comprehensive services plan for people with mental disabilities and in relation to the local planning process; and repeals certain provisions of the mental hygiene law relating thereto (Part N); relates to the closure and the reduction in size of certain facilities serving persons with mental illness; and provides for the repeal of such provisions upon expiration thereof (Part O); amends procedures under the sex offender management and treatment act (Part P); provides for outpatient capacity restoration of felony defendants at article 28 hospitals (Part Q); relates to the effectiveness of provisions related to the recovery of exempt income by the office of mental health for community residences and family-based treatment programs (Part R); relates to the excess medical malpractice liability coverage pool (Part S); and relates to the program for elderly pharmaceutical insurance coverage; and repeals certain provisions of such law relating thereto (Part T).

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

    S. 6256--B                                            A. 9056--B

                      S E N A T E - A S S E M B L Y

                            January 17, 2012
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when  printed to be committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee  on  Ways  and  Means -- committee discharged, bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  again  reported from said committee with amendments, ordered reprinted
  as amended and recommitted to said committee

AN ACT to amend the public health law, in relation to requiring the  use
  of  network  providers  for  evaluations  or  services under the early
  intervention program, state aid reimbursement  to  municipalities  for
  respite services, and service coordination; to repeal subdivision 7 of
  section  2551  and  subdivision 4 of section 2557 of the public health
  law, relating to administering early intervention services;  to  amend
  the public health law, in relation to requiring that each municipality
  be responsible for providing early intervention services; to amend the
  public  health  law,  in relation to removing the authorization of the
  commissioner of health to collect data from counties on  early  inter-
  vention  programs for the purpose of improving efficiency, cost effec-
  tiveness and quality; to amend the public health law, in  relation  to
  requiring  health  maintenance  organizations  to include coverage for
  otherwise covered services that are  part  of  an  early  intervention
  program;  to amend the insurance law, in relation to payment for early
  intervention services; to amend the  education  law,  in  relation  to
  special  education  services  and programs for preschool children with
  handicapping conditions; and to repeal subdivision 18 of section  4403
  of  the  education law, relating to the power of the education depart-
  ment to approve the provision of early intervention services (Part A);
  to amend the public authorities law, in relation to funding and  oper-
  ations  of  the  Roswell  Park Cancer Institute (Part B); to amend the
  public health law, in relation to establishment of an electronic death
  registration system (Part C); to  amend  the  public  health  law,  in

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12671-03-2

S. 6256--B                          2                         A. 9056--B

  relation  to establishing the supportive housing development reinvest-
  ment program; to amend the social services law, in relation to  appli-
  cability  of the assisted living program; to amend the social services
  law, in relation to including podiatry services and lactation services
  under  the term medical assistance; to amend the public health law and
  education law,  in  relation  to  medical  prescriptions  for  limited
  English  proficient  individuals; to amend the social services law, in
  relation to education, outreach services  and  facilitated  enrollment
  activities  for certain aged, blind and disabled persons; to amend the
  public health law, in relation to including certain  violations  by  a
  pharmacy as professional misconduct; expanding prenatal care programs,
  establishing  the  primary care service corps practitioner loan repay-
  ment program, requiring changes in directors of not-for-profit  corpo-
  rations  that  operate  hospitals  to  be  approved by the department,
  authorizing the commissioner of health to temporarily suspend or limit
  hospital  operating  certificates,  revoking  of  hospital   operating
  certificates,  appointment  and  duties  of  temporary  operators of a
  general hospital  or  diagnostic  and  treatment  center,  authorizing
  moneys  in the medical indemnity fund to be invested in obligations of
  the United States or the state or obligations where the principal  and
  interest  are  guaranteed by the United States or the state and moneys
  distributed  as  non-Medicaid  grants  to  non-major  public  academic
  medical  centers;  to  amend  the  social services law, in relation to
  prescriptions of opioid analgesics and brand  name  drugs  covered  by
  medical  assistance;  to  amend  the public health law, in relation to
  notice requirement for preferred drug program, payment to the  commis-
  sioner  of  health  by  third-party  payors,  audit of payments to the
  commissioner of health, electronic submission of reports by hospitals,
  and changing the definition of eligible applicant; to amend the social
  services law, in relation to  medical  assistance  where  relative  is
  absent  or  refuses  or fails to provide necessary care;  to amend the
  public health law, in relation to third-party payor's election to make
  payments; to amend the elder law, in relation to the  elderly  pharma-
  ceutical  insurance  coverage program; to amend the public health law,
  in relation to reserved bed days; to amend the social services law, in
  relation  to  the  personal  care  services  worker  recruitment   and
  retention  program; to amend the public health law, in relation to the
  tobacco control and insurance initiatives pool distributions; to amend
  the  social  services  law,  in  relation  to  certain  public  school
  districts  and  state  operated/state  supported schools; to amend the
  public health law, in relation to the licensure of home care  services
  agencies;  to  amend  the  social services law, in relation to managed
  care programs; to amend the public health  law,  in  relation  to  the
  distribution of the professional education pools; to amend chapter 584
  of  the laws of 2011, amending the public authorities law, relating to
  the powers and duties of the dormitory authority of the state  of  New
  York  relative  to  the  establishment  of  subsidiaries  for  certain
  purposes, in relation to the effectiveness thereof; to  amend  chapter
  119  of  the  laws  of  1997 relating to authorizing the department of
  health to establish certain payments to general hospitals, in relation
  to costs incurred in  excess  of  revenues  by  general  hospitals  in
  providing  services  in  eligible  programs  to uninsured patients and
  patients eligible for Medicaid assistance; to amend subdivision  1  of
  section  92  of  part H of chapter 59 of the laws of 2011, relating to
  known and projected department of health state funds Medicaid expendi-
  tures, in relation to the effectiveness thereof; to amend  section  90

S. 6256--B                          3                         A. 9056--B

  of  part  H  of  chapter  59 of the laws of 2011, relating to types of
  appropriations exempt from certain reductions, in relation to  certain
  payments  with regard to local governments; to amend section 1 of part
  C  of  chapter  58  of  the  laws  of  2005,  relating  to authorizing
  reimbursements for  expenditures  made  by  or  on  behalf  of  social
  services  districts  for  medical assistance for needy persons and the
  administration thereof, in relation to Medicaid reimbursement; and  to
  repeal  certain  provisions  of  the  public  health  law,  the social
  services law and the elder law relating thereto (Part D); to amend the
  public authorities law and the public officers law, in relation to the
  establishment of the New York Health Benefit  Exchange  (Part  E);  to
  amend  chapter  58  of the laws of 2005 authorizing reimbursements for
  expenditures made by or on behalf of  social  services  districts  for
  medical  assistance  for needy persons and the administration thereof,
  in relation to an administrative cap on such program; to amend chapter
  59 of the laws of 2011, amending the public health law and other  laws
  relating  to  general  hospital  reimbursement  for  annual  rates, in
  relation to the cap on local Medicaid expenditures; and to  amend  the
  social  services  law,  in  relation  to  the department assumption of
  program administration for medical assistance (Part F); to  amend  the
  public  health  law, in relation to regulations for computing hospital
  inpatient rates and to amend chapter 58 of the laws of  2005  relating
  to the preferred drug program, in relation to the effectiveness there-
  of  (Part  G);  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 reimbursement  for  executive  compensation  and  administrative
  costs (Part H); in relation to contracts by the office for people with
  developmental  disabilities  made  under  section  1115 of the federal
  social security act (Part I); to amend the  mental  hygiene  law,  the
  public  health  law, the general municipal law, the education law, the
  social services law, and  the  surrogate's  court  procedure  act,  in
  relation  to the office for people with developmental disabilities and
  the creation of developmental disabilities regional offices and  state
  operations  offices (Part J); to amend chapter 723 of the laws of 1989
  amending the mental hygiene law and other laws relating to  comprehen-
  sive  psychiatric  emergency  programs,  in  relation to extending the
  repeal of certain provisions thereof (Part K); to permit  the  commis-
  sioners  of the department of health, the office of mental health, the
  office of alcoholism and substance abuse services and the  office  for
  people  with  developmental disabilities the regulatory flexibility to
  more efficiently  and  effectively  integrate  health  and  behavioral
  health  services  (Part  L); to permit the office of mental health and
  the state education department to enter into an agreement for purposes
  of providing education programming for patients residing in  hospitals
  operated  by  the  office of mental health who are between the ages of
  five and twenty-one; and providing for the repeal of  such  provisions
  upon  expiration thereof (Part M); to amend the mental hygiene law and
  the public health law, in  relation  to  the  statewide  comprehensive
  services  plan  for people with mental disabilities and in relation to
  the local planning process; and to repeal certain  provisions  of  the
  mental  hygiene  law  relating  thereto  (Part N); to amend the mental
  hygiene law, in relation to the closure and the reduction in  size  of
  certain  facilities  serving  persons with mental illness (Part O); to
  amend the mental hygiene law, in relation to amending procedures under

S. 6256--B                          4                         A. 9056--B

  the sex offender management and treatment act, and to amend the  penal
  law,   in   relation  to  providing  criminal  penalties  for  certain
  violations of orders of commitment and  strict  and  intensive  super-
  vision and treatment (Part P); to amend the criminal procedure law, in
  relation  to  providing  for outpatient capacity restoration of felony
  defendants, or restoration at psychiatric units of jails or article 28
  hospitals (Part Q); to amend chapter 111 of the laws of 2010  relating
  to  the  recovery  of exempt income by the office of mental health for
  community residences and family-based treatment programs, in  relation
  to  the effectiveness thereof (Part R); and to amend the public health
  law, in relation  to  consolidating  the  excess  medical  malpractice
  liability  coverage  pool;  and to repeal section 18 of chapter 266 of
  the laws of 1986, amending the civil practice law and rules and  other
  laws  relating  to  medical  and  dental malpractice, relating thereto
  (Part S)

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

  Section  1.  This  act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2012-2013
state fiscal year. Each component is  wholly  contained  within  a  Part
identified  as Parts A through S. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that  particular  component,
shall  be  deemed  to mean and refer to the corresponding section of the
Part in which it is found. Section three of  this  act  sets  forth  the
general effective date of this act.

                                 PART A

  Section  1.    Paragraph  (a)  of subdivision 2 of section 2544 of the
public health law, as added by chapter 428  of  the  laws  of  1992,  is
amended and a new paragraph (c) is added to read as follows:
  (a)  [The]  SUBJECT  TO  THE PROVISIONS OF SECTION TWENTY-FIVE HUNDRED
FORTY-FIVE-A OF THIS TITLE, THE parent may select an evaluator from  the
list  of approved evaluators as described in section twenty-five hundred
forty-two of this title to conduct the evaluation. The parent or  evalu-
ator  shall  immediately  notify the early intervention official of such
selection.  The evaluator may begin the evaluation no sooner  than  four
working  days  after such notification, unless otherwise approved by the
initial service coordinator.
  (C) IF, IN CONSULTATION WITH THE EVALUATOR,  THE  SERVICE  COORDINATOR
IDENTIFIES A CHILD THAT IS POTENTIALLY ELIGIBLE FOR PROGRAMS OR SERVICES
OFFERED  BY OR UNDER THE AUSPICES OF THE OFFICE FOR PEOPLE WITH DEVELOP-
MENTAL DISABILITIES, THE SERVICE COORDINATOR SHALL, WITH PARENT CONSENT,
NOTIFY THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL  DISABILITIES'  REGIONAL
DEVELOPMENTAL  DISABILITIES SERVICES OFFICE OF THE POTENTIAL ELIGIBILITY
OF SUCH CHILD FOR SAID PROGRAMS OR SERVICES.
  S 2. Subdivision 1, the opening paragraph of subdivision 2 and  subdi-
vision  7  of section 2545 of the public health law, as added by chapter
428 of the laws of 1992, are amended to read as follows:

S. 6256--B                          5                         A. 9056--B

  1. If the evaluator determines that the infant or toddler is an eligi-
ble child, the early intervention official shall convene a meeting, at a
time and place convenient to the parent, consisting of the parent,  such
official,  the  evaluator,  A REPRESENTATIVE FROM THE CHILD'S INSURER OR
HEALTH MAINTENANCE ORGANIZATION, WHICH SHALL INCLUDE THE MEDICAL ASSIST-
ANCE  PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTABLISHED IN TITLE
ONE-A OF THIS ARTICLE, OR ANY OTHER GOVERNMENTAL THIRD PARTY  PAYOR,  IF
THE  CHILD  HAS COVERAGE THROUGH AN INSURER OR HEALTH MAINTENANCE ORGAN-
IZATION AND THE REPRESENTATIVE IS AVAILABLE TO ATTEND THE MEETING ON THE
DATE AND TIME CHOSEN BY THE EARLY  INTERVENTION  OFFICIAL,  the  initial
service  coordinator and any other persons who the parent or the initial
service coordinator, with the parent's consent,  invite,  provided  that
such  meeting  shall be held no later than forty-five days from the date
that the early intervention official was first contacted  regarding  the
child,  except under exceptional circumstances prescribed by the commis-
sioner. The early intervention official, at or  prior  to  the  time  of
scheduling  the  meeting, shall inform the parent of the right to invite
any person to the meeting.   IF  THE  REPRESENTATIVE  FROM  THE  CHILD'S
INSURER  OR  HEALTH  MAINTENANCE ORGANIZATION IS NOT AVAILABLE TO ATTEND
THE MEETING IN PERSON ON THE DATE AND TIME CHOSEN BY  THE  EARLY  INTER-
VENTION  OFFICIAL,  ARRANGEMENTS  MAY  BE  MADE FOR THE REPRESENTATIVE'S
INVOLVEMENT IN THE MEETING BY PARTICIPATION IN  A  TELEPHONE  CONFERENCE
CALL OR BY OTHER MEANS.
  The  early  intervention  official,  A REPRESENTATIVE FROM THE CHILD'S
INSURER OR HEALTH MAINTENANCE  ORGANIZATION,  WHICH  SHALL  INCLUDE  THE
MEDICAL  ASSISTANCE PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTAB-
LISHED IN TITLE ONE-A OF THIS ARTICLE, OR ANY OTHER  GOVERNMENTAL  THIRD
PARTY  PAYOR,  IF  THE  CHILD  HAS COVERAGE THROUGH AN INSURER OR HEALTH
MAINTENANCE ORGANIZATION AND THE REPRESENTATIVE IS AVAILABLE  TO  ATTEND
THE  MEETING ON THE DATE AND TIME CHOSEN BY THE EARLY INTERVENTION OFFI-
CIAL, initial service coordinator, parent and evaluator shall develop an
IFSP for an eligible child whose  parents  request  services.  The  IFSP
shall be in writing and shall include, but not be limited to:
  7.  The  IFSP  shall  be  reviewed at six month intervals and shall be
evaluated annually by the early intervention official, A  REPRESENTATIVE
FROM THE CHILD'S INSURER OR HEALTH MAINTENANCE ORGANIZATION, WHICH SHALL
INCLUDE  THE  MEDICAL  ASSISTANCE  PROGRAM OR THE CHILD HEALTH INSURANCE
PROGRAM ESTABLISHED IN TITLE ONE-A OF THIS ARTICLE, OR ANY OTHER GOVERN-
MENTAL THIRD PARTY PAYOR, IF THE CHILD HAS COVERAGE THROUGH  AN  INSURER
OR  HEALTH  MAINTENANCE ORGANIZATION AND THE REPRESENTATIVE IS AVAILABLE
TO PARTICIPATE IN THE REVIEW OR ATTEND ON THE DATE AND  TIME  CHOSEN  BY
THE EARLY INTERVENTION OFFICIAL, THE service coordinator, the parent and
providers  of services to the eligible child.  Upon request of a parent,
the plan may be reviewed by such persons at more frequent intervals.  IF
THE REPRESENTATIVE FROM THE CHILD'S INSURER OR HEALTH MAINTENANCE ORGAN-
IZATION IS NOT AVAILABLE TO PARTICIPATE  IN  THE  REVIEW  OR  ATTEND  IN
PERSON  ON  THE DATE AND TIME CHOSEN BY THE EARLY INTERVENTION OFFICIAL,
ARRANGEMENTS MAY BE MADE FOR THE REPRESENTATIVE'S INVOLVEMENT BY PARTIC-
IPATION IN A TELEPHONE CONFERENCE CALL OR BY OTHER MEANS.
  S 2-a. Section 2545 of the public health law is amended  by  adding  a
new subdivision 10 to read as follows:
  10.  THE SERVICE COORDINATOR SHALL ENSURE THAT THE IFSP, INCLUDING ANY
AMENDMENTS THERETO, IS IMPLEMENTED IN A TIMELY MANNER BUT NOT LATER THAN
THIRTY DAYS AFTER THE PROJECTED DATES FOR INITIATION OF THE SERVICES  AS
SET FORTH IN THE PLAN.

S. 6256--B                          6                         A. 9056--B

  S  3.  The public health law is amended by adding a new section 2545-a
to read as follows:
  S  2545-A.  USE  OF  NETWORK PROVIDERS.   FOR CHILDREN REFERRED TO THE
EARLY INTERVENTION PROGRAM ON OR AFTER JANUARY FIRST, TWO THOUSAND THIR-
TEEN, IF A CHILD  HAS  COVERAGE  UNDER  AN  INSURANCE  POLICY,  PLAN  OR
CONTRACT,  INCLUDING  COVERAGE  AVAILABLE  UNDER  THE MEDICAL ASSISTANCE
PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTABLISHED IN TITLE ONE-A
OF THIS ARTICLE OR UNDER ANY OTHER GOVERNMENTAL THIRD PARTY  PAYOR,  AND
THE INSURANCE POLICY, PLAN OR CONTRACT PROVIDES COVERAGE FOR EVALUATIONS
OR  SERVICES  THAT  MAY  BE RENDERED TO THE CHILD UNDER THE EARLY INTER-
VENTION PROGRAM, THE SERVICE COORDINATOR, OR, IN ACCORDANCE WITH SECTION
TWENTY-FIVE HUNDRED FORTY-FOUR OF THIS TITLE, THE PARENT,  WITH  RESPECT
TO  EVALUATIONS,  SHALL SELECT A PROVIDER APPROVED BY THE DEPARTMENT AND
WITHIN THE INSURER'S OR HEALTH MAINTENANCE  ORGANIZATION'S  NETWORK,  IF
APPLICABLE,  FOR  THE PROVISION OF SUCH EVALUATION OR SERVICES, PROVIDED
HOWEVER THAT THIS SUBDIVISION SHALL NOT APPLY UNDER THE FOLLOWING CONDI-
TIONS:
  1. THERE IS NO PROVIDER IN THE INSURER'S OR HEALTH MAINTENANCE  ORGAN-
IZATION'S NETWORK THAT IS AVAILABLE OR APPROPRIATE TO RECEIVE THE REFER-
RAL  AND  TO  CONDUCT THE EVALUATION OR TO BEGIN PROVIDING SERVICES IN A
TIMELY MANNER IN ACCORDANCE WITH THE CHILD'S IFSP;
  2. INSURANCE OR HEALTH PLAN BENEFITS HAVE BEEN EXHAUSTED; OR
  3. THE CHILD HAS A DEMONSTRATED NEED, AS DETERMINED BY THE INSURER  OR
HEALTH  MAINTENANCE  ORGANIZATION,  IF  APPLICABLE, FOR AN EVALUATION OR
SERVICE RENDERED BY A PROVIDER WHO DOES NOT HOLD AN AGREEMENT  WITH  THE
CHILD'S  INSURER OR HEALTH MAINTENANCE ORGANIZATION FOR THE PROVISION OF
SUCH EVALUATION OR SERVICE.
  S 4. Subdivision 2 of section  2547  of  the  public  health  law,  as
amended  by  chapter  231  of  the  laws  of 1993, is amended to read as
follows:
  2. In addition to respite services provided  pursuant  to  subdivision
one  of  this  section and subject to the amounts appropriated therefor,
the state shall  reimburse  the  municipality  IN  ACCORDANCE  WITH  THE
PERCENTAGE OF STATE AID REIMBURSEMENT FOR APPROVED COSTS AS SET FORTH IN
SUBDIVISION  TWO  OF  SECTION  TWENTY-FIVE  HUNDRED  FIFTY-SEVEN OF THIS
TITLE, for [fifty percent of] the costs of respite services provided  to
eligible  children  and  their  families  with the approval of the early
intervention official.
  S 5. Section 2548 of the public health law, as amended by  section  20
of  part  H  of  chapter  686 of the laws of 2003, is amended to read as
follows:
  S 2548. Transition plan. To the extent that a toddler with a disabili-
ty is thought to be eligible for services pursuant to section forty-four
hundred ten of the education  law,  the  [early  intervention  official]
SERVICE  COORDINATOR  shall notify in writing the committee on preschool
special education of the local school  district  in  which  an  eligible
child  resides  of  the  potential  transition  of  such child and, with
parental consent, arrange for a conference among the  service  coordina-
tor,  the  parent  and  the  chairperson  of  the preschool committee on
special education or his or her designee at  least  ninety  days  before
such  child  would  be  eligible  for  services under section forty-four
hundred ten of the education law to review the child's  program  options
and to establish a transition plan, if appropriate. If a parent does not
consent to a conference with the service coordinator and the chairperson
of  the  preschool committee on special education or his or her designee
to determine whether the child should be  referred  for  services  under

S. 6256--B                          7                         A. 9056--B

section  forty-four  hundred  ten of the education law, and the child is
not determined to be eligible by  the  committee  on  preschool  special
education  for  such  services  prior to the child's third birthday, the
child's eligibility for early intervention program services shall end at
the child's third birthday.
  S  6.  Subdivision  2  of  section  2550  of the public health law, as
amended by section 5 of part B3 of chapter 62 of the laws  of  2003,  is
amended to read as follows:
  2. In meeting the requirements of subdivision one of this section, the
lead  agency  shall  adopt  and  use proper methods of administering the
early intervention program, including:
  (a) establishing standards for evaluators,  service  coordinators  and
providers of early intervention services;
  (b) approving, and periodically re-approving evaluators, service coor-
dinators  and  providers of early intervention services who meet depart-
ment standards; PROVIDED HOWEVER THAT THE DEPARTMENT  MAY  REQUIRE  THAT
APPROVED  EVALUATORS, SERVICE COORDINATORS AND PROVIDERS OF EARLY INTER-
VENTION SERVICES ENTER INTO AGREEMENTS WITH THE DEPARTMENT IN  ORDER  TO
CONDUCT EVALUATIONS OR RENDER SERVICE COORDINATION OR EARLY INTERVENTION
SERVICES  IN  THE  EARLY INTERVENTION PROGRAM. SUCH AGREEMENTS SHALL SET
FORTH THE TERMS AND CONDITIONS OF PARTICIPATION IN THE PROGRAM.  IF  THE
DEPARTMENT  REQUIRES  THAT SUCH PROVIDERS ENTER INTO AGREEMENTS WITH THE
DEPARTMENT FOR PARTICIPATION IN THE PROGRAM, "APPROVAL" OR "APPROVED" AS
USED IN THIS TITLE SHALL MEAN A PROVIDER WHO IS APPROVED BY THE  DEPART-
MENT  IN  ACCORDANCE WITH DEPARTMENT REGULATIONS AND HAS ENTERED INTO AN
AGREEMENT WITH THE DEPARTMENT FOR THE PROVISION OF EVALUATIONS,  SERVICE
COORDINATION OR EARLY INTERVENTION SERVICES.
  A  LESS-THAN-ARMS-LENGTH  RELATIONSHIP  SHALL  NOT  EXIST  BETWEEN THE
SERVICE COORDINATOR, EVALUATOR AND THE PROVIDER  AUTHORIZED  TO  DELIVER
EARLY  INTERVENTION  SERVICES  TO THE CHILD, UNLESS APPROVAL OF THE LEAD
AGENCY,  IN  CONSULTATION  WITH  THE  EARLY  INTERVENTION  OFFICIAL,  IS
OBTAINED.  PROVIDED  FURTHER THAT, UNLESS AUTHORIZED BY THE LEAD AGENCY,
IN CONSULTATION WITH THE EARLY INTERVENTION  OFFICIAL,  UPON  A  FINDING
THAT  IT  HAS  BEEN  DEMONSTRATED  THAT AN APPROVED PROVIDER IS THE ONLY
APPROPRIATE PROVIDER AVAILABLE TO RENDER THE  SERVICES  RECOMMENDED  FOR
SUCH  CHILD,  THE  SERVICE  COORDINATOR,  THE  EVALUATOR SELECTED BY THE
PARENT AND THE PROVIDER RECOMMENDED TO DELIVER SERVICES TO  SUCH  CHILD,
AND  ANY  AGENCY  UNDER  WHICH  SUCH  SERVICE  COORDINATOR, EVALUATOR OR
PROVIDER IS EMPLOYED BY OR UNDER CONTRACT WITH, SHALL NOT  BE  THE  SAME
ENTITY.
  ALL  APPROVED EVALUATORS AND PROVIDERS OF EARLY INTERVENTION SERVICES,
HEREINAFTER COLLECTIVELY REFERRED TO AS "PROVIDER"  OR  "PROVIDERS"  FOR
PURPOSES OF THIS SUBPARAGRAPH, SHALL ESTABLISH AND MAINTAIN CONTRACTS OR
AGREEMENTS  WITH  A  SUFFICIENT NUMBER OF INSURERS OR HEALTH MAINTENANCE
ORGANIZATIONS, INCLUDING THE MEDICAL ASSISTANCE  PROGRAM  OR  THE  CHILD
HEALTH  INSURANCE PROGRAM ESTABLISHED UNDER TITLE ONE-A OF THIS ARTICLE,
AS DETERMINED NECESSARY BY THE COMMISSIONER TO MEET  INSURER  OR  HEALTH
MAINTENANCE  ORGANIZATION  NETWORK ADEQUACY; PROVIDED, HOWEVER, THAT THE
DEPARTMENT MAY, IN ITS DISCRETION, APPROVE A PROVIDER WHO DOES NOT  HAVE
A  CONTRACT OR AGREEMENT WITH ONE OR MORE INSURERS OR HEALTH MAINTENANCE
ORGANIZATIONS IF THE PROVIDER RENDERS A SERVICE THAT MEETS A UNIQUE NEED
FOR SUCH SERVICE UNDER THE EARLY INTERVENTION PROGRAM.  APPROVED PROVID-
ERS SHALL SUBMIT TO THE DEPARTMENT, INFORMATION AND DOCUMENTATION OF THE
INSURERS AND HEALTH MAINTENANCE ORGANIZATIONS, WITH WHICH  THE  PROVIDER
HOLDS  AN  AGREEMENT OR CONTRACT. A PROVIDER'S APPROVAL WITH THE DEPART-
MENT TO DELIVER EVALUATIONS OR EARLY INTERVENTION SERVICES SHALL  TERMI-

S. 6256--B                          8                         A. 9056--B

NATE  IF THE PROVIDER FAILS TO PROVIDE SUCH INFORMATION OR DOCUMENTATION
ACCEPTABLE TO THE DEPARTMENT OF ITS CONTRACTS OR AGREEMENTS WITH  INSUR-
ERS OR HEALTH MAINTENANCE ORGANIZATIONS AS REQUESTED BY THE DEPARTMENT;
  (c)  [compiling  and  disseminating  to  the  municipalities  lists of
approved evaluators, service coordinators and providers of early  inter-
vention services;
  (d)] monitoring of agencies, institutions and organizations under this
title  and  agencies,  institutions  and  organizations  providing early
intervention services which are under the jurisdiction of a state  early
intervention service agency;
  [(e)]  (D)  enforcing  any obligations imposed on those agencies under
this title or Part H of the federal individuals with disabilities educa-
tion act and its regulations;
  [(f)] (E) providing training and technical assistance to  those  agen-
cies,  institutions  and  organizations,  including  initial and ongoing
training and technical assistance to municipalities to help enable  them
to  identify,  locate  and  evaluate  eligible  children, develop IFSPs,
ensure the provision of appropriate early intervention services, promote
the development of new services, where there is a demonstrated need  for
such  services  and afford procedural safeguards to infants and toddlers
and their families;
  [(g)] (F) correcting deficiencies that are identified through monitor-
ing; and
  [(h)] (G) in monitoring early intervention services, the  commissioner
shall  provide  municipalities  with  the results of any review of early
intervention services undertaken and shall  provide  the  municipalities
with the opportunity to comment thereon.
  S  7.  Subdivision  7  of  section  2551  of  the public health law is
REPEALED, and subdivisions 8, 9 and 10 are renumbered subdivisions 7,  8
and 9.
  S  8.   Section 2552 of the public health law, as added by chapter 428
of the laws of 1992, subdivisions 2 and 3 as amended by chapter  231  of
the  laws of 1993, and subdivision 4 as added by section 6 of part B3 of
chapter 62 of the laws of 2003, is amended to read as follows:
  S 2552. Responsibility of municipality.  1. Each municipality shall be
responsible for ensuring that the early intervention services  contained
in  an  IFSP  are  provided  to eligible children and their families who
reside in such municipality [and may contract with approved providers of
early intervention services for such purpose].  THE SERVICE  COORDINATOR
SHALL  REPORT, IN A MANNER AND FORMAT AS DETERMINED BY THE MUNICIPALITY,
ON THE DELIVERY OF SERVICES TO AN ELIGIBLE CHILD IN ACCORDANCE WITH  THE
ELIGIBLE CHILD'S IFSP. A MUNICIPALITY MAY REQUEST THAT THE PARENT SELECT
A NEW SERVICE COORDINATOR OR REQUIRE THAT THE SERVICE COORDINATOR SELECT
A  NEW  PROVIDER  OF SERVICES IF THE MUNICIPALITY FINDS THAT THE SERVICE
COORDINATOR HAS NOT BEEN  PERFORMING  HIS  OR  HER  RESPONSIBILITIES  AS
REQUIRED  BY  THIS  TITLE  OR  THAT  SERVICES  HAVE NOT BEEN PROVIDED IN
ACCORDANCE WITH THE ELIGIBLE CHILD'S IFSP.
  2. [After consultation with early intervention officials, the  commis-
sioner  shall develop procedures to permit a municipality to contract or
otherwise make arrangements with other municipalities  for  an  eligible
child and the child's family to receive services from such other munici-
palities.
  3.  The  municipality  shall  monitor claims for service reimbursement
authorized by this title and shall verify such claims prior to  payment.
The municipality shall inform the commissioner of discrepancies in bill-
ing and when payment is to be denied or withheld by the municipality.

S. 6256--B                          9                         A. 9056--B

  4.]  The early intervention official shall require an eligible child's
parent to furnish the parents'  and  eligible  child's  social  security
numbers  for the purpose of the department's and municipality's adminis-
tration of the program.
  S  9.  Subdivision  1  of  section  2557  of the public health law, as
amended by section 4 of part C of chapter 1 of  the  laws  of  2002,  is
amended to read as follows:
  1.  The  approved  costs,  OTHER THAN THOSE REIMBURSABLE IN ACCORDANCE
WITH SECTION TWENTY-FIVE HUNDRED  FIFTY-NINE  OF  THIS  TITLE,  for  [an
eligible]  A  child  who  receives  an evaluation and early intervention
services pursuant to this title shall be a charge upon the  municipality
wherein the eligible child resides or, where the services are covered by
the  medical  assistance  program,  upon the social services district of
fiscal responsibility with respect to those eligible  children  who  are
also  eligible  for medical assistance. All approved costs shall be paid
in the first instance and at least quarterly by the appropriate  govern-
ing  body  or  officer  of  the municipality upon vouchers presented and
audited in the same manner as the case of other claims against the muni-
cipality. Notwithstanding the insurance law  or  regulations  thereunder
relating  to  the  permissible  exclusion of payments for services under
governmental programs, no such exclusion shall  apply  with  respect  to
payments  made pursuant to this title. Notwithstanding the insurance law
or any other law or agreement to the contrary, benefits under this title
shall be considered secondary to any [plan of insurance or state govern-
ment benefit program] INSURANCE POLICY, PLAN OR CONTRACT under which  an
eligible child may have coverage, INCLUDING COVERAGE AVAILABLE UNDER THE
MEDICAL  ASSISTANCE PROGRAM OR THE CHILD HEALTH INSURANCE PROGRAM ESTAB-
LISHED IN TITLE ONE-A OF THIS ARTICLE, OR UNDER ANY  OTHER  GOVERNMENTAL
THIRD  PARTY  PAYOR.   Nothing in this section shall increase or enhance
coverages provided for within  an  insurance  contract  subject  to  the
provisions of this title.
  S  9-a.  Subdivision  4  of  section  2557 of the public health law is
REPEALED and subdivisions 2 and 5, subdivision 2 as added by chapter 428
of the laws of 1992 and subdivision 5 as added by section 7 of  part  B3
of chapter 62 of the laws of 2003, are amended to read as follows:
  2. The department shall reimburse the approved costs paid by a munici-
pality  for the purposes of this title, other than those reimbursable by
AN INSURER OR HEALTH MAINTENANCE  ORGANIZATION,  OR  GOVERNMENTAL  THIRD
PARTY  PAYOR INCLUDING the medical assistance program or [by third party
payors] THE CHILD HEALTH INSURANCE PROGRAM ESTABLISHED IN TITLE ONE-A OF
THIS ARTICLE, in an amount of fifty percent of the  amount  expended  in
accordance with the rules and regulations of the commissioner; PROVIDED,
HOWEVER,  THAT IN THE DISCRETION OF THE DEPARTMENT AND WITH THE APPROVAL
OF THE DIRECTOR OF THE DIVISION OF THE BUDGET, THE DEPARTMENT MAY  REIM-
BURSE  MUNICIPALITIES  IN  AN  AMOUNT  GREATER THAN FIFTY PERCENT OF THE
AMOUNT EXPENDED.  Such state reimbursement to the municipality shall not
be paid prior to April first of the year in which the approved costs are
paid by  the  municipality,  PROVIDED,  HOWEVER  THAT,  SUBJECT  TO  THE
APPROVAL  OF  THE  DIRECTOR  OF  THE BUDGET, THE DEPARTMENT MAY PAY SUCH
STATE AID REIMBURSEMENT TO THE MUNICIPALITY PRIOR TO SUCH DATE.
  5. [The  department  shall]  (A)  THE  COMMISSIONER,  IN  HIS  OR  HER
DISCRETION, IS AUTHORIZED TO contract with [an independent organization]
ONE  OR  MORE ENTITIES to act as the fiscal agent for the department AND
MUNICIPALITIES WITH RESPECT TO FISCAL MANAGEMENT AND  PAYMENT  OF  EARLY
INTERVENTION  CLAIMS. MUNICIPALITIES SHALL GRANT SUFFICIENT AUTHORITY TO
THE FISCAL AGENT TO ACT ON THEIR BEHALF. MUNICIPALITIES, AND  INDIVIDUAL

S. 6256--B                         10                         A. 9056--B

AND  AGENCY PROVIDERS AS DEFINED BY THE COMMISSIONER IN REGULATION SHALL
UTILIZE SUCH FISCAL AGENT FOR PAYMENT OF EARLY  INTERVENTION  CLAIMS  AS
DETERMINED  BY  THE  DEPARTMENT  AND  SHALL PROVIDE SUCH INFORMATION AND
DOCUMENTATION AS REQUIRED BY THE DEPARTMENT AND NECESSARY FOR THE FISCAL
AGENT TO CARRY OUT ITS DUTIES.
  (B)  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SECTION ONE HUNDRED
TWELVE OR ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW, SECTIONS ONE
HUNDRED FORTY-TWO AND ONE HUNDRED FORTY-THREE OF THE  ECONOMIC  DEVELOP-
MENT  LAW,  OR  ANY OTHER CONTRARY PROVISION OF LAW, THE COMMISSIONER IS
AUTHORIZED TO ENTER INTO A CONTRACT OR CONTRACTS UNDER PARAGRAPH (A)  OF
THIS SUBDIVISION WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC-
ESS, PROVIDED, HOWEVER, THAT:
  (I)  THE DEPARTMENT SHALL POST ON ITS WEBSITE, FOR A PERIOD OF NO LESS
THAN THIRTY DAYS:
  (1) A DESCRIPTION OF THE PROPOSED SERVICES TO BE PROVIDED PURSUANT  TO
THE CONTRACT OR CONTRACTS;
  (2) THE CRITERIA FOR SELECTION OF A CONTRACTOR OR CONTRACTORS;
  (3)  THE PERIOD OF TIME DURING WHICH A PROSPECTIVE CONTRACTOR MAY SEEK
SELECTION, WHICH SHALL BE NO LESS THAN THIRTY DAYS AFTER  SUCH  INFORMA-
TION IS FIRST POSTED ON THE WEBSITE; AND
  (4)  THE  MANNER  BY  WHICH  A  PROSPECTIVE  CONTRACTOR  MAY SEEK SUCH
SELECTION, WHICH MAY INCLUDE SUBMISSION BY ELECTRONIC MEANS;
  (II) ALL REASONABLE AND RESPONSIVE SUBMISSIONS THAT ARE RECEIVED  FROM
PROSPECTIVE  CONTRACTORS  IN  A  TIMELY FASHION SHALL BE REVIEWED BY THE
COMMISSIONER; AND
  (III) THE COMMISSIONER SHALL SELECT  SUCH  CONTRACTOR  OR  CONTRACTORS
THAT, IN HIS OR HER DISCRETION, ARE BEST SUITED TO SERVE THE PURPOSES OF
THIS SECTION.
  (C)  PARAGRAPH (B) OF THIS SUBDIVISION SHALL APPLY ONLY TO THE INITIAL
CONTRACT OR CONTRACTS NECESSARY TO OBTAIN THE SERVICES OF A FISCAL AGENT
FOR EARLY INTERVENTION PROGRAM FISCAL MANAGEMENT AND  PAYMENT  OF  EARLY
INTERVENTION  CLAIMS  AND SHALL NOT APPLY TO SUBSEQUENT CONTRACTS NEEDED
TO MAINTAIN SUCH SERVICES, AS DETERMINED BY THE COMMISSIONER IN  HIS  OR
HER  DISCRETION.    [A municipality may elect to utilize the services of
such organization for early intervention program fiscal  management  and
claiming  as determined by the commissioner or may select an independent
agent to act as the fiscal agent for such municipality or may act as its
own fiscal agent.]
  S 10. Subdivision 4 of section 2558 of the public health law, as added
by chapter 428 of the laws of 1992, is amended to read as follows:
  4. Local contribution. The municipality of residence shall  be  finan-
cially  responsible  for  the  local contribution in the amount of fifty
percent of the [approved costs] AMOUNT EXPENDED PROVIDED, HOWEVER,  THAT
IN  THE DISCRETION OF THE DEPARTMENT AND WITH THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, IN ACCORDANCE WITH SUBDIVISION TWO OF
SECTION TWENTY-FIVE HUNDRED FIFTY-SEVEN OF THIS  TITLE,  THE  DEPARTMENT
MAY  REQUIRE  THAT MUNICIPALITIES BE FINANCIALLY RESPONSIBLE FOR A LOCAL
CONTRIBUTION IN  AN  AMOUNT  LESS  THAN  FIFTY  PERCENT  OF  THE  AMOUNT
EXPENDED.   The commissioner shall certify to the comptroller the amount
of the local contribution owed by each municipality to  the  state.  The
comptroller  shall  deduct  the  amount of such local contribution first
from any moneys due the municipality  pursuant  to  section  twenty-five
hundred fifty-six of this title and then from any other moneys due or to
become due to the municipality.
  S  11. Paragraphs (a), (c) and (d) of subdivision 3 of section 2559 of
the public health law, paragraph (a) as amended  and  paragraph  (d)  as

S. 6256--B                         11                         A. 9056--B

added  by chapter 231 of the laws of 1993, subparagraphs (i) and (ii) of
paragraph (a) as added by chapter 406 of the laws of 2011, and paragraph
(c) as added by chapter 428 of the laws of 1992 are amended to  read  as
follows:
  (a)  Providers  of  EVALUATIONS AND early intervention services [and],
INCLUDING transportation services, HEREINAFTER COLLECTIVELY REFERRED  TO
IN  THIS  SUBDIVISION  AS  "PROVIDER" OR "PROVIDERS", shall in the first
instance and where applicable, seek payment from all [third party payors
including governmental agencies] INSURERS AND HEALTH MAINTENANCE  ORGAN-
IZATIONS,  INCLUDING THE MEDICAL ASSISTANCE PROGRAM AND THE CHILD HEALTH
INSURANCE PROGRAM ESTABLISHED IN TITLE ONE-A OF  THIS  ARTICLE  AND  ANY
OTHER  GOVERNMENTAL  THIRD PARTY PAYORS prior to claiming payment from a
given municipality for EVALUATIONS CONDUCTED UNDER THE PROGRAM  AND  FOR
services  rendered to eligible children, provided that, [for the purpose
of seeking payment from the medical assistance  program  or  from  other
third  party  payors,  the  municipality shall be deemed the provider of
such early intervention services to the extent  that  the  provider  has
promptly furnished to the municipality adequate and complete information
necessary  to  support  the  municipality  billing, and provided further
that] the obligation to seek payment shall not apply to a  payment  from
[a  third  party  payor]  AN INSURER who is not prohibited from applying
such payment, and will apply such payment,  to  an  annual  or  lifetime
limit specified in the insured's policy.
  (i)  Parents  shall  provide [and] the municipality [shall obtain] AND
SERVICE COORDINATOR information on any  [plan  of  insurance]  INSURANCE
POLICY, PLAN OR CONTRACT under which an eligible child has coverage.
  (ii)  Parents shall provide the municipality AND THE SERVICE COORDINA-
TOR with a written referral from a primary care provider  as  documenta-
tion,  for  eligible  children, of the medical necessity of early inter-
vention services.
  (III) PROVIDERS SHALL UTILIZE THE DEPARTMENT'S FISCAL AGENT  AND  DATA
SYSTEM  FOR  CLAIMING PAYMENT FROM INSURERS OR HEALTH MAINTENANCE ORGAN-
IZATIONS FOR EVALUATIONS AND SERVICES RENDERED UNDER  THE  EARLY  INTER-
VENTION PROGRAM.
  (IV)  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, RULE OR REGU-
LATION, PAYMENTS MADE BY ANY INSURER OR HEALTH MAINTENANCE  ORGANIZATION
FOR  EVALUATIONS  AND  SERVICES  PROVIDED  UNDER  THE EARLY INTERVENTION
PROGRAM SHALL BE AT RATES  ESTABLISHED  UNDER  AN  AGREEMENT  NEGOTIATED
BETWEEN  THE  INSURER OR HEALTH MAINTENANCE ORGANIZATION, IF APPLICABLE,
PROVIDED, HOWEVER, THAT IF THE INSURER OR HEALTH  MAINTENANCE  ORGANIZA-
TION  MAINTAINS  A  NETWORK  OF PROVIDERS AND A CHILD HAS A DEMONSTRATED
NEED, AS DETERMINED BY THE INSURER OR HEALTH  MAINTENANCE  ORGANIZATION,
IF  APPLICABLE,  FOR AN EVALUATION OR SERVICE RENDERED BY A PROVIDER WHO
IS NOT WITHIN THE INSURER OR HEALTH MAINTENANCE ORGANIZATION'S  NETWORK,
PAYMENT  TO  SUCH  OUT OF NETWORK PROVIDER SHALL BE MADE AT RATES ESTAB-
LISHED BY THE COMMISSIONER IN ACCORDANCE WITH REGULATION.
  (V) PAYMENTS MADE BY ANY INSURER OR HEALTH MAINTENANCE  PROGRAM  SHALL
BE  CONSIDERED PAYMENTS IN FULL FOR SUCH SERVICES AND THE PROVIDER SHALL
NOT SEEK ADDITIONAL PAYMENT FROM THE MUNICIPALITY, CHILD, OR HIS OR  HER
PARENTS  FOR  ANY  PORTION OF THE COSTS OF SAID SERVICES. NOTHING HEREIN
SHALL PROHIBIT AN INSURER OR HEALTH MAINTENANCE ORGANIZATION FROM APPLY-
ING A COPAYMENT, COINSURANCE OR DEDUCTIBLE AS SET FORTH IN THE POLICY OR
PLAN.  PAYMENTS FOR COPAYMENTS, COINSURANCE OR DEDUCTIBLES SHALL BE MADE
IN ACCORDANCE WITH PARAGRAPH (B) OF THIS SUBDIVISION.
  (VI) WHEN PAYMENT UNDER AN INSURANCE POLICY, PLAN OR CONTRACT  IS  NOT
AVAILABLE  OR  HAS  BEEN  EXHAUSTED,  PROVIDERS  SHALL  SEEK PAYMENT FOR

S. 6256--B                         12                         A. 9056--B

SERVICES IN ACCORDANCE WITH SECTION TWENTY-FIVE HUNDRED  FIFTY-SEVEN  OF
THIS TITLE; PROVIDED, HOWEVER, THAT IF THE SERVICE PROVIDED IS A COVERED
BENEFIT  UNDER  THE POLICY, PLAN OR CONTRACT AND PAYMENT HAS BEEN DENIED
ON  GROUNDS  OTHER  THAN THAT BENEFITS HAVE BEEN EXHAUSTED, THE PROVIDER
SHALL EXHAUST ALL APPEALS OF SAID DENIAL PRIOR TO  CLAIMING  PAYMENT  TO
THE  MUNICIPALITY FOR THE SERVICE IN ACCORDANCE WITH SECTION TWENTY-FIVE
HUNDRED FIFTY-SEVEN OF THIS TITLE. PROVIDERS SHALL  NOT  DISCONTINUE  OR
DELAY  SERVICES  TO  ELIGIBLE  CHILDREN  PENDING PAYMENT OF THE CLAIM OR
DETERMINATIONS OF ANY APPEAL DENIALS.
  (c) Payments made for early intervention services under  an  insurance
policy  or  health  benefit plan, INCLUDING PAYMENTS MADE BY THE MEDICAL
ASSISTANCE PROGRAM OR THE CHILD  HEALTH  INSURANCE  PROGRAM  ESTABLISHED
UNDER  TITLE  ONE-A  OF  THIS  ARTICLE OR OTHER GOVERNMENTAL THIRD PARTY
PAYOR, which are provided as part of an IFSP pursuant to  section  twen-
ty-five  hundred  forty-five  of  this title shall not be applied by the
insurer or plan administrator against any  maximum  lifetime  or  annual
limits  specified  in  the  policy  or health benefits plan, pursuant to
section eleven of the chapter of the laws of nineteen hundred ninety-two
which added this title.
  [(d) A municipality, or its designee,  shall  be  subrogated,  to  the
extent  of  the expenditures by such municipality for early intervention
services furnished to persons eligible for benefits under this title, to
any rights such person may have or  be  entitled  to  from  third  party
reimbursement. The right of subrogation does not attach to benefits paid
or  provided  under  any health insurance policy or health benefits plan
prior to receipt of written notice of the exercise of subrogation rights
by the insurer or plan administrator providing such benefits.]
  S 12. Subdivision 7 of section 2510  of  the  public  health  law,  as
amended  by  section 21 of part B of chapter 109 of the laws of 2010, is
amended to read as follows:
  7. "Covered health care services" means: the services  of  physicians,
optometrists,  nurses,  nurse  practitioners, midwives and other related
professional personnel  which  are  provided  on  an  outpatient  basis,
including  routine well-child visits; diagnosis and treatment of illness
and injury; inpatient health care services; laboratory tests; diagnostic
x-rays; prescription and  non-prescription  drugs  and  durable  medical
equipment; radiation therapy; chemotherapy; hemodialysis; emergency room
services;  hospice  services;  emergency,  preventive and routine dental
care, including medically necessary orthodontia but  excluding  cosmetic
surgery;  emergency,  preventive  and  routine  vision  care,  including
eyeglasses; speech and hearing services; and, inpatient  and  outpatient
mental  health,  alcohol  and substance abuse services as defined by the
commissioner in consultation with the superintendent.   "COVERED  HEALTH
CARE  SERVICES"  SHALL ALSO INCLUDE EARLY INTERVENTION SERVICES PROVIDED
PURSUANT TO TITLE TWO-A OF THIS ARTICLE UP TO THE  SCOPE  AND  LEVEL  OF
COVERAGE FOR THE SAME SERVICES PROVIDED PURSUANT TO THIS SUBDIVISION, AS
DEFINED  BY  THE  COMMISSIONER. "Covered health care services" shall not
include drugs, procedures and supplies for  the  treatment  of  erectile
dysfunction  when provided to, or prescribed for use by, a person who is
required to register as a sex offender pursuant to article six-C of  the
correction  law,  provided  that  any  denial of coverage of such drugs,
procedures or supplies shall provide  the  patient  with  the  means  of
obtaining  additional  information  concerning  both  the denial and the
means of challenging such denial.
  S 13. Intentionally omitted.

S. 6256--B                         13                         A. 9056--B

  S 14. Paragraph (b) of subdivision 5 of section  4403  of  the  public
health law is relettered paragraph (c), paragraph (c), as added by chap-
ter 705 of the laws of 1996, is amended and a new paragraph (b) is added
to read as follows:
  (B) UPON THE EFFECTIVE DATE OF THIS PARAGRAPH AND AT THE TIME OF EVERY
THREE  YEAR  REVIEW BY THE COMMISSIONER AS SET FORTH IN PARAGRAPH (A) OF
THIS SUBDIVISION, AND UPON APPLICATION FOR EXPANSION  OF  SERVICE  AREA,
THE  HEALTH MAINTENANCE ORGANIZATION SHALL DEMONSTRATE THAT IT MAINTAINS
AN ADEQUATE NETWORK OF PROVIDERS WHO ARE APPROVED TO DELIVER EVALUATIONS
AND EARLY INTERVENTION PROGRAM SERVICES IN ACCORDANCE WITH TITLE II-A OF
ARTICLE TWENTY-FIVE OF THIS CHAPTER, BY SHOWING TO THE  SATISFACTION  OF
THE  COMMISSIONER  THAT  (I)  THERE ARE A SUFFICIENT NUMBER OF GEOGRAPH-
ICALLY ACCESSIBLE PARTICIPATING PROVIDERS; AND (II) THERE ARE SUFFICIENT
PROVIDERS IN EACH AREA OF SPECIALTY OF PRACTICE TO MEET THE NEEDS OF THE
ENROLLMENT POPULATION.
  [(c)] (D) Each organization shall report on an annual basis the number
of enrollees and the number of participating providers in each organiza-
tion.  EACH HEALTH MAINTENANCE ORGANIZATION SHALL MAKE  PUBLICLY  AVAIL-
ABLE AND UPDATE ON A QUARTERLY BASIS, THE NAMES OF PARTICIPATING PROVID-
ERS IN THE HEALTH MAINTENANCE ORGANIZATION'S NETWORK WHO ARE APPROVED TO
DELIVER  EVALUATIONS  AND EARLY INTERVENTION PROGRAM SERVICES IN ACCORD-
ANCE WITH TITLE II-A OF ARTICLE TWENTY-FIVE OF THIS CHAPTER.
  S 15. Section 4406 of the public health law is amended by adding a new
subdivision 6 to read as follows:
  6. (A) NO SUBSCRIBER CONTRACT OR BENEFIT PACKAGE SHALL EXCLUDE  COVER-
AGE FOR OTHERWISE COVERED SERVICES SOLELY ON THE BASIS THAT THE SERVICES
CONSTITUTE EARLY INTERVENTION PROGRAM SERVICES UNDER TITLE II-A OF ARTI-
CLE TWENTY-FIVE OF THIS CHAPTER.
  (B)  WHERE  A SUBSCRIBER CONTRACT OR BENEFIT PACKAGE PROVIDES COVERAGE
FOR A SERVICE THAT IS PROVIDED UNDER THE EARLY INTERVENTION PROGRAM  AND
IS  OTHERWISE  COVERED UNDER THE SUBSCRIBER CONTRACT OR BENEFIT PACKAGE,
SUCH COVERAGE SHALL NOT BE APPLIED AGAINST ANY MAXIMUM ANNUAL  OR  LIFE-
TIME  MONETARY  LIMITS  SET FORTH IN SUCH SUBSCRIBER CONTRACT OR BENEFIT
PACKAGE. VISIT  LIMITATIONS  AND  OTHER  TERMS  AND  CONDITIONS  OF  THE
SUBSCRIBER  CONTRACT  OR BENEFIT PACKAGE WILL CONTINUE TO APPLY TO EARLY
INTERVENTION SERVICES. HOWEVER, ANY VISITS USED FOR  EARLY  INTERVENTION
PROGRAM  SERVICES SHALL NOT REDUCE THE NUMBER OF VISITS OTHERWISE AVAIL-
ABLE UNDER THE SUBSCRIBER CONTRACT OR BENEFIT PACKAGE FOR SUCH  SERVICES
THAT ARE NOT PROVIDED UNDER THE EARLY INTERVENTION PROGRAM.
  (C) THE HEALTH MAINTENANCE ORGANIZATION SHALL PROVIDE THE MUNICIPALITY
AND  SERVICE  COORDINATOR  WITH  INFORMATION  ON  THE EXTENT OF BENEFITS
AVAILABLE TO AN ENROLLEE UNDER SUCH SUBSCRIBER CONTRACT OR BENEFIT PACK-
AGE WITHIN FIFTEEN DAYS OF THE HEALTH MAINTENANCE ORGANIZATION'S RECEIPT
OF WRITTEN REQUEST AND NOTICE AUTHORIZING SUCH RELEASE.
  (D) NO  HEALTH  MAINTENANCE  ORGANIZATION  SHALL  REFUSE  TO  ISSUE  A
SUBSCRIBER  CONTRACT  OR BENEFIT PACKAGE OR REFUSE TO RENEW A SUBSCRIBER
CONTRACT OR BENEFIT PACKAGE SOLELY BECAUSE THE APPLICANT OR ENROLLEE  IS
RECEIVING SERVICES UNDER THE EARLY INTERVENTION PROGRAM.
  (E) HEALTH MAINTENANCE ORGANIZATIONS SHALL ACCEPT CLAIMS SUBMITTED FOR
PAYMENT  UNDER  THE  CONTRACT  FROM  A PROVIDER THROUGH THE DEPARTMENT'S
FISCAL AGENT AND DATA  SYSTEM  FOR  SUCH  CLAIMING.  HEALTH  MAINTENANCE
ORGANIZATIONS  SHALL,  IN A MANNER AND FORMAT AS REQUIRED BY THE DEPART-
MENT, PROVIDE THE DEPARTMENT WITH INFORMATION ON  CLAIMS  SUBMITTED  FOR
EVALUATIONS  AND  EARLY INTERVENTION SERVICES PROVIDED TO CHILDREN UNDER
THE EARLY INTERVENTION PROGRAM AND DISPOSITION OF SUCH CLAIMS.

S. 6256--B                         14                         A. 9056--B

  (F) WHERE A SUBSCRIBER CONTRACT OR BENEFIT PACKAGE  PROVIDES  COVERAGE
FOR  AN  EVALUATION  OR  SERVICE  PROVIDED  UNDER THE EARLY INTERVENTION
PROGRAM, REIMBURSEMENT FOR SUCH EVALUATION OR SERVICE SHALL BE AT  RATES
NEGOTIATED BY THE HEALTH MAINTENANCE ORGANIZATION AND PROVIDER PROVIDED,
HOWEVER,  THAT  IF A CHILD HAS A DEMONSTRATED NEED, AS DETERMINED BY THE
HEALTH MAINTENANCE ORGANIZATION, FOR AN EVALUATION OR  SERVICE  RENDERED
BY  A  PROVIDER  WHO  DOES NOT HOLD AN AGREEMENT WITH THE CHILD'S HEALTH
MAINTENANCE ORGANIZATION  FOR  THE  PROVISION  OF  SERVICES  TO  COVERED
PERSONS,  PAYMENT TO SUCH OUT OF NETWORK PROVIDER SHALL BE MADE AT RATES
ESTABLISHED BY THE COMMISSIONER IN ACCORDANCE WITH REGULATION.
  (G) HEALTH MAINTENANCE ORGANIZATIONS SHALL ENSURE THAT THE  TERMS  AND
CONDITIONS  CONTAINED IN SUBSCRIBER CONTRACTS OR BENEFIT PACKAGES RELAT-
ING TO PROVISION OF SERVICES TO CHILDREN UNDER  THE  EARLY  INTERVENTION
PROGRAM  COMPLIES WITH TITLE II-A OF ARTICLE TWENTY-FIVE OF THIS CHAPTER
AND WITH STANDARDS SET FORTH IN PART C OF THE INDIVIDUALS WITH DISABILI-
TIES EDUCATION ACT, AS AMENDED  BY  THE  INDIVIDUALS  WITH  DISABILITIES
EDUCATION IMPROVEMENT ACT OF 2004.
  S 16.  Intentionally omitted.
  S  17. Subsections (c) and (e) of section 3235-a of the insurance law,
subsection (c) as amended and subsection (e) as added by chapter 406  of
the laws of 2011, are amended, and a new subsection (f) is added to read
as follows:
  (c)  [Any  right  of  subrogation  to benefits which a municipality is
entitled in accordance  with  paragraph  (d)  of  subdivision  three  of
section twenty-five hundred fifty-nine of the public health law shall be
valid  and  enforceable  to  the extent benefits are available under any
accident and health insurance policy. The right of subrogation does  not
attach  to  insurance  benefits  paid or provided under any accident and
health insurance policy prior to  receipt  by  the  insurer  of  written
notice  from  the  municipality.  Upon  the insurer's receipt of written
request and notice from the municipality that such right of  subrogation
has  been  granted to such municipality and that the insured has author-
ized the release of information to the municipality,  the]  THE  insurer
shall  provide the municipality AND SERVICE COORDINATOR with information
on the extent of benefits available to the  covered  person  under  such
policy  WITHIN  FIFTEEN DAYS OF THE INSURER'S RECEIPT OF WRITTEN REQUEST
AND NOTICE AUTHORIZING SUCH RELEASE.
  (e) [Written claim for early intervention program  services  shall  be
submitted  by  the  municipality  as  the  approved  provider within one
hundred fifty days from the date of service.] WHERE A POLICY OF ACCIDENT
AND HEALTH INSURANCE, INCLUDING A CONTRACT ISSUED  PURSUANT  TO  ARTICLE
FORTY-THREE OF THIS CHAPTER, UTILIZES A NETWORK OF PROVIDERS, THE INSUR-
ER SHALL DEMONSTRATE TO THE SUPERINTENDENT THAT IT MAINTAINS AN ADEQUATE
NETWORK  OF  PROVIDERS WHO ARE APPROVED TO DELIVER EVALUATIONS AND EARLY
INTERVENTION PROGRAM SERVICES IN ACCORDANCE WITH TITLE II-A  OF  ARTICLE
TWENTY-FIVE OF THE PUBLIC HEALTH LAW BY DOCUMENTING THAT (I) THERE ARE A
SUFFICIENT  NUMBER OF GEOGRAPHICALLY ACCESSIBLE PARTICIPATING PROVIDERS;
AND (II) THERE ARE SUFFICIENT PROVIDERS IN EACH  AREA  OF  SPECIALTY  OF
PRACTICE TO MEET THE NEEDS OF THE ENROLLMENT POPULATION.  WHERE A POLICY
OF  ACCIDENT  AND HEALTH INSURANCE, INCLUDING A CONTRACT ISSUED PURSUANT
TO ARTICLE FORTY-THREE OF THIS CHAPTER, PROVIDES COVERAGE FOR AN  EVALU-
ATION   OR  SERVICE  PROVIDED  UNDER  THE  EARLY  INTERVENTION  PROGRAM,
REIMBURSEMENT FOR SUCH EVALUATION OR SERVICE SHALL BE AT  RATES  NEGOTI-
ATED BY THE INSURER AND PROVIDER, IF APPLICABLE, PROVIDED, HOWEVER, THAT
IF A CHILD HAS A DEMONSTRATED NEED FOR AN EVALUATION OR SERVICE RENDERED
BY  A  PROVIDER  WHO DOES NOT HOLD AN AGREEMENT WITH THE CHILD'S INSURER

S. 6256--B                         15                         A. 9056--B

FOR THE PROVISION OF  SERVICES  TO  COVERED  PERSONS,  PAYMENT  TO  SUCH
PROVIDER  SHALL  BE  MADE  AT  RATES  ESTABLISHED BY THE COMMISSIONER OF
HEALTH IN ACCORDANCE WITH REGULATION.
  (F)  NOTHING  IN THIS SECTION SHALL BE DEEMED TO LIMIT THE SUPERINTEN-
DENT'S AUTHORITY TO IMPOSE NETWORK ADEQUACY REQUIREMENTS ON INSURERS  IN
GENERAL.
  S 18. Subdivision 18 of section 4403 of the education law is REPEALED.
  S  19. Paragraph f of subdivision 3 and the opening paragraph of para-
graph a of subdivision 9 of  section  4410  of  the  education  law,  as
amended  by  chapter  82  of  the  laws  of 1995, are amended to read as
follows:
  f. After notification by [an early intervention  official]  A  SERVICE
COORDINATOR,  as defined in section twenty-five hundred forty-one of the
public health law, that a child receiving  services  pursuant  to  title
II-A  of  article  twenty-five of the public health law potentially will
transition to receiving services under this section and that  a  confer-
ence  is to be convened to review the child's program options and estab-
lish a transition plan, which conference must occur at least ninety days
before such child would be eligible for services under this section, the
chairperson of the committee on preschool special education of the local
school district or his or her designee in which such child resides shall
participate in the conference.
  Providers of special services or programs shall apply to  the  commis-
sioner  for  program  approval on a form prescribed by the commissioner;
such application shall include, but not be limited to, a listing of  the
services to be provided, the population to be served, a plan for provid-
ing  services  in the least restrictive environment and a description of
its evaluation component,  if  any.  [Providers  of  early  intervention
services seeking approval pursuant to subdivision seven of section twen-
ty-five  hundred  fifty-one  of the public health law shall apply to the
commissioner for such approval on a form prescribed by  the  commission-
er.]  The  commissioner  shall approve programs in accordance with regu-
lations adopted for such purpose  and  shall  periodically  review  such
programs  at  which time the commissioner shall provide the municipality
in which the program is located or  for  which  the  municipality  bears
fiscal  responsibility  an opportunity for comment within thirty days of
the review. In collaboration with municipalities and representatives  of
approved   programs,  the  commissioner  shall  develop  procedures  for
conducting such reviews. Municipalities shall be allowed to  participate
in  such  departmental review process. Such review shall be conducted by
individuals with appropriate experience as determined by the commission-
er and shall be conducted not more than once every three years.
  S 20. Intentionally omitted.
  S 21. Intentionally omitted.
  S 22. Intentionally omitted.
  S 23. This act shall take effect January 1, 2013;  provided,  however,
that:
  1.  the  amendments  to  subdivision  7  of section 2510 of the public
health law made by section twelve of this act shall not affect the expi-
ration of such subdivision and shall be deemed to expire therewith;
  2. the requirements contained in subparagraph (iv) of paragraph (a) of
subdivision 3 of section 2559 of the public  health  law,  as  added  by
section  eleven  of  this act, paragraph (f) of subdivision 6 of section
4406 of the public health law, as added by section fifteen of this  act,
and subsection (e) of section 3235-a of the insurance law, as amended by
section  seventeen  of  this  act, as such sections pertain to requiring

S. 6256--B                         16                         A. 9056--B

that an insurer or health maintenance organization  make  payment  to  a
provider  who  is not within the insurer or health maintenance organiza-
tion's network at rates established by the  commissioner  of  health  in
accordance  with  regulation,  if  a  child  has a demonstrated need, as
determined by the insurer or health maintenance organization, if  appli-
cable,  for  an  evaluation or service rendered by a provider who is not
within the insurer or health maintenance organization's  network,  shall
apply  only to policies, benefit packages and contracts issued, renewed,
modified, altered or amended on or after  the  effective  date  of  such
sections of this act; and
  3. sections two-a, four, five, seven, eight, nine-a, ten, eighteen and
nineteen of this act shall take effect April 1, 2013.

                                 PART B

  Section  1.  Subdivisions  9,  10 and 11 of section 3555 of the public
authorities law, as added by chapter 5 of the laws of 1997, are  amended
to read as follows:
  9. to determine the conditions under which a physician may be extended
the privilege of practicing within a health facility under the jurisdic-
tion of the corporation, to promulgate internal policies for the conduct
of  all  persons, physicians and allied health practitioners within such
facility, and to appoint and grant privileges to qualified and competent
clinical practitioners; [and]
  10. except as provided in this subdivision or as expressly limited  by
any  applicable  state  law  or regulation, and in support of the powers
granted by subdivisions five and six of this section,  to  form  and  to
participate  in  the formation of one or more corporations, and to exer-
cise and perform such purposes, powers, duties, functions or  activities
through  one  or more subsidiary corporations or other entities owned or
controlled wholly or in part by the corporation, which shall  be  formed
pursuant  to the business corporation law, the limited liability company
law, the not-for-profit corporation law, or  the  partnership  law;  any
such subsidiary may be authorized to act as a general or limited partner
in  a  partnership  or  as  a member of a limited liability company, and
enter into an arrangement calling for an initial and subsequent  payment
or  payments or contributions to capital by such subsidiary in consider-
ation of an interest in revenues or other contractual rights.  An entity
shall be deemed a subsidiary corporation whenever and  so  long  as  (a)
more than half of any voting shares or other membership interest of such
subsidiary are owned or held by the corporation or (b) a majority of the
directors,  trustees  or members of such subsidiary are designees of the
corporation[.];
  11. TO ACCEPT FUNDING FROM THE STATE  PURSUANT  TO  PARAGRAPH  (O)  OF
SUBDIVISION  ONE  OF  SECTION TWENTY-EIGHT HUNDRED SEVEN-V OF THE PUBLIC
HEALTH LAW OR PURSUANT TO SECTION TWENTY-EIGHT HUNDRED EIGHTEEN  OF  THE
PUBLIC HEALTH LAW, PROVIDED, HOWEVER, THAT AS A CONDITION FOR RECEIPT OF
SUCH  FUNDS THE CORPORATION IS REQUIRED TO TAKE ALL NECESSARY AND APPRO-
PRIATE STEPS AND ARRANGEMENTS, INCLUDING BUT NOT  LIMITED  TO,  ENTERING
INTO  AN  ARRANGEMENT  FOR  MERGER OR OTHER AFFILIATION WITH ONE OR MORE
HEALTH CARE,  ACADEMIC  OR  OTHER  ENTITIES,  LOCATED  WITHIN  THE  SAME
GEOGRAPHICAL REGION AS THE CORPORATION, FOR THE PURPOSE OF PROMOTING THE
CONTINUED FINANCIAL VIABILITY OF THE CORPORATION, PROTECTING AND PROMOT-
ING  THE  HEALTH OF THE PATIENTS SERVED BY ITS HEALTH FACILITIES AND, TO
THE EXTENT POSSIBLE, CONTRIBUTING TO THE ECONOMIC REVITALIZATION OF  THE
REGION BY BECOMING OPERATIONALLY AND FISCALLY INDEPENDENT OF THE DEPART-

S. 6256--B                         17                         A. 9056--B

MENT  OF  HEALTH BY NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND FOUR-
TEEN, AND PROVIDED FURTHER, HOWEVER, THAT  THE  COMMISSIONER  OF  HEALTH
SHALL  MONITOR  SUCH  STEPS AND ARRANGEMENTS, ESTABLISH GOALS AND BENCH-
MARKS  FOR  THE  ACHIEVEMENT  OF  SUCH INDEPENDENCE, INTERCEDE AS DEEMED
NECESSARY AND  APPROPRIATE  AND  DELAY  OR  PRECLUDE  THE  CORPORATION'S
RECEIPT OF SUCH FUNDS IN THE EVENT THE COMMISSIONER OF HEALTH DETERMINES
THAT SUCH GOALS AND BENCHMARKS HAVE NOT BEEN MET.
  12.  No  subsidiary  of  the corporation shall own, operate, manage or
control the existing research, education, acute inpatient or  outpatient
facilities  and  services now operated by the Roswell Park Cancer Insti-
tute.
  S 2. This act shall take effect April 1, 2012.

                                 PART C

  Section 1. The public health law is amended by adding  a  new  section
4148 to read as follows:
  S 4148. ELECTRONIC DEATH REGISTRATION SYSTEM. 1. LEGISLATIVE FINDINGS.
THE  LEGISLATURE  FINDS THAT IT IS NECESSARY TO UPDATE AND MODERNIZE THE
STATE'S SYSTEM OF  FILING  AND  MAINTAINING  INFORMATION  AND  DOCUMENTS
RELATED  TO  THE REGISTRATION OF DEATH. AN ELECTRONIC DEATH REGISTRATION
SYSTEM WILL PROMOTE ACCURACY AND PROVIDE FOR MORE TIMELY TRANSMISSION OF
DOCUMENTATION, PROMOTING EFFICIENCY IN THE OPERATIONS OF THE DEPARTMENT,
WHICH OVERSEES THE DEATH REGISTRATION FILING PROCESS; LOCAL  REGISTRARS,
WHICH ACCEPT AND FILE CERTIFICATES OF DEATH AND ISSUE BURIAL AND REMOVAL
PERMITS;  HEALTH  CARE  INSTITUTIONS  AND  PRACTITIONERS,  CORONERS  AND
MEDICAL EXAMINERS, WHICH PREPARE CERTIFICATES  OF  DEATH;  AND  LICENSED
FUNERAL  DIRECTORS AND UNDERTAKERS, WHO REQUIRE PROMPT ACCESS TO CERTIF-
ICATES OF DEATH TO CONDUCT BURIALS AND FUNERALS  IN  A  TIMELY  FASHION.
LICENSED FUNERAL DIRECTORS AND UNDERTAKERS HAVE EXPRESSED THEIR INTEREST
IN PARTNERING WITH THE DEPARTMENT TO SUPPORT THE ESTABLISHMENT AND MAIN-
TENANCE  OF SUCH SYSTEM THROUGH A CONTRIBUTION, TENDERED FOR EACH BURIAL
AND REMOVAL PERMIT ISSUED TO A LICENSED FUNERAL DIRECTOR OR  UNDERTAKER,
IN THE AMOUNT OF TWENTY DOLLARS.
  2.  THE DEPARTMENT IS HEREBY AUTHORIZED AND DIRECTED TO DESIGN, IMPLE-
MENT AND MAINTAIN AN ELECTRONIC DEATH REGISTRATION SYSTEM  FOR  COLLECT-
ING,  STORING, RECORDING, TRANSMITTING, AMENDING, CORRECTING AND AUTHEN-
TICATING INFORMATION, AS NECESSARY AND APPROPRIATE TO COMPLETE  A  DEATH
REGISTRATION,  AND  TO  GENERATE  SUCH  DOCUMENTS  AS  DETERMINED BY THE
DEPARTMENT IN RELATION TO A DEATH OCCURRING IN THIS STATE. THE  CONTRIB-
UTION  REFERENCED  IN SUBDIVISION ONE OF THIS SECTION SHALL BE COLLECTED
FOR EACH BURIAL OR REMOVAL PERMIT ISSUED ON OR AFTER THE EFFECTIVE  DATE
OF THIS SECTION FROM THE LICENSED FUNERAL DIRECTOR OR UNDERTAKER TO WHOM
SUCH  PERMIT  IS  ISSUED,  IN THE MANNER SPECIFIED BY THE DEPARTMENT AND
SHALL BE USED SOLELY FOR THE PURPOSE SET FORTH IN SUBDIVISION 1 OF  THIS
SECTION.
  3.  COMMENCING  ON  JANUARY  FIRST,  TWO THOUSAND FOURTEEN, OR AS SOON
THEREAFTER AS THE COMMISSIONER  REASONABLY  DETERMINES  IS  FEASIBLE  IN
LIGHT  OF  THE INTENT OF THIS SECTION, THE DEPARTMENT SHALL REQUIRE THAT
DEATHS OCCURRING WITHIN THIS STATE MUST BE REGISTERED  USING  THE  ELEC-
TRONIC DEATH REGISTRATION SYSTEM ESTABLISHED IN THIS SECTION. ELECTRONIC
DEATH  REGISTRATION MAY BE PHASED IN, AS DETERMINED BY THE COMMISSIONER,
FOR DEATHS OCCURRING IN THE STATE UNTIL THE ELECTRONIC  DEATH  REGISTRA-
TION SYSTEM IS FULLY IMPLEMENTED IN THE STATE.
  4. COMMENCING ON JANUARY FIRST, TWO THOUSAND FOURTEEN, OR ON SUCH DATE
DETERMINED  BY  THE  COMMISSIONER  PURSUANT  TO  SUBDIVISION  3  OF THIS

S. 6256--B                         18                         A. 9056--B

SECTION, ALL PERSONS REQUIRED TO REGISTER A DEATH OR FILE A  CERTIFICATE
OF DEATH UNDER THIS ARTICLE, AND SUCH OTHERS AS MAY BE AUTHORIZED BY THE
COMMISSIONER,  SHALL  HAVE  ACCESS  TO THE ELECTRONIC DEATH REGISTRATION
SYSTEM  FOR  THE  PURPOSE  OF  ENTERING INFORMATION REQUIRED TO EXECUTE,
COMPLETE AND FILE A CERTIFICATE OF DEATH OR TO RETRIEVE SUCH INFORMATION
OR GENERATE DOCUMENTATION FROM THE ELECTRONIC DEATH REGISTRATION SYSTEM.
THE CONFIDENTIALITY PROVISIONS IN SECTION FORTY-ONE HUNDRED  FORTY-SEVEN
OF THIS TITLE SHALL APPLY TO INFORMATION MAINTAINED IN THIS SYSTEM.
  5. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, COMMENCING ON
OR  AFTER  JANUARY  FIRST, TWO THOUSAND FOURTEEN, OR ON SUCH DATE DETER-
MINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION 3 OF THIS SECTION, ANY
REQUIREMENT OF THIS TITLE FOR A SIGNATURE OF ANY PERSON SHALL BE  DEEMED
SATISFIED  BY  THE USE BY SUCH PERSON OF DIGITAL SIGNATURE PROVIDED SUCH
PERSON IS AUTHORIZED IN ACCORDANCE WITH THIS SECTION TO  USE  THE  ELEC-
TRONIC DEATH REGISTRATION SYSTEM.
  S  2.  Subdivision  1  of  section 4100-a of the public health law, as
amended by chapter 644 of the laws of 1988, is amended and a new  subdi-
vision 5 is added to read as follows:
  1.  The term "certified copy" means a photographic reproduction in the
form of a photocopy or a microfilm print of the original certificate  OR
ELECTRONICALLY PRODUCED PRINT OF THE ORIGINAL CERTIFICATE, COMMENCING ON
OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND FOURTEEN, and certified by the
commissioner, his designated representative, a local registrar  [or  his
deputy], DEPUTY REGISTRAR OR SUB-REGISTRAR as a true copy thereof.
  5.  THE  TERM  "ELECTRONIC  DEATH  REGISTRATION SYSTEM" MEANS THE DATA
SYSTEM CREATED AND MAINTAINED BY THE DEPARTMENT FOR COLLECTING, STORING,
RECORDING, TRANSMITTING, AMENDING, CORRECTING AND AUTHENTICATING  INFOR-
MATION,  AS  NECESSARY AND APPROPRIATE TO COMPLETE A DEATH REGISTRATION,
AND TO GENERATE SUCH DOCUMENTS AS DETERMINED BY THE DEPARTMENT,  INCLUD-
ING  PERMITS  OR  CERTIFICATES,  RELATING  TO  A DEATH OCCURRING IN THIS
STATE.
  S 3. Subdivision 1 of section 4140 of the public health law is amended
to read as follows:
  1. The death of each person who has died in this state shall be regis-
tered immediately and not later than seventy-two hours  after  death  or
the  finding  of  a dead human body, by filing with the registrar of the
district in which the death occurred or the body was found a certificate
of such death, [which certificate shall be upon the form]  IN  A  MANNER
AND  FORMAT  AS  prescribed  by  the  commissioner,  WHICH SHALL INCLUDE
THROUGH ELECTRONIC MEANS IN ACCORDANCE WITH  SECTION  FORTY-ONE  HUNDRED
FORTY-EIGHT OF THIS TITLE.
  S  4.  Section  4141-a of the public health law, as amended by chapter
153 of the laws of 2011, is amended to read as follows:
  S 4141-a. Death certificate; duties of hospital administrator. When  a
death occurs in a hospital, except in those cases where certificates are
issued  by  coroners  or medical examiners, the person in charge of such
hospital or his or her designated representative shall promptly  present
the certificate to the physician or nurse practitioner in attendance, or
a physician or nurse practitioner acting in his or her behalf, who shall
promptly  certify to the facts of death, provide the medical information
required by the certificate, sign the medical certificate of death,  and
thereupon  return  such certificate to such person, so that the seventy-
two hour registration time limit prescribed in section four thousand one
hundred forty of this title can be met; PROVIDED, HOWEVER THAT  COMMENC-
ING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, OR ON SUCH DATE
DETERMINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION 3 OF SECTION 4148

S. 6256--B                         19                         A. 9056--B

OF THIS TITLE, INFORMATION AND SIGNATURES REQUIRED BY THIS SECTION SHALL
BE OBTAINED AND  MADE  IN  ACCORDANCE  WITH  SECTION  FORTY-ONE  HUNDRED
FORTY-EIGHT OF THIS TITLE.
  S  5. Section 4142 of the public health law is amended by adding a new
subdivision (e) to read as follows:
  (E) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF LAW AS MAY BE SET FORTH
IN THIS SECTION, COMMENCING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
FOURTEEN,  OR  ON  SUCH  DATE DETERMINED BY THE COMMISSIONER PURSUANT TO
SUBDIVISION 3 OF SECTION 4148 OF THIS TITLE, INFORMATION AND  SIGNATURES
REQUIRED  BY  THIS  SUBDIVISION SHALL BE OBTAINED AND MADE IN ACCORDANCE
WITH SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF THIS TITLE.
  S 6. Paragraph (b) of subdivision  2  and  subdivisions  3  and  5  of
section 4144 of the public health law, paragraph (b) of subdivision 2 as
amended  by  chapter  153  of  the  laws of 2011, are amended to read as
follows:
  (b) Verbal permission to remove a body of a deceased person  from  the
county  in  which death occurred or the body was found to a non-adjacent
county within the state of New York, as provided in subdivision  one  of
this section, shall be issued by the said registrar of vital statistics,
upon  request  by telephone of a licensed funeral director or undertaker
who holds a certificate of death signed by the  attending  physician  or
nurse  practitioner,  OR FOR DEATHS OCCURRING ON OR AFTER JANUARY FIRST,
TWO THOUSAND FOURTEEN, OR ON SUCH DATE DETERMINED  BY  THE  COMMISSIONER
PURSUANT  TO  SUBDIVISION  3 OF SECTION 4148 OF THIS TITLE, SUCH CERTIF-
ICATE OF DEATH SIGNED BY THE ATTENDING PHYSICIAN OR  NURSE  PRACTITIONER
IS AVAILABLE ELECTRONICALLY IN ACCORDANCE WITH SECTION FORTY-ONE HUNDRED
FORTY-EIGHT  OF THIS TITLE, showing that the death resulted from natural
causes and was not a result of accidental, suicidal, homicidal or  other
external causes.
  3.  No  registrar  of  vital  statistics shall receive any fee for the
issuance of burial or removal  permits  under  this  chapter  EXCEPT  AS
REFERENCED  BY  SECTION  FORTY-ONE HUNDRED FORTY-EIGHT OF THIS TITLE AND
other than the compensation provided in this article.
  5. If the interment, or other disposition of the body  of  a  deceased
person  is  to  be  made  within the state, the wording of the burial or
removal permit may be limited to a statement by the registrar, and  over
his  signature,  that  a  satisfactory certificate of death, having been
filed with him, as required by law,  permission  is  granted  to  inter,
remove  or  otherwise  dispose  of the body, stating the name, age, sex,
cause of death, and other necessary details [upon the form prescribed by
the commissioner] IN A MANNER AND FORMAT  AS  MAY  BE  REQUIRED  BY  THE
COMMISSIONER.
  S  7.  Subdivisions  1 and 4 of section 4161 of the public health law,
subdivision 1 as amended by chapter 589 of the laws of 1991 and subdivi-
sion 4 as amended by chapter 153 of the laws of  2011,  are  amended  to
read as follows:
  1.  The certificate of fetal death and the report of fetal death shall
contain such information and be in such form  as  the  commissioner  may
prescribe;  PROVIDED  HOWEVER THAT COMMENCING ON OR AFTER JANUARY FIRST,
TWO THOUSAND FOURTEEN, OR ON SUCH DATE DETERMINED  BY  THE  COMMISSIONER
PURSUANT  TO  SUBDIVISION  3 OF THIS SECTION, INFORMATION AND SIGNATURES
REQUIRED BY THIS SUBDIVISION SHALL BE OBTAINED AND  MADE  IN  ACCORDANCE
WITH  SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF THIS ARTICLE, except that
unless requested by the woman neither the certificate nor the report  of
fetal  death  shall  contain  the name of the woman, her social security
number or any other information which would permit her to be  identified

S. 6256--B                         20                         A. 9056--B

except  as  provided  in this subdivision. The report shall state that a
certificate of fetal death was filed with the commissioner and the  date
of  such  filing.  The commissioner shall develop a unique, confidential
identifier  to  be  used on the certificate of fetal death to be used in
connection with the exercise of the commissioner's authority to  monitor
the  quality  of  care  provided by any individual or entity licensed to
perform an abortion in this state and to  permit  coordination  of  data
concerning  the  medical history of the woman for purposes of conducting
surveillance scientific studies and research pursuant to the  provisions
of  paragraph  (j) of subdivision one of section two hundred six of this
chapter.
  4. When a fetal death occurs in a  hospital,  except  in  those  cases
where  certificates  are  issued  by  coroners or medical examiners, the
person in charge of such hospital or his  or  her  designated  represen-
tative  shall promptly present the certificate to the physician or nurse
practitioner in attendance, or a physician or nurse practitioner  acting
in  his  or her behalf, who shall promptly certify to the facts of birth
and of fetal death, provide the  medical  information  required  by  the
certificate, sign the medical certificate of birth and death, and there-
upon  return  such  certificate  to such person, so that the seventy-two
hour registration time limit prescribed in  section  four  thousand  one
hundred  sixty of this title can be met; PROVIDED, HOWEVER THAT COMMENC-
ING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, OR  ON  SUCH  DATE
DETERMINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION 3 OF SECTION 4148
OF THIS ARTICLE, INFORMATION AND SIGNATURES REQUIRED BY THIS SUBDIVISION
SHALL  BE OBTAINED AND MADE IN ACCORDANCE WITH SECTION FORTY-ONE HUNDRED
FORTY-EIGHT OF THIS ARTICLE.
  S 8. Subdivision 3 of section 4171 of the public health law is amended
to read as follows:
  3. All certificates, either of birth or death, shall be written  legi-
bly, in durable black ink, [and no] PROVIDED HOWEVER, THAT COMMENCING ON
OR  AFTER  JANUARY  FIRST, TWO THOUSAND FOURTEEN, OR ON SUCH DATE DETER-
MINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION 3 OF SECTION  4148  OF
THIS  ARTICLE,  DEATH CERTIFICATES SHALL BE COMPLETED IN ACCORDANCE WITH
SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF THIS ARTICLE.  NO  certificate,
WHETHER FILED IN PAPER FORM OR DEATH CERTIFICATE FILED ELECTRONICALLY IN
ACCORDANCE  WITH  SECTION FORTY-ONE HUNDRED FORTY-EIGHT OF THIS ARTICLE,
shall be held to be complete and correct that does not supply all of the
items of information called for therein, or satisfactorily  account  for
their omission.
  S  9.  This act shall take effect immediately; provided, however, that
if chapter 153 of the laws of 2011 is not in effect on  such  date  then
the  amendments  made  to section 4141-a of the public health law, para-
graph (b) of subdivision 2 of section 4144 of the public health law  and
subdivision 4 of section 4161 of the public health law by sections four,
six  and  seven  of this act shall take effect on the same date and same
manner as chapter 153 of  the  laws  of  2011,  takes  effect;  provided
further  that  the  commissioner  of  health is authorized to promulgate
regulations as necessary to implement the provisions of this act.

                                 PART D

  Section 1. 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

S. 6256--B                         21                         A. 9056--B

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
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. THE COMMISSIONER IS 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
THE DEPARTMENT SHALL BE ITEMIZED IN  THE  ANNUAL  BUDGET  IN  AN  AMOUNT
DETERMINED  BY THE COMMISSIONER, 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 THE COMMISSIONER 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 AMOUN