S T A T E O F N E W Y O R K
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4448
2013-2014 Regular Sessions
I N S E N A T E
April 1, 2013
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Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Children and Families
AN ACT to amend the social services law and the public authorities law,
in relation to directing the out-of-state placement committee to
develop a residential bed plan and in relation to authorizing the
dormitory authority to finance new facilities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 483-d of the social services law is amended by
adding a new subdivision 7-a to read as follows:
7-A. RESIDENTIAL BED PLAN. (A) THE OUT-OF-STATE PLACEMENT COMMITTEE
MEMBERS SHALL DEVELOP A RESIDENTIAL BED PLAN THAT INCLUDES RECOMMENDA-
TIONS TO ADDRESS CURRENT AND FUTURE PROGRAMMATIC AND PHYSICAL PLANT
NEEDS FOR RENOVATED AND NEW IN-STATE CAPACITY AT RESIDENTIAL SCHOOLS AND
RESIDENTIAL FACILITIES, INCLUDING BUT NOT LIMITED TO: RESIDENTIAL INSTI-
TUTIONS FOR CHILDREN, AS DEFINED IN SUBDIVISION FORTY-FOUR OF SECTION
SIXTEEN HUNDRED SEVENTY-SIX OF THE PUBLIC AUTHORITIES LAW AND ANY OTHER
OFFICE OF CHILDREN AND FAMILY SERVICES LICENSED FACILITY; AND COMMUNITY
RESIDENCES, AS DEFINED IN SUBDIVISION TWENTY-EIGHT OF SECTION 1.03 OF
THE MENTAL HYGIENE LAW.
(I) THE COMMITTEE, IN CONSULTATION WITH THE DIVISION OF THE BUDGET,
SHALL DEVELOP A RESIDENTIAL BED PLAN THAT WILL BE BASED ON AGENCY DATA
REGARDING CHILDREN CURRENTLY IN NEED OF RESIDENTIAL SERVICES AND THE
PROJECTED FUTURE NEED FOR SUCH SERVICES, AND CURRENT PHYSICAL STATE AND
CAPACITY OF RESIDENTIAL SCHOOLS AND RESIDENTIAL FACILITIES. EACH MEMBER
AGENCY THAT PLACES CHILDREN OR HAS OVERSIGHT RESPONSIBILITY FOR THE
PLACEMENT OF CHILDREN IN RESIDENTIAL SCHOOLS OR RESIDENTIAL FACILITIES
WILL PROVIDE THIS DATA TO THE COMMITTEE.
(II) THE COMMITTEE SHALL FORWARD THE PLAN TO THE GOVERNOR, THE MAJORI-
TY LEADER OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
ER OF THE SENATE, AND THE MINORITY LEADER OF THE ASSEMBLY, AS SOON AS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07263-02-3
S. 4448 2
PRACTICABLE, BUT NO LATER THAN THE ANNUAL PROGRESS REPORT REQUIRED
PURSUANT TO SUBDIVISION SEVEN OF THIS SECTION, WITH ANNUAL UPDATES ON
ITS PROGRESS IN MEETING THE PLAN'S GOALS TO BE INCLUDED THEREAFTER IN
SUCH REPORT.
(B) IN ACCORDANCE WITH THE RESIDENTIAL BED PLAN DEVELOPED BY THE
COMMITTEE AND IN CONSULTATION WITH THE DIVISION OF THE BUDGET, INDIVID-
UAL COMMITTEE MEMBER AGENCIES SHALL ISSUE A REQUEST FOR PROPOSALS TO
PROVIDERS OF NOT-FOR-PROFIT RESIDENTIAL SCHOOLS OR RESIDENTIAL FACILI-
TIES WITHIN THE STATE FOR THE CONSTRUCTION OF NEW RESIDENTIAL SCHOOLS
AND RESIDENTIAL FACILITIES AND THE RENOVATION OR REHABILITATION OF
EXISTING RESIDENTIAL SCHOOLS AND RESIDENTIAL FACILITIES.
(C) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
MEMBERS OF THE COMMITTEE SHALL AUTHORIZE OR SEEK AUTHORIZATION FOR
CREATION OF A REIMBURSEMENT FACTOR FOR APPROVED CAPITAL COSTS FOR NEW
FACILITIES AND RENOVATION OR REHABILITATION OF EXISTING FACILITIES WITH-
IN THE EXISTING RATE METHODOLOGIES OF SUCH MEMBER AGENCY, INCLUDING ANY
SPECIAL RATE METHODOLOGIES ESTABLISHED FOR THE DORMITORY AUTHORITY
FINANCED PROGRAMS, UPON ITS DETERMINATION AND WITH THE CONCURRENCE OF
THE MEMBERS OF THE COMMITTEE, THAT THE CONSTRUCTION OR REHABILITATION OF
SUCH RESIDENTIAL SCHOOL OR RESIDENTIAL FACILITY IS DESIRABLE AND IN
KEEPING WITH THE RESIDENTIAL BED PLAN.
(D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
DORMITORY AUTHORITY IS HEREBY AUTHORIZED TO PROVIDE FINANCING OF THE
COSTS RELATED TO THE CONSTRUCTION OF NEW FACILITIES AND THE RENOVATION
OR REHABILITATION OF EXISTING RESIDENTIAL SCHOOLS AND RESIDENTIAL FACIL-
ITIES, PURSUANT TO THE PLAN DEVELOPED IN ACCORDANCE WITH PARAGRAPH (A)
OF THIS SUBDIVISION.
(E) NOTHING CONTAINED IN THIS SUBDIVISION SHALL REQUIRE THAT THE
DORMITORY AUTHORITY BE THE SOLE OR ONLY FINANCIER OF SUCH NEW FACILITIES
OR RENOVATION OR REHABILITATION OF EXISTING FACILITIES.
S 2. Paragraph (b) of subdivision 2 of section 1676 of the public
authorities law is amended by adding a new undesignated paragraph to
read as follows:
ANY RESIDENTIAL SCHOOL OR RESIDENTIAL FACILITY AS DEFINED IN SUBDIVI-
SION FORTY-SIX OF THIS SECTION FOR THE FINANCING, REFINANCING, DESIGN,
REPLACEMENT (INCLUDING ACQUISITION AND CONSTRUCTION), RECONSTRUCTION,
REHABILITATION, IMPROVEMENT, RENOVATION, AND EQUIPPING OF RESIDENTIAL
SCHOOLS OR RESIDENTIAL FACILITIES.
S 3. Section 1676 of the public authorities law is amended by adding a
new subdivision 46 to read as follows:
46. THE TERM "RESIDENTIAL FACILITY" OR "RESIDENTIAL SCHOOL" SHALL MEAN
A NOT-FOR-PROFIT CORPORATION THAT IS LICENSED OR CERTIFIED BY A STATE
AGENCY OR DEPARTMENT TO OPERATE A RESIDENTIAL SCHOOL OR A RESIDENTIAL
FACILITY FOR CHILDREN PLACED BY STATE AND LOCAL AGENCIES OR DEPARTMENTS,
INCLUDING BUT NOT LIMITED TO, THE COMMITTEE ON SPECIAL EDUCATION OF A
SCHOOL DISTRICT OR LOCAL SOCIAL SERVICES DISTRICT.
S 4. Subdivision l of section 1680 of the public authorities law is
amended by adding a new undesignated paragraph to read as follows:
ANY RESIDENTIAL SCHOOL OR RESIDENTIAL FACILITY AS DEFINED IN SUBDIVI-
SION FORTY-SIX OF SECTION SIXTEEN HUNDRED SEVENTY-SIX OF THIS TITLE FOR
THE FINANCING, REFINANCING, DESIGN, REPLACEMENT (INCLUDING ACQUISITION
AND CONSTRUCTION), RECONSTRUCTION, REHABILITATION, IMPROVEMENT, RENO-
VATION AND EQUIPPING OF SUCH RESIDENTIAL SCHOOLS AND RESIDENTIAL FACILI-
TIES THAT HAVE BEEN APPROVED IN ACCORDANCE WITH SUBDIVISION SEVEN-A OF
SECTION FOUR HUNDRED EIGHTY-THREE-D OF THE SOCIAL SERVICES LAW AND THAT
S. 4448 3
ARE CONSISTENT WITH THE RESIDENTIAL BED PLAN ADVANCED IN ACCORDANCE WITH
SUCH SUBDIVISION.
S 5. Section 1680 of the public authorities law is amended by adding a
new subdivision 41 to read as follows:
41. A. ANY LEASE, SUBLEASE OR OTHER AGREEMENT BY AND BETWEEN THE
AUTHORITY AND A NOT-FOR-PROFIT CORPORATION OPERATING A RESIDENTIAL
SCHOOL OR RESIDENTIAL FACILITY SHALL, IN ADDITION TO ANY OTHER
PROVISIONS DEEMED NECESSARY BY THE AUTHORITY, CONTAIN THE FOLLOWING:
(1) A REQUIREMENT THAT SUCH NOT-FOR-PROFIT CORPORATION ESTABLISH AN
ACCOUNT WITH A BANK OR TRUST COMPANY ACCEPTABLE TO THE AUTHORITY INTO
WHICH THE NOT-FOR-PROFIT CORPORATION SHALL DEPOSIT, OR CAUSE TO BE
DEPOSITED, ALL AMOUNTS RECEIVED BY SUCH NOT-FOR-PROFIT CORPORATION FROM
ANY SCHOOL DISTRICT, SOCIAL SERVICES DISTRICT, OR ANY OTHER PAYOR ON
ACCOUNT OF THE RESIDENTIAL AND EDUCATIONAL SERVICES PROVIDED BY SUCH
NOT-FOR-PROFIT CORPORATION. THE NOT-FOR-PROFIT CORPORATION SHALL GRANT
TO THE AUTHORITY A SECURITY INTEREST IN SUCH ACCOUNT AND THE MONEYS ON
DEPOSIT THEREIN SHALL BE SUBJECT TO WITHDRAWAL BY THE NOT-FOR-PROFIT
CORPORATION ONLY AFTER PAYMENT OF AMOUNTS THEN DUE TO THE AUTHORITY AS
PROVIDED IN SUCH LEASE, SUBLEASE OR OTHER AGREEMENT;
(2) A REQUIREMENT THAT THE NOT-FOR-PROFIT CORPORATION GRANT TO THE
AUTHORITY EITHER A MORTGAGE ON THE REAL PROPERTY USED BY SUCH
NOT-FOR-PROFIT CORPORATION TO PROVIDE RESIDENTIAL AND EDUCATIONAL
SERVICES OR SUCH OTHER INTEREST IN REAL PROPERTY AS IS ACCEPTABLE TO THE
AUTHORITY;
(3) A REQUIREMENT THAT THE NOT-FOR-PROFIT CORPORATION CONTINUE TO
OPERATE A RESIDENTIAL SCHOOL OR RESIDENTIAL FACILITY FOR CHILDREN PLACED
BY STATE AND LOCAL AGENCIES AND DEPARTMENTS (INCLUDING BUT NOT LIMITED
TO THE COMMITTEE ON SPECIAL EDUCATION OF A SCHOOL DISTRICT OR A LOCAL
SOCIAL SERVICES DISTRICT) FOR THE TERM OF THE LEASE, SUBLEASE OR OTHER
AGREEMENT AND IN THE EVENT SUCH NOT-FOR-PROFIT CORPORATION FAILS TO DO
SO, PROVIDE FOR THE TRANSFER AND OPERATION OF THE RESIDENTIAL PROGRAMS
OR EDUCATIONAL PROGRAMS TO A REPLACEMENT NOT-FOR-PROFIT OPERATOR THAT IS
QUALIFIED TO PROVIDE SUCH SERVICES AND THAT HAS ASSUMED THE OBLIGATIONS
OF SUCH NOT-FOR-PROFIT CORPORATION PURSUANT TO SUCH AGREEMENT;
(4) ALL STATE AND LOCAL OFFICERS ARE HEREBY AUTHORIZED AND REQUIRED TO
PAY ALL FUNDS PAYABLE TO A RESIDENTIAL SCHOOL OR RESIDENTIAL FACILITY ON
ACCOUNT OF THE RESIDENTIAL AND EDUCATIONAL SERVICES PROVIDED BY SUCH
NOT-FOR-PROFIT CORPORATION INTO THE ACCOUNT ESTABLISHED PURSUANT TO
SUBPARAGRAPH ONE OF THIS PARAGRAPH. IN THE EVENT OF THE FAILURE OF THE
APPLICABLE PAYOR TO MAKE A MAINTENANCE RATE PAYMENT (OR OTHER SIMILAR
RATE COMPONENT ESTABLISHED BY THE STATE AGENCY OR DEPARTMENT WHICH
LICENSED OR CERTIFIED THE RESIDENTIAL SCHOOL OR RESIDENTIAL FACILITY) TO
THE NOT-FOR-PROFIT CORPORATION FOR RESIDENTIAL CARE AND EDUCATIONAL
SERVICES PROVIDED TO A CHILD IN THE RESIDENTIAL SCHOOL OR RESIDENTIAL
FACILITY, THE STATE COMPTROLLER SHALL WITHHOLD STATE REIMBURSEMENT TO
THE APPLICABLE PAYOR IN AN AMOUNT EQUAL TO THE UNPAID OBLIGATION FOR THE
CAPITAL FINANCING ADD-ON RATE (OR OTHER SIMILAR RATE COMPONENT ESTAB-
LISHED BY THE STATE AGENCY OR DEPARTMENT WHICH LICENSED OR CERTIFIED THE
RESIDENTIAL SCHOOL OR RESIDENTIAL FACILITY) AND PAY OVER SUCH SUM TO THE
AUTHORITY OR ITS TRUSTEE UPON CERTIFICATION OF THE COMMISSIONER OF THE
OFFICE OF CHILDREN AND FAMILY SERVICES, THE STATE EDUCATION DEPARTMENT
OR ANY OTHER STATE GOVERNMENTAL PAYOR, AS APPLICABLE; AND
(5) A REQUIREMENT THAT THE NOT-FOR-PROFIT CORPORATION PAY TO THE
AUTHORITY THE AMOUNT REQUIRED TO PAY THE PRINCIPAL OF AND INTEREST ON
OBLIGATIONS OF THE AUTHORITY ISSUED IN RELATION TO PROVIDING SUCH RESI-
S. 4448 4
DENTIAL SCHOOLS AND RESIDENTIAL FACILITIES AND ALL INCIDENTAL EXPENSES
OF THE AUTHORITY INCURRED IN RELATION THERETO.
B. THE AUTHORITY SHALL NOT ENTER INTO ANY AGREEMENT AUTHORIZED BY
PARAGRAPH A OF THIS SUBDIVISION UNLESS AND UNTIL THE STATE AGENCY OR
DEPARTMENT WHICH CERTIFIED THE RESIDENTIAL SCHOOL OR RESIDENTIAL FACILI-
TY, TOGETHER WITH THE DIRECTOR OF THE DIVISION OF THE BUDGET, HAVE
APPROVED IN WRITING THE PROJECT TO BE FINANCED WITH THE PROCEEDS OF
BONDS ISSUED BY THE AUTHORITY.
C. THE AUTHORITY SHALL NOT ISSUE ANY BONDS OR NOTES IN EXCESS OF THIR-
TY MILLION DOLLARS FOR THE PURPOSE OF FINANCING THE COSTS RELATED TO
RESIDENTIAL SCHOOLS OR RESIDENTIAL FACILITIES AS DEFINED IN SUBDIVISION
FORTY-SIX OF SECTION SIXTEEN HUNDRED SEVENTY-SIX OF THIS TITLE, WHICH
BONDS AND NOTES SHALL BE IN ADDITION TO ANY BONDS OR NOTES WHICH THE
AUTHORITY MAY ISSUE PURSUANT TO SUBDIVISION FORTY OF THIS SECTION. IN
CALCULATING THE AMOUNT OF BONDS OR NOTES ISSUED OR OUTSTANDING PURSUANT
TO THIS SUBDIVISION, THE FOLLOWING SHALL BE EXCLUDED THEREFROM: (1) THE
PRINCIPAL AMOUNT OF BONDS OR NOTES ISSUED TO FUND ONE OR MORE DEBT
SERVICE RESERVE FUNDS; (2) THE PRINCIPAL AMOUNT OF BONDS OR NOTES ISSUED
TO PAY THE COSTS OF ISSUANCE OF SUCH BONDS OR TO PROVIDE FOR THE PAYMENT
OF INTEREST ON THE BONDS DURING CONSTRUCTION; AND (3) THE PRINCIPAL
AMOUNT OF BONDS OR NOTES ISSUED TO REFUND OR OTHERWISE REPAY SUCH BONDS
AND BONDS OR NOTES PREVIOUSLY ISSUED. EXCEPT FOR PURPOSES OF COMPLYING
WITH THE INTERNAL REVENUE CODE, ANY INTEREST INCOME EARNED ON BOND
PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS OR NOTES.
S 6. The social services law is amended by adding a new section 462-c
to read as follows:
S 462-C. STANDARDS OF PAYMENT. 1. (A) THE OFFICE OF CHILDREN AND FAMI-
LY SERVICES SHALL ESTABLISH, SUBJECT TO CONSULTATION WITH THE APPROPRI-
ATE STATE AGENCIES, THE APPROVAL OF THE DIRECTOR OF THE BUDGET AND
FEDERAL APPROVAL, STANDARDS OF PAYMENT FOR THE CAPITAL COSTS OF APPROVED
PROJECTS FOR RESIDENTIAL SCHOOLS OR RESIDENTIAL FACILITIES WHICH ENTER
INTO A LEASE, SUBLEASE OR OTHER AGREEMENT WITH THE DORMITORY AUTHORITY
PURSUANT TO SUBDIVISION FORTY-ONE OF SECTION SIXTEEN HUNDRED EIGHTY OF
THE PUBLIC AUTHORITIES LAW. THE MAINTENANCE RATE ESTABLISHED BY THE
COMMISSIONER OF THE OFFICE OF CHILDREN AND FAMILY SERVICES FOR SUCH
RESIDENTIAL SCHOOLS OR RESIDENTIAL FACILITIES SHALL BE ESTABLISHED IN
TWO PARTS, ONE PART OF WHICH WILL BE THE CAPITAL FINANCING ADD-ON RATE,
WHICH SHALL BE THE COST PER CHILD OF THE ANNUAL PAYMENT PURSUANT TO SUCH
LEASE, SUBLEASE OR OTHER AGREEMENT. THE APPLICABLE SOCIAL SERVICES
DISTRICT, SCHOOL DISTRICT OR OTHER PAYOR RESPONSIBLE FOR THE MAINTENANCE
COST OF A CHILD PLACED IN SUCH RESIDENTIAL SCHOOL OR RESIDENTIAL FACILI-
TY, SHALL AGREE TO PAY AND IS RESPONSIBLE FOR PAYING THE NOT-FOR-PROFIT
CORPORATION OPERATING THE RESIDENTIAL SCHOOL OR THE RESIDENTIAL FACILITY
ONE HUNDRED PERCENT OF THE CAPITAL FINANCING ADD-ON RATE FOR EACH SUCH
CHILD PLACED IN SUCH INSTITUTION. TO THE EXTENT PERMISSIBLE UNDER FEDER-
AL LAW AND REGULATION, THE CAPITAL FINANCING ADD-ON RATE SHALL NOT BE
SUBJECT TO ANY COST SCREENS, CAPS OR PARAMETERS LIMITING OR REDUCING THE
AMOUNT OF SUCH COST REQUIRED BY THIS SECTION.
(B) THE EXPENDITURES MADE BY THE APPLICABLE PAYOR FOR THE CAPITAL
FINANCING ADD-ON RATE FOR CHILDREN PLACED IN A RESIDENTIAL SCHOOL OR
RESIDENTIAL FACILITY WHICH HAS A LEASE, SUBLEASE OR OTHER AGREEMENT WITH
THE AUTHORITY PURSUANT TO SUBDIVISION FORTY-ONE OF SECTION SIXTEEN
HUNDRED EIGHTY OF THE PUBLIC AUTHORITIES LAW, SHALL BE SUBJECT TO STATE
REIMBURSEMENT IN ACCORDANCE WITH SUBDIVISION FIVE OF SECTION THREE
HUNDRED NINETY-EIGHT-A OF THIS CHAPTER AND ARTICLE EIGHTY-NINE OF THE
EDUCATION LAW, AS APPLICABLE.
S. 4448 5
S 7. Subdivision l of section 462 of the social services law is
amended by adding a new paragraph (g) to read as follows:
(G) NO RESIDENTIAL SCHOOL OR RESIDENTIAL FACILITY AS DEFINED IN SUBDI-
VISION FORTY-SIX OF SECTION SIXTEEN HUNDRED SEVENTY-SIX OF THE PUBLIC
AUTHORITIES LAW SHALL ENTER INTO A LEASE, SUB-LEASE OR OTHER AGREEMENT
WITH THE AUTHORITY PURSUANT TO SUBDIVISION FORTY-ONE OF SECTION SIXTEEN
HUNDRED EIGHTY OF THE PUBLIC AUTHORITIES LAW UNLESS AND UNTIL:
(I) THE OFFICE OF CHILDREN AND FAMILY SERVICES, THE DIRECTOR OF THE
DIVISION OF THE BUDGET AND ANY OTHER STATE AGENCY WHICH LICENSES, CERTI-
FIES OR ISSUES OPERATING CERTIFICATES TO SUCH RESIDENTIAL SCHOOL OR
RESIDENTIAL FACILITY FIRST DETERMINES THAT THE PROJECT IS CONSISTENT
WITH THE RESIDENTIAL BED PLAN DEVELOPED PURSUANT TO SUBDIVISION SEVEN-A
OF SECTION FOUR HUNDRED EIGHTY-THREE-D OF THIS CHAPTER AND APPROVES THE
PROJECT COST ON THE BASIS THAT SUCH COSTS ARE REASONABLE, NECESSARY AND
COST EFFECTIVE BASED UPON THE APPLICATION OF COST PER SQUARE FOOT GUIDE-
LINES AND ANY OTHER STANDARDS APPLICABLE TO THE TYPE OF PROGRAM OR TO
THE CLINICALLY-REQUIRED NEEDS OF A SPECIALIZED GROUP OF CHILDREN TO BE
SERVED BY THE PROJECT; AND
(II) THE OFFICE OF CHILDREN AND FAMILY SERVICES OR SUCH OTHER STATE
AGENCY WHICH LICENSES, CERTIFIES OR ISSUES OPERATING CERTIFICATES TO
SUCH RESIDENTIAL SCHOOLS OR RESIDENTIAL FACILITIES APPROVES THE PLANS
AND SPECIFICATIONS OF THE FACILITIES TO BE REPLACED, RECONSTRUCTED,
REHABILITATED, IMPROVED, RENOVATED, OR OTHERWISE PROVIDED FOR, FURNISHED
OR EQUIPPED.
S 8. This act shall take effect immediately; provided that section
seven of this act shall take effect on the same date as section 16 of
Part D of chapter 501 of the laws of 2012, takes effect.