LBD11181-06-6
A. 9164 2
applicable codes, rules and regulations in any other state in which it
operates, and to disclose any enforcement or administrative action taken
against it in any other state;
(iv) issuance by the department of a conditional approval to operate
the facility for a specified period of time upon substantial completion
of the character and competence, legal, financial and architectural
components of the application, so long as the operator or its affiliate
agrees in writing to satisfy all pending conditions prior to the expira-
tion of the conditional approval period or a time frame established by
the department;
(v) issuance by the department of a conditional approval to construct
a facility, at the operator's or its affiliate's own risk, upon substan-
tial completion of the architectural component of the application;
(vi) elimination of duplicative submission and review of any applica-
tion information which has been previously reviewed and approved by the
department or any of its regional offices within the past two years
through a certification process and form whereby the operator or its
affiliate will [verify] ATTEST that such application information is
duplicative;
(vii) with respect to any programmatic application information to be
reviewed by the regional office, such review shall be conducted on-site
by the regional office during the pre-opening inspection or first full
annual inspection, if the department has previously approved the opera-
tor or its affiliate to operate the same type of program at another
facility within the past two years;
(viii) electronic submission of applications; and
(ix) a combined application for licensure as an adult care facility,
assisted living residence and/or assisted living program, to the extent
the department determines such a combined application is feasible.
[For purposes of this paragraph, "affiliate" shall mean any entity
that is under common ownership and/or control, directly or indirectly,
as an existing licensed operator in good standing; provided, however,
the affiliate entity may have: (A) different percentages of ownership
and/or control among the individuals approved for the licensed operator
in good standing; and/or (B) fewer individuals with ownership and/or
control than approved for the licensed operator in good standing.]
(B-1) FOR PURPOSES OF PARAGRAPH (B) OF THIS SUBDIVISION, "AFFILIATE"
SHALL MEAN AN ENTITY, FOR WHICH A MAJORITY OF THE OWNERSHIP OR CONTROL-
LING INTEREST IS THE SAME AS THE OWNERSHIP OR CONTROLLING INTEREST IN AN
EXISTING LICENSED OPERATOR UNDER THIS SECTION (PROVIDED THAT AN AFFIL-
IATE MAY HAVE DIFFERENT PERCENTAGES OF OWNERSHIP OR CONTROL OR FEWER
NATURAL PERSONS WITH OWNERSHIP OR CONTROL THAN AN EXISTING OPERATOR)
AND, FURTHER:
(I) FOR ANY ENTITY OWNED, DIRECTLY OR INDIRECTLY, BY NATURAL PERSONS:
(A) AT ALL TIMES, MORE THAN HALF OF THE OWNERSHIP INTEREST OF THE
ENTITY SHALL BE OWNED, DIRECTLY OR INDIRECTLY, BY NATURAL PERSONS WHO
HAVE PREVIOUSLY BEEN DETERMINED TO HAVE UNDERGONE A SATISFACTORY DETER-
MINATION OF CHARACTER, COMPETENCE AND STANDING IN THE COMMUNITY;
(B) AT ALL TIMES, ANY OWNER WITH A DIRECT OR INDIRECT OWNERSHIP INTER-
EST WHO HAS NOT UNDERGONE A SATISFACTORY DETERMINATION OF CHARACTER,
COMPETENCE AND STANDING IN THE COMMUNITY REVIEW MUST POSSESS A LESS THAN
TEN PERCENT DIRECT OR INDIRECT INTEREST IN THE ENTITY, UNTIL A SATISFAC-
TORY DETERMINATION HAS BEEN MADE; AND
(C) FOR ANY NATURAL PERSON PROPOSED TO BE AN OWNER, DIRECTLY OR INDI-
RECTLY, OF THE ENTITY WHO IS A CONTROLLING PERSON, MEMBER, DIRECTOR, OR
A. 9164 3
OFFICER OF AN EXISTING LICENSED OPERATOR UNDER THIS SECTION, SUCH EXIST-
ING LICENSED OPERATOR MUST BE IN GOOD STANDING WITH THE DEPARTMENT; AND
(II) FOR ANY NOT-FOR-PROFIT CORPORATION OR OTHER ENTITY NOT UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH:
(A) MORE THAN HALF OF THE ENTITY'S TOTAL BOARD MEMBERS, DIRECTORS,
OFFICERS AND CONTROLLING PERSONS SHALL HAVE PREVIOUSLY UNDERGONE A
SATISFACTORY DETERMINATION OF CHARACTER, COMPETENCE AND STANDING IN THE
COMMUNITY; AND
(B) IF ANY NATURAL PERSON PROPOSED TO BE A BOARD MEMBER, DIRECTOR, OR
OFFICER OF THE ENTITY HAS AN OWNERSHIP INTEREST, DIRECTLY OR INDIRECTLY,
OR IS A BOARD MEMBER, DIRECTOR, OFFICER, OR CONTROLLING PERSON, IN AN
EXISTING LICENSED OPERATOR UNDER THIS SECTION, SUCH EXISTING LICENSED
OPERATOR MUST ALSO BE IN GOOD STANDING WITH THE DEPARTMENT.
(B-2) For purposes of [this] paragraph (B) OF THIS SUBDIVISION, "good
standing" shall mean the operator and its affiliates have not (A)
received any official written notice from the department of a proposed
revocation, suspension, denial or limitation on the operating certif-
icate of the facility or residence; (B) within the previous three years,
been assessed a civil penalty after a hearing conducted pursuant to
subparagraph one of paragraph (b) of subdivision seven of section four
hundred sixty-d of this article for a violation that has not been recti-
fied; (C) within the previous year, received any official written notice
from the department of a proposed assessment of a civil penalty for a
violation described in subparagraph two of paragraph (b) of subdivision
seven of section four hundred sixty-d of this article; (D) within the
previous three years, been issued an order pursuant to subdivision two,
five, six or eight of section four hundred sixty-d of this article; (E)
within the previous three years, been placed on, and if placed on,
removed from the department's "do not refer list" pursuant to subdivi-
sion fifteen of section four hundred sixty-d of this article. Provided,
however, that in the case of an operator or affiliate that is not in
good standing as provided in this paragraph, the department may permit
the operator or affiliate to use the streamlined application process, in
its discretion, if it determines that the disqualifying violation was an
isolated occurrence that was promptly corrected by the operator or
affiliate.
S 2. Subdivision 2 of section 4653 of the public health law, as
amended by a chapter of the laws of 2015 amending the social services
law and the public health law relating to licensed operators of certain
facilities and their affiliates, as proposed in legislative bills
numbers S. 5540-A and A.7681-A, is amended and a new subdivision 2-a is
added to read as follows:
2. For existing licensed operators in good standing and their affil-
iates, the department shall develop a streamlined application review and
approval process, in collaboration with representatives of associations
of operators, to be available for use in relation to approval of an
additional facility of the same type. Notwithstanding any provision of
law or regulation to the contrary, the streamlined application review
and approval process shall include, but not be limited to, the follow-
ing:
(a) a certification process and form for the operator or its affiliate
to [verify] ATTEST that it will have sufficient financial resources,
revenue and financing to meet facility expenses and resident needs,
which shall satisfy the statutory and regulatory financial component of
the application review and approval process;
A. 9164 4
(b) a certification process and form for the operator or its affiliate
to [verify] ATTEST that its legal, corporate and organizational docu-
ments comply in substance with department requirements, which shall
satisfy the statutory and regulatory legal component of the application
review and approval process;
(c) a certification process and form for the operator or its affiliate
to [verify] ATTEST that it is in substantial compliance with all appli-
cable codes, rules and regulations in any other state in which it oper-
ates, and to disclose any enforcement or administrative action taken
against it in any other state;
(d) issuance by the department of a conditional approval to operate
the facility for a specified period of time upon substantial completion
of the character and competence, legal, financial and architectural
components of the application, so long as the operator or its affiliate
agrees in writing to satisfy all pending conditions prior to the expira-
tion of the conditional approval period or a time frame established by
the department;
(e) issuance by the department of a conditional approval to construct
a facility, at the operator's or its affiliate's own risk, upon substan-
tial completion of the architectural component of the application;
(f) elimination of duplicative submission and review of any applica-
tion information which has been previously reviewed and approved by the
department or any of its regional offices within the past two years
through a certification process and form whereby the operator or its
affiliate will [verify] ATTEST that such application information is
duplicative;
(g) with respect to any programmatic application information to be
reviewed by the regional office, such review shall be conducted on-site
by the regional office during the pre-opening inspection or first full
annual inspection, if the department has previously approved the opera-
tor or its affiliate to operate the same type of program at another
facility within the past two years;
(h) electronic submission of applications; and
(i) a combined application for licensure as an adult care facility,
assisted living residence and/or assisted living program, to the extent
the department determines such a combined application is feasible.
[For purposes of this subdivision, "affiliate" shall mean any entity
that is under common ownership and/or control, directly or indirectly,
as an existing licensed operator in good standing; provided, however,
the affiliate entity may have: (A) different percentages of ownership
and/or control among the individuals approved for the licensed operator
in good standing (provided that all of the individuals have an ownership
interest and/or control as the operator in good standing); and/or (B)
fewer individuals with ownership and/or control than approved for the
licensed operator in good standing.]
2-A. FOR PURPOSES OF SUBDIVISION TWO OF THIS SECTION, "AFFILIATE"
SHALL MEAN AN ENTITY, FOR WHICH A MAJORITY OF THE OWNERSHIP OR CONTROL-
LING INTEREST IS THE SAME AS THE OWNERSHIP OR CONTROLLING INTEREST IN AN
EXISTING LICENSED OPERATOR UNDER THIS SECTION (PROVIDED THAT AN AFFIL-
IATE MAY HAVE DIFFERENT PERCENTAGES OF OWNERSHIP OR CONTROL OR FEWER
NATURAL PERSONS WITH OWNERSHIP OR CONTROL THAN AN EXISTING LICENSED
OPERATOR) AND, FURTHER:
(A) FOR ANY ENTITY OWNED, DIRECTLY OR INDIRECTLY, BY NATURAL PERSONS:
(I) AT ALL TIMES, MORE THAN HALF OF THE OWNERSHIP INTEREST OF THE
ENTITY SHALL BE OWNED, DIRECTLY OR INDIRECTLY, BY NATURAL PERSONS WHO
A. 9164 5
HAVE PREVIOUSLY BEEN DETERMINED TO HAVE UNDERGONE A SATISFACTORY DETER-
MINATION OF CHARACTER, COMPETENCE AND STANDING IN THE COMMUNITY;
(II) AT ALL TIMES, ANY OWNER WITH A DIRECT OR INDIRECT OWNERSHIP
INTEREST WHO HAS NOT UNDERGONE A SATISFACTORY DETERMINATION OF CHARAC-
TER, COMPETENCE AND STANDING IN THE COMMUNITY REVIEW MUST POSSESS A LESS
THAN TEN PERCENT DIRECT OR INDIRECT INTEREST IN THE ENTITY, UNTIL A
SATISFACTORY DETERMINATION HAS BEEN MADE; AND
(III) FOR ANY NATURAL PERSON PROPOSED TO BE AN OWNER, DIRECTLY OR
INDIRECTLY, OF THE ENTITY WHO IS A CONTROLLING PERSON, AS DEFINED IN
SECTION FOUR HUNDRED SIXTY-ONE-B OF THE SOCIAL SERVICES LAW, OR IS A
MEMBER, DIRECTOR, OR OFFICER OF AN EXISTING LICENSED OPERATOR UNDER THIS
SECTION, SUCH EXISTING LICENSED OPERATOR MUST BE IN GOOD STANDING WITH
THE DEPARTMENT; AND
(B) FOR ANY NOT-FOR-PROFIT CORPORATION OR OTHER ENTITY NOT UNDER PARA-
GRAPH (A) OF THIS SUBDIVISION:
(I) MORE THAN HALF OF THE ENTITY'S TOTAL BOARD MEMBERS, DIRECTORS,
OFFICERS AND CONTROLLING PERSONS, AS DEFINED IN SECTION FOUR HUNDRED
SIXTY-ONE-B OF THE SOCIAL SERVICES LAW, SHALL HAVE PREVIOUSLY UNDERGONE
A SATISFACTORY DETERMINATION OF CHARACTER, COMPETENCE AND STANDING IN
THE COMMUNITY; AND
(II) IF ANY NATURAL PERSON PROPOSED TO BE A BOARD MEMBER, DIRECTOR,
OR OFFICER OF THE ENTITY HAS AN OWNERSHIP INTEREST, DIRECTLY OR INDI-
RECTLY, OR IS A BOARD MEMBER, DIRECTOR, OFFICER, OR CONTROLLING PERSON,
AS DEFINED IN SECTION FOUR HUNDRED SIXTY-ONE-B OF THE SOCIAL SERVICES
LAW, IN AN EXISTING LICENSED OPERATOR UNDER THIS SECTION, SUCH EXISTING
LICENSED OPERATOR MUST ALSO BE IN GOOD STANDING WITH THE DEPARTMENT.
2-B. For purposes of [this] subdivision TWO OF THIS SECTION, "good
standing" shall mean the operator and its affiliate have not (i)
received any official written notice from the department of a proposed
revocation, suspension, denial or limitation on the operating certif-
icate of the facility or residence; (ii) within the previous three
years, been assessed a civil penalty after a hearing conducted pursuant
to subparagraph one of paragraph (b) of subdivision seven of section
four hundred sixty-d of the social services law for a violation that has
not been rectified; (iii) within the previous year, received any offi-
cial written notice from the department of a proposed assessment of a
civil penalty for a violation described in subparagraph two of paragraph
(b) of subdivision seven of section four hundred sixty-d of the social
services law; (iv) within the previous three years, been issued an order
pursuant to subdivision two, five, six, or eight of section four hundred
sixty-d of the social services law; (v) within the previous three years,
been placed on, and if placed on, removed from the department's "do not
refer list" pursuant to subdivision fifteen of section four hundred
sixty-d of the social services law. Provided, however, that in the case
of an operator or affiliate that is not in good standing as provided in
this paragraph, the department may permit the operator or affiliate to
use the streamlined application process, in its discretion, if it deter-
mines that the disqualifying violation was an isolated occurrence that
was promptly corrected by the operator or affiliate.
S 3. This act shall take effect on the same date and in the same
manner as a chapter of the laws of 2015 amending the social services law
and the public health law relating to licensed operators of certain
facilities and their affiliates, as proposed in Legislative bills
numbers S.5540-A and A.7681-A, takes effect.