S T A T E O F N E W Y O R K
________________________________________________________________________
5540--A
2015-2016 Regular Sessions
I N S E N A T E
May 14, 2015
___________
Introduced by Sen. MURPHY -- read twice and ordered printed, and when
printed to be committed to the Committee on Health -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the social services law, in relation to licensed opera-
tors of adult care facilities and their affiliates; and to amend the
public health law, in relation to licensed operators of assisted
living facilities and their affiliates
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 2 of section 461-b of the
social services law, as amended by chapter 414 of the laws of 2013, is
amended to read as follows:
(b) 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 [on or before January first, two
thousand fourteen] 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 following:
(i) a certification process and form for the operator OR ITS AFFILIATE
to verify 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 applica-
tion review and approval process;
(ii) a certification process and form for the operator OR ITS AFFIL-
IATE to verify that its legal, corporate and organizational documents
comply in substance with department requirements, which shall satisfy
the statutory and regulatory legal component of the application review
and approval process;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11181-03-5
S. 5540--A 2
(iii) a certification process and form for the operator OR ITS AFFIL-
IATE to verify that it is in substantial compliance with all 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 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.
For purposes of this paragraph, "good standing" shall mean the opera-
tor [has] 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 certificate 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 rectified; (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 depart-
ment's "do not refer list" pursuant to subdivision 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
S. 5540--A 3
AFFILIATE to use the streamlined application process, in its discretion,
if it determines that the disqualifying violation was an isolated occur-
rence that was promptly corrected by the operator[;]OR AFFILIATE.
S 2. Subdivision 2 of section 4653 of the public health law, as added
by chapter 414 of the laws of 2013, is amended 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 [on or before January first, two
thousand fourteen] 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 following:
(a) a certification process and form for the operator OR ITS AFFILIATE
to verify 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 applica-
tion review and approval process;
(b) a certification process and form for the operator OR ITS AFFILIATE
to verify that its legal, corporate and organizational documents comply
in substance with department requirements, which shall satisfy the stat-
utory 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 that it is in substantial compliance with all 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;
(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 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,
S. 5540--A 4
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.
For purposes of this subdivision, "good standing" shall mean the oper-
ator [has] 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 certificate 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 official written notice from the depart-
ment 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 stream-
lined 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 3. This act shall take effect immediately.
