The New York State Senate

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

    S. 6407                                                  A. 9007

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

                            January 14, 2016
                               ___________

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 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 the  expenditure  cap  for  the
  medical  assistance  program  for needy persons (Part A); to amend the
  social services law, in relation to provisions relating to transporta-
  tion in the managed long term care program; to amend the public health
  law, in relation to restricting the managed long term care benefit  to
  those who are nursing home eligible; to amend the social services law,
  in  relation  to  conforming  with  federal law provisions relating to
  spousal contributions, community spouse resource budgeting;  to  amend
  the  social services law, in relation to authorizing price ceilings on
  blockbuster drugs  and  reducing  reimbursement  rates  for  specialty
  drugs;  to amend the public health law, in relation to expanding prior
  authorization for the clinical drug  review  program  and  eliminating
  prescriber  prevails; to amend the social services law, in relation to
  authorizing the commissioner of health to apply federally  established
  consumer  price  index  penalties  for  generic  drugs,  to facilitate
  supplemental rebates for  fee-for-service  pharmaceuticals,  to  apply
  prior authorization requirements for opioid drugs, to impose penalties
  on  managed care plans for reporting late or incorrect encounter data,
  to apply cost sharing limits to medicare Part C claims and to  author-
  ize  funding for the criminal justice pilot program within health home
  rates; to amend chapter 59 of the laws of 2011,  amending  the  public
  health  law  and other laws relating to known and projected department
  of health state fund Medicaid expenditures, in relation  to  extending
  the  expiration  of  certain provisions thereof; and to repeal certain
  provisions of the social services law relating to the authorization of
  prescriber prevails in the managed care program  (Part  B);  to  amend
  chapter  266  of the laws of 1986, amending the civil practice law and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD12671-01-6

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  rules and other laws relating to malpractice and professional  medical
  conduct,  in relation to apportioning premium for certain policies and
  to amend part J of chapter 63 of the laws of 2001 amending chapter 266
  of  the  laws  of  1986, amending the civil practice law and rules and
  other laws relating to malpractice and professional  medical  conduct,
  in  relation  to  extending certain provisions concerning the hospital
  excess liability pool (Part C); to amend chapter 474 of  the  laws  of
  1996,  amending the education law and other laws relating to rates for
  residential  healthcare  facilities,  in  relation  to  extending  the
  authority  of  the department of health to make disproportionate share
  payments to public hospitals outside of New York City; to amend  chap-
  ter  649  of  the  laws  of  1996, amending the public health law, the
  mental hygiene law and the social services law relating to authorizing
  the establishment of special needs plans, in relation  to  the  effec-
  tiveness  thereof;  to repeal subdivision 8 of section 84 of part A of
  chapter 56 of the laws of 2013, amending the  public  health  law  and
  other  laws  relating  to  general  hospital  reimbursement for annual
  rates, relating to the effectiveness thereof;  to  repeal  subdivision
  (f) of section 129 of part C of chapter 58 of the laws of 2009, amend-
  ing the public health law relating to payment by governmental agencies
  for general hospital inpatient services, relating to the effectiveness
  thereof;  and  to  repeal  subdivision (c) of section 122 of part E of
  chapter 56 of the laws of 2013, amending the public health law  relat-
  ing  to the general public health work program, relating to the effec-
  tiveness thereof (Part D); to amend the  public  health  law  and  the
  insurance  law,  in  relation  to  the  early intervention program for
  infants and toddlers with disabilities and their families (Part E); to
  amend the public health law, in relation to the health  care  facility
  transformation  program  (Part  F); to amend the public health law, in
  relation to authorizing the establishment of limited  service  clinics
  (Part  G); to amend 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, in relation
  to the effectiveness thereof (Part H); 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  the
  effectiveness of certain provisions thereof (Part I); to amend chapter
  420  of  the  laws  of 2002 amending the education law relating to the
  profession of social work, in relation to extending the expiration  of
  certain  provisions  thereof; to amend chapter 676 of the laws of 2002
  amending the education law relating to the practice of psychology,  in
  relation  to  extending  the  expiration of certain provisions; and to
  amend chapter 130 of the laws of 2010 amending the education  law  and
  other  laws  relating  to  registration  of entities providing certain
  professional  services  and  licensure  of  certain  professions,   in
  relation  to  extending  certain provisions thereof (Part J); to amend
  the criminal procedure law, in relation to authorizing restorations to
  competency within correctional  facility  based  residential  settings
  (Part K); to amend the mental hygiene law, in relation to the appoint-
  ment  of  temporary  operators for the continued operation of programs
  and the provision of services for persons with serious mental  illness
  and/or  developmental  disabilities  (Part  L);  to  amend  the mental
  hygiene law, in relation to sharing clinical records with managed care
  organizations (Part M); and to amend the facilities development corpo-
  ration act, in relation to the definition of mental  hygiene  facility
  (Part N)

S. 6407                             3                            A. 9007

  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 2016-2017
state fiscal year. Each component is  wholly  contained  within  a  Part
identified  as Parts A through N. 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.  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, subdivision (a)  as  amended  by
section 3-e of part B of chapter 58 of the laws of 2010, subdivision (b)
as  amended  by section 24 of part B of chapter 109 of the laws of 2010,
subdivision (c-1) as added by section 1 of part F of chapter 56  of  the
laws  of  2012,  subdivision  (f)  as amended by section 23 of part B of
chapter 109 of the laws of 2010, paragraph (iii) of subdivision  (g)  as
amended by section 2 of part F of chapter 56 of the laws of 2012, subdi-
vision (h) as added by section 61 of part D of chapter 56 of the laws of
2012, is amended to read as follows:
  Section 1.  (a) Notwithstanding the provisions of section 368-a of the
social  services  law,  or any other provision of law, the department of
health shall provide reimbursement for expenditures made by or on behalf
of social services districts for medical assistance for  needy  persons,
and  the  administration  thereof,  in accordance with the provisions of
this section; provided, however, that this section shall  not  apply  to
amounts expended for health care services under FORMER section 369-ee of
the social services law, which amounts shall be reimbursed in accordance
with  paragraph  (t)  of  subdivision 1 of section 368-a of such law and
shall be excluded from all calculations made pursuant to  this  section;
and  provided further that amounts paid to the public hospitals pursuant
to subdivision 14-f of section 2807-c  of  the  public  health  law  and
amounts  expended  pursuant  to:  subdivision  12 of section 2808 of the
public health law; sections 211 and 212 of chapter 474 of  the  laws  of
1996,  as  amended; and sections 11 through 14 of part A and sections 13
and 14 of part B of chapter 1 of the laws of 2002; and amounts  paid  to
public  diagnostic and treatment centers as provided in sections 3-a and
3-b of part B of [the] chapter 58 of the laws  of  2010  [which  amended
this subdivision], amounts paid to public general hospitals as certified
public  expenditures as provided in section 3-c of part B of [the] chap-
ter 58 of the laws of 2010 [which amended this subdivision], and amounts
paid to managed care providers pursuant to section  3-d  of  part  B  of
[the]  chapter  58 of the laws of 2010 [which amended this subdivision],
shall be excluded from all calculations made pursuant to this section.
  (b) Commencing with the period April 1, 2005 though March 31, 2006,  a
social  services  district's  yearly  net  share  of  medical assistance
expenditures shall be calculated in relation  to  a  reimbursement  base

S. 6407                             4                            A. 9007

year  which, for purposes of this section, is defined as January 1, 2005
through December 31, 2005. The final base year  expenditure  calculation
for  each  social services district shall be made by the commissioner of
health,  and  approved by the director of the division of the budget, no
later than June 30, 2006.  Such calculations shall be  based  on  actual
expenditures  made  by  or  on  behalf of social services districts, and
revenues received by social services districts, during the base year and
shall  be  made  without  regard  to  expenditures  made,  and  revenues
received,  outside  the  base year that are related to services provided
during, or prior to, the base year. Such base year calculations shall be
based  on  the  social  services  district  medical  assistance   shares
provisions  in  effect on January 1, 2005.  Subject to the provisions of
subdivision four of section six of this  part,  the  state/local  social
services  district  relative  percentages  of  the  non-federal share of
medical assistance expenditures incurred prior to January 1, 2006  shall
not be subject to adjustment on and after July 1, 2006.
  (c)  Commencing  with  the  calendar  year  beginning January 1, 2006,
calendar year social services district  medical  assistance  expenditure
amounts  for each social services district shall be calculated by multi-
plying the results of the calculations performed pursuant  to  paragraph
(b) of this section by a non-compounded trend factor, as follows:
  (i) 2006 (January 1, 2006 through December 31, 2006):  3.5%;
  (ii)  2007  (January 1, 2007 through December 31, 2007):  6.75% (3.25%
plus the prior year's 3.5%);
  (iii) 2008 (January 1, 2008 through December 31,  2008):    9.75%  (3%
plus the prior year's 6.75%);
  (iv)  2009  (January  1,  2009  through  December  31, 2009), and each
succeeding calendar year: prior year's trend factor percentage plus 3%.
  (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%.
  (C-2)  NOTWITHSTANDING  ANY  PROVISIONS  OF  SUBDIVISION (C-1) OF THIS
SECTION TO THE CONTRARY, EFFECTIVE APRIL 1, 2016, FOR THE PERIOD JANUARY
1, 2016 THROUGH DECEMBER 31, 2016 AND FOR EACH CALENDAR YEAR THEREAFTER,
THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT FOR A SOCIAL SERVICES DISTRICT
HAVING A POPULATION OF MORE THAN FIVE MILLION  SHALL  BE  EQUAL  TO  THE
AMOUNT CALCULATED PURSUANT TO SUBDIVISIONS (B) AND (C) OF THIS SECTION.
  (d) The base year expenditure amounts calculated pursuant to paragraph
(b)  of  this  section  and  the  calendar year social services district
expenditure amounts calculated pursuant to paragraph (c) of this section
shall be converted into  state  fiscal  year  social  services  district
expenditure cap amounts for each social services district such that each
such state fiscal year amount is proportional to the portions of the two
calendar years within each fiscal year, as follows:
  (i)  fiscal year 2005-2006 (April 1, 2005 through March 31, 2006): 75%
of the base year amount plus 25% of the 2006 calendar year amount;

S. 6407                             5                            A. 9007

  (ii) fiscal year 2006-2007 (April 1, 2006 through March 31, 2007): 75%
of the 2006 year calendar amount plus 25%  of  the  2007  calendar  year
amount;
  (iii)  each  succeeding  fiscal  year:  75% of the first calendar year
within that fiscal year's amount plus 25% of the  second  calendar  year
within that fiscal year's amount.
  (D-1)  NOTWITHSTANDING  ANY  PROVISIONS  OF  SUBDIVISION  (D)  OF THIS
SECTION TO THE CONTRARY, FOR FISCAL YEARS 2015-2016 AND  2016-2017,  THE
BASE  YEAR  EXPENDITURE  AMOUNT  CALCULATED PURSUANT TO PARAGRAPH (B) OF
THIS SECTION AND THE CALENDAR YEAR SOCIAL SERVICES DISTRICT  EXPENDITURE
AMOUNT  CALCULATED  PURSUANT  TO  PARAGRAPH (C) OF THIS SECTION SHALL BE
CONVERTED INTO A STATE FISCAL YEAR SOCIAL SERVICES DISTRICT  EXPENDITURE
CAP  AMOUNT  FOR  A SOCIAL SERVICES DISTRICT HAVING A POPULATION OF MORE
THAN FIVE MILLION AS FOLLOWS:
  (I) FISCAL YEAR 2015-2016 (APRIL 1, 2015 THROUGH MARCH 31, 2016):  75%
OF  THE 2015 BASE YEAR AMOUNT PLUS 25% OF THE 2016 CALENDAR YEAR AMOUNT,
IF SUCH 2016 CALENDAR YEAR AMOUNT WERE CALCULATED WITHOUT REGARD TO  THE
PROVISIONS OF SUBDIVISION (C-2) OF THIS SECTION;
  (II) FISCAL YEAR 2016-2017 (APRIL 1, 2016 THROUGH MARCH 31, 2017): 75%
OF  THE 2016 BASE YEAR AMOUNT PLUS 25% OF THE 2017 CALENDAR YEAR AMOUNT;
THIS CAP AMOUNT SHALL BE REDUCED BY ONE-HALF OF THE  DIFFERENCE  BETWEEN
THIS  AMOUNT  AND  THE  CAP  AMOUNT FOR THIS PERIOD THAT WOULD RESULT IF
CALCULATED WITHOUT REGARD TO THE PROVISIONS OF SUBDIVISION (C-2) OF THIS
SECTION.
  (e) No later than April 1, 2007,  the  commissioner  of  health  shall
certify  the  2006-2007 fiscal year social services district expenditure
cap amounts for each social services  district  calculated  pursuant  to
subparagraph (ii) of paragraph (d) of this section and shall communicate
such amounts to the commissioner of taxation and finance.
  (f)  Subject  to  paragraph (g) of this section, the state fiscal year
social services district expenditure  cap  amount  calculated  for  each
social services district pursuant to paragraph (d) of this section shall
be  allotted  to  each  district during that fiscal year and paid to the
department in equal weekly amounts in a manner to be determined  by  the
commissioner  and  communicated  to  such  districts and, subject to the
provisions of subdivision four of section six of this part, shall repre-
sent each  district's  maximum  responsibility  for  medical  assistance
expenditures   governed  by  this  section.  HOWEVER,  FOR  FISCAL  YEAR
2016-2017, THE EXPENDITURE CAP AMOUNT CALCULATED FOR A  SOCIAL  SERVICES
DISTRICT  HAVING A POPULATION OF MORE THAN FIVE MILLION SHALL BE PAID TO
THE DEPARTMENT IN WEEKLY AMOUNTS IN A MANNER TO  BE  DETERMINED  BY  THE
COMMISSIONER,  IN  CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF THE
BUDGET, AND COMMUNICATED TO SUCH DISTRICT.
  (g) (i) No allotment pursuant to paragraph (f) of this  section  shall
be applied against a social services district during the period April 1,
2005  through  December  31,  2005.    Social  services district medical
assistance shares shall be determined for such period pursuant to shares
provisions in effect on January 1, 2005.
  (ii) For the period January 1, 2006 through June 30, 2006, the commis-
sioner is authorized to allot against each district an amount  based  on
the  commissioner's  best  estimate  of  the final base year expenditure
calculation required by paragraph (b) of this section.  Upon  completion
of  such calculation, the commissioner shall, no later than December 31,
2006, reconcile such estimated allotments with the  fiscal  year  social
services district expenditure cap amounts calculated pursuant to subpar-
agraphs (i) and (ii) of paragraph (d) of this section.

S. 6407                             6                            A. 9007

  (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.
  (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 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2016.

                                 PART B

  Section  1. Subdivision 4 of section 365-h of the social services law,
as separately amended by section 50 of part B and section 24 of  part  D
of chapter 57 of the laws of 2015, is amended to read as follows:
  4.  The  commissioner of health is authorized to assume responsibility
from a local social services official for the provision  and  reimburse-
ment  of  transportation  costs  under this section. If the commissioner
elects to assume such responsibility, the commissioner shall notify  the
local  social  services official in writing as to the election, the date
upon which the election shall be effective and such  information  as  to
transition  of  responsibilities  as the commissioner deems prudent. The
commissioner is authorized to contract with a transportation manager  or
managers  to manage transportation services in any local social services
district[, other than transportation services provided or  arranged  for
enrollees of managed long term care plans issued certificates of author-
ity  under section forty-four hundred three-f of the public health law].

S. 6407                             7                            A. 9007

Any transportation manager or managers selected by the  commissioner  to
manage  transportation  services shall have proven experience in coordi-
nating transportation services in  a  geographic  and  demographic  area
similar  to the area in New York state within which the contractor would
manage the provision of services under this section. Such a contract  or
contracts  may include responsibility for: review, approval and process-
ing of transportation orders; management of  the  appropriate  level  of
transportation based on documented patient medical need; and development
of new technologies leading to efficient transportation services. If the
commissioner  elects  to  assume such responsibility from a local social
services district, the commissioner shall examine and,  if  appropriate,
adopt  quality  assurance measures that may include, but are not limited
to,  global  positioning  tracking  system  reporting  requirements  and
service  verification mechanisms. Any and all reimbursement rates devel-
oped by transportation managers under this subdivision shall be  subject
to the review and approval of the commissioner.
  S  2.    Subparagraph (i) of paragraph (b) of subdivision 7 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:
  (i) The commissioner shall, to the extent necessary, submit the appro-
priate waivers, including, but not limited to, those authorized pursuant
to sections eleven hundred fifteen and nineteen hundred fifteen  of  the
federal  social  security  act,  or  successor provisions, and any other
waivers necessary to achieve the purposes of high  quality,  integrated,
and  cost  effective  care and integrated financial eligibility policies
under the medical assistance program or pursuant to title XVIII  of  the
federal social security act. In addition, the commissioner is authorized
to  submit  the  appropriate waivers, including but not limited to those
authorized pursuant to sections  eleven  hundred  fifteen  and  nineteen
hundred  fifteen  of  the  federal  social  security  act  or  successor
provisions, and any other waivers necessary to require on or after April
first, two thousand twelve, medical assistance recipients who are  twen-
ty-one  years  of age or older and who require community-based long term
care services, as specified by  the  commissioner,  for  more  than  one
hundred  and  twenty days, to receive such services through an available
plan certified pursuant to this section  or  other  program  model  that
meets guidelines specified by the commissioner that support coordination
and  integration  of  services; PROVIDED, HOWEVER, THAT THE COMMISSIONER
MAY, THROUGH SUCH WAIVERS,  LIMIT  ELIGIBILITY  TO  AVAILABLE  PLANS  TO
ENROLLEES  THAT  REQUIRE NURSING FACILITY LEVEL OF CARE. NOTWITHSTANDING
THE FOREGOING, MEDICAL ASSISTANCE RECIPIENTS ENROLLED IN A MANAGED  LONG
TERM  CARE  PLAN ON APRIL FIRST, TWO THOUSAND SIXTEEN MAY CONTINUE TO BE
ELIGIBLE FOR SUCH PLANS, IRRESPECTIVE OF WHETHER THE ENROLLEE MEETS  ANY
APPLICABLE NURSING FACILITY LEVEL OF CARE REQUIREMENTS, PROVIDED, HOWEV-
ER,  THAT  ONCE  SUCH RECIPIENTS ARE DISENROLLED FROM THEIR MANAGED LONG
TERM CARE PLAN, ANY APPLICABLE NURSING FACILITY LEVEL OF  CARE  REQUIRE-
MENTS WOULD APPLY TO FUTURE ELIGIBILITY DETERMINATIONS.  Such guidelines
shall  address  the  requirements of paragraphs (a), (b), (c), (d), (e),
(f), (g), (h), and (i) of subdivision three of this section as  well  as
payment  methods  that ensure provider accountability for cost effective
quality outcomes. Such other program models may include long  term  home
health  care  programs  that comply with such guidelines. Copies of such
original waiver applications and amendments thereto shall be provided to
the chairs of the senate finance committee, the assembly ways and  means
committee  and  the senate and assembly health committees simultaneously
with their submission to the federal government.

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  S 3. 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
such relative in accordance with title six  of  article  three  OF  THIS
CHAPTER and other applicable provisions of law.
  S  4.  Subparagraph  (i)  of paragraph (d) of subdivision 2 of section
366-c of the social services law is amended by adding a new  clause  (C)
to read as follows:
  (C)  ON AND AFTER JULY FIRST, TWO THOUSAND SIXTEEN, TWENTY-THREE THOU-
SAND EIGHT HUNDRED FORTY-FOUR DOLLARS OR SUCH GREATER AMOUNT AS  MAY  BE
REQUIRED UNDER FEDERAL LAW;
  S  5.  Subdivision  7  of  section 367-a of the social services law is
amended by adding a new paragraph (g) to read as follows:
  (G)(I) THE DEPARTMENT SHALL DEVELOP A LIST  OF  CRITICAL  PRESCRIPTION
DRUGS  FOR  WHICH  THERE  IS  A  SIGNIFICANT PUBLIC INTEREST IN ENSURING
RATIONAL PRICING BY DRUG MANUFACTURERS. IN SELECTING DRUGS FOR  POSSIBLE
INCLUSION IN SUCH LIST, FACTORS TO BE CONSIDERED BY THE DEPARTMENT SHALL
INCLUDE,  BUT  NOT  BE LIMITED TO: THE SERIOUSNESS AND PREVALENCE OF THE
DISEASE OR CONDITION THAT IS TREATED BY THE DRUG; THE EXTENT OF UTILIZA-
TION OF THE DRUG; THE AVERAGE WHOLESALE PRICE AND RETAIL  PRICE  OF  THE
DRUG;  THE NUMBER OF PHARMACEUTICAL MANUFACTURERS THAT PRODUCE THE DRUG;
WHETHER THERE ARE PHARMACEUTICAL EQUIVALENTS TO THE DRUG; AND THE POTEN-
TIAL IMPACT OF THE COST OF THE DRUG  ON  PUBLIC  HEALTH  CARE  PROGRAMS,
INCLUDING MEDICAID.
  (II)  FOR EACH PRESCRIPTION DRUG INCLUDED ON THE CRITICAL PRESCRIPTION
DRUG LIST, THE  DEPARTMENT  SHALL  REQUIRE  THE  MANUFACTURERS  OF  SAID
PRESCRIPTION DRUG TO REPORT THE FOLLOWING INFORMATION:
  (A) THE ACTUAL COST OF DEVELOPING, MANUFACTURING, PRODUCING (INCLUDING
THE COST PER DOSE OF PRODUCTION), AND DISTRIBUTING SUCH DRUG;
  (B)  RESEARCH  AND DEVELOPMENT COSTS OF THE DRUG INCLUDING PAYMENTS TO
PREDECESSOR ENTITIES CONDUCTING RESEARCH AND DEVELOPMENT, INCLUDING  BUT
NOT   LIMITED  TO  BIOTECHNOLOGY  COMPANIES,  UNIVERSITIES  AND  MEDICAL
SCHOOLS, AND PRIVATE RESEARCH INSTITUTIONS;
  (C) ADMINISTRATIVE, MARKETING, AND ADVERTISING  COSTS  FOR  THE  DRUG,
APPORTIONED  BY  MARKETING  ACTIVITIES  THAT  ARE DIRECTED TO CONSUMERS,
MARKETING ACTIVITIES THAT ARE DIRECTED TO  PRESCRIBERS,  AND  THE  TOTAL
COST  OF  ALL  MARKETING  AND  ADVERTISING THAT IS DIRECTED PRIMARILY TO
CONSUMERS AND PRESCRIBERS IN NEW YORK,  INCLUDING  BUT  NOT  LIMITED  TO
PRESCRIBER DETAILING, COPAYMENT DISCOUNT PROGRAMS AND DIRECT TO CONSUMER
MARKETING;
  (D)  PRICES  FOR  THE  DRUG THAT ARE CHARGED TO PURCHASERS OUTSIDE THE
UNITED STATES;
  (E) PRICES CHARGED TO TYPICAL PURCHASERS IN NEW  YORK,  INCLUDING  BUT
NOT  LIMITED  TO  PHARMACIES,  PHARMACY  CHAINS, PHARMACY WHOLESALERS OR
OTHER DIRECT PURCHASERS;
  (F) THE AVERAGE REBATES AND DISCOUNTS PROVIDED PER PAYOR TYPE;

S. 6407                             9                            A. 9007

  (G) THE AVERAGE PROFIT MARGIN OF EACH DRUG OVER THE  PRIOR  FIVE  YEAR
PERIOD AND THE PROJECTED PROFIT MARGIN ANTICIPATED FOR SUCH DRUG; AND
  (H)  CLINICAL INFORMATION INCLUDING BUT NOT LIMITED TO CLINICAL TRIALS
AND CLINICAL OUTCOMES RESEARCH.
  (III) THE DEPARTMENT SHALL DEVELOP  A  STANDARD  REPORTING  FORM  THAT
SATISFIES  THE  REQUIREMENTS  OF  SUBPARAGRAPH  (II)  OF THIS PARAGRAPH.
MANUFACTURERS SHALL PROVIDE THE REQUIRED INFORMATION WITHIN NINETY  DAYS
OF  THE  DEPARTMENT'S  REQUEST.    ALL INFORMATION DISCLOSED PURSUANT TO
SUBPARAGRAPH (II) OF THIS PARAGRAPH IS CONFIDENTIAL  AND  SHALL  NOT  BE
DISCLOSED  BY THE DEPARTMENT OR ITS ACTUARY IN A FORM THAT DISCLOSES THE
IDENTITY OF A SPECIFIC MANUFACTURER, OR PRICES CHARGED FOR DRUGS BY SUCH
MANUFACTURER, EXCEPT AS THE  COMMISSIONER  DETERMINES  IS  NECESSARY  TO
CARRY  OUT  THE  PROVISIONS OF THIS SECTION, OR TO ALLOW THE DEPARTMENT,
THE ATTORNEY GENERAL, THE STATE COMPTROLLER, OR THE CENTERS FOR MEDICARE
AND MEDICAID SERVICES TO PERFORM AUDITS OR INVESTIGATIONS AUTHORIZED  BY
LAW.
  (IV) FOR EACH CRITICAL PRESCRIPTION DRUG IDENTIFIED BY THE DEPARTMENT,
THE  DEPARTMENT  SHALL  DIRECT  ITS  ACTUARY  TO UTILIZE THE INFORMATION
PROVIDED PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH  TO  CONDUCT  A
VALUE-BASED  ASSESSMENT  OF SUCH DRUG AND ESTABLISH A REASONABLE CEILING
PRICE.
  (V) THE COMMISSIONER  MAY  REQUIRE  A  DRUG  MANUFACTURER  TO  PROVIDE
REBATES  TO  THE DEPARTMENT FOR A CRITICAL PRESCRIPTION DRUG WHOSE PRICE
EXCEEDS THE CEILING PRICE FOR THE DRUG ESTABLISHED BY  THE  DEPARTMENT'S
ACTUARY  PURSUANT  TO  SUBPARAGRAPH (IV) OF THIS PARAGRAPH. SUCH REBATES
SHALL BE IN ADDITION TO ANY REBATES PAYABLE TO THE  DEPARTMENT  PURSUANT
TO  ANY  OTHER PROVISION OF FEDERAL OR STATE LAW. THE ADDITIONAL REBATES
AUTHORIZED  PURSUANT  TO  THIS  SUBPARAGRAPH  SHALL  APPLY  TO  CRITICAL
PRESCRIPTION  DRUGS  DISPENSED  TO  ENROLLEES  OF MANAGED CARE PROVIDERS
PURSUANT TO SECTION THREE HUNDRED SIXTY-FOUR-J  OF  THIS  TITLE  AND  TO
CRITICAL PRESCRIPTION DRUGS DISPENSED TO MEDICAID RECIPIENTS WHO ARE NOT
ENROLLEES OF SUCH PROVIDERS.
  S  6.  Paragraph  (b)  of subdivision 9 of section 367-a of the social
services law is amended by adding a new subparagraph  (iv)  to  read  as
follows:
  (IV)  NOTWITHSTANDING SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH, IF
THE DRUG DISPENSED IS A DRUG THAT ONE OR  MORE  MANAGED  CARE  PROVIDERS
OPERATING  PURSUANT  TO SECTION THREE HUNDRED SIXTY-FOUR-J OF THIS TITLE
HAVE DESIGNATED AS A SPECIALTY DRUG, AN AMOUNT THAT DOES NOT EXCEED  THE
AMOUNT SUCH PROVIDERS PAY FOR THE DRUG, AS DETERMINED BY THE COMMISSION-
ER BASED ON MANAGED CARE PROVIDERS' ENCOUNTER DATA FOR THE DRUG.
  S  7.  Section 274 of the public health law is amended by adding a new
subdivision 15 to read as follows:
  15. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF  THIS  SECTION,  THE
COMMISSIONER MAY REQUIRE PRIOR AUTHORIZATION FOR ANY DRUG AFTER EVALUAT-
ING THE FACTORS SET FORTH IN SUBDIVISION THREE OF THIS SECTION AND PRIOR
TO  OBTAINING  THE  BOARD'S  EVALUATION  AND  RECOMMENDATION REQUIRED BY
SUBDIVISION FOUR OF THIS SECTION. THE BOARD MAY RECOMMEND TO THE COMMIS-
SIONER, PURSUANT TO SUBDIVISION SIX OF THIS SECTION, THAT ANY SUCH PRIOR
AUTHORIZATION REQUIREMENT BE MODIFIED, CONTINUED OR REMOVED.
  S 8. Paragraph (b) of subdivision 3  of  section  273  of  the  public
health  law,  as added by section 10 of part C of chapter 58 of the laws
of 2005, is amended to read as follows:
  (b) In the event that the patient does not meet the criteria in  para-
graph  (a)  of  this  subdivision, the prescriber may provide additional
information to the program to justify the use  of  a  prescription  drug

S. 6407                            10                            A. 9007

that  is  not  on  the  preferred drug list. The program shall provide a
reasonable opportunity for a prescriber to reasonably present his or her
justification of prior authorization. [If, after consultation  with  the
program, the prescriber, in his or her reasonable professional judgment,
determines  that  the  use  of  a  prescription  drug that is not on the
preferred drug list is warranted, the prescriber's  determination  shall
be  final.] THE PROGRAM WILL CONSIDER THE ADDITIONAL INFORMATION AND THE
JUSTIFICATION PRESENTED TO DETERMINE WHETHER THE USE OF  A  PRESCRIPTION
DRUG THAT IS NOT ON THE PREFERRED DRUG LIST IS WARRANTED. IN THE CASE OF
ATYPICAL  ANTIPSYCHOTICS AND ANTIDEPRESSANTS, IF AFTER CONSULTATION WITH
THE PROGRAM, THE PRESCRIBER, IN HIS OR HER REASONABLE PROFESSIONAL JUDG-
MENT, DETERMINES THAT THE USE OF A PRESCRIPTION DRUG THAT IS NOT ON  THE
PREFERRED  DRUG  LIST IS WARRANTED, THE PRESCRIBER'S DETERMINATION SHALL
BE FINAL.
  S 9. Subdivision 25 of section 364-j of the social  services  law,  as
added  by  section  55  of  part D of chapter 56 of the laws of 2012, is
amended to read as follows:
  25. [Effective January first, two thousand thirteen,  notwithstanding]
NOTWITHSTANDING  any  provision  of  law  to  the contrary, managed care
providers shall cover medically  necessary  prescription  drugs  in  the
atypical  antipsychotic  AND ANTIDEPRESSANT therapeutic [class] CLASSES,
including non-formulary drugs, upon  demonstration  by  the  prescriber,
after consulting with the managed care provider, that such drugs, in the
prescriber's  reasonable  professional judgment, are medically necessary
and warranted.
  S 10. Subdivision 25-a of section 364-j of the social services law  is
REPEALED.
  S  11.  Subdivision  7  of section 367-a of the social services law is
amended by adding a new paragraph (f) to read as follows:
  (F) THE COMMISSIONER MAY REQUIRE MANUFACTURERS  OF  DRUGS  OTHER  THAN
SINGLE  SOURCE  DRUGS AND INNOVATOR MULTIPLE SOURCE DRUGS, AS SUCH TERMS
ARE DEFINED IN 42 U.S.C. S 1396R-8(K), TO PROVIDE REBATES TO THE DEPART-
MENT FOR GENERIC DRUGS WHOSE PRICES INCREASE AT A RATE GREATER THAN  THE
RATE  OF  INFLATION.  SUCH  REBATES  SHALL BE IN ADDITION TO ANY REBATES
PAYABLE TO THE DEPARTMENT PURSUANT TO ANY OTHER PROVISION OF FEDERAL  OR
STATE  LAW.    IN  DETERMINING THE AMOUNT OF SUCH ADDITIONAL REBATES FOR
GENERIC DRUGS, THE COMMISSIONER MAY USE A METHODOLOGY  SIMILAR  TO  THAT
USED  BY THE CENTERS FOR MEDICARE & MEDICAID SERVICES IN DETERMINING THE
AMOUNT OF ANY ADDITIONAL REBATES FOR SINGLE SOURCE AND INNOVATOR  MULTI-
PLE  SOURCE  DRUGS, AS SET FORTH IN 42 U.S.C. S 1396R-8(C)(2). THE ADDI-
TIONAL REBATES AUTHORIZED PURSUANT TO  THIS  PARAGRAPH  SHALL  APPLY  TO
GENERIC  PRESCRIPTION  DRUGS  DISPENSED  TO  ENROLLEES  OF  MANAGED CARE
PROVIDERS PURSUANT TO SECTION THREE HUNDRED SIXTY-FOUR-J OF  THIS  TITLE
AND  TO  GENERIC PRESCRIPTION DRUGS DISPENSED TO MEDICAID RECIPIENTS WHO
ARE NOT ENROLLEES OF SUCH PROVIDERS.
  S 12. The opening paragraph of  paragraph  (e)  of  subdivision  7  of
section  367-a of the social services law, as added by section 1 of part
B of chapter 57 of the laws of 2015, is amended to read as follows:
  During the period from April first, two thousand fifteen through March
thirty-first, two thousand seventeen, the commissioner may, in lieu of a
managed care provider, negotiate directly and enter  into  an  agreement
with  a  pharmaceutical  manufacturer  for the provision of supplemental
rebates relating to pharmaceutical utilization by enrollees  of  managed
care  providers  pursuant  to section three hundred sixty-four-j of this
title AND, NOTWITHSTANDING THE PROVISIONS OF SECTION TWO HUNDRED  SEVEN-
TY-TWO  OF  THE PUBLIC HEALTH LAW OR ANY OTHER INCONSISTENT PROVISION OF

S. 6407                            11                            A. 9007

LAW, MAY ALSO NEGOTIATE DIRECTLY AND ENTER INTO SUCH AN AGREEMENT RELAT-
ING TO PHARMACEUTICAL UTILIZATION BY MEDICAL ASSISTANCE  RECIPIENTS  NOT
SO  ENROLLED.  Such  rebates shall be limited to drug utilization in the
following classes: antiretrovirals approved by the FDA for the treatment
of HIV/AIDS and hepatitis C agents for which the pharmaceutical manufac-
turer  has  in  effect  a rebate agreement with the federal secretary of
health and human services pursuant to 42 U.S.C. S 1396r-8, and for which
the state has  established  standard  clinical  criteria.  No  agreement
entered into pursuant to this paragraph shall have an initial term or be
extended beyond March thirty-first, two thousand twenty.
  S  13.  Subparagraph (iv) of paragraph (e) of subdivision 7 of section
367-a of the social services law, as added by section 1  of  part  B  of
chapter 57 of the laws of 2015, is amended to read as follows:
  (iv) Nothing in this paragraph shall be construed to require a pharma-
ceutical manufacturer to enter into a supplemental rebate agreement with
the  commissioner relating to pharmaceutical utilization by enrollees of
managed care providers pursuant to section three hundred sixty-four-j of
this title OR RELATING TO PHARMACEUTICAL UTILIZATION BY MEDICAL  ASSIST-
ANCE RECIPIENTS NOT SO ENROLLED.
  S  14. Section 364-j of the social services law is amended by adding a
new subdivision 26-a to read as follows:
  26-A. MANAGED CARE PROVIDERS  SHALL  REQUIRE  PRIOR  AUTHORIZATION  OF
PRESCRIPTIONS  OF OPIOID ANALGESICS IN EXCESS OF FOUR PRESCRIPTIONS IN A
THIRTY-DAY PERIOD.
  S 15. Section 364-j of the social services law is amended by adding  a
new subdivision 32 to read as follows:
  32.  (A)  THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, APPLY PENAL-
TIES TO MANAGED CARE ORGANIZATIONS SUBJECT TO THIS SECTION  AND  ARTICLE
FORTY-FOUR   OF  THE  PUBLIC  HEALTH  LAW  FOR  UNTIMELY  OR  INACCURATE
SUBMISSION OF ENCOUNTER DATA. FOR PURPOSES OF THIS  SECTION,  "ENCOUNTER
DATA"  SHALL  MEAN  THE  TRANSACTIONS  REQUIRED TO BE REPORTED UNDER THE
MODEL CONTRACT. ANY PENALTY ASSESSED UNDER  THIS  SUBDIVISION  SHALL  BE
CALCULATED  AS A PERCENTAGE OF THE ADMINISTRATIVE COMPONENT OF THE MEDI-
CAID PREMIUM CALCULATED BY THE DEPARTMENT.
  (B) SUCH PENALTIES SHALL BE AS FOLLOWS:
  (I) FOR ENCOUNTER DATA SUBMITTED OR RESUBMITTED PAST THE DEADLINES SET
FORTH IN THE MODEL CONTRACT, MEDICAID PREMIUMS SHALL BE REDUCED  BY  ONE
AND ONE-HALF PERCENT; AND
  (II) FOR INCOMPLETE OR INACCURATE ENCOUNTER DATA THAT FAILS TO CONFORM
TO  DEPARTMENT DEVELOPED BENCHMARKS FOR COMPLETENESS AND ACCURACY, MEDI-
CAID PREMIUMS SHALL BE REDUCED BY ONE-HALF PERCENT; AND
  (III) FOR SUBMITTED DATA THAT RESULTS IN A REJECTION RATE IN EXCESS OF
TEN PERCENT OF DEPARTMENT DEVELOPED VOLUME BENCHMARKS, MEDICAID PREMIUMS
SHALL BE REDUCED BY ONE HALF-PERCENT.
  (C) PENALTIES UNDER THIS SUBDIVISION MAY BE APPLIED  TO  ANY  AND  ALL
CIRCUMSTANCES  DESCRIBED  IN  PARAGRAPH  (B)  OF  THIS  SUBDIVISION AT A
FREQUENCY DETERMINED BY THE COMMISSIONER. THE COMMISSIONER MAY,  IN  HIS
OR HER DISCRETION, WAIVE SUCH PENALTY.
  S  16.  Paragraph  (d) of subdivision 1 of section 367-a of the social
services law is amended by adding a new subparagraph  (iv)  to  read  as
follows:
  (IV)  IF  A  HEALTH PLAN PARTICIPATING IN PART C OF TITLE XVIII OF THE
FEDERAL SOCIAL SECURITY ACT PAYS FOR  ITEMS  AND  SERVICES  PROVIDED  TO
ELIGIBLE  PERSONS WHO ARE ALSO BENEFICIARIES UNDER PART B OF TITLE XVIII
OF THE FEDERAL SOCIAL SECURITY ACT OR TO  QUALIFIED  MEDICARE  BENEFICI-
ARIES,  THE  AMOUNT  PAYABLE  FOR SERVICES UNDER THIS TITLE SHALL BE THE

S. 6407                            12                            A. 9007

AMOUNT OF ANY CO-INSURANCE LIABILITY OF SUCH ELIGIBLE  PERSONS  PURSUANT
TO  FEDERAL LAW IF THEY WERE NOT ELIGIBLE FOR MEDICAL ASSISTANCE OR WERE
NOT QUALIFIED MEDICARE BENEFICIARIES WITH RESPECT TO SUCH BENEFITS UNDER
SUCH  PART  B,  BUT  SHALL NOT EXCEED THE AMOUNT THAT OTHERWISE WOULD BE
MADE UNDER THIS TITLE IF PROVIDED TO AN ELIGIBLE PERSON  WHO  IS  NOT  A
BENEFICIARY  UNDER  PART B OR A QUALIFIED MEDICARE BENEFICIARY, LESS THE
AMOUNT PAYABLE BY THE PART C HEALTH  PLAN;  PROVIDED,  HOWEVER,  AMOUNTS
PAYABLE  UNDER  THIS  TITLE  FOR ITEMS AND SERVICES PROVIDED TO ELIGIBLE
PERSONS WHO ARE ALSO BENEFICIARIES UNDER PART B OR TO QUALIFIED MEDICARE
BENEFICIARIES BY AN AMBULANCE SERVICE UNDER THE AUTHORITY OF AN  OPERAT-
ING  CERTIFICATE  ISSUED PURSUANT TO ARTICLE THIRTY OF THE PUBLIC HEALTH
LAW, A PSYCHOLOGIST LICENSED UNDER ARTICLE ONE  HUNDRED  FIFTY-THREE  OF
THE  EDUCATION  LAW,  OR  A FACILITY UNDER THE AUTHORITY OF AN OPERATING
CERTIFICATE ISSUED PURSUANT TO ARTICLE SIXTEEN, THIRTY-ONE OR THIRTY-TWO
OF THE MENTAL HYGIENE LAW AND WITH RESPECT TO  OUTPATIENT  HOSPITAL  AND
CLINIC  ITEMS AND SERVICES PROVIDED BY A FACILITY UNDER THE AUTHORITY OF
AN OPERATING CERTIFICATE ISSUED PURSUANT TO ARTICLE TWENTY-EIGHT OF  THE
PUBLIC HEALTH LAW, SHALL NOT BE LESS THAN THE AMOUNT OF ANY CO-INSURANCE
LIABILITY  OF SUCH ELIGIBLE PERSONS OR SUCH QUALIFIED MEDICARE BENEFICI-
ARIES, OR FOR WHICH SUCH ELIGIBLE PERSONS  OR  SUCH  QUALIFIED  MEDICARE
BENEFICIARIES  WOULD  BE LIABLE UNDER FEDERAL LAW WERE THEY NOT ELIGIBLE
FOR MEDICAL ASSISTANCE OR WERE THEY NOT QUALIFIED MEDICARE BENEFICIARIES
WITH RESPECT TO SUCH BENEFITS UNDER PART B.
  S 17. Subdivision 2-b of section 365-l of the social services law,  as
added  by  section  25  of  part B of chapter 57 of the laws of 2015, is
amended to read as follows:
  2-b.   The commissioner  is  authorized  to  make  [grants]  LUMP  SUM
PAYMENTS OR ADJUST RATES OF PAYMENT TO PROVIDERS up to a gross amount of
five million dollars, to establish coordination between the health homes
and  the  criminal justice system and for the integration of information
of health homes with state and local  correctional  facilities,  to  the
extent  permitted  by law.   SUCH RATE ADJUSTMENTS MAY BE MADE TO HEALTH
HOMES PARTICIPATING IN A CRIMINAL JUSTICE PILOT PROGRAM WITH THE PURPOSE
OF ENROLLING INCARCERATED INDIVIDUALS WITH SERIOUS MENTAL  ILLNESS,  TWO
OR  MORE  CHRONIC  CONDITIONS,  INCLUDING  SUBSTANCE ABUSE DISORDERS, OR
HIV/AIDS, INTO SUCH HEALTH HOME. Health homes receiving funds under this
subdivision shall be required to document and demonstrate the  effective
use of funds distributed herein.
  S  18. 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 fund medicaid expenditures,  as
amended  by  section  8  of part B of chapter 57 of the laws of 2015, is
amended to read as follows:
  1. For state fiscal  years  2011-12  through  [2016-17]  2017-18,  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

S. 6407                            13                            A. 9007

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 and state costs  or  savings  from
the basic health plan.  Such projections may be adjusted by the director
of the budget to account for increased or expedited department of health
state funds medicaid expenditures as a result of a natural or other type
of disaster, including a governmental declaration of emergency.
  S  19.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016;  provided
that:
  (a) sections one, two and six of this act shall take effect October 1,
2016;
  (b)  the  amendments  to  subdivision 4 of section 365-h of the social
services law, made by section one of this  act,  shall  not  affect  the
expiration  and  repeal of certain provisions of such section, and shall
expire and be deemed repealed therewith;
  (c) the amendments to subparagraph (i) of paragraph (b) of subdivision
7 of section 4403-f of the public health law, made  by  section  two  of
this  act,  shall  not  affect the expiration of such subdivision or the
repeal of such section, and shall expire or be  deemed  repealed  there-
with;
  (d)  sections  four  and sixteen of this act shall take effect July 1,
2016;
  (e) the amendments to subdivision 9 of section  367-a  of  the  social
services  law,  made  by  section  six of this act, shall not affect the
expiration of such subdivision and shall expire therewith;
  (f) sections eight, nine and ten of this act shall take effect June 1,
2016;
  (g) the amendments to subdivision 25 of section 364-j  of  the  social
services  law,  made  by  section nine of this act, shall not affect the
repeal of such section, and shall be deemed repealed therewith;
  (h) the amendments to paragraph (e) of subdivision 7 of section  367-a
of the social services law, made by sections twelve and thirteen of this
act  shall  not  affect the repeal of such paragraph and shall be deemed
repealed therewith; and
  (i) subdivisions 26-a and 32 of section 364-j of the  social  services
law,  as  added  by  sections  fourteen and fifteen of this act shall be
deemed repealed on the same date and in the same manner as such  section
is repealed.

                                 PART C

  Section  1.  Subdivision 1 of section 18 of chapter 266 of the laws of
1986, amending the civil practice law and rules and other laws  relating
to  malpractice and professional medical conduct, is amended by adding a
new paragraph (c) to read as follows:
  (C) STARTING WITH THE POLICY YEAR BEGINNING JULY FIRST,  TWO  THOUSAND
SIXTEEN,  AND AT LEAST ONCE EVERY FIVE YEARS THEREAFTER, THE SUPERINTEN-
DENT OF FINANCIAL SERVICES SHALL RANK FROM HIGHEST TO LOWEST EACH  CLASS
AND  TERRITORY  COMBINATION USED FOR THE PURPOSE OF APPORTIONING PREMIUM
FOR POLICIES PURCHASED FROM  FUNDS  AVAILABLE  IN  THE  HOSPITAL  EXCESS

S. 6407                            14                            A. 9007

LIABILITY  POOL ACCORDING TO RELATIVITIES DERIVED FROM THE MEDICAL MALP-
RACTICE INSURANCE POOL'S PRIMARY RATES AND THE  APPLICABLE  EXCESS  TIER
FACTORS.    ANNUALLY,  THE  SUPERINTENDENT SHALL DETERMINE THE CLASS AND
TERRITORY  COMBINATIONS FOR WHICH A POLICY OR POLICIES FOR EXCESS INSUR-
ANCE COVERAGE, OR FOR  EQUIVALENT  EXCESS  INSURANCE  COVERAGE,  MAY  BE
PURCHASED  FOR  ELIGIBLE PHYSICIANS OR DENTISTS WITHIN THE LIMITS OF THE
APPROPRIATION FOR THE HOSPITAL EXCESS LIABILITY POOL. THE SUPERINTENDENT
SHALL GRANT PRIORITY FOR PURCHASING POLICIES  IN  EACH  POLICY  YEAR  IN
DESCENDING  ORDER  BEGINNING  WITH  THE HIGHEST RISK CLASS AND TERRITORY
COMBINATION. THE SUPERINTENDENT AND COMMISSIONER OF HEALTH SHALL NOT  BE
OBLIGATED TO PURCHASE ANY MORE POLICIES THAN THE NUMBER OF POLICIES THAT
CAN BE PURCHASED AT THE RATES PROMULGATED ANNUALLY BY THE SUPERINTENDENT
WITHIN  THE  LIMITS OF THE APPROPRIATION. ONCE THE BALANCE OF THE APPRO-
PRIATION BECOMES INSUFFICIENT TO COVER ALL PHYSICIANS AND DENTISTS WITH-
IN A PARTICULAR CLASS AND TERRITORY COMBINATION, THE REMAINING FUNDS FOR
THAT COMBINATION SHALL BE ALLOCATED, FOR THE PURPOSE OF PURCHASING POLI-
CIES FOR SELECTED ADDITIONAL PHYSICIANS AND DENTISTS WITHIN THAT  COMBI-
NATION  TO  GENERAL  HOSPITALS IN PROPORTION TO THEIR SHARE OF THE TOTAL
NUMBER OF PHYSICIANS OR DENTISTS PRACTICING IN SUCH CLASS AND  TERRITORY
COMBINATION  WHO  WERE  CERTIFIED BY THE GENERAL HOSPITALS, AND FOR WHOM
POLICIES WERE PURCHASED, IN THE PRIOR YEAR, PROVIDED THAT ANY  SHARE  OF
LESS  THAN  ONE  PHYSICIAN OR DENTIST SHALL BE DEEMED TO EQUAL ZERO. FOR
THE PURPOSES OF THIS PARAGRAPH, WITH REGARD TO POLICIES ISSUED  FOR  THE
COVERAGE PERIOD BEGINNING JULY FIRST, TWO THOUSAND SIXTEEN, "PRIOR YEAR"
SHALL  MEAN  THE  POLICY  YEAR  THAT  BEGAN  ON JULY FIRST, TWO THOUSAND
FIFTEEN.
  S 2. Paragraph (a) of subdivision 1 of section 18 of  chapter  266  of
the  laws  of  1986, amending the civil practice law and rules and other
laws relating  to  malpractice  and  professional  medical  conduct,  as
amended  by  section  1  of part Y of chapter 57 of the laws of 2015, is
amended to read as follows:
  (a) The superintendent of financial services and the  commissioner  of
health  or  their  designee  shall, from funds available in the hospital
excess liability pool created pursuant to subdivision 5 of this section,
purchase a policy or policies for excess insurance coverage, as  author-
ized  by  paragraph 1 of subsection (e) of section 5502 of the insurance
law; or from an insurer, other than an insurer described in section 5502
of the insurance law, duly authorized to write such coverage and actual-
ly writing  medical  malpractice  insurance  in  this  state;  or  shall
purchase equivalent excess coverage in a form previously approved by the
superintendent  of  financial  services for purposes of providing equiv-
alent excess coverage in accordance with section 19 of  chapter  294  of
the  laws of 1985, for medical or dental malpractice occurrences between
July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30,  1988,
between  July  1,  1988 and June 30, 1989, between July 1, 1989 and June
30, 1990, between July 1, 1990 and June 30, 1991, between July  1,  1991
and  June 30, 1992, between July 1, 1992 and June 30, 1993, between July
1, 1993 and June 30, 1994, between July  1,  1994  and  June  30,  1995,
between  July  1,  1995 and June 30, 1996, between July 1, 1996 and June
30, 1997, between July 1, 1997 and June 30, 1998, between July  1,  1998
and  June 30, 1999, between July 1, 1999 and June 30, 2000, between July
1, 2000 and June 30, 2001, between July  1,  2001  and  June  30,  2002,
between  July  1,  2002 and June 30, 2003, between July 1, 2003 and June
30, 2004, between July 1, 2004 and June 30, 2005, between July  1,  2005
and  June 30, 2006, between July 1, 2006 and June 30, 2007, between July
1, 2007 and June 30, 2008, between July  1,  2008  and  June  30,  2009,

S. 6407                            15                            A. 9007

between  July  1,  2009 and June 30, 2010, between July 1, 2010 and June
30, 2011, between July 1, 2011 and June 30, 2012, between July  1,  2012
and  June 30, 2013, between July 1, 2013 and June 30, 2014, between July
1, 2014 and June 30, 2015, [and] between July 1, 2015 and June 30, 2016,
AND  BETWEEN  JULY  1,  2016 AND JUNE 30, 2017 or reimburse the hospital
where the hospital purchases equivalent excess coverage  as  defined  in
subparagraph (i) of paragraph (a) of subdivision 1-a of this section for
medical  or dental malpractice occurrences between July 1, 1987 and June
30, 1988, between July 1, 1988 and June 30, 1989, between July  1,  1989
and  June 30, 1990, between July 1, 1990 and June 30, 1991, between July
1, 1991 and June 30, 1992, between July  1,  1992  and  June  30,  1993,
between  July  1,  1993 and June 30, 1994, between July 1, 1994 and June
30, 1995, between July 1, 1995 and June 30, 1996, between July  1,  1996
and  June 30, 1997, between July 1, 1997 and June 30, 1998, between July
1, 1998 and June 30, 1999, between July  1,  1999  and  June  30,  2000,
between  July  1,  2000 and June 30, 2001, between July 1, 2001 and June
30, 2002, between July 1, 2002 and June 30, 2003, between July  1,  2003
and  June 30, 2004, between July 1, 2004 and June 30, 2005, between July
1, 2005 and June 30, 2006, between July  1,  2006  and  June  30,  2007,
between  July  1,  2007 and June 30, 2008, between July 1, 2008 and June
30, 2009, between July 1, 2009 and June 30, 2010, between July  1,  2010
and  June 30, 2011, between July 1, 2011 and June 30, 2012, between July
1, 2012 and June 30, 2013, between July  1,  2013  and  June  30,  2014,
between  July  1, 2014 and June 30, 2015, [and] between July 1, 2015 and
June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 for physicians
or dentists certified as eligible for each such period or periods pursu-
ant to subdivision 2 of this section  by  a  general  hospital  licensed
pursuant to article 28 of the public health law; provided that no single
insurer  shall write more than fifty percent of the total excess premium
for a given policy year;  and  provided,  however,  that  such  eligible
physicians  or dentists must have in force an individual policy, from an
insurer licensed in this state of primary malpractice insurance coverage
in amounts of no less than one million three  hundred  thousand  dollars
for  each  claimant  and three million nine hundred thousand dollars for
all claimants under that policy during the period of such excess  cover-
age  for  such occurrences or be endorsed as additional insureds under a
hospital professional liability policy which is offered through a volun-
tary attending physician ("channeling") program previously permitted  by
the  superintendent  of  financial  services  during  the period of such
excess coverage for such occurrences.  During such period,  such  policy
for  excess  coverage  or  such  equivalent  excess coverage shall, when
combined with the physician's or dentist's primary malpractice insurance
coverage or coverage provided through a  voluntary  attending  physician
("channeling")  program,  total  an aggregate level of two million three
hundred thousand dollars for each claimant and six million nine  hundred
thousand  dollars  for all claimants from all such policies with respect
to occurrences in each of such years provided, however, if the  cost  of
primary malpractice insurance coverage in excess of one million dollars,
but  below  the  excess  medical malpractice insurance coverage provided
pursuant to this act, exceeds the rate of nine percent per  annum,  then
the  required  level of primary malpractice insurance coverage in excess
of one million dollars for each claimant shall be in an  amount  of  not
less  than  the dollar amount of such coverage available at nine percent
per annum; the required level of such coverage for all  claimants  under
that  policy  shall be in an amount not less than three times the dollar
amount of coverage for each claimant; and excess coverage, when combined

S. 6407                            16                            A. 9007

with such primary malpractice insurance  coverage,  shall  increase  the
aggregate  level  for  each  claimant  by  one million dollars and three
million dollars for all claimants;  and  provided  further,  that,  with
respect to policies of primary medical malpractice coverage that include
occurrences  between  April  1, 2002 and June 30, 2002, such requirement
that coverage be in amounts no less than one million three hundred thou-
sand dollars for each claimant and three million nine  hundred  thousand
dollars  for all claimants for such occurrences shall be effective April
1, 2002.
  S 3. Subdivision 3 of section 18 of chapter 266 of the laws  of  1986,
amending  the  civil  practice  law and rules and other laws relating to
malpractice and professional medical conduct, as amended by section 2 of
part Y of chapter 57 of the laws of 2015, is amended to read as follows:
  (3)(a) The superintendent of financial services  shall  determine  and
certify  to  each general hospital and to the commissioner of health the
cost of excess malpractice insurance for medical or  dental  malpractice
occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988
and  June 30, 1989, between July 1, 1989 and June 30, 1990, between July
1, 1990 and June 30, 1991, between July  1,  1991  and  June  30,  1992,
between  July  1,  1992 and June 30, 1993, between July 1, 1993 and June
30, 1994, between July 1, 1994 and June 30, 1995, between July  1,  1995
and  June 30, 1996, between July 1, 1996 and June 30, 1997, between July
1, 1997 and June 30, 1998, between July  1,  1998  and  June  30,  1999,
between  July  1,  1999 and June 30, 2000, between July 1, 2000 and June
30, 2001, between July 1, 2001 and June 30, 2002, between July  1,  2002
and  June 30, 2003, between July 1, 2003 and June 30, 2004, between July
1, 2004 and June 30, 2005, between July  1,  2005  and  June  30,  2006,
between  July  1,  2006 and June 30, 2007, between July 1, 2007 and June
30, 2008, between July 1, 2008 and June 30, 2009, between July  1,  2009
and  June 30, 2010, between July 1, 2010 and June 30, 2011, between July
1, 2011 and June 30, 2012, between July 1, 2012 and June 30,  2013,  and
between  July  1,  2013 and June 30, 2014, between July 1, 2014 and June
30, 2015, [and] between July 1, 2015 and June 30, 2016, AND BETWEEN JULY
1, 2016 AND JUNE 30, 2017 allocable to each general hospital for  physi-
cians  or  dentists  certified  as eligible for purchase of a policy for
excess insurance coverage by such general hospital  in  accordance  with
subdivision  2  of  this  section,  and may amend such determination and
certification as necessary.
  (b) The superintendent  of  financial  services  shall  determine  and
certify  to  each general hospital and to the commissioner of health the
cost of excess malpractice insurance or equivalent excess  coverage  for
medical  or dental malpractice occurrences between July 1, 1987 and June
30, 1988, between July 1, 1988 and June 30, 1989, between July  1,  1989
and  June 30, 1990, between July 1, 1990 and June 30, 1991, between July
1, 1991 and June 30, 1992, between July  1,  1992  and  June  30,  1993,
between  July  1,  1993 and June 30, 1994, between July 1, 1994 and June
30, 1995, between July 1, 1995 and June 30, 1996, between July  1,  1996
and  June 30, 1997, between July 1, 1997 and June 30, 1998, between July
1, 1998 and June 30, 1999, between July  1,  1999  and  June  30,  2000,
between  July  1,  2000 and June 30, 2001, between July 1, 2001 and June
30, 2002, between July 1, 2002 and June 30, 2003, between July  1,  2003
and  June 30, 2004, between July 1, 2004 and June 30, 2005, between July
1, 2005 and June 30, 2006, between July  1,  2006  and  June  30,  2007,
between  July  1,  2007 and June 30, 2008, between July 1, 2008 and June
30, 2009, between July 1, 2009 and June 30, 2010, between July  1,  2010
and  June 30, 2011, between July 1, 2011 and June 30, 2012, between July

S. 6407                            17                            A. 9007

1, 2012 and June 30, 2013, between July  1,  2013  and  June  30,  2014,
between  July  1, 2014 and June 30, 2015, [and] between July 1, 2015 and
June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017  allocable  to
each  general  hospital for physicians or dentists certified as eligible
for purchase of a policy for excess  insurance  coverage  or  equivalent
excess  coverage by such general hospital in accordance with subdivision
2 of this section, and may amend such determination and certification as
necessary. The superintendent of financial services shall determine  and
certify  to  each general hospital and to the commissioner of health the
ratable share of such cost allocable to  the  period  July  1,  1987  to
December  31,  1987,  to the period January 1, 1988 to June 30, 1988, to
the period July 1, 1988 to December 31, 1988, to the period  January  1,
1989  to June 30, 1989, to the period July 1, 1989 to December 31, 1989,
to the period January 1, 1990 to June 30, 1990, to the  period  July  1,
1990  to  December  31,  1990, to the period January 1, 1991 to June 30,
1991, to the period July 1, 1991 to December 31,  1991,  to  the  period
January 1, 1992 to June 30, 1992, to the period July 1, 1992 to December
31,  1992, to the period January 1, 1993 to June 30, 1993, to the period
July 1, 1993 to December 31, 1993, to the period January 1, 1994 to June
30, 1994, to the period July 1, 1994 to December 31, 1994, to the period
January 1, 1995 to June 30, 1995, to the period July 1, 1995 to December
31, 1995, to the period January 1, 1996 to June 30, 1996, to the  period
July 1, 1996 to December 31, 1996, to the period January 1, 1997 to June
30, 1997, to the period July 1, 1997 to December 31, 1997, to the period
January 1, 1998 to June 30, 1998, to the period July 1, 1998 to December
31,  1998, to the period January 1, 1999 to June 30, 1999, to the period
July 1, 1999 to December 31, 1999, to the period January 1, 2000 to June
30, 2000, to the period July 1, 2000 to December 31, 2000, to the period
January 1, 2001 to June 30, 2001, to the period July 1, 2001 to June 30,
2002, to the period July 1, 2002 to June 30, 2003, to the period July 1,
2003 to June 30, 2004, to the period July 1, 2004 to June 30,  2005,  to
the  period  July  1, 2005 and June 30, 2006, to the period July 1, 2006
and June 30, 2007, to the period July 1, 2007 and June 30, 2008, to  the
period  July  1,  2008 and June 30, 2009, to the period July 1, 2009 and
June 30, 2010, to the period July 1, 2010 and  June  30,  2011,  to  the
period  July  1,  2011 and June 30, 2012, to the period July 1, 2012 and
June 30, 2013, to the period July 1, 2013 and  June  30,  2014,  to  the
period  July 1, 2014 and June 30, 2015, [and] to the period July 1, 2015
and June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017.
  S 4. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
18 of chapter 266 of the laws of 1986, amending the civil  practice  law
and  rules  and  other  laws  relating  to  malpractice and professional
medical conduct, as amended by section 3 of part Y of chapter 57 of  the
laws of 2015, are amended to read as follows:
  (a)  To  the  extent  funds available to the hospital excess liability
pool pursuant to subdivision 5 of this section as amended, and  pursuant
to  section  6  of part J of chapter 63 of the laws of 2001, as may from
time to time be amended, which amended this  subdivision,  are  insuffi-
cient  to  meet  the  costs  of  excess insurance coverage or equivalent
excess coverage for coverage periods during the period July 1,  1992  to
June  30,  1993, during the period July 1, 1993 to June 30, 1994, during
the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
to June 30, 1996, during the period July  1,  1996  to  June  30,  1997,
during  the period July 1, 1997 to June 30, 1998, during the period July
1, 1998 to June 30, 1999, during the period July 1,  1999  to  June  30,
2000, during the period July 1, 2000 to June 30, 2001, during the period

S. 6407                            18                            A. 9007

July  1,  2001  to  October 29, 2001, during the period April 1, 2002 to
June 30, 2002, during the period July 1, 2002 to June 30,  2003,  during
the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
to  June  30,  2005,  during  the  period July 1, 2005 to June 30, 2006,
during the period July 1, 2006 to June 30, 2007, during the period  July
1,  2007  to  June  30, 2008, during the period July 1, 2008 to June 30,
2009, during the period July 1, 2009 to June 30, 2010, during the period
July 1, 2010 to June 30, 2011, during the period July 1,  2011  to  June
30,  2012,  during  the period July 1, 2012 to June 30, 2013, during the
period July 1, 2013 to June 30, 2014, during the period July 1, 2014  to
June  30,  2015, [and] during the period July 1, 2015 and June 30, 2016,
AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 allocated or  reallocated  in
accordance  with  paragraph  (a)  of  subdivision 4-a of this section to
rates of payment applicable to state governmental agencies, each  physi-
cian  or  dentist  for  whom  a  policy for excess insurance coverage or
equivalent excess coverage is purchased for such period shall be respon-
sible for payment to the provider of excess insurance coverage or equiv-
alent excess coverage of an allocable share of such insufficiency, based
on the ratio of the total cost of such coverage for  such  physician  to
the sum of the total cost of such coverage for all physicians applied to
such insufficiency.
  (b)  Each  provider  of excess insurance coverage or equivalent excess
coverage covering the period July 1, 1992 to June 30, 1993, or  covering
the period July 1, 1993 to June 30, 1994, or covering the period July 1,
1994  to  June 30, 1995, or covering the period July 1, 1995 to June 30,
1996, or covering the period July 1, 1996 to June 30, 1997, or  covering
the period July 1, 1997 to June 30, 1998, or covering the period July 1,
1998  to  June 30, 1999, or covering the period July 1, 1999 to June 30,
2000, or covering the period July 1, 2000 to June 30, 2001, or  covering
the  period  July  1,  2001  to October 29, 2001, or covering the period
April 1, 2002 to June 30, 2002, or covering the period July 1,  2002  to
June  30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
covering the period July 1, 2004 to June 30, 2005, or covering the peri-
od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
June 30, 2007, or covering the period July 1, 2007 to June 30, 2008,  or
covering the period July 1, 2008 to June 30, 2009, or covering the peri-
od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
June  30, 2011, or covering the period July 1, 2011 to June 30, 2012, or
covering the period July 1, 2012 to June 30, 2013, or covering the peri-
od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
June 30, 2015, or covering the period July 1, 2015 to June 30, 2016,  OR
COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 shall notify a covered
physician  or  dentist  by mail, mailed to the address shown on the last
application for excess insurance coverage or equivalent excess coverage,
of the amount due to such provider from such physician  or  dentist  for
such coverage period determined in accordance with paragraph (a) of this
subdivision.  Such amount shall be due from such physician or dentist to
such provider of excess insurance coverage or equivalent excess coverage
in a time and manner  determined  by  the  superintendent  of  financial
services.
  (c)  If  a physician or dentist liable for payment of a portion of the
costs of excess insurance coverage or equivalent excess coverage  cover-
ing  the  period  July  1, 1992 to June 30, 1993, or covering the period
July 1, 1993 to June 30, 1994, or covering the period July  1,  1994  to
June  30, 1995, or covering the period July 1, 1995 to June 30, 1996, or
covering the period July 1, 1996 to June 30, 1997, or covering the peri-

S. 6407                            19                            A. 9007

od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
June 30, 1999, or covering the period July 1, 1999 to June 30, 2000,  or
covering the period July 1, 2000 to June 30, 2001, or covering the peri-
od  July  1,  2001  to October 29, 2001, or covering the period April 1,
2002 to June 30, 2002, or covering the period July 1, 2002 to  June  30,
2003,  or covering the period July 1, 2003 to June 30, 2004, or covering
the period July 1, 2004 to June 30, 2005, or covering the period July 1,
2005 to June 30, 2006, or covering the period July 1, 2006 to  June  30,
2007,  or covering the period July 1, 2007 to June 30, 2008, or covering
the period July 1, 2008 to June 30, 2009, or covering the period July 1,
2009 to June 30, 2010, or covering the period July 1, 2010 to  June  30,
2011,  or covering the period July 1, 2011 to June 30, 2012, or covering
the period July 1, 2012 to June 30, 2013, or covering the period July 1,
2013 to June 30, 2014, or covering the period July 1, 2014 to  June  30,
2015,  or covering the period July 1, 2015 to June 30, 2016, OR COVERING
THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 determined in  accordance  with
paragraph  (a)  of  this  subdivision fails, refuses or neglects to make
payment to the provider  of  excess  insurance  coverage  or  equivalent
excess coverage in such time and manner as determined by the superinten-
dent  of  financial  services pursuant to paragraph (b) of this subdivi-
sion, excess insurance coverage or equivalent excess coverage  purchased
for  such  physician or dentist in accordance with this section for such
coverage period shall be cancelled and shall be null and void as of  the
first  day  on  or  after  the commencement of a policy period where the
liability for payment pursuant to this subdivision has not been met.
  (d) Each provider of excess insurance coverage  or  equivalent  excess
coverage  shall  notify the superintendent of financial services and the
commissioner of health or their designee of each physician  and  dentist
eligible  for  purchase  of  a  policy  for excess insurance coverage or
equivalent excess coverage covering the period July 1, 1992 to June  30,
1993,  or covering the period July 1, 1993 to June 30, 1994, or covering
the period July 1, 1994 to June 30, 1995, or covering the period July 1,
1995 to June 30, 1996, or covering the period July 1, 1996 to  June  30,
1997,  or covering the period July 1, 1997 to June 30, 1998, or covering
the period July 1, 1998 to June 30, 1999, or covering the period July 1,
1999 to June 30, 2000, or covering the period July 1, 2000 to  June  30,
2001, or covering the period July 1, 2001 to October 29, 2001, or cover-
ing  the  period  April 1, 2002 to June 30, 2002, or covering the period
July 1, 2002 to June 30, 2003, or covering the period July  1,  2003  to
June  30, 2004, or covering the period July 1, 2004 to June 30, 2005, or
covering the period July 1, 2005 to June 30, 2006, or covering the peri-
od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to
June 30, 2008, or covering the period July 1, 2008 to June 30, 2009,  or
covering the period July 1, 2009 to June 30, 2010, or covering the peri-
od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to
June  30, 2012, or covering the period July 1, 2012 to June 30, 2013, or
covering the period July 1, 2013 to June 30, 2014, or covering the peri-
od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to
June 30, 2016, OR COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 that
has made payment to such provider of excess insurance coverage or equiv-
alent excess coverage in accordance with paragraph (b) of this  subdivi-
sion  and  of  each  physician  and  dentist  who has failed, refused or
neglected to make such payment.
  (e) A provider of  excess  insurance  coverage  or  equivalent  excess
coverage  shall  refund to the hospital excess liability pool any amount
allocable to the period July 1, 1992 to June 30, 1993, and to the period

S. 6407                            20                            A. 9007

July 1, 1993 to June 30, 1994, and to the period July 1,  1994  to  June
30,  1995,  and  to the period July 1, 1995 to June 30, 1996, and to the
period July 1, 1996 to June 30, 1997, and to the period July 1, 1997  to
June  30,  1998, and to the period July 1, 1998 to June 30, 1999, and to
the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
to June 30, 2001, and to the period July 1, 2001 to  October  29,  2001,
and to the period April 1, 2002 to June 30, 2002, and to the period July
1,  2002  to  June  30, 2003, and to the period July 1, 2003 to June 30,
2004, and to the period July 1, 2004 to June 30, 2005, and to the period
July 1, 2005 to June 30, 2006, and to the period July 1,  2006  to  June
30,  2007,  and  to the period July 1, 2007 to June 30, 2008, and to the
period July 1, 2008 to June 30, 2009, and to the period July 1, 2009  to
June  30,  2010, and to the period July 1, 2010 to June 30, 2011, and to
the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
to June 30, 2013, and to the period July 1, 2013 to June 30,  2014,  and
to  the  period July 1, 2014 to June 30, 2015, and to the period July 1,
2015 to June 30, 2016, AND TO THE PERIOD JULY 1, 2016 TO JUNE  30,  2017
received  from the hospital excess liability pool for purchase of excess
insurance coverage or equivalent excess  coverage  covering  the  period
July  1,  1992 to June 30, 1993, and covering the period July 1, 1993 to
June 30, 1994, and covering the period July 1, 1994 to  June  30,  1995,
and  covering the period July 1, 1995 to June 30, 1996, and covering the
period July 1, 1996 to June 30, 1997, and covering the  period  July  1,
1997  to June 30, 1998, and covering the period July 1, 1998 to June 30,
1999, and covering the period July 1, 1999 to June 30, 2000, and  cover-
ing  the  period  July 1, 2000 to June 30, 2001, and covering the period
July 1, 2001 to October 29, 2001, and covering the period April 1,  2002
to June 30, 2002, and covering the period July 1, 2002 to June 30, 2003,
and  covering the period July 1, 2003 to June 30, 2004, and covering the
period July 1, 2004 to June 30, 2005, and covering the  period  July  1,
2005  to June 30, 2006, and covering the period July 1, 2006 to June 30,
2007, and covering the period July 1, 2007 to June 30, 2008, and  cover-
ing  the  period  July 1, 2008 to June 30, 2009, and covering the period
July 1, 2009 to June 30, 2010, and covering the period July 1,  2010  to
June  30,  2011,  and covering the period July 1, 2011 to June 30, 2012,
and covering the period July 1, 2012 to June 30, 2013, and covering  the
period  July  1,  2013 to June 30, 2014, and covering the period July 1,
2014 to June 30, 2015, and covering the period July 1, 2015 to June  30,
2016, AND COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 for a physi-
cian  or  dentist  where  such  excess  insurance coverage or equivalent
excess coverage is cancelled in accordance with paragraph  (c)  of  this
subdivision.
  S 5. Section 40 of chapter 266 of the laws of 1986, amending the civil
practice  law  and  rules  and  other  laws  relating to malpractice and
professional medical conduct, as amended by section 4 of part Y of chap-
ter 57 of the laws of 2015, is amended to read as follows:
  S 40. The superintendent of financial services shall  establish  rates
for  policies  providing  coverage  for  physicians and surgeons medical
malpractice for the periods commencing July 1, 1985 and ending June  30,
[2016] 2017; provided, however, that notwithstanding any other provision
of  law,  the superintendent shall not establish or approve any increase
in rates for the period commencing July 1,  2009  and  ending  June  30,
2010.  The  superintendent shall direct insurers to establish segregated
accounts for premiums, payments, reserves and investment income  attrib-
utable to such premium periods and shall require periodic reports by the
insurers  regarding  claims and expenses attributable to such periods to

S. 6407                            21                            A. 9007

monitor whether such accounts will be sufficient to meet incurred claims
and expenses. On or after July 1, 1989, the superintendent shall  impose
a  surcharge  on  premiums  to  satisfy  a  projected deficiency that is
attributable  to the premium levels established pursuant to this section
for such periods; provided, however, that such  annual  surcharge  shall
not  exceed  eight  percent of the established rate until July 1, [2016]
2017, at which time and thereafter such surcharge shall not exceed twen-
ty-five percent of the approved adequate  rate,  and  that  such  annual
surcharges shall continue for such period of time as shall be sufficient
to  satisfy  such  deficiency.  The superintendent shall not impose such
surcharge during the period commencing July 1, 2009 and ending June  30,
2010.    On  and  after  July  1, 1989, the surcharge prescribed by this
section shall be retained by insurers to the extent  that  they  insured
physicians  and surgeons during the July 1, 1985 through June 30, [2016]
2017 policy periods; in the event  and  to  the  extent  physicians  and
surgeons  were  insured by another insurer during such periods, all or a
pro rata share of the surcharge, as the case may be, shall  be  remitted
to  such  other  insurer  in accordance with rules and regulations to be
promulgated by the superintendent.  Surcharges collected from physicians
and surgeons who were not insured during such policy  periods  shall  be
apportioned  among  all insurers in proportion to the premium written by
each insurer during such policy periods; if a physician or  surgeon  was
insured by an insurer subject to rates established by the superintendent
during  such  policy  periods,  and  at  any time thereafter a hospital,
health maintenance organization, employer or institution is  responsible
for  responding in damages for liability arising out of such physician's
or surgeon's practice of medicine, such responsible  entity  shall  also
remit  to  such  prior  insurer the equivalent amount that would then be
collected as a surcharge if the physician or surgeon  had  continued  to
remain  insured  by  such  prior  insurer. In the event any insurer that
provided coverage during such policy  periods  is  in  liquidation,  the
property/casualty  insurance  security fund shall receive the portion of
surcharges to which the insurer in liquidation would have been entitled.
The surcharges authorized herein shall be deemed to be income earned for
the purposes of section 2303 of the insurance law.  The  superintendent,
in  establishing  adequate  rates and in determining any projected defi-
ciency pursuant to the requirements of this section  and  the  insurance
law,  shall  give  substantial  weight, determined in his discretion and
judgment, to the  prospective  anticipated  effect  of  any  regulations
promulgated  and  laws  enacted  and the public benefit of   stabilizing
malpractice rates and minimizing rate level fluctuation during the peri-
od of time necessary for the development of  more  reliable  statistical
experience  as  to  the  efficacy of such laws and regulations affecting
medical, dental or podiatric malpractice enacted or promulgated in 1985,
1986, by this act and at any other time.  Notwithstanding any  provision
of the insurance law, rates already established and to be established by
the  superintendent pursuant to this section are deemed adequate if such
rates would be adequate when taken together with the maximum  authorized
annual  surcharges to be imposed for a reasonable period of time whether
or not any such annual surcharge has been actually  imposed  as  of  the
establishment of such rates.
  S  6. Section 5 and subdivisions (a) and (e) of section 6 of part J of
chapter 63 of the laws of 2001, amending chapter  266  of  the  laws  of
1986,  amending the civil practice law and rules and other laws relating
to malpractice and professional medical conduct, as amended by section 5

S. 6407                            22                            A. 9007

of part Y of chapter 57 of the laws of 2015,  are  amended  to  read  as
follows:
  S  5. The superintendent of financial services and the commissioner of
health shall determine, no later than June 15, 2002, June 15, 2003, June
15, 2004, June 15, 2005, June 15, 2006, June 15, 2007,  June  15,  2008,
June  15,  2009,  June  15, 2010, June 15, 2011, June 15, 2012, June 15,
2013, June 15, 2014, June 15, 2015, [and] June 15, 2016,  AND  JUNE  15,
2017  the  amount  of  funds  available in the hospital excess liability
pool, created pursuant to section 18 of chapter 266 of the laws of 1986,
and whether such funds are sufficient for purposes of purchasing  excess
insurance  coverage  for  eligible participating physicians and dentists
during the period July 1, 2001 to June 30, 2002, or July 1, 2002 to June
30, 2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June  30,
2005,  or  July  1,  2005  to June 30, 2006, or July 1, 2006 to June 30,
2007, or July 1, 2007 to June 30, 2008, or July  1,  2008  to  June  30,
2009,  or  July  1,  2009  to June 30, 2010, or July 1, 2010 to June 30,
2011, or July 1, 2011 to June 30, 2012, or July  1,  2012  to  June  30,
2013,  or  July  1,  2013  to June 30, 2014, or July 1, 2014 to June 30,
2015, or July 1, 2015 to June 30, 2016, OR JULY 1, 2016 TO JUNE 30, 2017
as applicable.
  (a) This section shall be effective only upon a determination,  pursu-
ant  to  section  five  of  this act, by the superintendent of financial
services and the commissioner of health, and  a  certification  of  such
determination  to  the  state  director  of the budget, the chair of the
senate committee on finance and the chair of the assembly  committee  on
ways  and means, that the amount of funds in the hospital excess liabil-
ity pool, created pursuant to section 18 of chapter 266 of the  laws  of
1986, is insufficient for purposes of purchasing excess insurance cover-
age for eligible participating physicians and dentists during the period
July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
1,  2003  to June 30, 2004, or July 1, 2004 to June 30, 2005, or July 1,
2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007
to June 30, 2008, or July 1, 2008 to June 30, 2009, or July 1,  2009  to
June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June
30,  2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June 30,
2014, or July 1, 2014 to June 30, 2015, or July  1,  2015  to  June  30,
2016, OR JULY 1, 2016 TO JUNE 30, 2017 as applicable.
  (e)  The  commissioner  of  health  shall  transfer for deposit to the
hospital excess liability pool created pursuant to section 18 of chapter
266 of the laws of 1986 such amounts as directed by  the  superintendent
of  financial  services  for  the purchase of excess liability insurance
coverage for eligible participating  physicians  and  dentists  for  the
policy  year  July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30,
2003, or July 1, 2003 to June 30, 2004, or July  1,  2004  to  June  30,
2005,  or  July  1,  2005  to June 30, 2006, or July 1, 2006 to June 30,
2007, as applicable, and the cost of administering the  hospital  excess
liability pool for such applicable policy year,  pursuant to the program
established  in  chapter  266  of the laws of 1986, as amended, no later
than June 15, 2002, June 15, 2003, June 15, 2004, June  15,  2005,  June
15,  2006,  June  15, 2007, June 15, 2008, June 15, 2009, June 15, 2010,
June 15, 2011, June 15, 2012, June 15, 2013, June  15,  2014,  June  15,
2015, [and] June 15, 2016, AND JUNE 15, 2017 as applicable.
  S 7. Notwithstanding any law, rule or regulation to the contrary, only
physicians  or  dentists who were eligible, and for whom the superinten-
dent of financial services and the  commissioner  of  health,  or  their
designee, purchased, with funds available in the hospital excess liabil-

S. 6407                            23                            A. 9007

ity  pool,  a  full  or partial policy for excess coverage or equivalent
excess coverage for the coverage period ending the  thirtieth  of  June,
two  thousand  sixteen, shall be eligible to apply for such coverage for
the  coverage  period beginning the first of July, two thousand sixteen;
provided, however, if the total number of  physicians  or  dentists  for
whom  such  excess  coverage or equivalent excess coverage was purchased
for the policy year ending the thirtieth of June, two  thousand  sixteen
exceeds the total number of physicians or dentists certified as eligible
for  the  coverage  period  beginning  the  first  of July, two thousand
sixteen, then the general  hospitals  may  certify  additional  eligible
physicians  or  dentists  in  a  number equal to such general hospital's
proportional share of the total number of  physicians  or  dentists  for
whom  excess  coverage  or equivalent excess coverage was purchased with
funds available in the hospital excess liability pool as of the  thirti-
eth  of June, two thousand sixteen, as applied to the difference between
the number of eligible physicians or dentists  for  whom  a  policy  for
excess  coverage  or  equivalent  excess  coverage was purchased for the
coverage period ending the thirtieth of June, two thousand  sixteen  and
the  number of such eligible physicians or dentists who have applied for
excess coverage or equivalent excess coverage for  the  coverage  period
beginning the first of July, two thousand sixteen.
  S  8.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016, provided,
however, section two of this act shall take effect July 1, 2016.

                                 PART D

  Section 1.  Paragraph (a) of subdivision 1 of section 212  of  chapter
474  of  the  laws  of  1996,  amending the education law and other laws
relating to rates for residential healthcare facilities, as  amended  by
section  2  of  part  B of chapter 56 of the laws of 2013, is amended to
read as follows:
  (a) Notwithstanding any inconsistent provision of law or regulation to
the contrary, effective beginning August 1, 1996, for the  period  April
1,  1997  through  March 31, 1998, April 1, 1998 for the period April 1,
1998 through March 31, 1999, August 1, 1999, for  the  period  April  1,
1999 through March 31, 2000, April 1, 2000, for the period April 1, 2000
through  March  31,  2001,  April  1, 2001, for the period April 1, 2001
through March 31, 2002, April 1, 2002, for  the  period  April  1,  2002
through March 31, 2003, and for the state fiscal year beginning April 1,
2005  through  March  31,  2006, and for the state fiscal year beginning
April 1, 2006 through March 31, 2007, and  for  the  state  fiscal  year
beginning April 1, 2007 through March 31, 2008, and for the state fiscal
year  beginning  April 1, 2008 through March 31, 2009, and for the state
fiscal year beginning April 1, 2009 through March 31, 2010, and for  the
state  fiscal  year  beginning April 1, 2010 through March 31, 2016, AND
ANNUALLY THEREAFTER, the department  of  health  is  authorized  to  pay
public  general  hospitals, as defined in subdivision 10 of section 2801
of the public health law, operated by the state of New York  or  by  the
state  university  of New York or by a county, which shall not include a
city with a population of over one million, of the state  of  New  York,
and those public general hospitals located in the county of Westchester,
the  county  of  Erie  or  the county of Nassau, additional payments for
inpatient hospital services as medical assistance payments  pursuant  to
title  11  of article 5 of the social services law for patients eligible
for federal financial participation  under  title  XIX  of  the  federal

S. 6407                            24                            A. 9007

social  security  act in medical assistance pursuant to the federal laws
and regulations governing disproportionate share payments  to  hospitals
up to one hundred percent of each such public general hospital's medical
assistance  and uninsured patient losses after all other medical assist-
ance, including disproportionate share payments to such  public  general
hospital  for  1996,  1997,  1998, and 1999, based initially for 1996 on
reported 1994 reconciled data as further reconciled to  actual  reported
1996  reconciled  data,  and  for  1997 based initially on reported 1995
reconciled data as further reconciled to actual reported 1997 reconciled
data, for 1998 based initially  on  reported  1995  reconciled  data  as
further  reconciled  to  actual  reported 1998 reconciled data, for 1999
based initially on reported 1995 reconciled data as  further  reconciled
to  actual  reported  1999  reconciled data, for 2000 based initially on
reported 1995 reconciled data as further reconciled to  actual  reported
2000  data, for 2001 based initially on reported 1995 reconciled data as
further reconciled to actual reported 2001 data, for 2002 based initial-
ly on reported 2000 reconciled data  as  further  reconciled  to  actual
reported  2002  data,  and  for state fiscal years beginning on April 1,
2005, based initially on reported 2000 reconciled data as further recon-
ciled to actual reported data for  2005,  and  for  state  fiscal  years
beginning  on April 1, 2006, based initially on reported 2000 reconciled
data as further reconciled to actual reported data for 2006,  for  state
fiscal  years  beginning  on  and  after April 1, 2007 through March 31,
2009, based initially on reported 2000 reconciled data as further recon-
ciled to actual reported data for 2007 and 2008, respectively, for state
fiscal years beginning on and after April 1, 2009,  based  initially  on
reported  2007  reconciled  data,  adjusted for authorized Medicaid rate
changes applicable to the state fiscal year, and as  further  reconciled
to  actual  reported  data for 2009, for state fiscal years beginning on
and after April 1, 2010, based initially  on  reported  reconciled  data
from  the  base  year  two years prior to the payment year, adjusted for
authorized Medicaid rate changes applicable to the  state  fiscal  year,
and  further  reconciled to actual reported data from such payment year,
and to actual reported data for each respective succeeding  year.    The
payments  may be added to rates of payment or made as aggregate payments
to an eligible public general hospital.
  S 2. Section 10 of chapter 649 of  the  laws  of  1996,  amending  the
public  health  law,  the mental hygiene law and the social services law
relating to authorizing the establishment of  special  needs  plans,  as
amended  by  section  20 of part D of chapter 59 of the laws of 2011, is
amended to read as follows:
  S 10. This act shall take effect immediately and shall  be  deemed  to
have been in full force and effect on and after July 1, 1996[; provided,
however,  that  sections one, two and three of this act shall expire and
be deemed repealed on March 31, 2016 provided, however that  the  amend-
ments  to  section 364-j of the social services law made by section four
of this act shall not affect the expiration of such section and shall be
deemed to expire therewith and provided, further, that the provisions of
subdivisions 8, 9 and 10 of section 4401 of the public  health  law,  as
added  by  section  one of this act; section 4403-d of the public health
law as added by section two of this act and the  provisions  of  section
seven  of this act, except for the provisions relating to the establish-
ment of no more than twelve comprehensive HIV special needs plans, shall
expire and be deemed repealed on July 1, 2000].

S. 6407                            25                            A. 9007

  S 3. Subdivision 8 of section 84 of part A of chapter 56 of  the  laws
of  2013,  amending  the  public  health  law and other laws relating to
general hospital reimbursement for annual rates is REPEALED.
  S  4.  Subdivision  (f)  of section 129 of part C of chapter 58 of the
laws of 2009, amending the public health  law  relating  to  payment  by
governmental  agencies  for  general  hospital  inpatient  services,  is
REPEALED.
  S 5. Subdivision (c) of section 122 of part E of  chapter  56  of  the
laws  of  2013  amending  the  public health law relating to the general
public health work program is REPEALED.
  S 6. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2016.

                                 PART E

  Section  1. Subdivisions 9 and 10 of section 2541 of the public health
law, as added by chapter 428 of the laws of 1992, are amended to read as
follows:
  9. "Evaluation"  means  a  multidisciplinary  professional,  objective
[assessment]  EXAMINATION conducted by appropriately qualified personnel
and conducted pursuant to section twenty-five hundred forty-four of this
title to determine a child's eligibility under this title.
  10. "Evaluator" means a [team of two or  more  professionals  approved
pursuant to section twenty-five hundred fifty-one of this title] PROVID-
ER APPROVED BY THE DEPARTMENT to conduct screenings and evaluations.
  S  2.  Section  2541 of the public health law is amended by adding two
new subdivisions 12-a and 15-a to read as follows:
  12-A. "MULTIDISCIPLINARY" MEANS THE INVOLVEMENT OF TWO OR  MORE  SEPA-
RATE  DISCIPLINES  OR PROFESSIONS, WHICH MAY MEAN THE INVOLVEMENT OF ONE
INDIVIDUAL WHO MEETS THE DEFINITION OF QUALIFIED PERSONNEL AS DEFINED IN
SUBDIVISION FIFTEEN OF THIS SECTION AND WHO IS QUALIFIED, IN  ACCORDANCE
WITH  STATE  LICENSURE,  CERTIFICATION OR OTHER COMPARABLE STANDARDS, TO
EVALUATE ALL FIVE DEVELOPMENTAL DOMAINS.
  15-A. "SCREENING" MEANS THE PROCEDURES USED BY QUALIFIED PERSONNEL, AS
DEFINED IN SUBDIVISION FIFTEEN OF THIS SECTION, TO DETERMINE  WHETHER  A
CHILD  IS  SUSPECTED  OF HAVING A DISABILITY AND IN NEED OF EARLY INTER-
VENTION SERVICES, AND SHALL INCLUDE, WHERE AVAILABLE AND APPROPRIATE FOR
THE CHILD, THE ADMINISTRATION OF A STANDARDIZED  INSTRUMENT  OR  INSTRU-
MENTS  APPROVED  BY THE DEPARTMENT, IN ACCORDANCE WITH SUBDIVISION THREE
OF SECTION TWENTY-FIVE HUNDRED FORTY-FOUR OF THIS TITLE.
  S 3. Subdivision 3 of section  2542  of  the  public  health  law,  as
amended  by  chapter  231  of  the  laws  of 1993, is amended to read as
follows:
  3. [The following persons and entities, within] (A) UNLESS THE  PARENT
OBJECTS,  WITHIN  two  working  days of identifying an infant or toddler
suspected of having a disability or at risk of having a disability,  THE
FOLLOWING PERSONS AND ENTITIES shall refer such infant or toddler to the
early  intervention official or the health officer [of the public health
district in which the infant or toddler resides, as  designated  by  the
municipality,  but  in no event over the objection of the parent made in
accordance with procedures established by the department for use by such
primary referral sources, unless the child has already been referred] OF
THE PUBLIC HEALTH DISTRICT DESIGNATED BY THE MUNICIPALITY IN  WHICH  THE
INFANT  OR TODDLER RESIDES:  hospitals, child health care providers, day
care programs, local school districts, public health  facilities,  early
childhood  direction  centers  and  such other social service and health

S. 6407                            26                            A. 9007

care agencies and providers as the commissioner shall specify  in  regu-
lation[;  provided,  however,  that  the].  THIS  SHALL NOT APPLY IF THE
INFANT OR TODDLER HAS ALREADY BEEN REFERRED TO SUCH  EARLY  INTERVENTION
OFFICIAL  OR  HEALTH OFFICER. THE department shall establish procedures,
including regulations if  required,  to  ensure  that  primary  referral
sources  adequately inform the parent or guardian about the early inter-
vention program,  including  through  brochures  and  written  materials
created or approved by the department.
  (B)  THE  PRIMARY REFERRAL SOURCES IDENTIFIED IN PARAGRAPH (A) OF THIS
SUBDIVISION SHALL, WITH PARENTAL CONSENT, COMPLETE AND TRANSMIT  AT  THE
TIME  OF  REFERRAL,  A  REFERRAL  FORM DEVELOPED BY THE DEPARTMENT WHICH
CONTAINS  INFORMATION  SUFFICIENT  TO  DOCUMENT  THE  PRIMARY   REFERRAL
SOURCE'S  CONCERN  OR BASIS FOR SUSPECTING THE CHILD HAS A DISABILITY OR
IS AT RISK OF HAVING A DISABILITY, AND WHERE APPLICABLE,  SPECIFIES  THE
CHILD'S DIAGNOSED CONDITION THAT ESTABLISHES THE CHILD'S ELIGIBILITY FOR
THE EARLY INTERVENTION PROGRAM. THE PRIMARY REFERRAL SOURCE SHALL INFORM
THE  PARENT OF A CHILD WITH A DIAGNOSED CONDITION THAT HAS A HIGH PROBA-
BILITY OF RESULTING IN DEVELOPMENTAL DELAY, THAT (I) ELIGIBILITY FOR THE
PROGRAM MAY BE ESTABLISHED BY MEDICAL OR OTHER RECORDS AND (II)  OF  THE
IMPORTANCE OF PROVIDING CONSENT FOR THE PRIMARY REFERRAL SOURCE TO TRAN-
SMIT  RECORDS  OR  REPORTS  NECESSARY  TO SUPPORT THE DIAGNOSIS, OR, FOR
PARENTS OR GUARDIANS OF CHILDREN WHO DO NOT HAVE A DIAGNOSED  CONDITION,
RECORDS  OR REPORTS THAT WOULD ASSIST IN DETERMINING ELIGIBILITY FOR THE
PROGRAM.
  S 4. Section 2544 of the public health law, as added by chapter 428 of
the laws of 1992, paragraph (c) of subdivision 2 as added by  section  1
of  part A of chapter 56 of the laws of 2012 and subdivision 11 as added
by section 3 of part B3 of chapter 62 of the laws of 2003, is amended to
read as follows:
  S 2544. Screening and evaluations. 1. Each  child  thought  to  be  an
eligible  child  is  entitled  to  [a  multidisciplinary]  AN evaluation
CONDUCTED IN ACCORDANCE WITH THIS SECTION, and  the  early  intervention
official shall ensure such evaluation, with parental consent.
  2.  (a)  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 APPLICABLE SCREENING AND/OR evaluation  IN  ACCORD-
ANCE WITH THIS SECTION.  The parent or evaluator shall immediately noti-
fy  the  early  intervention  official  of such selection. THE EVALUATOR
SHALL REVIEW THE INFORMATION AND DOCUMENTATION PROVIDED WITH THE  REFER-
RAL  TO  DETERMINE  THE  APPROPRIATE  SCREENING OR EVALUATION PROCESS TO
FOLLOW IN ACCORDANCE WITH THIS SECTION.  The  evaluator  may  begin  the
SCREENING  OR  evaluation  no  sooner  than four working days after such
notification, unless otherwise approved by the initial service coordina-
tor.
  (b) [the evaluator shall designate  an  individual  as  the  principal
contact  for  the  multidisciplinary  team] INITIAL SERVICE COORDINATORS
SHALL INFORM THE PARENT OF THE APPLICABLE SCREENING OR EVALUATION PROCE-
DURES THAT MAY BE PERFORMED. FOR A CHILD REFERRED TO  THE  EARLY  INTER-
VENTION  OFFICIAL  WHO HAS A DIAGNOSED PHYSICAL OR MENTAL CONDITION THAT
HAS A HIGH PROBABILITY OF RESULTING IN DEVELOPMENTAL DELAY, THE  INITIAL
SERVICE  COORDINATOR  SHALL INFORM THE PARENT THAT THE EVALUATION OF THE
CHILD SHALL BE CONDUCTED IN ACCORDANCE WITH THE PROCEDURES SET FORTH  IN
SUBDIVISION FIVE OF THIS SECTION.
  (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-

S. 6407                            27                            A. 9007

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.
  3.  [(a)  To  determine eligibility, an evaluator shall, with parental
consent, either (i) screen a child to determine what type of evaluation,
if any, is warranted, or (ii) provide a multidisciplinary evaluation. In
making the determination whether to provide an evaluation, the evaluator
may rely on a recommendation from a physician or other qualified  person
as designated by the commissioner.
  (b)]  SCREENINGS  FOR  CHILDREN  REFERRED  TO  THE  EARLY INTERVENTION
PROGRAM TO DETERMINE WHETHER THEY ARE SUSPECTED OF HAVING A  DISABILITY.
(A)  FOR  A CHILD REFERRED TO THE EARLY INTERVENTION PROGRAM, THE EVALU-
ATOR SHALL FIRST  PERFORM  A  SCREENING  OF  THE  CHILD,  WITH  PARENTAL
CONSENT,  TO  DETERMINE WHETHER THE CHILD IS SUSPECTED OF HAVING A DISA-
BILITY.
  (B) THE EVALUATOR SHALL UTILIZE A STANDARDIZED INSTRUMENT  OR  INSTRU-
MENTS APPROVED BY THE DEPARTMENT TO CONDUCT THE SCREENING. IF THE EVALU-
ATOR  DOES NOT UTILIZE A STANDARDIZED INSTRUMENT OR INSTRUMENTS APPROVED
BY THE DEPARTMENT FOR THE SCREENING, THE  EVALUATOR  SHALL  DOCUMENT  IN
WRITING  WHY SUCH STANDARDIZED INSTRUMENT OR INSTRUMENTS ARE UNAVAILABLE
OR INAPPROPRIATE FOR THE CHILD.
  (C) THE EVALUATOR SHALL EXPLAIN THE RESULTS OF THE  SCREENING  TO  THE
PARENT AND SHALL FULLY DOCUMENT THE RESULTS IN WRITING.
  (D) If, based upon the screening, a child is [believed to be eligible,
or if otherwise elected by the parent] SUSPECTED OF HAVING A DISABILITY,
the  child  shall,  with  [the  consent  of  a parent] PARENTAL CONSENT,
receive  [a  multidisciplinary  evaluation.  All  evaluations  shall  be
conducted  in  accordance with] AN EVALUATION TO BE CONDUCTED IN ACCORD-
ANCE WITH THE PROCEDURES SET FORTH IN SUBDIVISION FOUR OF THIS  SECTION,
the coordinated standards and procedures and with regulations promulgat-
ed by the commissioner.
  (E) IF, BASED UPON THE SCREENING, A CHILD IS NOT SUSPECTED OF HAVING A
DISABILITY, AN EVALUATION SHALL NOT BE PROVIDED, UNLESS REQUESTED BY THE
PARENT.  THE  EARLY  INTERVENTION OFFICIAL SHALL PROVIDE THE PARENT WITH
WRITTEN NOTICE OF THE SCREENING RESULTS, WHICH SHALL INCLUDE INFORMATION
ON THE PARENT'S RIGHT TO REQUEST AN EVALUATION.
  (F) A SCREENING SHALL NOT BE PROVIDED TO CHILDREN WHO ARE REFERRED  TO
THE  EARLY  INTERVENTION PROGRAM WHO HAVE A DIAGNOSED PHYSICAL OR MENTAL
CONDITION WITH A HIGH PROBABILITY OF RESULTING  IN  DEVELOPMENTAL  DELAY
THAT ESTABLISHES ELIGIBILITY FOR THE PROGRAM.
  4. The evaluation of [each] A child shall:
  (a)  INCLUDE  THE ADMINISTRATION OF AN EVALUATION STANDARDIZED INSTRU-
MENT OR INSTRUMENTS APPROVED BY THE DEPARTMENT. IF  THE  EVALUATOR  DOES
NOT  UTILIZE  A  STANDARDIZED  INSTRUMENT OR INSTRUMENTS APPROVED BY THE
DEPARTMENT AS PART OF THE EVALUATION OF THE CHILD, THE  EVALUATOR  SHALL
DOCUMENT  IN WRITING WHY SUCH STANDARDIZED INSTRUMENT OR INSTRUMENTS ARE
NOT APPROPRIATE OR AVAILABLE FOR THE CHILD;
  (B) be conducted by personnel trained to utilize  appropriate  methods
and procedures;
  [(b)] (C) be based on informed clinical opinion;
  [(c)]  (D)  be  made without regard to the availability of services in
the municipality or who might provide such services; [and
  (d)] (E) with parental consent, include the following:
  (i) a review of pertinent  records  related  to  the  child's  current
health status and medical history; AND

S. 6407                            28                            A. 9007

  (ii)  an evaluation of the child's level of functioning in each of the
developmental areas set forth in paragraph (c) of subdivision  seven  of
section  twenty-five  hundred  forty-one  of  this title[;] TO DETERMINE
WHETHER THE CHILD HAS A DISABILITY AS DEFINED IN THIS TITLE THAT  ESTAB-
LISHES THE CHILD'S ELIGIBILITY FOR THE PROGRAM; AND
  (F)  IF  THE CHILD HAS BEEN DETERMINED ELIGIBLE BY THE EVALUATOR AFTER
CONDUCTING THE PROCEDURES SET FORTH IN PARAGRAPHS  (A)  THROUGH  (E)  OF
THIS SUBDIVISION, THE EVALUATION SHALL ALSO INCLUDE:
  [(iii)]  (I)  an assessment [of the unique needs of the child in terms
of] FOR THE PURPOSES OF IDENTIFYING THE  CHILD'S  UNIQUE  STRENGTHS  AND
NEEDS  IN each of the developmental areas [set forth in paragraph (c) of
subdivision seven of  section  twenty-five  hundred  forty-one  of  this
title,  including  the  identification  of]  AND  THE EARLY INTERVENTION
services appropriate to meet those needs;
  [(iv)] (II) A FAMILY-DIRECTED ASSESSMENT, IF CONSENTED TO BY THE FAMI-
LY, IN  ORDER  TO  IDENTIFY  THE  FAMILY'S  RESOURCES,  PRIORITIES,  AND
CONCERNS  AND THE SUPPORTS NECESSARY TO ENHANCE THE FAMILY'S CAPACITY TO
MEET THE DEVELOPMENTAL NEEDS OF THE CHILD. THE FAMILY  ASSESSMENT  SHALL
BE  VOLUNTARY  ON  THE  PART  OF EACH FAMILY MEMBER PARTICIPATING IN THE
ASSESSMENT;
  (III) an [evaluation] ASSESSMENT of the transportation  needs  of  the
child, if any; and
  [(v)]  (IV)  such  other  matters as the commissioner may prescribe in
regulation.
  5. EVALUATIONS FOR CHILDREN WHO ARE REFERRED TO THE EARLY INTERVENTION
OFFICIAL WITH DIAGNOSED PHYSICAL OR MENTAL CONDITIONS THAT HAVE  A  HIGH
PROBABILITY  OF  RESULTING  IN DEVELOPMENTAL DELAY. (A) IF A CHILD HAS A
DIAGNOSED PHYSICAL OR MENTAL CONDITION THAT HAS A  HIGH  PROBABILITY  OF
RESULTING  IN  DEVELOPMENTAL DELAY, THE CHILD'S MEDICAL OR OTHER RECORDS
SHALL BE USED, WHEN AVAILABLE, TO ESTABLISH THE CHILD'S ELIGIBILITY  FOR
THE PROGRAM.
  (B)  THE EVALUATOR SHALL, UPON REVIEW OF THE REFERRAL FORM PROVIDED IN
ACCORDANCE WITH SECTION TWENTY-FIVE HUNDRED FORTY-TWO OF THIS  TITLE  OR
ANY MEDICAL OR OTHER RECORDS, OR AT THE TIME OF INITIAL CONTACT WITH THE
CHILD'S  FAMILY,  DETERMINE  WHETHER THE CHILD HAS A DIAGNOSED CONDITION
THAT ESTABLISHES THE CHILD'S ELIGIBILITY FOR THE PROGRAM. IF THE  EVALU-
ATOR HAS REASON TO BELIEVE, AFTER SPEAKING WITH THE CHILD'S FAMILY, THAT
THE  CHILD  MAY  HAVE A DIAGNOSED CONDITION THAT ESTABLISHES THE CHILD'S
ELIGIBILITY BUT THE EVALUATOR HAS NOT  BEEN  PROVIDED  WITH  MEDICAL  OR
OTHER  DOCUMENTATION  OF  SUCH  DIAGNOSIS,  THE  EVALUATOR  SHALL,  WITH
PARENTAL CONSENT, OBTAIN SUCH DOCUMENTATION, WHEN  AVAILABLE,  PRIOR  TO
PROCEEDING WITH THE EVALUATION OF THE CHILD.
  (C)  THE  EVALUATOR SHALL REVIEW ALL RECORDS RECEIVED TO DOCUMENT THAT
THE CHILD'S DIAGNOSIS AS SET  FORTH  IN  SUCH  RECORDS  ESTABLISHES  THE
CHILD'S ELIGIBILITY FOR THE EARLY INTERVENTION PROGRAM.
  (D)  NOTWITHSTANDING  SUBDIVISION FOUR OF THIS SECTION, IF THE CHILD'S
ELIGIBILITY FOR THE EARLY INTERVENTION PROGRAM IS ESTABLISHED IN ACCORD-
ANCE WITH THIS SUBDIVISION,  THE  EVALUATION  OF  THE  CHILD  SHALL  (I)
CONSIST  OF A REVIEW OF THE RESULTS OF THE MEDICAL OR OTHER RECORDS THAT
ESTABLISHED THE CHILD'S ELIGIBILITY, AND ANY OTHER PERTINENT EVALUATIONS
OR RECORDS AVAILABLE AND (II) COMPLY WITH THE PROCEDURES  SET  FORTH  IN
PARAGRAPH (F) OF SUBDIVISION FOUR OF THIS SECTION. THE EVALUATION PROCE-
DURES  SET FORTH IN PARAGRAPHS (A) AND (E) OF SUBDIVISION FOUR SHALL NOT
BE REQUIRED OR CONDUCTED.
  6. An evaluation shall not include a reference to any specific provid-
er of early intervention services.

S. 6407                            29                            A. 9007

  [6.] 7. Nothing in this  section  shall  restrict  an  evaluator  from
utilizing, in addition to findings from his or her personal examination,
other examinations, evaluations or assessments conducted for such child,
including those conducted prior to the evaluation under this section, if
such  examinations,  evaluations  or assessments are consistent with the
coordinated standards and procedures.
  [7.] 8. Following completion of the evaluation,  the  evaluator  shall
provide  the  parent and service coordinator with a copy of a summary of
the full evaluation. To the extent practicable,  the  summary  shall  be
provided  in  the  native  language  of  the parent. Upon request of the
parent, early intervention official or service coordinator,  the  evalu-
ator  shall  provide a copy of the full evaluation to such parent, early
intervention official or service coordinator.
  [8.] 9. A parent who disagrees with the results of an  evaluation  may
obtain  an additional evaluation or partial evaluation at public expense
to the extent authorized by federal law or regulation.
  [9.] 10. Upon receipt of the results of an evaluation, a service coor-
dinator may, with parental consent, require additional diagnostic infor-
mation regarding the condition of the  child,  provided,  however,  that
such  evaluation or assessment is not unnecessarily duplicative or inva-
sive to the child, and provided further, that:
  (a) where the evaluation has established the child's eligibility, such
additional diagnostic information shall be used solely to provide  addi-
tional  information  to the parent and service coordinator regarding the
child's need for services and cannot be a basis for  refuting  eligibil-
ity;
  (b)  the service coordinator provides the parent with a written expla-
nation of the basis for requiring additional diagnostic information;
  (c) the additional diagnostic procedures are  at  no  expense  to  the
parent; and
  (d)  the  evaluation  is completed and a meeting to develop an IFSP is
held within the time prescribed in subdivision one  of  section  twenty-
five hundred forty-five of this title.
  [10.] 11. (a) If the screening indicates that the infant or toddler is
not  an  eligible child and the parent elects not to have an evaluation,
or if the evaluation indicates that the infant  or  toddler  is  not  an
eligible child, the service coordinator shall inform the parent of other
programs or services that may benefit such child, and the child's family
and,  with  parental  consent,  refer  such  child  to  such programs or
services.
  (b) A parent may appeal a determination that  a  child  is  ineligible
pursuant  to the provisions of section twenty-five hundred forty-nine of
this title, provided, however, that  a  parent  may  not  initiate  such
appeal  until  all  evaluations are completed.  IN ADDITION, FOR A CHILD
REFERRED TO THE EARLY INTERVENTION OFFICIAL WHO HAS A DIAGNOSED PHYSICAL
OR MENTAL CONDITION THAT ESTABLISHES THE  CHILD'S  ELIGIBILITY  FOR  THE
PROGRAM  IN ACCORDANCE WITH SUBDIVISION FIVE OF THIS SECTION, THE PARENT
MAY REQUEST, AND SUCH REQUEST  SHALL  BE  GRANTED,  THAT  THE  EVALUATOR
CONDUCT  THE  EVALUATION  PROCEDURES SET FORTH IN PARAGRAPHS (A) THROUGH
(E) OF SUBDIVISION FOUR OF THIS SECTION,  PROVIDED,  HOWEVER,  THAT  THE
PARENT  MAY  NOT  MAKE  SUCH  REQUEST  UNTIL THE EVALUATION CONDUCTED IN
ACCORDANCE WITH SUBDIVISION FIVE OF THIS SECTION IS COMPLETED.
  [11.] 12. Notwithstanding any other provision of law to the  contrary,
where  a  request has been made to review an IFSP prior to the six-month
interval provided in subdivision seven of  section  twenty-five  hundred
forty-five  of  this title for purposes of increasing frequency or dura-

S. 6407                            30                            A. 9007

tion of an approved service, including service coordination,  the  early
intervention  official  may  require an additional evaluation or partial
evaluation at public expense by an approved  evaluator  other  than  the
current provider of service, with parent consent.
  S  5.  Paragraph  (a)  of  subdivision 3 of section 2559 of the public
health law, is amended by adding two new subparagraphs (iv) and  (v)  to
read as follows:
  (IV)  PROVIDERS  SHALL  SUBMIT ALL CLAIMS, IN ACCORDANCE WITH SUBPARA-
GRAPH (III) OF THIS PARAGRAPH AND WITHIN NINETY  DAYS  OF  THE  DATE  OF
SERVICE,  UNLESS  THE SUBMISSION IS DELAYED DUE TO EXTRAORDINARY CIRCUM-
STANCES DOCUMENTED BY THE PROVIDER. ALL CLAIMS  SUBMITTED  AFTER  NINETY
DAYS  SHALL  BE  SUBMITTED WITHIN THIRTY DAYS FROM THE TIME THE PROVIDER
WAS  RELIEVED  FROM  THE  EXTRAORDINARY  CIRCUMSTANCES  THAT  PREVIOUSLY
DELAYED  A TIMELY SUBMISSION. CLAIMS THAT ARE NOT SUBMITTED WITHIN TIME-
FRAMES SET FORTH WILL NOT BE REIMBURSED BY THE DEPARTMENT'S FISCAL AGENT
FROM THE ESCROW ACCOUNT FUNDED BY MUNICIPAL GOVERNMENTAL PAYERS.
  (V) PROVIDERS SHALL ENROLL,  ON  REQUEST  OF  THE  DEPARTMENT  OR  THE
DEPARTMENT'S  FISCAL AGENT, WITH ONE OR MORE HEALTH CARE CLEARINGHOUSES,
AS NECESSARY, FOR PROCESSING OF CLAIMS TO THIRD  PARTY  PAYORS  AND  FOR
RECEIPT  OF  REMITTANCE  ADVICES  IN  STANDARD  ELECTRONIC FORMAT AND IN
COMPLIANCE WITH ANY APPLICABLE FEDERAL OR STATE REGULATIONS WITH RESPECT
TO ELECTRONIC CLAIMS TRANSACTIONS.
  S 6. Section 3224-a of the insurance law, as amended by chapter 666 of
the laws of 1997, the opening paragraph and subsections (a), (b) and (c)
as amended and subsections (g) and (h) as added by chapter  237  of  the
laws  of  2009, paragraph 2 of subsection (d) as amended by section 57-b
of part A of chapter 56 of the laws of 2013, subsection (i) as added  by
chapter 297 of the laws of 2012 and subsection (j) as added by section 5
of  part  H  of  chapter  60  of the laws of 2014, is amended to read as
follows:
  S 3224-a. Standards for  prompt,  fair  and  equitable  settlement  of
claims  for  health  care  and payments for health care services. In the
processing of all health care claims submitted under contracts or agree-
ments issued or entered into  pursuant  to  this  article  and  articles
forty-two,  forty-three  and  forty-seven  of  this  chapter and article
forty-four of the public health  law  and  all  bills  for  health  care
services rendered by health care providers pursuant to such contracts or
agreements,  any  insurer  or  organization  or  corporation licensed or
certified pursuant to article forty-three or forty-seven of this chapter
or article forty-four of the public  health  law  shall  adhere  to  the
following standards:
  (a)  Except  in a case where the obligation of an insurer or an organ-
ization or corporation licensed or certified pursuant to article  forty-
three or forty-seven of this chapter or article forty-four of the public
health  law to pay a claim submitted by a policyholder or person covered
under such policy ("covered person") or make a payment to a health  care
provider  is  not  reasonably clear, or when there is a reasonable basis
supported by specific information available for  review  by  the  super-
intendent  that such claim or bill for health care services rendered was
submitted fraudulently, such  insurer  or  organization  or  corporation
shall  pay  the  claim  to  a  policyholder  or covered person or make a
payment to a health care provider within thirty days  of  receipt  of  a
claim or bill for services rendered that is transmitted via the internet
or electronic mail, or forty-five days of receipt of a claim or bill for
services  rendered  that  is  submitted by other means, such as paper or
facsimile.

S. 6407                            31                            A. 9007

  (A-1) AN INSURER, ORGANIZATION, INCLUDING AN APPROVED ORGANIZATION  AS
DEFINED  IN  SUBDIVISION  TWO  OF SECTION TWENTY-FIVE HUNDRED TEN OF THE
PUBLIC HEALTH LAW, OR CORPORATION SHALL, WITHIN FIFTEEN BUSINESS DAYS OF
RECEIPT OF A CLAIM OR BILL FOR SERVICES RENDERED UNDER THE EARLY  INTER-
VENTION  PROGRAM,  ESTABLISHED  IN TITLE TWO-A OF ARTICLE TWENTY-FIVE OF
THE PUBLIC HEALTH LAW, NOTIFY THE HEALTH CARE PROVIDER, IN A MANNER  AND
FORMAT DETERMINED BY THE DEPARTMENT OF HEALTH, THROUGH THE DEPARTMENT OF
HEALTH'S  DESIGNATED  FISCAL AGENT, WHETHER THE CONTRACT OR AGREEMENT IS
SUBJECT TO THE PROVISIONS OF THIS CHAPTER.
  (b) In a case where the obligation of an insurer or an organization or
corporation licensed or certified pursuant  to  article  forty-three  or
forty-seven  of  this chapter or article forty-four of the public health
law to pay a claim or make a payment for health care  services  rendered
is not reasonably clear due to a good faith dispute regarding the eligi-
bility  of  a  person  for coverage, the liability of another insurer or
corporation or organization for all or part of the claim, the amount  of
the  claim,  the  benefits covered under a contract or agreement, or the
manner in which services were accessed or provided, an insurer or organ-
ization or corporation shall pay any undisputed portion of the claim  in
accordance  with  this  subsection  and notify the policyholder, covered
person or health care provider in writing within thirty calendar days of
the receipt of the claim:
  (1) that it is not obligated to pay the  claim  or  make  the  medical
payment, stating the specific reasons why it is not liable; or
  (2)  to request all additional information needed to determine liabil-
ity to pay the claim or make the health care payment, EXCEPT  THAT  WITH
RESPECT  TO A CLAIM OR BILL FOR SERVICES RENDERED UNDER THE EARLY INTER-
VENTION PROGRAM ESTABLISHED IN TITLE TWO-A OF ARTICLE TWENTY-FIVE OF THE
PUBLIC HEALTH LAW, THE INSURER OR CORPORATION OR ORGANIZATION, INCLUDING
AN APPROVED ORGANIZATION AS DEFINED IN SUBDIVISION TWO OF SECTION  TWEN-
TY-FIVE  HUNDRED  TEN OF THE PUBLIC HEALTH LAW, SHALL REQUEST SUCH ADDI-
TIONAL INFORMATION FROM THE HEALTH CARE PROVIDER WITHIN FIFTEEN BUSINESS
DAYS OF RECEIPT OF THE CLAIM.
  Upon receipt of the information requested in  paragraph  two  of  this
subsection  or  an  appeal  of  a claim or bill for health care services
denied pursuant to paragraph one  of  this  subsection,  an  insurer  or
organization  or  corporation  licensed or certified pursuant to article
forty-three or forty-seven of this chapter or article forty-four of  the
public health law shall comply with subsection (a) of this section.
  (c)  (1) Except as provided in [paragraph] PARAGRAPHS two AND THREE of
this subsection, each claim or bill for health care  services  processed
in  violation  of this section shall constitute a separate violation. In
addition to the penalties provided  in  this  chapter,  any  insurer  or
organization  or  corporation  that  fails  to  adhere  to the standards
contained in this section shall be obligated to pay to the  health  care
provider or person submitting the claim, in full settlement of the claim
or bill for health care services, the amount of the claim or health care
payment plus interest on the amount of such claim or health care payment
of  the greater of the rate equal to the rate set by the commissioner of
taxation and finance for corporate taxes pursuant to  paragraph  one  of
subsection  (e)  of  section  one  thousand ninety-six of the tax law or
twelve percent per annum, to be computed from  the  date  the  claim  or
health care payment was required to be made. When the amount of interest
due  on  such  a  claim  is less [then] THAN two dollars, and insurer or
organization or corporation shall not be required  to  pay  interest  on
such claim.

S. 6407                            32                            A. 9007

  (2) Where a violation of this section is determined by the superinten-
dent as a result of the superintendent's own investigation, examination,
audit  or inquiry, an insurer or organization or corporation licensed or
certified pursuant to article forty-three or forty-seven of this chapter
or article forty-four of the public health law shall not be subject to a
civil  penalty  prescribed  in  paragraph one of this subsection, if the
superintendent determines that the insurer  or  organization  or  corpo-
ration  has  otherwise  processed  at  least ninety-eight percent of the
claims submitted in a calendar year in  compliance  with  this  section;
provided,  however,  nothing  in this paragraph shall limit, preclude or
exempt an insurer or organization or corporation from payment of a claim
and payment of interest pursuant to this section. This  paragraph  shall
not apply to violations of this section determined by the superintendent
resulting  from individual complaints submitted to the superintendent by
health care providers or policyholders.
  (3) WHERE AN INSURER OR ORGANIZATION, INCLUDING AN APPROVED  ORGANIZA-
TION AS DEFINED IN SUBDIVISION TWO OF SECTION TWENTY-FIVE HUNDRED TEN OF
THE  PUBLIC  HEALTH LAW, OR CORPORATION FAILS TO ADHERE TO THE STANDARDS
CONTAINED IN THIS SECTION IN RELATION TO A CLAIM OR  BILL  FOR  SERVICES
SUBMITTED  FOR  A  SERVICE RENDERED UNDER THE EARLY INTERVENTION PROGRAM
ESTABLISHED IN TITLE TWO-A OF ARTICLE TWENTY-FIVE OF THE  PUBLIC  HEALTH
LAW,  THE  CLAIM OR BILL FOR SERVICES SHALL BE DEEMED COVERED OR PAYABLE
UNDER THE CONTRACT OR AGREEMENT, AND  THE  INSURER  OR  ORGANIZATION  OR
CORPORATION SHALL BE OBLIGATED TO PAY SUCH CLAIM OR BILL FOR SERVICES AT
THE HIGHER OF EITHER A RATE ESTABLISHED BY THE COMMISSIONER OF HEALTH OR
A RATE NEGOTIATED BY THE INSURER IN ACCORDANCE WITH REGULATION.
  (d) For the purposes of this section:
  (1)  "policyholder" shall mean a person covered under such policy or a
representative designated by such person; and
  (2) "health care provider" shall mean an entity licensed or  certified
pursuant  to  article  twenty-eight,  thirty-six  or forty of the public
health law, a facility licensed pursuant to article nineteen or  thirty-
one  of  the  mental  hygiene law, a fiscal intermediary operating under
section three hundred sixty five-f of the social services law, AN  INDI-
VIDUAL  OR AGENCY APPROVED BY THE DEPARTMENT OF HEALTH PURSUANT TO TITLE
TWO-A OF ARTICLE TWENTY-FIVE OF THE PUBLIC HEALTH  LAW,  a  health  care
professional  licensed,  registered or certified pursuant to title eight
of  the  education  law,  a  dispenser  or  provider  of  pharmaceutical
products,  services  or  durable  medical equipment, or a representative
designated by such entity or person.
  (e) Nothing in this section shall in any way be deemed to  impair  any
right  available  to  the state to adjust the timing of its payments for
medical assistance pursuant to title  eleven  of  article  five  of  the
social  services law, or for child health insurance plan benefits pursu-
ant to title one-a of article twenty-five of the public  health  law  or
otherwise  be  deemed to require adjustment of payments by the state for
such medical assistance or child health insurance.
  (f) In any action brought  by  the  superintendent  pursuant  to  this
section  or article twenty-four of this chapter relating to this section
regarding payments for medical assistance pursuant to  title  eleven  of
article  five  of  the  social services law, child health insurance plan
benefits pursuant to title one-a of article twenty-five  of  the  public
health  law,  benefits  under  the voucher insurance program pursuant to
section one thousand one hundred twenty-one of this chapter,  and  bene-
fits  under  the New York state small business health insurance partner-
ship program pursuant to article nine-A of the  public  health  law,  it

S. 6407                            33                            A. 9007

shall  be a mitigating factor that the insurer, corporation or organiza-
tion is owed any premium amounts, premium adjustments, stop-loss  recov-
eries  or  other  payments  from the state or one of its fiscal interme-
diaries under any such program.
  (g)  Time  period  for  submission  of claims. (1) Except as otherwise
provided by law, health care  claims  must  be  initially  submitted  by
health  care  providers within one hundred twenty days after the date of
service to be valid and enforceable against an insurer  or  organization
or  corporation licensed or certified pursuant to article forty-three or
article forty-seven of this chapter or article forty-four of the  public
health  law.  Provided,  however,  that nothing in this subsection shall
preclude the parties from agreeing to a time period or other terms which
are more favorable to the health care provider. Provided  further  that,
in  connection  with  contracts  between  organizations  or corporations
licensed or certified pursuant to article forty-three of this chapter or
article forty-four of the public health law and  health  care  providers
for  the  provision of services pursuant to section three hundred sixty-
four-j or three hundred sixty-nine-ee of  the  social  services  law  or
title I-A of article twenty-five of the public health law, nothing here-
in  shall  be  deemed:  (i)  to  preclude the parties from agreeing to a
different time period but in no event less than ninety days; or (ii)  to
supersede  contract  provisions in existence at the time this subsection
takes effect except to the extent that  such  contracts  impose  a  time
period of less than ninety days.
  (2)  This  subsection  shall not abrogate any right or reduce or limit
any additional time period for claim submission provided by law or regu-
lation specifically applicable to coordination  of  benefits  in  effect
prior to the effective date of this subsection.
  (h)  (1)  An insurer or organization or corporation licensed or certi-
fied pursuant to article forty-three  or  article  forty-seven  of  this
chapter  or  article  forty-four of the public health law shall permit a
participating health care provider to request reconsideration of a claim
that is denied exclusively because it was untimely submitted pursuant to
subsection (g) of this section. The insurer or  organization  or  corpo-
ration  shall pay such claim pursuant to the provisions of paragraph two
of this subsection if the health  care  provider  can  demonstrate  both
that:  (i)  the health care provider's non-compliance was a result of an
unusual occurrence; and (ii) the health care provider has a  pattern  or
practice  of  timely  submitting claims in compliance with [subdivision]
SUBSECTION (g) of this section.
  (2) An insurer or organization or corporation  licensed  or  certified
pursuant  to  article forty-three or article forty-seven of this chapter
or article forty-four of the public health law may reduce the reimburse-
ment due to a health care provider for an untimely claim that  otherwise
meets  the requirements of paragraph one of this subsection by an amount
not to exceed twenty-five percent of the amount  that  would  have  been
paid had the claim been submitted in a timely manner; provided, however,
that  nothing  in  this subsection shall preclude a health care provider
and an insurer or organization or corporation from agreeing to a  lesser
reduction.  The  provisions  of  this  subsection shall not apply to any
claim submitted three hundred sixty-five days after the date of service,
in which case the insurer or organization or corporation  may  deny  the
claim in full.
  (i)  Except  where  the  parties have developed a mutually agreed upon
process for the reconciliation of coding disputes that includes a review
of submitted  medical  records  to  ascertain  the  correct  coding  for

S. 6407                            34                            A. 9007

payment,  a  general hospital certified pursuant to article twenty-eight
of the public health law shall, upon receipt of payment of a  claim  for
which  payment  has  been  adjusted  based  on  a particular coding to a
patient  including  the  assignment of diagnosis and procedure, have the
opportunity to submit the affected claim with medical records supporting
the hospital's initial coding of the claim within thirty days of receipt
of payment. Upon receipt of such  medical  records,  an  insurer  or  an
organization  or  corporation  licensed or certified pursuant to article
forty-three or forty-seven of this chapter or article forty-four of  the
public health law shall review such information to ascertain the correct
coding  for  payment  and process the claim in accordance with the time-
frames set forth in subsection (a) of this section.  In  the  event  the
insurer,  organization,  or  corporation  processes the claim consistent
with its initial determination, such decision shall be accompanied by  a
statement  of the insurer, organization or corporation setting forth the
specific reasons why the initial adjustment was appropriate. An insurer,
organization, or corporation that increases the  payment  based  on  the
information  submitted  by  the  general hospital, but fails to do so in
accordance with the timeframes set  forth  in  subsection  (a)  of  this
section,  shall  pay  to  the general hospital interest on the amount of
such increase at the rate  set  by  the  commissioner  of  taxation  and
finance for corporate taxes pursuant to paragraph one of subdivision (e)
of  section  one thousand ninety-six of the tax law, to be computed from
the end of the forty-five day period after  resubmission  of  the  addi-
tional medical record information. Provided, however, a failure to remit
timely  payment  shall  not  constitute  a  violation  of  this section.
Neither the initial or subsequent processing of the claim by the  insur-
er,  organization,  or  corporation  shall be deemed an adverse determi-
nation as defined in section four thousand nine hundred of this  chapter
if  based  solely  on a coding determination. Nothing in this subsection
shall apply to those instances in which the insurer or organization,  or
corporation has a reasonable suspicion of fraud or abuse.
  (j) An insurer or an organization or corporation licensed or certified
pursuant  to article forty-three or forty-seven of this chapter or arti-
cle forty-four of the public health law or a student health plan  estab-
lished  or maintained pursuant to section one thousand one hundred twen-
ty-four of this chapter shall accept claims submitted by a  policyholder
or  covered person, in writing, including through the internet, by elec-
tronic mail or by facsimile.
  S 7. Section 3235-a of the insurance law, as added  by  section  3  of
part  C  of  chapter 1 of the laws of 2002, subsection (c) as amended by
section 17 of part A of chapter 56 of the laws of 2012,  is  amended  to
read as follows:
  S  3235-a.  Payment  for early intervention services. (a) No policy of
accident and health insurance, including contracts  issued  pursuant  to
article  forty-three  of this chapter, shall exclude coverage for other-
wise covered services solely on the basis that the  services  constitute
early  intervention  program services under title two-A of article twen-
ty-five of the public health law.
  (b) Where a policy of  accident  and  health  insurance,  including  a
contract  issued  pursuant  to  article  forty-three  of  this  chapter,
provides coverage for an early intervention program service, such cover-
age shall not be applied against any maximum annual or lifetime monetary
limits set forth in such policy  or  contract.  Visit  limitations  [and
other  terms  and  conditions  of  the policy] will continue to apply to
early intervention services. However, any visits used for  early  inter-

S. 6407                            35                            A. 9007

vention program services shall not reduce the number of visits otherwise
available  under  the  policy  or contract for such services.  WHEN SUCH
POLICY OF ACCIDENT AND HEALTH INSURANCE,  INCLUDING  A  CONTRACT  ISSUED
PURSUANT  TO  ARTICLE  FORTY-THREE  AND SECTION ELEVEN HUNDRED TWENTY OF
THIS CHAPTER,  PROVIDES  COVERAGE  FOR  ESSENTIAL  HEALTH  BENEFITS,  AS
DEFINED  IN  SECTION  1302(B)  OF  THE  AFFORDABLE CARE ACT, 42 U.S.C. S
18022(B), AND CONSTITUTES EARLY INTERVENTION SERVICES AS  SET  FORTH  IN
PARAGRAPH  (H)  OF  SUBDIVISION  SEVEN  OF  SECTION  TWENTY-FIVE HUNDRED
FORTY-ONE OF THE PUBLIC HEALTH LAW,  OR  EARLY  INTERVENTION  EVALUATION
SERVICES AS SET FORTH IN SUBDIVISION NINE OF SECTION TWENTY-FIVE HUNDRED
FORTY-ONE OF THE PUBLIC HEALTH LAW, A WRITTEN ORDER, REFERRAL, RECOMMEN-
DATION  FOR DIAGNOSTIC SERVICES TO DETERMINE PROGRAM ELIGIBILITY, OR THE
INDIVIDUALIZED FAMILY SERVICES PLAN CERTIFIED BY THE EARLY  INTERVENTION
OFFICIAL,  AS  DEFINED  IN  SECTION TWENTY-FIVE HUNDRED FORTY-ONE OF THE
PUBLIC HEALTH LAW OR SUCH OFFICIAL'S DESIGNEE, SHALL  BE  SUFFICIENT  TO
MEET   PRECERTIFICATION,   PREAUTHORIZATION   AND/OR  MEDICAL  NECESSITY
REQUIREMENTS IMPOSED UNDER SUCH POLICY.
  (C) REIMBURSEMENT FOR ANY EARLY INTERVENTION PROGRAM SERVICE,  AS  SET
FORTH  IN  PARAGRAPH  (H)  OF  SUBDIVISION  SEVEN OF SECTION TWENTY-FIVE
HUNDRED FORTY-ONE OF THE PUBLIC HEALTH LAW, OR EARLY INTERVENTION EVALU-
ATION SERVICE, AS SET FORTH IN SUBDIVISION NINE OF  SECTION  TWENTY-FIVE
HUNDRED  FORTY-ONE  OF  THE PUBLIC HEALTH LAW, THAT IS A COVERED SERVICE
UNDER THE POLICY OF ACCIDENT AND HEALTH INSURANCE, INCLUDING A  CONTRACT
ISSUED  PURSUANT TO ARTICLE FORTY-THREE OF THIS CHAPTER, SHALL BE AT THE
HIGHER OF EITHER A RATE ESTABLISHED BY THE COMMISSIONER OF HEALTH  OR  A
RATE NEGOTIATED BY THE INSURER IN ACCORDANCE WITH REGULATION.
  (D)  A  POLICY  OF ACCIDENT AND HEALTH INSURANCE, INCLUDING A CONTRACT
ISSUED PURSUANT TO ARTICLE FORTY-THREE AND SECTION ELEVEN HUNDRED TWENTY
OF THIS CHAPTER, SHALL NOT DENY COVERAGE BASED ON THE FOLLOWING:
  (I) THE LOCATION WHERE SERVICES ARE PROVIDED;
  (II) THE DURATION OF THE CHILD'S CONDITION  AND/OR  THAT  THE  CHILD'S
CONDITION  IS  NOT  AMENABLE TO SIGNIFICANT IMPROVEMENT WITHIN A CERTAIN
PERIOD OF TIME AS SPECIFIED IN THE POLICY;
  (III) THE SERVICE IS NOT A COVERED BENEFIT BUT IS AN ESSENTIAL  HEALTH
BENEFIT  AS  DEFINED  IN  SECTION 1302(B) OF THE AFFORDABLE CARE ACT, 42
U.S.C. S 18022(B); OR
  (IV) THE PROVIDER OF SERVICES IS NOT A PARTICIPATING PROVIDER  IN  THE
INSURER'S NETWORK.
  [(c)] (E) Any right of subrogation to benefits which a municipality or
provider  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 acci-
dent and health insurance policy prior to  receipt  by  the  insurer  of
written  notice from the municipality or provider, as applicable.  IF AN
INSURER MAKES PAYMENT IN WHOLE OR IN  PART  FOR  A  CLAIM  OR  BILL  FOR
SERVICES  RENDERED  UNDER  THE EARLY INTERVENTION PROGRAM ESTABLISHED IN
TITLE TWO-A OF ARTICLE  TWENTY-FIVE  OF  THE  PUBLIC  HEALTH  LAW,  SUCH
PAYMENT SHALL BE MADE TO THE PROVIDER WHO SUBMITTED THE CLAIM AND NOT TO
THE  RENDERING  PROFESSIONAL  WHO  DELIVERED  THE SERVICE OR THE COVERED
PERSON REGARDLESS OF WHETHER SUCH PROVIDER IS IN THE INSURER'S  NETWORK.
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 writ-
ten request and notice authorizing such release. The service coordinator

S. 6407                            36                            A. 9007

shall provide such information to the  rendering  provider  assigned  to
provide services to the child.
  [(d)]  (F)    No  insurer, including a health maintenance organization
issued a certificate of authority under article forty-four of the public
health law and a corporation organized under article forty-three of this
chapter, shall refuse to issue an accident and health  insurance  policy
or  contract  or refuse to renew an accident and health insurance policy
or contract  solely  because  the  applicant  or  insured  is  receiving
services under the early intervention program.
  S  8.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016;  provided
however,  that  the amendments to section 3224-a of the insurance law as
made by section six of this act and the amendments to section 3235-a  of
the  insurance law as made by section seven of this act shall apply only
to policies, benefit packages, and contracts issued, renewed,  modified,
altered or amended on or after such date.

                                 PART F

  Section  1.  Section  2825-b  of  the  public  health law, as added by
section 2 of part J of chapter 60 of the laws of  2015,  is  amended  to
read as follows:
  S  2825-b.  [Oneida county health] HEALTH care facility transformation
program:  [Oneida county project] STATEWIDE. 1.  [An  Oneida  county]  A
STATEWIDE  health  care facility transformation program is hereby estab-
lished under the joint administration of the commissioner and the presi-
dent of the dormitory authority of the state of New York for the purpose
of strengthening and protecting continued access to health care services
in communities. The program shall provide capital funding in support  of
projects [located in the largest population center in Oneida county that
consolidate  multiple licensed health care facilities into an integrated
system of care] THAT REPLACE INEFFICIENT AND OUTDATED FACILITIES AS PART
OF A MERGER, CONSOLIDATION, ACQUISITION OR OTHER  SIGNIFICANT  CORPORATE
RESTRUCTURING  ACTIVITY  THAT  IS PART OF AN OVERALL TRANSFORMATION PLAN
INTENDED TO CREATE A FINANCIALLY SUSTAINABLE SYSTEM OF CARE.  The  issu-
ance of any bonds or notes hereunder shall be subject to the approval of
the  director  of  the  division  of the budget, and any projects funded
through the issuance of bonds or notes hereunder shall  be  approved  by
the  New  York state public authorities control board, as required under
section fifty-one of the public authorities law.
  2. The commissioner and the president of  the  authority  shall  enter
into  an  agreement,  subject to approval by the director of the budget,
and subject to section sixteen hundred eighty-r of the  public  authori-
ties  law, for the purposes of awarding, distributing, and administering
the funds made available pursuant to this section.  Such  funds  may  be
distributed  by  the commissioner and the president of the authority for
capital grants to general hospitals [for the purposes  of  consolidating
multiple  licensed  health  care facilities into an integrated system of
care], RESIDENTIAL HEALTH  CARE  FACILITIES,  DIAGNOSTIC  AND  TREATMENT
CENTERS  AND  CLINICS  LICENSED  PURSUANT  TO THIS CHAPTER OR THE MENTAL
HYGIENE LAW, PRIMARY CARE PROVIDERS, AND HOME CARE  PROVIDERS  CERTIFIED
OR  LICENSED PURSUANT TO ARTICLE THIRTY-SIX OF THIS CHAPTER, for capital
non-operational works or purposes that support the purposes set forth in
this section. A copy of such  agreement,  and  any  amendments  thereto,
shall  be  provided  to  the  chair of the senate finance committee, the
chair of the assembly ways and means committee, and the director of  the

S. 6407                            37                            A. 9007

division  of  budget no later than thirty days prior to the release of a
request for  applications  for  funding  under  this  program.  Projects
awarded,  IN  WHOLE  OR PART, under section twenty-eight hundred twenty-
five  of  this  article  shall not be eligible for grants or awards made
available under this section.
  3. Notwithstanding  section  one  hundred  sixty-three  of  the  state
finance  law or any inconsistent provision of law to the contrary, up to
[three] TWO hundred million dollars of the funds appropriated  for  this
program  shall  be  awarded  without  a  competitive  bid or request for
proposal process for capital grants to health care providers  (hereafter
"applicants")  [located  in  the county of Oneida].  ELIGIBLE APPLICANTS
SHALL BE THOSE DEEMED BY THE COMMISSIONER TO BE A PROVIDER THAT FULFILLS
OR WILL FULFILL A HEALTH CARE  NEED  FOR  ACUTE  INPATIENT,  OUTPATIENT,
PRIMARY, HOME CARE OR RESIDENTIAL HEALTH CARE SERVICES IN A COMMUNITY.
  4.  In  determining awards for eligible applicants under this section,
the commissioner and the  president  of  the  authority  shall  consider
criteria including, but not limited to:
  (a)  the  extent to which the proposed capital project will contribute
to the integration of health care services and long term  sustainability
of  the  applicant  or  preservation of essential health services in the
community or communities served by the applicant;
  (b) the extent to which the proposed project  or  purpose  is  aligned
with  delivery  system  reform incentive payment ("DSRIP") program goals
and objectives;
  (c) CONSIDERATION OF GEOGRAPHIC DISTRIBUTION OF FUNDS;
  (D) the relationship between the proposed capital project and  identi-
fied community need;
  [(d)]  (E) THE EXTENT TO WHICH THE APPLICANT HAS ACCESS TO ALTERNATIVE
FINANCING;
  (F) the extent that the proposed capital project furthers the develop-
ment of primary care and other outpatient services;
  [(e)] (G) the extent to which the proposed  capital  project  benefits
Medicaid enrollees and uninsured individuals;
  [(f)]  (H) the extent to which the applicant has engaged the community
affected by the proposed capital project and the manner in which  commu-
nity engagement has shaped such capital project; and
  [(g)]  (I)  the extent to which the proposed capital project addresses
potential risk to patient safety and welfare.
  5. DISBURSEMENT OF AWARDS MADE  PURSUANT  TO  THIS  SECTION  SHALL  BE
CONDITIONED  ON  THE  AWARDEE  ACHIEVING CERTAIN PROCESS AND PERFORMANCE
METRICS AND MILESTONES AS DETERMINED  IN  THE  SOLE  DISCRETION  OF  THE
COMMISSIONER.  SUCH METRICS AND MILESTONES SHALL BE STRUCTURED TO ENSURE
THAT THE HEALTH CARE TRANSFORMATION AND PROVIDER SUSTAINABILITY GOALS OF
THE PROJECT ARE ACHIEVED, AND  SUCH  METRICS  AND  MILESTONES  SHALL  BE
INCLUDED IN GRANT DISBURSEMENT AGREEMENTS OR OTHER CONTRACTUAL DOCUMENTS
AS REQUIRED BY THE COMMISSIONER.
  6.  The  department shall provide a report on a quarterly basis to the
chairs of the senate finance, assembly ways and means, senate health and
assembly health committees. Such reports shall  be  submitted  no  later
than  sixty  days  after the close of the quarter, and shall [conform to
the reporting requirements of subdivision twenty of section twenty-eight
hundred seven of this article, as applicable] INCLUDE, FOR  EACH  AWARD,
THE  NAME OF THE APPLICANT, A DESCRIPTION OF THE PROJECT OR PURPOSE, THE
AMOUNT OF THE AWARD, DISBURSEMENT DATE, AND  STATUS  OF  ACHIEVEMENT  OF
PROCESS  AND  PERFORMANCE METRICS AND MILESTONES PURSUANT TO SUBDIVISION
FIVE OF THIS SECTION.

S. 6407                            38                            A. 9007

  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, 2016.

                                 PART G

  Section  1.  Section  2801-a  of  the  public health law is amended by
adding a new subdivision 17 to read as follows:
  17. (A) DIAGNOSTIC OR TREATMENT CENTERS ESTABLISHED TO PROVIDE  HEALTH
CARE SERVICES WITHIN THE SPACE OF A RETAIL BUSINESS OPERATION, SUCH AS A
PHARMACY  OR A STORE OPEN TO THE GENERAL PUBLIC, OR WITHIN SPACE USED BY
AN EMPLOYER FOR PROVIDING HEALTH CARE SERVICES TO ITS EMPLOYEES, MAY  BE
OPERATED  BY  LEGAL  ENTITIES  FORMED UNDER THE LAWS OF THE STATE OF NEW
YORK:
  (I) WHOSE STOCKHOLDERS OR MEMBERS,  AS  APPLICABLE,  ARE  NOT  NATURAL
PERSONS;
  (II)  WHOSE  PRINCIPAL  STOCKHOLDERS  AND  MEMBERS, AS APPLICABLE, AND
CONTROLLING PERSONS COMPLY WITH  ALL  APPLICABLE  REQUIREMENTS  OF  THIS
SECTION; AND
  (III)  THAT  DEMONSTRATE, TO THE SATISFACTION OF THE PUBLIC HEALTH AND
HEALTH PLANNING COUNCIL, SUFFICIENT EXPERIENCE AND EXPERTISE IN DELIVER-
ING HIGH QUALITY HEALTH CARE SERVICES, AND FURTHER DEMONSTRATE A COMMIT-
MENT TO OPERATE LIMITED SERVICES CLINICS IN MEDICALLY UNDERSERVED  AREAS
OF THE STATE. SUCH DIAGNOSTIC AND TREATMENT CENTERS SHALL BE REFERRED TO
IN THIS SECTION AS "LIMITED SERVICES CLINICS".
  (B)  FOR  PURPOSES  OF  PARAGRAPH  (A) OF THIS SUBDIVISION, THE PUBLIC
HEALTH AND HEALTH PLANNING COUNCIL SHALL ADOPT AND AMEND RULES AND REGU-
LATIONS, NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION,  TO
ADDRESS  ANY  MATTER  IT DEEMS PERTINENT TO THE ESTABLISHMENT OF LIMITED
SERVICES CLINICS. SUCH RULES AND REGULATIONS SHALL INCLUDE, BUT  NOT  BE
LIMITED TO, PROVISIONS GOVERNING OR RELATING TO:
  (I) ANY DIRECT OR INDIRECT CHANGES OR TRANSFERS OF OWNERSHIP INTERESTS
OR  VOTING  RIGHTS IN SUCH ENTITIES OR THEIR STOCKHOLDERS OR MEMBERS, AS
APPLICABLE;
  (II) PUBLIC HEALTH AND HEALTH PLANNING COUNCIL APPROVAL OF ANY  CHANGE
IN  CONTROLLING  INTERESTS, PRINCIPAL STOCKHOLDERS, CONTROLLING PERSONS,
PARENT COMPANY OR SPONSORS;
  (III) OVERSIGHT OF THE OPERATOR AND ITS SHAREHOLDERS  OR  MEMBERS,  AS
APPLICABLE,  INCLUDING LOCAL GOVERNANCE OF THE LIMITED SERVICES CLINICS;
AND
  (IV) THE CHARACTER AND COMPETENCE AND QUALIFICATIONS OF,  AND  CHANGES
RELATING  TO, THE DIRECTORS AND OFFICERS OF THE OPERATOR AND ITS PRINCI-
PAL STOCKHOLDERS, CONTROLLING PERSONS, PARENT COMPANY OR SPONSORS.
  (C) THE FOLLOWING PROVISIONS OF THIS SECTION SHALL NOT APPLY TO LIMIT-
ED SERVICES CLINICS:
  (I) PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION;
  (II) PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION,  RELATING  TO
STOCKHOLDERS AND MEMBERS OTHER THAN PRINCIPAL STOCKHOLDERS AND PRINCIPAL
MEMBERS;
  (III)  PARAGRAPH  (C) OF SUBDIVISION FOUR OF THIS SECTION, RELATING TO
THE DISPOSITION OF STOCK OR VOTING RIGHTS; AND
  (IV) PARAGRAPH (E) OF SUBDIVISION FOUR OF THIS  SECTION,  RELATING  TO
THE OWNERSHIP OF STOCK OR MEMBERSHIP.
  (D)  A  LIMITED  SERVICES  CLINIC SHALL BE DEEMED TO BE A "HEALTH CARE
PROVIDER" FOR THE PURPOSES OF TITLE TWO-D OF ARTICLE TWO OF  THIS  CHAP-
TER.  A  PRESCRIBER PRACTICING IN A LIMITED SERVICES CLINIC SHALL NOT BE
DEEMED TO BE IN THE EMPLOY OF A PHARMACY OR PRACTICING IN A HOSPITAL FOR

S. 6407                            39                            A. 9007

PURPOSES OF SUBDIVISION TWO OF SECTION SIXTY-EIGHT HUNDRED SEVEN OF  THE
EDUCATION LAW.
  (E) THE COMMISSIONER SHALL PROMULGATE REGULATIONS SETTING FORTH OPERA-
TIONAL  AND PHYSICAL PLANT STANDARDS FOR LIMITED SERVICES CLINICS, WHICH
MAY BE DIFFERENT FROM THE REGULATIONS OTHERWISE APPLICABLE TO DIAGNOSTIC
OR TREATMENT CENTERS, INCLUDING, BUT NOT LIMITED TO:
  (I) REQUIRING  THAT  LIMITED  SERVICES  CLINICS  ATTAIN  AND  MAINTAIN
ACCREDITATION  AND  REQUIRING  TIMELY  REPORTING  TO THE DEPARTMENT IF A
LIMITED SERVICES CLINIC LOSES ITS ACCREDITATION;
  (II) DESIGNATING OR LIMITING THE TREATMENTS AND SERVICES THAT  MAY  BE
PROVIDED, INCLUDING:
  (A)  LIMITING  THE  SCOPE  OF SERVICES TO THE FOLLOWING, PROVIDED THAT
SUCH SERVICES SHALL NOT INCLUDE MONITORING  OR  TREATMENT  AND  SERVICES
OVER PROLONGED PERIODS:
  (1)  THE  PROVISION  OF  TREATMENT  AND SERVICES TO PATIENTS FOR MINOR
ACUTE EPISODIC ILLNESSES OR CONDITIONS;
  (2) EPISODIC PREVENTIVE AND WELLNESS TREATMENTS AND SERVICES  SUCH  AS
IMMUNIZATIONS; AND
  (3)  TREATMENT  AND SERVICES FOR MINOR TRAUMAS THAT ARE NOT REASONABLY
LIKELY TO BE LIFE THREATENING OR  POTENTIALLY  DISABLING  IF  AMBULATORY
CARE WITHIN THE CAPACITY OF THE LIMITED SERVICES CLINIC IS PROVIDED;
  (B)  PROHIBITING  THE  PROVISION  OF  SERVICES TO PATIENTS TWENTY-FOUR
MONTHS OF AGE OR YOUNGER;
  (C) THE PROVISION OF SPECIFIC IMMUNIZATIONS TO PATIENTS  YOUNGER  THAN
EIGHTEEN YEARS OF AGE;
  (III)  REQUIRING LIMITED SERVICES CLINICS TO ACCEPT WALK-INS AND OFFER
EXTENDED BUSINESS HOURS;
  (IV) SETTING FORTH GUIDELINES FOR ADVERTISING AND SIGNAGE, WHICH SHALL
INCLUDE  SIGNAGE  INDICATING  THAT  PRESCRIPTIONS  AND  OVER-THE-COUNTER
SUPPLIES MAY BE PURCHASED BY A PATIENT FROM ANY BUSINESS AND DO NOT NEED
TO BE PURCHASED ON-SITE;
  (V)  SETTING  FORTH  GUIDELINES FOR DISCLOSURE OF OWNERSHIP INTERESTS,
INFORMED CONSENT, RECORD KEEPING, REFERRAL FOR TREATMENT AND  CONTINUITY
OF  CARE,  CASE  REPORTING TO THE PATIENT'S PRIMARY CARE OR OTHER HEALTH
CARE PROVIDERS, DESIGN, CONSTRUCTION, FIXTURES, AND EQUIPMENT; AND
  (VI) REQUIRING THE OPERATOR TO DIRECTLY EMPLOY A MEDICAL DIRECTOR  WHO
IS  LICENSED  AND CURRENTLY REGISTERED TO PRACTICE MEDICINE IN THE STATE
OF NEW YORK.
  (F) SUCH REGULATIONS ALSO SHALL PROMOTE AND STRENGTHEN PRIMARY CARE BY
REQUIRING LIMITED SERVICES CLINICS TO:
  (I) INQUIRE OF EACH PATIENT WHETHER HE  OR  SHE  HAS  A  PRIMARY  CARE
PROVIDER;
  (II)  MAINTAIN  AND  REGULARLY  UPDATE  A  LIST  OF LOCAL PRIMARY CARE
PROVIDERS AND PROVIDE SUCH LIST TO EACH PATIENT WHO INDICATES THAT HE OR
SHE DOES NOT HAVE A PRIMARY CARE PROVIDER;
  (III) REFER PATIENTS TO THEIR PRIMARY CARE PROVIDERS OR  OTHER  HEALTH
CARE PROVIDERS AS APPROPRIATE;
  (IV)  TRANSMIT,  BY  ELECTRONIC  MEANS  WHENEVER  POSSIBLE, RECORDS OF
SERVICES TO PATIENTS' PRIMARY CARE PROVIDERS;
  (V) EXECUTE PARTICIPATION AGREEMENTS WITH HEALTH INFORMATION ORGANIZA-
TIONS, ALSO KNOWN AS  QUALIFIED  ENTITIES,  PURSUANT  TO  WHICH  LIMITED
SERVICES  CLINICS  AGREE TO PARTICIPATE IN THE STATEWIDE HEALTH INFORMA-
TION NETWORK FOR NEW YORK (SHIN-NY); AND
  (VI) DECLINE TO TREAT ANY PATIENT FOR THE SAME  CONDITION  OR  ILLNESS
MORE THAN THREE TIMES IN A YEAR.

S. 6407                            40                            A. 9007

  (G) A LIMITED SERVICES CLINIC SHALL PROVIDE TREATMENT WITHOUT DISCRIM-
INATION AS TO SOURCE OF PAYMENT.
  (H)  NOTWITHSTANDING  THIS  SUBDIVISION AND OTHER LAW OR REGULATION TO
THE CONTRARY AND SUBJECT  TO  THE  PROVISIONS  OF  SECTION  TWENTY-EIGHT
HUNDRED TWO OF THIS ARTICLE, A DIAGNOSTIC AND TREATMENT CENTER, COMMUNI-
TY  HEALTH  CENTER  OR  FEDERALLY  QUALIFIED HEALTH CENTER MAY OPERATE A
LIMITED SERVICES CLINIC WHICH MEETS THE REGULATION PROMULGATED  PURSUANT
TO  PARAGRAPH  (E)  OF  THIS  SUBDIVISION REGARDING OPERATIONAL PHYSICAL
PLANT STANDARDS.
  (I) IN DETERMINING WHETHER  TO  APPROVE  ADDITIONAL  LIMITED  SERVICES
CLINIC LOCATIONS, THE DEPARTMENT SHALL CONSIDER WHETHER THE OPERATOR HAS
FULFILLED   ITS  COMMITMENT  TO  OPERATE  LIMITED  SERVICES  CLINICS  IN
MEDICALLY UNDERSERVED AREAS OF THE STATE.
  S 2. This act shall take effect immediately.

                                 PART H

  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, as amended
by section 1 of part JJ of chapter 58 of the laws of 2015, 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,
[2016]  2019;  and for programs located within the city of New York, the
applicable fiscal periods shall be July 1, 2003 through  June  30,  2010
and July 1, 2011 through June 30, [2016] 2019.
  S 2. This act shall take effect immediately.

                                 PART I

  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  K  of
chapter 56 of the laws of 2012, are amended to read as follows:
  S  19. Notwithstanding any other provision of law, the commissioner of
mental health shall, until July 1, [2016] 2020, 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,  [2016]  2020, 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

S. 6407                            41                            A. 9007

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, 2016.

                                 PART J

  Section 1. Subdivision a of section 9 of chapter 420 of  the  laws  of
2002  amending  the  education  law relating to the profession of social
work, as amended by section 1 of part AA of chapter 57 of  the  laws  of
2013, is amended to read as follows:
  a.  Nothing  in  this  act  shall  prohibit or limit the activities or
services on the part of any person in the employ of a program or service
operated, regulated, funded, or approved by  the  department  of  mental
hygiene,  the  office  of  children  and  family services, the office of
temporary and disability assistance, the department of  corrections  and
community supervision, the state office for the aging, the department of
health,  or a local governmental unit as that term is defined in article
41 of the mental hygiene law or a social services district as defined in
section 61 of the social services law, provided, however,  this  section
shall  not authorize the use of any title authorized pursuant to article
154 of the education law, except  that  this  section  shall  be  deemed
repealed on July 1, [2016] 2021.
  S  2. Subdivision a of section 17-a of chapter 676 of the laws of 2002
amending the education law relating to the practice  of  psychology,  as
amended  by  section  2 of part AA of chapter 57 of the laws of 2013, is
amended to read as follows:
  a. In relation to activities and services provided under  article  153
of  the  education law, nothing in this act shall prohibit or limit such
activities or services on the part of any person  in  the  employ  of  a
program  or  service  operated,  regulated,  funded,  or approved by the
department of mental hygiene  or  the  office  of  children  and  family
services,  or a local governmental unit as that term is defined in arti-
cle 41 of the mental hygiene  law  or  a  social  services  district  as
defined in section 61 of the social services law.  In relation to activ-
ities  and  services  provided  under  article 163 of the education law,
nothing in this act shall prohibit or limit such activities or  services
on  the  part  of any person in the employ of a program or service oper-
ated, regulated,  funded,  or  approved  by  the  department  of  mental
hygiene,  the  office of children and family services, the department of
corrections and community supervision, the office of temporary and disa-
bility assistance, the state office for the aging and the department  of
health  or  a local governmental unit as that term is defined in article
41 of the mental hygiene law or a social services district as defined in
section 61 of the social services law, pursuant to authority granted  by
law.  This  section  shall not authorize the use of any title authorized
pursuant to article 153 or 163 of the education law by any such employed
person, except as otherwise  provided  by  such  articles  respectively.
This section shall be deemed repealed July 1, [2016] 2021.
  S 3. Section 16 of chapter 130 of the laws of 2010 amending the educa-
tion law and other laws relating to the registration of entities provid-
ing   certain   professional  services  and  the  licensure  of  certain
professions, as amended by section 3 of part AA of  chapter  57  of  the
laws of 2013, is amended to read as follows:
  S  16.  This act shall take effect immediately; provided that sections
thirteen, fourteen and fifteen of this act shall take effect immediately

S. 6407                            42                            A. 9007

and shall be deemed to have been in full force and effect on  and  after
June  1,  2010 and such sections shall be deemed repealed July 1, [2016]
2021; provided further that the amendments to section 9 of  chapter  420
of  the  laws of 2002 amending the education law relating to the profes-
sion of social work made by section thirteen of this act shall repeal on
the same date as such section repeals; provided further that the  amend-
ments  to  section  17-a of chapter 676 of the laws of 2002 amending the
education law relating to the practice of  psychology  made  by  section
fourteen  of  this  act  shall  repeal  on the same date as such section
repeals.
  S 4. This act shall take effect immediately.

                                 PART K

  Section 1. Subdivision 9 of section 730.10 of the  criminal  procedure
law,  as added by section 1 of part Q of chapter 56 of the laws of 2012,
is amended 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; [or] (b) 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
provided,  however,  that  any such hospital that is not operated by the
state shall qualify as an "appropriate institution" only pursuant to the
terms of an agreement between the commissioner and the hospital; OR  (C)
A  MENTAL  HEALTH UNIT OPERATING WITHIN A CORRECTIONAL FACILITY OR LOCAL
CORRECTIONAL FACILITY PROVIDED HOWEVER THAT ANY SUCH MENTAL HEALTH  UNIT
OPERATING  WITHIN  A  LOCAL  CORRECTIONAL  FACILITY  SHALL QUALIFY AS AN
"APPROPRIATE INSTITUTION" ONLY PURSUANT TO THE  TERMS  OF  AN  AGREEMENT
BETWEEN THE COMMISSIONER AND THE SHERIFF AND ANY SUCH MENTAL HEALTH UNIT
OPERATING  WITHIN A CORRECTIONAL FACILITY SHALL QUALIFY AS AN "APPROPRI-
ATE INSTITUTION" ONLY PURSUANT TO THE TERMS OF AN AGREEMENT BETWEEN  THE
COMMISSIONER  AND  THE COMMISSIONER OF THE DEPARTMENT OF CORRECTIONS AND
COMMUNITY SUPERVISION. Nothing in this article  shall  be  construed  as
requiring a hospital, CORRECTIONAL FACILITY OR LOCAL CORRECTIONAL FACIL-
ITY  to  consent  to  providing  care  and treatment to an incapacitated
person at such hospital, CORRECTIONAL  FACILITY  OR  LOCAL  CORRECTIONAL
FACILITY.
  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, 2016.

                                 PART L

  Section 1. The mental hygiene law is amended by adding a  new  section
16.25 to read as follows:
S 16.25 TEMPORARY OPERATOR.
  (A) FOR THE PURPOSES OF THIS SECTION:
  (1)  "ESTABLISHED  OPERATOR"  SHALL MEAN THE PROVIDER OF SERVICES THAT
HAS BEEN ESTABLISHED AND ISSUED AN  OPERATING  CERTIFICATE  PURSUANT  TO
THIS ARTICLE.
  (2)  "EXTRAORDINARY  FINANCIAL  ASSISTANCE"  SHALL  MEAN  STATE  FUNDS
PROVIDED TO, OR REQUESTED BY, A  PROGRAM  FOR  THE  EXPRESS  PURPOSE  OF
PREVENTING  THE  CLOSURE  OF  THE  PROGRAM  THAT  THE COMMISSIONER FINDS
PROVIDES ESSENTIAL AND NECESSARY SERVICES WITHIN THE COMMUNITY.
  (3) "SERIOUS FINANCIAL INSTABILITY" SHALL INCLUDE BUT NOT  BE  LIMITED
TO  DEFAULTING  OR  VIOLATING  MATERIAL COVENANTS OF BOND ISSUES, MISSED

S. 6407                            43                            A. 9007

MORTGAGE PAYMENTS, MISSED RENT PAYMENTS, A PATTERN OF  UNTIMELY  PAYMENT
OF DEBTS, FAILURE TO PAY ITS EMPLOYEES OR VENDORS, INSUFFICIENT FUNDS TO
MEET  THE GENERAL OPERATING EXPENSES OF THE PROGRAM, FAILURE TO MAINTAIN
REQUIRED  DEBT  SERVICE  COVERAGE  RATIOS AND/OR, AS APPLICABLE, FACTORS
THAT HAVE TRIGGERED A WRITTEN EVENT OF DEFAULT NOTICE TO THE  OFFICE  BY
THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK.
  (4)  "TEMPORARY OPERATOR" SHALL MEAN ANY PROVIDER OF SERVICES THAT HAS
BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE  PURSUANT  TO  THIS
ARTICLE OR WHICH IS DIRECTLY OPERATED BY THE OFFICE, THAT:
  A.  AGREES TO PROVIDE SERVICES CERTIFIED PURSUANT TO THIS ARTICLE ON A
TEMPORARY BASIS IN THE BEST INTERESTS OF ITS INDIVIDUALS SERVED  BY  THE
PROGRAM; AND
  B.  HAS A HISTORY OF COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REGU-
LATIONS AND A RECORD OF PROVIDING CARE OF GOOD QUALITY, AS DETERMINED BY
THE COMMISSIONER; AND
  C. PRIOR TO APPOINTMENT AS TEMPORARY OPERATOR, DEVELOPS A PLAN  DETER-
MINED  TO  BE  SATISFACTORY BY THE COMMISSIONER TO ADDRESS THE PROGRAM'S
DEFICIENCIES.
  (B) (1) IN THE EVENT THAT: (I) THE  ESTABLISHED  OPERATOR  IS  SEEKING
EXTRAORDINARY  FINANCIAL  ASSISTANCE;  (II) OFFICE COLLECTED DATA DEMON-
STRATES THAT THE ESTABLISHED OPERATOR IS EXPERIENCING SERIOUS  FINANCIAL
INSTABILITY  ISSUES;  (III)  OFFICE COLLECTED DATA DEMONSTRATES THAT THE
ESTABLISHED OPERATOR'S BOARD OF DIRECTORS OR ADMINISTRATION IS UNABLE OR
UNWILLING TO ENSURE THE PROPER OPERATION OF THE PROGRAM; OR (IV)  OFFICE
COLLECTED DATA INDICATES THERE ARE CONDITIONS THAT SERIOUSLY ENDANGER OR
JEOPARDIZE  CONTINUED ACCESS TO NECESSARY SERVICES WITHIN THE COMMUNITY,
THE COMMISSIONER SHALL NOTIFY THE ESTABLISHED OPERATOR  OF  HIS  OR  HER
INTENTION  TO APPOINT A TEMPORARY OPERATOR TO ASSUME SOLE RESPONSIBILITY
FOR THE PROVIDER OF SERVICES' OPERATIONS FOR A LIMITED PERIOD  OF  TIME.
THE APPOINTMENT OF A TEMPORARY OPERATOR SHALL BE EFFECTUATED PURSUANT TO
THIS SECTION, AND SHALL BE IN ADDITION TO ANY OTHER REMEDIES PROVIDED BY
LAW.
  (2)  THE ESTABLISHED OPERATOR 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 NECES-
SARY, ENTER INTO AN AGREEMENT WITH  THE  ESTABLISHED  OPERATOR  FOR  THE
APPOINTMENT OF A TEMPORARY OPERATOR TO RESTORE OR MAINTAIN THE PROVISION
OF  QUALITY  CARE  TO THE INDIVIDUALS UNTIL THE ESTABLISHED OPERATOR CAN
RESUME OPERATIONS WITHIN THE DESIGNATED TIME PERIOD OR OTHER  ACTION  IS
TAKEN AS DESCRIBED IN SECTION 16.17 OF THIS ARTICLE.
  (C)  (1) A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION SHALL
USE HIS OR HER BEST EFFORTS TO IMPLEMENT THE PLAN DEEMED SATISFACTORY BY
THE COMMISSIONER TO CORRECT OR ELIMINATE ANY DEFICIENCIES IN THE PROGRAM
AND TO PROMOTE THE QUALITY AND ACCESSIBILITY OF SERVICES IN THE COMMUNI-
TY SERVED BY THE PROVIDER OF SERVICES.
  (2) DURING THE TERM OF APPOINTMENT, THE TEMPORARY OPERATOR SHALL  HAVE
THE  AUTHORITY TO DIRECT THE STAFF OF THE ESTABLISHED OPERATOR AS NECES-
SARY TO APPROPRIATELY PROVIDE SERVICES FOR  INDIVIDUALS.  THE  TEMPORARY
OPERATOR SHALL, DURING THIS PERIOD, PROVIDE SERVICES IN SUCH A MANNER AS
TO  PROMOTE  SAFETY AND THE QUALITY AND ACCESSIBILITY OF SERVICES IN THE
COMMUNITY SERVED BY THE ESTABLISHED OPERATOR  UNTIL  EITHER  THE  ESTAB-
LISHED  OPERATOR  CAN  RESUME OPERATIONS OR UNTIL THE OFFICE REVOKES THE
OPERATING CERTIFICATE FOR THE SERVICES ISSUED UNDER THIS ARTICLE.
  (3) THE ESTABLISHED OPERATOR SHALL GRANT ACCESS TO THE TEMPORARY OPER-
ATOR TO THE ESTABLISHED OPERATOR'S ACCOUNTS  AND  RECORDS  IN  ORDER  TO
ADDRESS  ANY  DEFICIENCIES  RELATED  TO THE PROGRAM EXPERIENCING SERIOUS

S. 6407                            44                            A. 9007

FINANCIAL INSTABILITY OR AN ESTABLISHED  OPERATOR  REQUESTING  FINANCIAL
ASSISTANCE IN ACCORDANCE WITH THIS SECTION. THE TEMPORARY OPERATOR SHALL
APPROVE  ANY FINANCIAL DECISION RELATED TO AN ESTABLISHED PROVIDER'S DAY
TO  DAY  OPERATIONS  OR  THE  ESTABLISHED  PROVIDER'S ABILITY TO PROVIDE
SERVICES.
  (4) THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE ANY BOND.  NO
SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRISING THE ESTAB-
LISHED OPERATOR OR CONTAINED WITHIN THE ESTABLISHED OPERATOR OR  IN  ANY
FIXTURE  OF  THE PROGRAM, SHALL BE IMPAIRED OR DIMINISHED IN PRIORITY BY
THE TEMPORARY OPERATOR. NEITHER THE TEMPORARY OPERATOR  NOR  THE  OFFICE
SHALL  ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION OF PROPER-
TY.
  (D) THE TEMPORARY OPERATOR SHALL BE ENTITLED TO A REASONABLE  FEE,  AS
DETERMINED BY THE COMMISSIONER AND SUBJECT TO THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, AND NECESSARY EXPENSES INCURRED WHILE
SERVING  AS A TEMPORARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE
ONLY IN ITS CAPACITY AS TEMPORARY OPERATOR  FOR  INJURY  TO  PERSON  AND
PROPERTY  BY REASON OF ITS OPERATION OF SUCH PROGRAM; NO LIABILITY SHALL
INCUR IN THE TEMPORARY OPERATOR'S PERSONAL CAPACITY,  EXCEPT  FOR  GROSS
NEGLIGENCE AND INTENTIONAL ACTS.
  (E)  (1) THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR
SHALL NOT EXCEED NINETY DAYS. AFTER NINETY  DAYS,  IF  THE  COMMISSIONER
DETERMINES  THAT  TERMINATION  OF  THE  TEMPORARY  OPERATOR  WOULD CAUSE
SIGNIFICANT DETERIORATION OF THE QUALITY OF, OR ACCESS TO, CARE  IN  THE
COMMUNITY OR THAT REAPPOINTMENT IS NECESSARY TO CORRECT THE DEFICIENCIES
THAT REQUIRED THE APPOINTMENT OF THE TEMPORARY OPERATOR, THE COMMISSION-
ER  MAY AUTHORIZE AN ADDITIONAL NINETY-DAY TERM.  HOWEVER, SUCH AUTHORI-
ZATION SHALL INCLUDE THE COMMISSIONER'S REQUIREMENTS FOR  CONCLUSION  OF
THE TEMPORARY OPERATORSHIP TO BE SATISFIED WITHIN THE ADDITIONAL TERM.
  (2)  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:
  A. THE ACTIONS TAKEN DURING THE APPOINTMENT TO ADDRESS THE  IDENTIFIED
PROGRAM DEFICIENCIES, THE RESUMPTION OF PROGRAM OPERATIONS BY THE ESTAB-
LISHED OPERATOR, OR THE REVOCATION OF AN OPERATING CERTIFICATE ISSUED BY
THE OFFICE;
  B.  OBJECTIVES  FOR  THE CONTINUATION OF THE TEMPORARY OPERATORSHIP IF
NECESSARY AND A SCHEDULE FOR SATISFACTION OF SUCH OBJECTIVES; AND
  C. IF APPLICABLE, THE RECOMMENDED ACTIONS FOR THE ONGOING PROVISION OF
SERVICES SUBSEQUENT TO THE TEMPORARY OPERATORSHIP.
  (3) 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.
  (F)  (1)  THE  COMMISSIONER  SHALL,  UPON MAKING A DETERMINATION OF AN
INTENTION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH  ONE  OF
SUBDIVISION  (B)  OF  THIS SECTION, CAUSE THE ESTABLISHED OPERATOR TO BE
NOTIFIED OF THE INTENTION BY REGISTERED OR CERTIFIED MAIL  ADDRESSED  TO
THE  PRINCIPAL  OFFICE  OF  THE  ESTABLISHED OPERATOR. SUCH NOTIFICATION
SHALL INCLUDE A DETAILED DESCRIPTION  OF  THE  FINDINGS  UNDERLYING  THE
INTENTION  TO  APPOINT  A TEMPORARY OPERATOR, AND THE DATE AND TIME OF A
REQUIRED MEETING WITH THE COMMISSIONER AND/OR HIS OR HER DESIGNEE WITHIN
TEN BUSINESS DAYS OF THE RECEIPT OF SUCH NOTICE. AT  SUCH  MEETING,  THE
ESTABLISHED  OPERATOR  SHALL  HAVE THE OPPORTUNITY TO REVIEW AND DISCUSS
ALL RELEVANT FINDINGS. AT SUCH MEETING, THE COMMISSIONER AND THE  ESTAB-

S. 6407                            45                            A. 9007

LISHED OPERATOR SHALL ATTEMPT TO DEVELOP A MUTUALLY SATISFACTORY PLAN OF
CORRECTION  AND  SCHEDULE FOR IMPLEMENTATION. IN SUCH EVENT, THE COMMIS-
SIONER SHALL NOTIFY THE ESTABLISHED OPERATOR THAT THE COMMISSIONER  WILL
ABSTAIN  FROM APPOINTING A TEMPORARY OPERATOR CONTINGENT UPON THE ESTAB-
LISHED OPERATOR  REMEDIATING  THE  IDENTIFIED  DEFICIENCIES  WITHIN  THE
AGREED UPON TIMEFRAME.
  (2)  SHOULD THE COMMISSIONER AND THE ESTABLISHED OPERATOR BE UNABLE TO
ESTABLISH A PLAN OF CORRECTION PURSUANT TO PARAGRAPH ONE OF THIS  SUBDI-
VISION,  OR  SHOULD  THE  ESTABLISHED  OPERATOR  FAIL  TO RESPOND TO THE
COMMISSIONER'S INITIAL NOTIFICATION, THERE SHALL  BE  AN  ADMINISTRATIVE
HEARING ON THE COMMISSIONER'S DETERMINATION TO APPOINT A TEMPORARY OPER-
ATOR  TO  BEGIN NO LATER THAN THIRTY DAYS FROM THE DATE OF THE NOTICE TO
THE ESTABLISHED OPERATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED  TO
THE  ISSUE OF WHETHER THE DETERMINATION OF THE COMMISSIONER TO APPOINT A
TEMPORARY OPERATOR IS SUPPORTED BY SUBSTANTIAL EVIDENCE. A COPY  OF  THE
DECISION SHALL BE SENT TO THE ESTABLISHED OPERATOR.
  (3)  IF  THE  DECISION  TO APPOINT A TEMPORARY OPERATOR IS UPHELD SUCH
TEMPORARY OPERATOR SHALL BE APPOINTED AS  SOON  AS  IS  PRACTICABLE  AND
SHALL PROVIDE SERVICES PURSUANT TO THE PROVISIONS OF THIS SECTION.
  (G)  NOTWITHSTANDING  THE  APPOINTMENT  OF  A  TEMPORARY OPERATOR, THE
ESTABLISHED OPERATOR SHALL REMAIN OBLIGATED FOR THE CONTINUED  PROVISION
OF  SERVICES.  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 OF THE PROGRAM HEREUNDER;
NOR SHALL ANYTHING CONTAINED IN THIS SECTION  BE  CONSTRUED  TO  SUSPEND
DURING  THE  TERM  OF  THE  APPOINTMENT OF THE TEMPORARY OPERATOR OF THE
PROGRAM ANY OBLIGATION OF THE ESTABLISHED OPERATOR OR ANY  OTHER  PERSON
FOR  THE  MAINTENANCE  AND  REPAIR OF THE FACILITY, PROVISION OF UTILITY
SERVICES, 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  2.  The mental hygiene law is amended by adding a new section 31.20
to read as follows:
S 31.20 TEMPORARY OPERATOR.
  (A) FOR THE PURPOSES OF THIS SECTION:
  (1) "ESTABLISHED OPERATOR" SHALL MEAN THE OPERATOR OF A MENTAL  HEALTH
PROGRAM  THAT  HAS  BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE
PURSUANT TO THIS ARTICLE.
  (2)  "EXTRAORDINARY  FINANCIAL  ASSISTANCE"  SHALL  MEAN  STATE  FUNDS
PROVIDED  TO,  OR  REQUESTED  BY,  A  PROGRAM FOR THE EXPRESS PURPOSE OF
PREVENTING THE CLOSURE  OF  THE  PROGRAM  THAT  THE  COMMISSIONER  FINDS
PROVIDES ESSENTIAL AND NECESSARY SERVICES WITHIN THE COMMUNITY.
  (3)  "MENTAL  HEALTH  PROGRAM"  SHALL  MEAN A PROVIDER OF SERVICES FOR
PERSONS WITH SERIOUS MENTAL  ILLNESS,  AS  SUCH  TERMS  ARE  DEFINED  IN
SECTION  1.03  OF  THIS  CHAPTER,  WHICH  IS LICENSED OR OPERATED BY THE
OFFICE.
  (4) "OFFICE" SHALL MEAN THE OFFICE OF MENTAL HEALTH.
  (5) "SERIOUS FINANCIAL INSTABILITY" SHALL INCLUDE BUT NOT  BE  LIMITED
TO  DEFAULTING  OR  VIOLATING  MATERIAL COVENANTS OF BOND ISSUES, MISSED
MORTGAGE PAYMENTS, A PATTERN OF UNTIMELY PAYMENT OF  DEBTS,  FAILURE  TO
PAY  ITS  EMPLOYEES  OR  VENDORS, INSUFFICIENT FUNDS TO MEET THE GENERAL
OPERATING EXPENSES OF THE PROGRAM, FAILURE  TO  MAINTAIN  REQUIRED  DEBT
SERVICE  COVERAGE  RATIOS AND/OR, AS APPLICABLE, FACTORS THAT HAVE TRIG-

S. 6407                            46                            A. 9007

GERED A WRITTEN EVENT OF DEFAULT NOTICE TO THE OFFICE BY  THE  DORMITORY
AUTHORITY OF THE STATE OF NEW YORK.
  (6)  "TEMPORARY  OPERATOR"  SHALL MEAN ANY OPERATOR OF A MENTAL HEALTH
PROGRAM THAT HAS BEEN ESTABLISHED AND ISSUED  AN  OPERATING  CERTIFICATE
PURSUANT  TO THIS ARTICLE OR WHICH IS DIRECTLY OPERATED BY THE OFFICE OF
MENTAL HEALTH, THAT:
  A. AGREES TO OPERATE A MENTAL HEALTH PROGRAM ON A TEMPORARY  BASIS  IN
THE BEST INTERESTS OF ITS PATIENTS SERVED BY THE PROGRAM; AND
  B.  HAS A HISTORY OF COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REGU-
LATIONS AND A RECORD OF PROVIDING CARE OF GOOD QUALITY, AS DETERMINED BY
THE COMMISSIONER; AND
  C. PRIOR TO APPOINTMENT AS TEMPORARY OPERATOR, DEVELOPS A PLAN  DETER-
MINED  TO  BE  SATISFACTORY BY THE COMMISSIONER TO ADDRESS THE PROGRAM'S
DEFICIENCIES.
  (B) (1) IN THE EVENT THAT: (I) THE  ESTABLISHED  OPERATOR  IS  SEEKING
EXTRAORDINARY  FINANCIAL  ASSISTANCE;  (II) OFFICE COLLECTED DATA DEMON-
STRATES THAT THE ESTABLISHED OPERATOR IS EXPERIENCING SERIOUS  FINANCIAL
INSTABILITY  ISSUES;  (III)  OFFICE COLLECTED DATA DEMONSTRATES THAT THE
ESTABLISHED OPERATOR'S BOARD OF DIRECTORS OR ADMINISTRATION IS UNABLE OR
UNWILLING TO ENSURE THE PROPER OPERATION OF THE PROGRAM; OR (IV)  OFFICE
COLLECTED DATA INDICATES THERE ARE CONDITIONS THAT SERIOUSLY ENDANGER OR
JEOPARDIZE  CONTINUED  ACCESS TO NECESSARY MENTAL HEALTH SERVICES WITHIN
THE COMMUNITY, THE COMMISSIONER SHALL NOTIFY THE ESTABLISHED OPERATOR OF
HIS OR HER INTENTION TO APPOINT A  TEMPORARY  OPERATOR  TO  ASSUME  SOLE
RESPONSIBILITY  FOR  THE  PROGRAM'S  TREATMENT  OPERATIONS FOR A LIMITED
PERIOD OF TIME. THE APPOINTMENT OF A TEMPORARY OPERATOR SHALL BE  EFFEC-
TUATED  PURSUANT  TO THIS SECTION, AND SHALL BE IN ADDITION TO ANY OTHER
REMEDIES PROVIDED BY LAW.
  (2) THE ESTABLISHED OPERATOR 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  NECES-
SARY,  ENTER  INTO  AN  AGREEMENT  WITH THE ESTABLISHED OPERATOR FOR THE
APPOINTMENT OF A TEMPORARY OPERATOR TO RESTORE OR MAINTAIN THE PROVISION
OF QUALITY CARE TO THE  PATIENTS  UNTIL  THE  ESTABLISHED  OPERATOR  CAN
RESUME OPERATIONS WITHIN THE DESIGNATED TIME PERIOD; THE PATIENTS MAY BE
TRANSFERRED  TO OTHER MENTAL HEALTH PROGRAMS OPERATED OR LICENSED BY THE
OFFICE; OR THE  OPERATIONS  OF  THE  MENTAL  HEALTH  PROGRAM  SHOULD  BE
COMPLETELY DISCONTINUED.
  (C)  (1) A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION SHALL
USE HIS OR HER BEST EFFORTS TO IMPLEMENT THE PLAN DEEMED SATISFACTORY BY
THE COMMISSIONER TO CORRECT OR ELIMINATE ANY DEFICIENCIES IN THE  MENTAL
HEALTH  PROGRAM  AND  TO PROMOTE THE QUALITY AND ACCESSIBILITY OF MENTAL
HEALTH SERVICES IN THE COMMUNITY SERVED BY THE MENTAL HEALTH PROGRAM.
  (2) IF THE IDENTIFIED DEFICIENCIES CANNOT BE  ADDRESSED  IN  THE  TIME
PERIOD  DESIGNATED  IN  THE  PLAN,  THE PATIENTS SHALL BE TRANSFERRED TO
OTHER APPROPRIATE MENTAL HEALTH PROGRAMS LICENSED  OR  OPERATED  BY  THE
OFFICE.
  (3)  DURING THE TERM OF APPOINTMENT, THE TEMPORARY OPERATOR SHALL HAVE
THE AUTHORITY TO DIRECT THE STAFF OF THE ESTABLISHED OPERATOR AS  NECES-
SARY  TO APPROPRIATELY TREAT AND/OR TRANSFER THE PATIENTS. THE TEMPORARY
OPERATOR SHALL, DURING THIS PERIOD, OPERATE THE MENTAL HEALTH PROGRAM IN
SUCH A MANNER AS TO PROMOTE SAFETY AND THE QUALITY AND ACCESSIBILITY  OF
MENTAL HEALTH SERVICES IN THE COMMUNITY SERVED BY THE ESTABLISHED OPERA-
TOR  UNTIL EITHER THE ESTABLISHED OPERATOR CAN RESUME PROGRAM OPERATIONS
OR UNTIL THE PATIENTS ARE APPROPRIATELY TRANSFERRED  TO  OTHER  PROGRAMS
LICENSED OR OPERATED BY THE OFFICE.

S. 6407                            47                            A. 9007

  (4) THE ESTABLISHED OPERATOR SHALL GRANT ACCESS TO THE TEMPORARY OPER-
ATOR  TO  THE  ESTABLISHED  OPERATOR'S  ACCOUNTS AND RECORDS IN ORDER TO
ADDRESS ANY DEFICIENCIES RELATED TO A MENTAL HEALTH PROGRAM EXPERIENCING
SERIOUS FINANCIAL INSTABILITY  OR  AN  ESTABLISHED  OPERATOR  REQUESTING
FINANCIAL  ASSISTANCE  IN  ACCORDANCE  WITH  THIS SECTION. THE TEMPORARY
OPERATOR SHALL APPROVE ANY FINANCIAL DECISION RELATED TO A PROGRAM'S DAY
TO  DAY  OPERATIONS  OR  PROGRAM'S  ABILITY  TO  PROVIDE  MENTAL  HEALTH
SERVICES.
  (5) THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE ANY BOND.  NO
SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRISING THE ESTAB-
LISHED  OPERATOR  OR CONTAINED WITHIN THE ESTABLISHED OPERATOR OR IN ANY
FIXTURE OF THE MENTAL HEALTH PROGRAM, SHALL BE IMPAIRED OR DIMINISHED IN
PRIORITY BY THE TEMPORARY OPERATOR. NEITHER THE TEMPORARY  OPERATOR  NOR
THE  OFFICE SHALL ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION
OF PROPERTY.
  (D) THE TEMPORARY OPERATOR SHALL BE ENTITLED TO A REASONABLE  FEE,  AS
DETERMINED BY THE COMMISSIONER AND SUBJECT TO THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, AND NECESSARY EXPENSES INCURRED WHILE
SERVING  AS A TEMPORARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE
ONLY IN ITS CAPACITY AS TEMPORARY OPERATOR OF THE MENTAL HEALTH  PROGRAM
FOR  INJURY  TO  PERSON  AND PROPERTY BY REASON OF ITS OPERATION OF SUCH
PROGRAM; NO LIABILITY SHALL INCUR IN THE TEMPORARY  OPERATOR'S  PERSONAL
CAPACITY, EXCEPT FOR GROSS NEGLIGENCE AND INTENTIONAL ACTS.
  (E)  (1) THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR
SHALL NOT EXCEED NINETY DAYS. AFTER NINETY  DAYS,  IF  THE  COMMISSIONER
DETERMINES  THAT  TERMINATION  OF  THE  TEMPORARY  OPERATOR  WOULD CAUSE
SIGNIFICANT DETERIORATION OF THE QUALITY OF, OR ACCESS TO, MENTAL HEALTH
CARE IN THE COMMUNITY OR THAT REAPPOINTMENT IS NECESSARY TO CORRECT  THE
DEFICIENCIES  THAT  REQUIRED  THE APPOINTMENT OF THE TEMPORARY OPERATOR,
THE COMMISSIONER MAY AUTHORIZE AN ADDITIONAL NINETY-DAY  TERM.  HOWEVER,
SUCH  AUTHORIZATION  SHALL  INCLUDE  THE COMMISSIONER'S REQUIREMENTS FOR
CONCLUSION OF THE TEMPORARY OPERATORSHIP  TO  BE  SATISFIED  WITHIN  THE
ADDITIONAL TERM.
  (2)  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:
  A. THE ACTIONS TAKEN DURING THE APPOINTMENT TO ADDRESS THE  IDENTIFIED
MENTAL  HEALTH  PROGRAM  DEFICIENCIES,  THE  RESUMPTION OF MENTAL HEALTH
PROGRAM OPERATIONS BY THE ESTABLISHED OPERATOR, OR THE TRANSFER  OF  THE
PATIENTS TO OTHER PROVIDERS LICENSED OR OPERATED BY THE OFFICE;
  B.  OBJECTIVES  FOR  THE CONTINUATION OF THE TEMPORARY OPERATORSHIP IF
NECESSARY AND A SCHEDULE FOR SATISFACTION OF SUCH OBJECTIVES; AND
  C. IF APPLICABLE, THE RECOMMENDED ACTIONS FOR THE ONGOING OPERATION OF
THE MENTAL HEALTH PROGRAM SUBSEQUENT TO THE TEMPORARY OPERATORSHIP.
  (3) 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.
  (F)  (1)  THE  COMMISSIONER  SHALL,  UPON MAKING A DETERMINATION OF AN
INTENTION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH  ONE  OF
SUBDIVISION  (B)  OF  THIS  SECTION CAUSE THE ESTABLISHED OPERATOR TO BE
NOTIFIED OF THE INTENTION BY REGISTERED OR CERTIFIED MAIL  ADDRESSED  TO
THE  PRINCIPAL  OFFICE  OF  THE  ESTABLISHED OPERATOR. SUCH NOTIFICATION
SHALL INCLUDE A DETAILED DESCRIPTION  OF  THE  FINDINGS  UNDERLYING  THE
INTENTION  TO  APPOINT  A TEMPORARY OPERATOR, AND THE DATE AND TIME OF A

S. 6407                            48                            A. 9007

REQUIRED MEETING WITH THE COMMISSIONER AND/OR HIS OR HER DESIGNEE WITHIN
TEN BUSINESS DAYS OF THE RECEIPT OF SUCH NOTICE. AT  SUCH  MEETING,  THE
ESTABLISHED  OPERATOR  SHALL  HAVE THE OPPORTUNITY TO REVIEW AND DISCUSS
ALL  RELEVANT FINDINGS. AT SUCH MEETING, THE COMMISSIONER AND THE ESTAB-
LISHED OPERATOR SHALL ATTEMPT TO DEVELOP A MUTUALLY SATISFACTORY PLAN OF
CORRECTION AND SCHEDULE FOR IMPLEMENTATION. IN SUCH EVENT,  THE  COMMIS-
SIONER  SHALL NOTIFY THE ESTABLISHED OPERATOR THAT THE COMMISSIONER WILL
ABSTAIN FROM APPOINTING A TEMPORARY OPERATOR CONTINGENT UPON THE  ESTAB-
LISHED  OPERATOR  REMEDIATING  THE  IDENTIFIED  DEFICIENCIES  WITHIN THE
AGREED UPON TIMEFRAME.
  (2) SHOULD THE COMMISSIONER AND THE ESTABLISHED OPERATOR BE UNABLE  TO
ESTABLISH  A PLAN OF CORRECTION PURSUANT TO PARAGRAPH ONE OF THIS SUBDI-
VISION, OR SHOULD THE  ESTABLISHED  OPERATOR  FAIL  TO  RESPOND  TO  THE
COMMISSIONER'S  INITIAL  NOTIFICATION,  THERE SHALL BE AN ADMINISTRATIVE
HEARING ON THE COMMISSIONER'S DETERMINATION TO APPOINT A TEMPORARY OPER-
ATOR TO BEGIN NO LATER THAN THIRTY DAYS FROM THE DATE OF THE  NOTICE  TO
THE  ESTABLISHED OPERATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED TO
THE ISSUE OF WHETHER THE DETERMINATION OF THE COMMISSIONER TO APPOINT  A
TEMPORARY  OPERATOR  IS SUPPORTED BY SUBSTANTIAL EVIDENCE. A COPY OF THE
DECISION SHALL BE SENT TO THE ESTABLISHED OPERATOR.
  (3) IF THE DECISION TO APPOINT A TEMPORARY  OPERATOR  IS  UPHELD  SUCH
TEMPORARY  OPERATOR  SHALL  BE  APPOINTED  AS SOON AS IS PRACTICABLE AND
SHALL OPERATE THE MENTAL HEALTH PROGRAM PURSUANT TO  THE  PROVISIONS  OF
THIS SECTION.
  (G)  NOTWITHSTANDING  THE  APPOINTMENT  OF  A  TEMPORARY OPERATOR, THE
ESTABLISHED OPERATOR SHALL REMAIN OBLIGATED FOR THE CONTINUED  OPERATION
OF  THE  MENTAL  HEALTH  PROGRAM  SO THAT SUCH PROGRAM CAN FUNCTION IN A
NORMAL MANNER. 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 OF THE PROGRAM HEREUNDER;
NOR SHALL ANYTHING CONTAINED IN THIS SECTION  BE  CONSTRUED  TO  SUSPEND
DURING  THE  TERM  OF  THE  APPOINTMENT OF THE TEMPORARY OPERATOR OF THE
PROGRAM ANY OBLIGATION OF THE ESTABLISHED OPERATOR OR ANY  OTHER  PERSON
FOR  THE  MAINTENANCE  AND  REPAIR OF THE FACILITY, PROVISION OF UTILITY
SERVICES, 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 3. This act shall take effect immediately.

                                 PART M

  Section 1. Subdivision (d) of section 33.13 of the mental hygiene law,
as amended by section 3 of part E of chapter 111 of the laws of 2010, is
amended to read as follows:
  (d)  Nothing  in  this  section  shall prevent the electronic or other
exchange of information concerning patients or clients, including  iden-
tification,  between  and  among  (i)  facilities  or  others  providing
services for such patients or clients  pursuant  to  an  approved  local
services  plan,  as  defined  in  article  forty-one of this chapter, or
pursuant to agreement with the department, and (ii)  the  department  or
any  of  its  licensed or operated facilities. NEITHER SHALL ANYTHING IN
THIS SECTION PREVENT THE EXCHANGE OF INFORMATION CONCERNING PATIENTS  OR
CLIENTS,  INCLUDING  IDENTIFICATION, BETWEEN FACILITIES AND MANAGED CARE
ORGANIZATIONS, BEHAVIORAL HEALTH ORGANIZATIONS, HEALTH  HOMES  OR  OTHER

S. 6407                            49                            A. 9007

ENTITIES  AUTHORIZED  BY  THE  DEPARTMENT OR THE DEPARTMENT OF HEALTH TO
PROVIDE, ARRANGE  FOR  OR  COORDINATE  HEALTH  CARE  SERVICES  FOR  SUCH
PATIENTS  OR CLIENTS WHO ARE ENROLLED IN OR RECEIVING SERVICES FROM SUCH
ORGANIZATIONS OR ENTITIES. Furthermore, subject to the prior approval of
the  commissioner of mental health, hospital emergency services licensed
pursuant to article twenty-eight of  the  public  health  law  shall  be
authorized  to exchange information concerning patients or clients elec-
tronically or otherwise with other hospital emergency services  licensed
pursuant  to article twenty-eight of the public health law and/or hospi-
tals licensed or operated by the office of mental health; provided  that
such  exchange of information is consistent with standards, developed by
the commissioner of mental health, which are designed to  ensure  confi-
dentiality  of  such information. Additionally, information so exchanged
shall be kept confidential and any limitations on the  release  of  such
information  imposed  on the party giving the information shall apply to
the party receiving the information.
  S 2. Subdivision (d) of section 33.13 of the mental  hygiene  law,  as
amended  by  section  4 of part E of chapter 111 of the laws of 2010, is
amended to read as follows:
  (d) Nothing in this section shall prevent the exchange of  information
concerning  patients  or  clients, including identification, between (i)
facilities or others providing services for  such  patients  or  clients
pursuant  to  an  approved  local  services  plan, as defined in article
forty-one, or pursuant to agreement with the  department  and  (ii)  the
department  or  any  of  its  facilities. NEITHER SHALL ANYTHING IN THIS
SECTION PREVENT THE  EXCHANGE  OF  INFORMATION  CONCERNING  PATIENTS  OR
CLIENTS,  INCLUDING  IDENTIFICATION, BETWEEN FACILITIES AND MANAGED CARE
ORGANIZATIONS, BEHAVIORAL HEALTH ORGANIZATIONS, HEALTH  HOMES  OR  OTHER
ENTITIES  AUTHORIZED  BY  THE  DEPARTMENT OR THE DEPARTMENT OF HEALTH TO
PROVIDE, ARRANGE  FOR  OR  COORDINATE  HEALTH  CARE  SERVICES  FOR  SUCH
PATIENTS  OR  CLIENTS WHO ARE ENROLLED IN OR RECEIVING SERVICES FOR SUCH
ORGANIZATIONS OR ENTITIES. Information so exchanged shall be kept confi-
dential and any limitations on the release of such  information  imposed
on  the  party giving the information shall apply to the party receiving
the information.
  S 3. This act shall take effect immediately; provided that the  amend-
ments to subdivision (d) of section 33.13 of the mental hygiene law made
by section one of this act shall be subject to the expiration and rever-
sion  of  such  subdivision pursuant to section 18 of chapter 408 of the
laws of 1999, as amended, when upon such date the provisions of  section
two of this act shall take effect.

                                 PART N

  Section  1. Subdivision 10 of section 3 of section 1 of chapter 359 of
the laws of 1968, constituting the  facilities  development  corporation
act,  as  amended by chapter 723 of the laws of 1993, is amended to read
as follows:
  10. "Mental hygiene facility" shall mean a building, a unit  within  a
building,  a  laboratory, a classroom, a housing unit, a dining hall, an
activities center, a library, real property of any kind or  description,
or  any  structure on or improvement to real property, or an interest in
real property, of any kind or description, owned by or under the  juris-
diction  of  the corporation, including fixtures and equipment which are
an integral part of any such building, unit, structure or improvement, a
walkway, a roadway or a parking lot, and  improvements  and  connections

S. 6407                            50                            A. 9007

for  water, sewer, gas, electrical, telephone, heating, air conditioning
and other utility services, or a combination of any  of  the  foregoing,
whether for patient care and treatment or staff, staff family or service
use,  located at or related to any psychiatric center, any developmental
center, or any state psychiatric or research institute or other facility
now or hereafter established under  the  department.  A  mental  hygiene
facility  shall  also  mean  and  include  a residential care center for
adults, a "community mental  health  and  retardation  facility"  and  a
treatment  facility for use in the conduct of an alcoholism or substance
abuse treatment program as defined in the mental hygiene law unless such
residential care center for adults, community mental health and retarda-
tion facility or alcoholism or substance  abuse  facility  is  expressly
excepted, or the context clearly requires otherwise, AND SHALL ALSO MEAN
AND INCLUDE ANY TREATMENT FACILITY FOR USE IN THE CONDUCT OF AN ALCOHOL-
ISM  OR  SUBSTANCE  ABUSE  TREATMENT PROGRAM THAT IS ALSO OPERATED AS AN
ASSOCIATED HEALTH CARE FACILITY. The definition contained in this subdi-
vision shall not be construed to exclude therefrom a facility  owned  or
leased  by  one or more voluntary agencies that is to be financed, refi-
nanced, designed, constructed, acquired, reconstructed, rehabilitated or
improved under any lease, sublease, loan or  other  financing  agreement
entered into with such voluntary agencies, and shall not be construed to
exclude  therefrom  a facility to be made available from the corporation
to a voluntary agency at the request of the commissioners of the offices
of the department having jurisdiction thereof. The definition  contained
in this subdivision shall not be construed to exclude therefrom a facil-
ity  with  respect to which a voluntary agency has an ownership interest
in, and proprietary lease from, an organization formed for  the  purpose
of the cooperative ownership of real estate.
  S  2.  Section  3  of  section  1  of chapter 359 of the laws of 1968,
constituting the facilities development corporation act, is  amended  by
adding a new subdivision 20 to read as follows:
  20.  "ASSOCIATED  HEALTH CARE FACILITY" SHALL MEAN A FACILITY LICENSED
UNDER AND OPERATED PURSUANT TO ARTICLE 28 OF THE PUBLIC  HEALTH  LAW  OR
ANY  HEALTH CARE FACILITY LICENSED UNDER AND OPERATED IN ACCORDANCE WITH
ANY OTHER PROVISIONS OF THE PUBLIC HEALTH LAW OR THE MENTAL HYGIENE  LAW
THAT  PROVIDES  HEALTH  CARE  SERVICES  AND/OR TREATMENT TO ALL PERSONS,
REGARDLESS OF WHETHER SUCH PERSONS ARE PERSONS  RECEIVING  TREATMENT  OR
SERVICES FOR ALCOHOL, SUBSTANCE ABUSE, OR CHEMICAL DEPENDENCY.
  S 3. 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 N of this act shall be
as specifically set forth in the last section of such Parts.

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

    S. 6407--A                                            A. 9007--A

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

                            January 14, 2016
                               ___________

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 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 the  expenditure  cap  for  the
  medical  assistance  program  for needy persons (Part A); to amend the
  social services law, in relation to provisions relating to transporta-
  tion in the managed long term care program; to amend the public health
  law, in relation to restricting the managed long term care benefit  to
  those who are nursing home eligible; to amend the social services law,
  in  relation  to  conforming  with  federal law provisions relating to
  spousal contributions, community spouse resource budgeting;  to  amend
  the  social services law, in relation to authorizing price ceilings on
  blockbuster drugs  and  reducing  reimbursement  rates  for  specialty
  drugs;  to amend the public health law, in relation to expanding prior
  authorization for the clinical drug  review  program  and  eliminating
  prescriber  prevails; to amend the social services law, in relation to
  authorizing the commissioner of health to apply federally  established
  consumer  price  index  penalties  for  generic  drugs,  to facilitate
  supplemental rebates for  fee-for-service  pharmaceuticals,  to  apply
  prior authorization requirements for opioid drugs, to impose penalties
  on  managed care plans for reporting late or incorrect encounter data,
  to apply cost sharing limits to medicare Part C claims and to  author-
  ize  funding for the criminal justice pilot program within health home
  rates; to amend chapter 59 of the laws of 2011,  amending  the  public
  health  law  and other laws relating to known and projected department
  of health state fund Medicaid expenditures, in relation  to  extending
  the  expiration  of  certain provisions thereof; and to repeal certain

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD12671-02-6

S. 6407--A                          2                         A. 9007--A

  provisions of the social services law relating to the authorization of
  prescriber prevails in the managed care program  (Part  B);  to  amend
  chapter  266  of the laws of 1986, amending the civil practice law and
  rules  and other laws relating to malpractice and professional medical
  conduct, in relation to apportioning premium for certain policies; and
  to amend part J of chapter 63 of the laws of 2001 amending chapter 266
  of the laws of 1986, amending the civil practice  law  and  rules  and
  other  laws  relating to malpractice and professional medical conduct,
  in relation to extending certain provisions  concerning  the  hospital
  excess  liability  pool  (Part C); to amend chapter 474 of the laws of
  1996, amending the education law and other laws relating to rates  for
  residential  healthcare  facilities,  in  relation  to  extending  the
  authority of the department of health to make  disproportionate  share
  payments  to public hospitals outside of New York City; to amend chap-
  ter 649 of the laws of 1996,  amending  the  public  health  law,  the
  mental hygiene law and the social services law relating to authorizing
  the  establishment  of  special needs plans, in relation to the effec-
  tiveness thereof; to repeal subdivision 8 of section 84 of part  A  of
  chapter  56  of  the  laws of 2013, amending the public health law and
  other laws relating  to  general  hospital  reimbursement  for  annual
  rates,  relating  to  the effectiveness thereof; to repeal subdivision
  (f) of section 129 of part C of chapter 58 of the laws of 2009, amend-
  ing the public health law relating to payment by governmental agencies
  for general hospital inpatient services, relating to the effectiveness
  thereof; and to repeal subdivision (c) of section 122  of  part  E  of
  chapter  56 of the laws of 2013, amending the public health law relat-
  ing to the general public health work program, relating to the  effec-
  tiveness  thereof  (Part  D);  to  amend the public health law and the
  insurance law, in relation  to  the  early  intervention  program  for
  infants and toddlers with disabilities and their families (Part E); to
  amend  the  public health law, in relation to the health care facility
  transformation program (Part F); to amend the public  health  law,  in
  relation  to  authorizing the establishment of limited service clinics
  (Part G); to amend 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, in  relation
  to  the  effectiveness  thereof  (Part H); 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 the
  effectiveness of certain provisions thereof (Part I); to amend chapter
  420 of the laws of 2002 amending the education  law  relating  to  the
  profession  of social work, in relation to extending the expiration of
  certain provisions thereof; to amend chapter 676 of the laws  of  2002
  amending  the education law relating to the practice of psychology, in
  relation to extending the expiration of  certain  provisions;  and  to
  amend  chapter  130 of the laws of 2010 amending the education law and
  other laws relating to  registration  of  entities  providing  certain
  professional   services  and  licensure  of  certain  professions,  in
  relation to extending certain provisions thereof (Part  J);  to  amend
  the criminal procedure law, in relation to authorizing restorations to
  competency  within  correctional  facility  based residential settings
  (Part K); to amend the mental hygiene law, in relation to the appoint-
  ment of temporary operators for the continued  operation  of  programs
  and  the provision of services for persons with serious mental illness
  and/or developmental disabilities; and to amend  the  social  services
  law,  in  relation  to  the  powers  and duties of the commissioner of

S. 6407--A                          3                         A. 9007--A

  social services (Part L); to amend the mental hygiene law, in relation
  to sharing clinical records with managed care organizations (Part  M);
  and  to  amend the facilities development corporation act, in relation
  to the definition of mental hygiene facility (Part N)

  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 2016-2017
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through N. 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. 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, subdivision (a) as amended by
section 3-e of part B of chapter 58 of the laws of 2010, subdivision (b)
as amended by section 24 of part B of chapter 109 of the laws  of  2010,
subdivision  (c-1)  as added by section 1 of part F of chapter 56 of the
laws of 2012, subdivision (f) as amended by section  23  of  part  B  of
chapter  109  of the laws of 2010, paragraph (iii) of subdivision (g) as
amended by section 2 of part F of chapter 56 of the laws of 2012, subdi-
vision (h) as added by section 61 of part D of chapter 56 of the laws of
2012, is amended to read as follows:
  Section 1.  (a) Notwithstanding the provisions of section 368-a of the
social services law, or any other provision of law,  the  department  of
health shall provide reimbursement for expenditures made by or on behalf
of  social  services districts for medical assistance for needy persons,
and the administration thereof, in accordance  with  the  provisions  of
this  section;  provided,  however, that this section shall not apply to
amounts expended for health care services under FORMER section 369-ee of
the social services law, which amounts shall be reimbursed in accordance
with paragraph (t) of subdivision 1 of section 368-a  of  such  law  and
shall  be  excluded from all calculations made pursuant to this section;
and provided further that amounts paid to the public hospitals  pursuant
to  subdivision  14-f  of  section  2807-c  of the public health law and
amounts expended pursuant to: subdivision 12  of  section  2808  of  the
public  health  law;  sections 211 and 212 of chapter 474 of the laws of
1996, as amended; and sections 11 through 14 of part A and  sections  13
and  14  of part B of chapter 1 of the laws of 2002; and amounts paid to
public diagnostic and treatment centers as provided in sections 3-a  and
3-b  of  part  B  of [the] chapter 58 of the laws of 2010 [which amended
this subdivision], amounts paid to public general hospitals as certified
public expenditures as provided in section 3-c of part B of [the]  chap-
ter 58 of the laws of 2010 [which amended this subdivision], and amounts

S. 6407--A                          4                         A. 9007--A

paid  to  managed  care  providers  pursuant to section 3-d of part B of
[the] chapter 58 of the laws of 2010 [which amended  this  subdivision],
shall be excluded from all calculations made pursuant to this section.
  (b)  Commencing with the period April 1, 2005 though March 31, 2006, a
social services  district's  yearly  net  share  of  medical  assistance
expenditures  shall  be  calculated  in relation to a reimbursement base
year which, for purposes of this section, is defined as January 1,  2005
through  December  31, 2005. The final base year expenditure calculation
for each social services district shall be made by the  commissioner  of
health,  and  approved by the director of the division of the budget, no
later than June 30, 2006.  Such calculations shall be  based  on  actual
expenditures  made  by  or  on  behalf of social services districts, and
revenues received by social services districts, during the base year and
shall  be  made  without  regard  to  expenditures  made,  and  revenues
received,  outside  the  base year that are related to services provided
during, or prior to, the base year. Such base year calculations shall be
based  on  the  social  services  district  medical  assistance   shares
provisions  in  effect on January 1, 2005.  Subject to the provisions of
subdivision four of section six of this  part,  the  state/local  social
services  district  relative  percentages  of  the  non-federal share of
medical assistance expenditures incurred prior to January 1, 2006  shall
not be subject to adjustment on and after July 1, 2006.
  (c)  Commencing  with  the  calendar  year  beginning January 1, 2006,
calendar year social services district  medical  assistance  expenditure
amounts  for each social services district shall be calculated by multi-
plying the results of the calculations performed pursuant  to  paragraph
(b) of this section by a non-compounded trend factor, as follows:
  (i) 2006 (January 1, 2006 through December 31, 2006):  3.5%;
  (ii)  2007  (January 1, 2007 through December 31, 2007):  6.75% (3.25%
plus the prior year's 3.5%);
  (iii) 2008 (January 1, 2008 through December 31,  2008):    9.75%  (3%
plus the prior year's 6.75%);
  (iv)  2009  (January  1,  2009  through  December  31, 2009), and each
succeeding calendar year: prior year's trend factor percentage plus 3%.
  (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%.
  (C-2)  NOTWITHSTANDING  ANY  PROVISIONS  OF  SUBDIVISION (C-1) OF THIS
SECTION TO THE CONTRARY, EFFECTIVE APRIL 1, 2016, FOR THE PERIOD JANUARY
1, 2016 THROUGH DECEMBER 31, 2016 AND FOR EACH CALENDAR YEAR THEREAFTER,
THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT FOR A SOCIAL SERVICES DISTRICT
HAVING A POPULATION OF MORE THAN FIVE MILLION  SHALL  BE  EQUAL  TO  THE
AMOUNT CALCULATED PURSUANT TO SUBDIVISIONS (B) AND (C) OF THIS SECTION.
  (d) The base year expenditure amounts calculated pursuant to paragraph
(b)  of  this  section  and  the  calendar year social services district
expenditure amounts calculated pursuant to paragraph (c) of this section
shall be converted into  state  fiscal  year  social  services  district

S. 6407--A                          5                         A. 9007--A

expenditure cap amounts for each social services district such that each
such state fiscal year amount is proportional to the portions of the two
calendar years within each fiscal year, as follows:
  (i)  fiscal year 2005-2006 (April 1, 2005 through March 31, 2006): 75%
of the base year amount plus 25% of the 2006 calendar year amount;
  (ii) fiscal year 2006-2007 (April 1, 2006 through March 31, 2007): 75%
of the 2006 year calendar amount plus 25%  of  the  2007  calendar  year
amount;
  (iii)  each  succeeding  fiscal  year:  75% of the first calendar year
within that fiscal year's amount plus 25% of the  second  calendar  year
within that fiscal year's amount.
  (D-1)  NOTWITHSTANDING  ANY  PROVISIONS  OF  SUBDIVISION  (D)  OF THIS
SECTION TO THE CONTRARY, FOR FISCAL YEARS 2015-2016 AND  2016-2017,  THE
BASE  YEAR  EXPENDITURE  AMOUNT  CALCULATED PURSUANT TO PARAGRAPH (B) OF
THIS SECTION AND THE CALENDAR YEAR SOCIAL SERVICES DISTRICT  EXPENDITURE
AMOUNT  CALCULATED  PURSUANT  TO  PARAGRAPH (C) OF THIS SECTION SHALL BE
CONVERTED INTO A STATE FISCAL YEAR SOCIAL SERVICES DISTRICT  EXPENDITURE
CAP  AMOUNT  FOR  A SOCIAL SERVICES DISTRICT HAVING A POPULATION OF MORE
THAN FIVE MILLION AS FOLLOWS:
  (I) FISCAL YEAR 2015-2016 (APRIL 1, 2015 THROUGH MARCH 31, 2016):  75%
OF  THE 2015 BASE YEAR AMOUNT PLUS 25% OF THE 2016 CALENDAR YEAR AMOUNT,
IF SUCH 2016 CALENDAR YEAR AMOUNT WERE CALCULATED WITHOUT REGARD TO  THE
PROVISIONS OF SUBDIVISION (C-2) OF THIS SECTION;
  (II) FISCAL YEAR 2016-2017 (APRIL 1, 2016 THROUGH MARCH 31, 2017): 75%
OF  THE 2016 BASE YEAR AMOUNT PLUS 25% OF THE 2017 CALENDAR YEAR AMOUNT;
THIS CAP AMOUNT SHALL BE REDUCED BY ONE-HALF OF THE  DIFFERENCE  BETWEEN
THIS  AMOUNT  AND  THE  CAP  AMOUNT FOR THIS PERIOD THAT WOULD RESULT IF
CALCULATED WITHOUT REGARD TO THE PROVISIONS OF SUBDIVISION (C-2) OF THIS
SECTION.
  (e) No later than April 1, 2007,  the  commissioner  of  health  shall
certify  the  2006-2007 fiscal year social services district expenditure
cap amounts for each social services  district  calculated  pursuant  to
subparagraph (ii) of paragraph (d) of this section and shall communicate
such amounts to the commissioner of taxation and finance.
  (f)  Subject  to  paragraph (g) of this section, the state fiscal year
social services district expenditure  cap  amount  calculated  for  each
social services district pursuant to paragraph (d) of this section shall
be  allotted  to  each  district during that fiscal year and paid to the
department in equal weekly amounts in a manner to be determined  by  the
commissioner  and  communicated  to  such  districts and, subject to the
provisions of subdivision four of section six of this part, shall repre-
sent each  district's  maximum  responsibility  for  medical  assistance
expenditures   governed  by  this  section.  HOWEVER,  FOR  FISCAL  YEAR
2016-2017, THE EXPENDITURE CAP AMOUNT CALCULATED FOR A  SOCIAL  SERVICES
DISTRICT  HAVING A POPULATION OF MORE THAN FIVE MILLION SHALL BE PAID TO
THE DEPARTMENT IN WEEKLY AMOUNTS IN A MANNER TO  BE  DETERMINED  BY  THE
COMMISSIONER,  IN  CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF THE
BUDGET, AND COMMUNICATED TO SUCH DISTRICT.
  (g) (i) No allotment pursuant to paragraph (f) of this  section  shall
be applied against a social services district during the period April 1,
2005  through  December  31,  2005.    Social  services district medical
assistance shares shall be determined for such period pursuant to shares
provisions in effect on January 1, 2005.
  (ii) For the period January 1, 2006 through June 30, 2006, the commis-
sioner is authorized to allot against each district an amount  based  on
the  commissioner's  best  estimate  of  the final base year expenditure

S. 6407--A                          6                         A. 9007--A

calculation required by paragraph (b) of this section.  Upon  completion
of  such calculation, the commissioner shall, no later than December 31,
2006, reconcile such estimated allotments with the  fiscal  year  social
services district expenditure cap amounts calculated pursuant to subpar-
agraphs (i) and (ii) of paragraph (d) of this section.
  (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.
  (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  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016.

                                 PART B

  Section 1. Subdivision 4 of section 365-h of the social services  law,
as  separately  amended by section 50 of part B and section 24 of part D
of chapter 57 of the laws of 2015, is amended to read as follows:
  4. The commissioner of health is authorized to  assume  responsibility
from  a  local social services official for the provision and reimburse-
ment of transportation costs under this  section.  If  the  commissioner
elects  to assume such responsibility, the commissioner shall notify the
local social services official in writing as to the election,  the  date
upon  which  the  election shall be effective and such information as to
transition of responsibilities as the commissioner  deems  prudent.  The

S. 6407--A                          7                         A. 9007--A

commissioner  is authorized to contract with a transportation manager or
managers to manage transportation services in any local social  services
district[,  other  than transportation services provided or arranged for
enrollees of managed long term care plans issued certificates of author-
ity  under section forty-four hundred three-f of the public health law].
Any transportation manager or managers selected by the  commissioner  to
manage  transportation  services shall have proven experience in coordi-
nating transportation services in  a  geographic  and  demographic  area
similar  to the area in New York state within which the contractor would
manage the provision of services under this section. Such a contract  or
contracts  may include responsibility for: review, approval and process-
ing of transportation orders; management of  the  appropriate  level  of
transportation based on documented patient medical need; and development
of new technologies leading to efficient transportation services. If the
commissioner  elects  to  assume such responsibility from a local social
services district, the commissioner shall examine and,  if  appropriate,
adopt  quality  assurance measures that may include, but are not limited
to,  global  positioning  tracking  system  reporting  requirements  and
service  verification mechanisms. Any and all reimbursement rates devel-
oped by transportation managers under this subdivision shall be  subject
to the review and approval of the commissioner.
  S  2.    Subparagraph (i) of paragraph (b) of subdivision 7 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:
  (i) The commissioner shall, to the extent necessary, submit the appro-
priate waivers, including, but not limited to, those authorized pursuant
to sections eleven hundred fifteen and nineteen hundred fifteen  of  the
federal  social  security  act,  or  successor provisions, and any other
waivers necessary to achieve the purposes of high  quality,  integrated,
and  cost  effective  care and integrated financial eligibility policies
under the medical assistance program or pursuant to title XVIII  of  the
federal social security act. In addition, the commissioner is authorized
to  submit  the  appropriate waivers, including but not limited to those
authorized pursuant to sections  eleven  hundred  fifteen  and  nineteen
hundred  fifteen  of  the  federal  social  security  act  or  successor
provisions, and any other waivers necessary to require on or after April
first, two thousand twelve, medical assistance recipients who are  twen-
ty-one  years  of age or older and who require community-based long term
care services, as specified by  the  commissioner,  for  more  than  one
hundred  and  twenty days, to receive such services through an available
plan certified pursuant to this section  or  other  program  model  that
meets guidelines specified by the commissioner that support coordination
and  integration  of  services; PROVIDED, HOWEVER, THAT THE COMMISSIONER
MAY, THROUGH SUCH WAIVERS,  LIMIT  ELIGIBILITY  TO  AVAILABLE  PLANS  TO
ENROLLEES  THAT  REQUIRE NURSING FACILITY LEVEL OF CARE. NOTWITHSTANDING
THE FOREGOING, MEDICAL ASSISTANCE RECIPIENTS ENROLLED IN A MANAGED  LONG
TERM  CARE  PLAN ON APRIL FIRST, TWO THOUSAND SIXTEEN MAY CONTINUE TO BE
ELIGIBLE FOR SUCH PLANS, IRRESPECTIVE OF WHETHER THE ENROLLEE MEETS  ANY
APPLICABLE NURSING FACILITY LEVEL OF CARE REQUIREMENTS, PROVIDED, HOWEV-
ER,  THAT  ONCE  SUCH RECIPIENTS ARE DISENROLLED FROM THEIR MANAGED LONG
TERM CARE PLAN, ANY APPLICABLE NURSING FACILITY LEVEL OF  CARE  REQUIRE-
MENTS WOULD APPLY TO FUTURE ELIGIBILITY DETERMINATIONS.  Such guidelines
shall  address  the  requirements of paragraphs (a), (b), (c), (d), (e),
(f), (g), (h), and (i) of subdivision three of this section as  well  as
payment  methods  that ensure provider accountability for cost effective
quality outcomes. Such other program models may include long  term  home

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health  care  programs  that comply with such guidelines. Copies of such
original waiver applications and amendments thereto shall be provided to
the chairs of the senate finance committee, the assembly ways and  means
committee  and  the senate and assembly health committees simultaneously
with their submission to the federal government.
  S 3. 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
such  relative  in  accordance  with  title six of article three OF THIS
CHAPTER and other applicable provisions of law.
  S 4. Subparagraph (i) of paragraph (d) of  subdivision  2  of  section
366-c  of  the social services law is amended by adding a new clause (C)
to read as follows:
  (C) ON AND AFTER JULY FIRST, TWO THOUSAND SIXTEEN, TWENTY-THREE  THOU-
SAND  EIGHT  HUNDRED FORTY-FOUR DOLLARS OR SUCH GREATER AMOUNT AS MAY BE
REQUIRED UNDER FEDERAL LAW;
  S 5. Subdivision 7 of section 367-a of  the  social  services  law  is
amended by adding a new paragraph (g) to read as follows:
  (G)(I)  THE  DEPARTMENT  SHALL DEVELOP A LIST OF CRITICAL PRESCRIPTION
DRUGS FOR WHICH THERE IS  A  SIGNIFICANT  PUBLIC  INTEREST  IN  ENSURING
RATIONAL  PRICING BY DRUG MANUFACTURERS. IN SELECTING DRUGS FOR POSSIBLE
INCLUSION IN SUCH LIST, FACTORS TO BE CONSIDERED BY THE DEPARTMENT SHALL
INCLUDE, BUT NOT BE LIMITED TO: THE SERIOUSNESS AND  PREVALENCE  OF  THE
DISEASE OR CONDITION THAT IS TREATED BY THE DRUG; THE EXTENT OF UTILIZA-
TION  OF  THE  DRUG; THE AVERAGE WHOLESALE PRICE AND RETAIL PRICE OF THE
DRUG; THE NUMBER OF PHARMACEUTICAL MANUFACTURERS THAT PRODUCE THE  DRUG;
WHETHER THERE ARE PHARMACEUTICAL EQUIVALENTS TO THE DRUG; AND THE POTEN-
TIAL  IMPACT  OF  THE  COST  OF THE DRUG ON PUBLIC HEALTH CARE PROGRAMS,
INCLUDING MEDICAID.
  (II) FOR EACH PRESCRIPTION DRUG INCLUDED ON THE CRITICAL  PRESCRIPTION
DRUG  LIST,  THE  DEPARTMENT  SHALL  REQUIRE  THE  MANUFACTURERS OF SAID
PRESCRIPTION DRUG TO REPORT THE FOLLOWING INFORMATION:
  (A) THE ACTUAL COST OF DEVELOPING, MANUFACTURING, PRODUCING (INCLUDING
THE COST PER DOSE OF PRODUCTION), AND DISTRIBUTING SUCH DRUG;
  (B) RESEARCH AND DEVELOPMENT COSTS OF THE DRUG INCLUDING  PAYMENTS  TO
PREDECESSOR  ENTITIES CONDUCTING RESEARCH AND DEVELOPMENT, INCLUDING BUT
NOT  LIMITED  TO  BIOTECHNOLOGY  COMPANIES,  UNIVERSITIES  AND   MEDICAL
SCHOOLS, AND PRIVATE RESEARCH INSTITUTIONS;
  (C)  ADMINISTRATIVE,  MARKETING,  AND  ADVERTISING COSTS FOR THE DRUG,
APPORTIONED BY MARKETING ACTIVITIES  THAT  ARE  DIRECTED  TO  CONSUMERS,
MARKETING  ACTIVITIES  THAT  ARE  DIRECTED TO PRESCRIBERS, AND THE TOTAL
COST OF ALL MARKETING AND ADVERTISING  THAT  IS  DIRECTED  PRIMARILY  TO
CONSUMERS  AND  PRESCRIBERS  IN  NEW  YORK, INCLUDING BUT NOT LIMITED TO
PRESCRIBER DETAILING, COPAYMENT DISCOUNT PROGRAMS AND DIRECT TO CONSUMER
MARKETING;
  (D) PRICES FOR THE DRUG THAT ARE CHARGED  TO  PURCHASERS  OUTSIDE  THE
UNITED STATES;

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  (E)  PRICES  CHARGED  TO TYPICAL PURCHASERS IN NEW YORK, INCLUDING BUT
NOT LIMITED TO PHARMACIES,  PHARMACY  CHAINS,  PHARMACY  WHOLESALERS  OR
OTHER DIRECT PURCHASERS;
  (F) THE AVERAGE REBATES AND DISCOUNTS PROVIDED PER PAYOR TYPE;
  (G)  THE  AVERAGE  PROFIT MARGIN OF EACH DRUG OVER THE PRIOR FIVE YEAR
PERIOD AND THE PROJECTED PROFIT MARGIN ANTICIPATED FOR SUCH DRUG; AND
  (H) CLINICAL INFORMATION INCLUDING BUT NOT LIMITED TO CLINICAL  TRIALS
AND CLINICAL OUTCOMES RESEARCH.
  (III)  THE  DEPARTMENT  SHALL  DEVELOP  A STANDARD REPORTING FORM THAT
SATISFIES THE REQUIREMENTS  OF  SUBPARAGRAPH  (II)  OF  THIS  PARAGRAPH.
MANUFACTURERS  SHALL PROVIDE THE REQUIRED INFORMATION WITHIN NINETY DAYS
OF THE DEPARTMENT'S REQUEST.   ALL  INFORMATION  DISCLOSED  PURSUANT  TO
SUBPARAGRAPH  (II)  OF  THIS  PARAGRAPH IS CONFIDENTIAL AND SHALL NOT BE
DISCLOSED BY THE DEPARTMENT OR ITS ACTUARY IN A FORM THAT DISCLOSES  THE
IDENTITY OF A SPECIFIC MANUFACTURER, OR PRICES CHARGED FOR DRUGS BY SUCH
MANUFACTURER,  EXCEPT  AS  THE  COMMISSIONER  DETERMINES IS NECESSARY TO
CARRY OUT THE PROVISIONS OF THIS SECTION, OR TO  ALLOW  THE  DEPARTMENT,
THE ATTORNEY GENERAL, THE STATE COMPTROLLER, OR THE CENTERS FOR MEDICARE
AND  MEDICAID SERVICES TO PERFORM AUDITS OR INVESTIGATIONS AUTHORIZED BY
LAW.
  (IV) FOR EACH CRITICAL PRESCRIPTION DRUG IDENTIFIED BY THE DEPARTMENT,
THE DEPARTMENT SHALL DIRECT  ITS  ACTUARY  TO  UTILIZE  THE  INFORMATION
PROVIDED  PURSUANT  TO  SUBPARAGRAPH (II) OF THIS PARAGRAPH TO CONDUCT A
VALUE-BASED ASSESSMENT OF SUCH DRUG AND ESTABLISH A  REASONABLE  CEILING
PRICE.
  (V)  THE  COMMISSIONER  MAY  REQUIRE  A  DRUG  MANUFACTURER TO PROVIDE
REBATES TO THE DEPARTMENT FOR A CRITICAL PRESCRIPTION DRUG  WHOSE  PRICE
EXCEEDS  THE  CEILING PRICE FOR THE DRUG ESTABLISHED BY THE DEPARTMENT'S
ACTUARY PURSUANT TO SUBPARAGRAPH (IV) OF THIS  PARAGRAPH.  SUCH  REBATES
SHALL  BE  IN ADDITION TO ANY REBATES PAYABLE TO THE DEPARTMENT PURSUANT
TO ANY OTHER PROVISION OF FEDERAL OR STATE LAW. THE  ADDITIONAL  REBATES
AUTHORIZED  PURSUANT  TO  THIS  SUBPARAGRAPH  SHALL  APPLY  TO  CRITICAL
PRESCRIPTION DRUGS DISPENSED TO  ENROLLEES  OF  MANAGED  CARE  PROVIDERS
PURSUANT  TO  SECTION  THREE  HUNDRED  SIXTY-FOUR-J OF THIS TITLE AND TO
CRITICAL PRESCRIPTION DRUGS DISPENSED TO MEDICAID RECIPIENTS WHO ARE NOT
ENROLLEES OF SUCH PROVIDERS.
  S 6. Paragraph (b) of subdivision 9 of section  367-a  of  the  social
services  law  is  amended  by adding a new subparagraph (iv) to read as
follows:
  (IV) NOTWITHSTANDING SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH,  IF
THE  DRUG  DISPENSED  IS  A DRUG THAT ONE OR MORE MANAGED CARE PROVIDERS
OPERATING PURSUANT TO SECTION THREE HUNDRED SIXTY-FOUR-J OF  THIS  TITLE
HAVE  DESIGNATED AS A SPECIALTY DRUG, AN AMOUNT THAT DOES NOT EXCEED THE
AMOUNT SUCH PROVIDERS PAY FOR THE DRUG, AS DETERMINED BY THE COMMISSION-
ER BASED ON MANAGED CARE PROVIDERS' ENCOUNTER DATA FOR THE DRUG.
  S 7. Section 274 of the public health law is amended by adding  a  new
subdivision 15 to read as follows:
  15.  NOTWITHSTANDING  ANY  INCONSISTENT PROVISION OF THIS SECTION, THE
COMMISSIONER MAY REQUIRE PRIOR AUTHORIZATION FOR ANY DRUG AFTER EVALUAT-
ING THE FACTORS SET FORTH IN SUBDIVISION THREE OF THIS SECTION AND PRIOR
TO OBTAINING THE  BOARD'S  EVALUATION  AND  RECOMMENDATION  REQUIRED  BY
SUBDIVISION FOUR OF THIS SECTION. THE BOARD MAY RECOMMEND TO THE COMMIS-
SIONER, PURSUANT TO SUBDIVISION SIX OF THIS SECTION, THAT ANY SUCH PRIOR
AUTHORIZATION REQUIREMENT BE MODIFIED, CONTINUED OR REMOVED.

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  S  8.  Paragraph  (b)  of  subdivision  3 of section 273 of the public
health law, as added by section 10 of part C of chapter 58 of  the  laws
of 2005, is amended to read as follows:
  (b)  In the event that the patient does not meet the criteria in para-
graph (a) of this subdivision, the  prescriber  may  provide  additional
information  to  the  program  to justify the use of a prescription drug
that is not on the preferred drug list.  The  program  shall  provide  a
reasonable opportunity for a prescriber to reasonably present his or her
justification  of  prior authorization. [If, after consultation with the
program, the prescriber, in his or her reasonable professional judgment,
determines that the use of a  prescription  drug  that  is  not  on  the
preferred  drug  list is warranted, the prescriber's determination shall
be final.] THE PROGRAM WILL CONSIDER THE ADDITIONAL INFORMATION AND  THE
JUSTIFICATION  PRESENTED  TO DETERMINE WHETHER THE USE OF A PRESCRIPTION
DRUG THAT IS NOT ON THE PREFERRED DRUG LIST IS WARRANTED. IN THE CASE OF
ATYPICAL ANTIPSYCHOTICS AND ANTIDEPRESSANTS, IF AFTER CONSULTATION  WITH
THE PROGRAM, THE PRESCRIBER, IN HIS OR HER REASONABLE PROFESSIONAL JUDG-
MENT,  DETERMINES THAT THE USE OF A PRESCRIPTION DRUG THAT IS NOT ON THE
PREFERRED DRUG LIST IS WARRANTED, THE PRESCRIBER'S  DETERMINATION  SHALL
BE FINAL.
  S  9.  Subdivision  25 of section 364-j of the social services law, as
added by section 55 of part D of chapter 56 of  the  laws  of  2012,  is
amended to read as follows:
  25.  [Effective January first, two thousand thirteen, notwithstanding]
NOTWITHSTANDING any provision of  law  to  the  contrary,  managed  care
providers  shall  cover  medically  necessary  prescription drugs in the
atypical antipsychotic AND ANTIDEPRESSANT therapeutic  [class]  CLASSES,
including  non-formulary  drugs,  upon  demonstration by the prescriber,
after consulting with the managed care provider, that such drugs, in the
prescriber's reasonable professional judgment, are  medically  necessary
and warranted.
  S  10. Subdivision 25-a of section 364-j of the social services law is
REPEALED.
  S 11. Subdivision 7 of section 367-a of the  social  services  law  is
amended by adding a new paragraph (f) to read as follows:
  (F)  THE  COMMISSIONER  MAY  REQUIRE MANUFACTURERS OF DRUGS OTHER THAN
SINGLE SOURCE DRUGS AND INNOVATOR MULTIPLE SOURCE DRUGS, AS  SUCH  TERMS
ARE DEFINED IN 42 U.S.C. S 1396R-8(K), TO PROVIDE REBATES TO THE DEPART-
MENT  FOR GENERIC DRUGS WHOSE PRICES INCREASE AT A RATE GREATER THAN THE
RATE OF INFLATION. SUCH REBATES SHALL BE  IN  ADDITION  TO  ANY  REBATES
PAYABLE  TO THE DEPARTMENT PURSUANT TO ANY OTHER PROVISION OF FEDERAL OR
STATE LAW.  IN DETERMINING THE AMOUNT OF  SUCH  ADDITIONAL  REBATES  FOR
GENERIC  DRUGS,  THE  COMMISSIONER MAY USE A METHODOLOGY SIMILAR TO THAT
USED BY THE CENTERS FOR MEDICARE & MEDICAID SERVICES IN DETERMINING  THE
AMOUNT  OF ANY ADDITIONAL REBATES FOR SINGLE SOURCE AND INNOVATOR MULTI-
PLE SOURCE DRUGS, AS SET FORTH IN 42 U.S.C. S 1396R-8(C)(2).  THE  ADDI-
TIONAL  REBATES  AUTHORIZED  PURSUANT  TO  THIS PARAGRAPH SHALL APPLY TO
GENERIC PRESCRIPTION  DRUGS  DISPENSED  TO  ENROLLEES  OF  MANAGED  CARE
PROVIDERS  PURSUANT  TO SECTION THREE HUNDRED SIXTY-FOUR-J OF THIS TITLE
AND TO GENERIC PRESCRIPTION DRUGS DISPENSED TO MEDICAID  RECIPIENTS  WHO
ARE NOT ENROLLEES OF SUCH PROVIDERS.
  S  12.  The  opening  paragraph  of  paragraph (e) of subdivision 7 of
section 367-a of the social services law, as added by section 1 of  part
B of chapter 57 of the laws of 2015, is amended to read as follows:
  During the period from April first, two thousand fifteen through March
thirty-first, two thousand seventeen, the commissioner may, in lieu of a

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managed  care  provider,  negotiate directly and enter into an agreement
with a pharmaceutical manufacturer for  the  provision  of  supplemental
rebates  relating  to pharmaceutical utilization by enrollees of managed
care  providers  pursuant  to section three hundred sixty-four-j of this
title AND, NOTWITHSTANDING THE PROVISIONS OF SECTION TWO HUNDRED  SEVEN-
TY-TWO  OF  THE PUBLIC HEALTH LAW OR ANY OTHER INCONSISTENT PROVISION OF
LAW, MAY ALSO NEGOTIATE DIRECTLY AND ENTER INTO SUCH AN AGREEMENT RELAT-
ING TO PHARMACEUTICAL UTILIZATION BY MEDICAL ASSISTANCE  RECIPIENTS  NOT
SO  ENROLLED.  Such  rebates shall be limited to drug utilization in the
following classes: antiretrovirals approved by the FDA for the treatment
of HIV/AIDS and hepatitis C agents for which the pharmaceutical manufac-
turer has in effect a rebate agreement with  the  federal  secretary  of
health and human services pursuant to 42 U.S.C. S 1396r-8, and for which
the  state  has  established  standard  clinical  criteria. No agreement
entered into pursuant to this paragraph shall have an initial term or be
extended beyond March thirty-first, two thousand twenty.
  S 13. Subparagraph (iv) of paragraph (e) of subdivision 7  of  section
367-a  of  the  social  services law, as added by section 1 of part B of
chapter 57 of the laws of 2015, is amended to read as follows:
  (iv) Nothing in this paragraph shall be construed to require a pharma-
ceutical manufacturer to enter into a supplemental rebate agreement with
the commissioner relating to pharmaceutical utilization by enrollees  of
managed care providers pursuant to section three hundred sixty-four-j of
this  title OR RELATING TO PHARMACEUTICAL UTILIZATION BY MEDICAL ASSIST-
ANCE RECIPIENTS NOT SO ENROLLED.
  S 14. Section 364-j of the social services law is amended by adding  a
new subdivision 26-a to read as follows:
  26-A.  MANAGED  CARE  PROVIDERS  SHALL  REQUIRE PRIOR AUTHORIZATION OF
PRESCRIPTIONS OF OPIOID ANALGESICS IN EXCESS OF FOUR PRESCRIPTIONS IN  A
THIRTY-DAY PERIOD.
  S  15. Section 364-j of the social services law is amended by adding a
new subdivision 32 to read as follows:
  32. (A) THE COMMISSIONER MAY, IN HIS OR HER DISCRETION,  APPLY  PENAL-
TIES  TO  MANAGED CARE ORGANIZATIONS SUBJECT TO THIS SECTION AND ARTICLE
FORTY-FOUR  OF  THE  PUBLIC  HEALTH  LAW  FOR  UNTIMELY  OR   INACCURATE
SUBMISSION  OF  ENCOUNTER DATA. FOR PURPOSES OF THIS SECTION, "ENCOUNTER
DATA" SHALL MEAN THE TRANSACTIONS REQUIRED  TO  BE  REPORTED  UNDER  THE
MODEL  CONTRACT.  ANY  PENALTY  ASSESSED UNDER THIS SUBDIVISION SHALL BE
CALCULATED AS A PERCENTAGE OF THE ADMINISTRATIVE COMPONENT OF THE  MEDI-
CAID PREMIUM CALCULATED BY THE DEPARTMENT.
  (B) SUCH PENALTIES SHALL BE AS FOLLOWS:
  (I) FOR ENCOUNTER DATA SUBMITTED OR RESUBMITTED PAST THE DEADLINES SET
FORTH  IN  THE MODEL CONTRACT, MEDICAID PREMIUMS SHALL BE REDUCED BY ONE
AND ONE-HALF PERCENT; AND
  (II) FOR INCOMPLETE OR INACCURATE ENCOUNTER DATA THAT FAILS TO CONFORM
TO DEPARTMENT DEVELOPED BENCHMARKS FOR COMPLETENESS AND ACCURACY,  MEDI-
CAID PREMIUMS SHALL BE REDUCED BY ONE-HALF PERCENT; AND
  (III) FOR SUBMITTED DATA THAT RESULTS IN A REJECTION RATE IN EXCESS OF
TEN PERCENT OF DEPARTMENT DEVELOPED VOLUME BENCHMARKS, MEDICAID PREMIUMS
SHALL BE REDUCED BY ONE HALF-PERCENT.
  (C)  PENALTIES  UNDER  THIS  SUBDIVISION MAY BE APPLIED TO ANY AND ALL
CIRCUMSTANCES DESCRIBED IN  PARAGRAPH  (B)  OF  THIS  SUBDIVISION  AT  A
FREQUENCY  DETERMINED  BY THE COMMISSIONER. THE COMMISSIONER MAY, IN HIS
OR HER DISCRETION, WAIVE SUCH PENALTY.

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  S 16. Paragraph (d) of subdivision 1 of section 367-a  of  the  social
services  law  is  amended  by adding a new subparagraph (iv) to read as
follows:
  (IV)  IF  A  HEALTH PLAN PARTICIPATING IN PART C OF TITLE XVIII OF THE
FEDERAL SOCIAL SECURITY ACT PAYS FOR  ITEMS  AND  SERVICES  PROVIDED  TO
ELIGIBLE  PERSONS WHO ARE ALSO BENEFICIARIES UNDER PART B OF TITLE XVIII
OF THE FEDERAL SOCIAL SECURITY ACT OR TO  QUALIFIED  MEDICARE  BENEFICI-
ARIES,  THE  AMOUNT  PAYABLE  FOR SERVICES UNDER THIS TITLE SHALL BE THE
AMOUNT OF ANY CO-INSURANCE LIABILITY OF SUCH ELIGIBLE  PERSONS  PURSUANT
TO  FEDERAL LAW IF THEY WERE NOT ELIGIBLE FOR MEDICAL ASSISTANCE OR WERE
NOT QUALIFIED MEDICARE BENEFICIARIES WITH RESPECT TO SUCH BENEFITS UNDER
SUCH PART B, BUT SHALL NOT EXCEED THE AMOUNT  THAT  OTHERWISE  WOULD  BE
MADE  UNDER  THIS  TITLE  IF PROVIDED TO AN ELIGIBLE PERSON WHO IS NOT A
BENEFICIARY UNDER PART B OR A QUALIFIED MEDICARE BENEFICIARY,  LESS  THE
AMOUNT  PAYABLE  BY  THE  PART C HEALTH PLAN; PROVIDED, HOWEVER, AMOUNTS
PAYABLE UNDER THIS TITLE FOR ITEMS AND  SERVICES  PROVIDED  TO  ELIGIBLE
PERSONS WHO ARE ALSO BENEFICIARIES UNDER PART B OR TO QUALIFIED MEDICARE
BENEFICIARIES  BY AN AMBULANCE SERVICE UNDER THE AUTHORITY OF AN OPERAT-
ING CERTIFICATE ISSUED PURSUANT TO ARTICLE THIRTY OF THE  PUBLIC  HEALTH
LAW,  A  PSYCHOLOGIST  LICENSED UNDER ARTICLE ONE HUNDRED FIFTY-THREE OF
THE EDUCATION LAW, OR A FACILITY UNDER THE  AUTHORITY  OF  AN  OPERATING
CERTIFICATE ISSUED PURSUANT TO ARTICLE SIXTEEN, THIRTY-ONE OR THIRTY-TWO
OF  THE  MENTAL  HYGIENE LAW AND WITH RESPECT TO OUTPATIENT HOSPITAL AND
CLINIC ITEMS AND SERVICES PROVIDED BY A FACILITY UNDER THE AUTHORITY  OF
AN  OPERATING CERTIFICATE ISSUED PURSUANT TO ARTICLE TWENTY-EIGHT OF THE
PUBLIC HEALTH LAW, SHALL NOT BE LESS THAN THE AMOUNT OF ANY CO-INSURANCE
LIABILITY OF SUCH ELIGIBLE PERSONS OR SUCH QUALIFIED MEDICARE  BENEFICI-
ARIES,  OR  FOR  WHICH  SUCH ELIGIBLE PERSONS OR SUCH QUALIFIED MEDICARE
BENEFICIARIES WOULD BE LIABLE UNDER FEDERAL LAW WERE THEY  NOT  ELIGIBLE
FOR MEDICAL ASSISTANCE OR WERE THEY NOT QUALIFIED MEDICARE BENEFICIARIES
WITH RESPECT TO SUCH BENEFITS UNDER PART B.
  S  17. Subdivision 2-b of section 365-l of the social services law, as
added by section 25 of part B of chapter 57 of  the  laws  of  2015,  is
amended to read as follows:
  2-b.    The  commissioner  is  authorized  to  make  [grants] LUMP SUM
PAYMENTS OR ADJUST RATES OF PAYMENT TO PROVIDERS up to a gross amount of
five million dollars, to establish coordination between the health homes
and the criminal justice system and for the integration  of  information
of  health  homes  with  state and local correctional facilities, to the
extent permitted by law.  SUCH RATE ADJUSTMENTS MAY BE  MADE  TO  HEALTH
HOMES PARTICIPATING IN A CRIMINAL JUSTICE PILOT PROGRAM WITH THE PURPOSE
OF  ENROLLING  INCARCERATED INDIVIDUALS WITH SERIOUS MENTAL ILLNESS, TWO
OR MORE CHRONIC CONDITIONS,  INCLUDING  SUBSTANCE  ABUSE  DISORDERS,  OR
HIV/AIDS, INTO SUCH HEALTH HOME. Health homes receiving funds under this
subdivision  shall be required to document and demonstrate the effective
use of funds distributed herein.
  S 18. 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 fund medicaid expenditures, as
amended by section 8 of part B of chapter 57 of the  laws  of  2015,  is
amended to read as follows:
  1.  For  state  fiscal  years  2011-12  through [2016-17] 2017-18, 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

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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 and state costs or savings from
the basic health plan.  Such projections may be adjusted by the director
of the budget to account for increased or expedited department of health
state funds medicaid expenditures as a result of a natural or other type
of disaster, including a governmental declaration of emergency.
  S 19. This act shall take effect immediately and shall  be  deemed  to
have  been in full force and effect on and after April 1, 2016; provided
that:
  (a) sections one, two and six of this act shall take effect October 1,
2016;
  (b) the amendments to subdivision 4 of section  365-h  of  the  social
services  law,  made  by  section  one of this act, shall not affect the
expiration and repeal of certain provisions of such section,  and  shall
expire and be deemed repealed therewith;
  (c) the amendments to subparagraph (i) of paragraph (b) of subdivision
7  of  section  4403-f  of the public health law, made by section two of
this act, shall not affect the expiration of  such  subdivision  or  the
repeal  of  such  section, and shall expire or be deemed repealed there-
with;
  (d) sections four and sixteen of this act shall take  effect  July  1,
2016;
  (e)  the  amendments  to  subdivision 9 of section 367-a of the social
services law, made by section six of this  act,  shall  not  affect  the
expiration of such subdivision and shall expire therewith;
  (f) sections eight, nine and ten of this act shall take effect June 1,
2016;
  (g)  the  amendments  to subdivision 25 of section 364-j of the social
services law, made by section nine of this act,  shall  not  affect  the
repeal of such section, and shall be deemed repealed therewith;
  (h)  the amendments to paragraph (e) of subdivision 7 of section 367-a
of the social services law, made by sections twelve and thirteen of this
act shall not affect the repeal of such paragraph and  shall  be  deemed
repealed therewith; and
  (i)  subdivisions  26-a and 32 of section 364-j of the social services
law, as added by sections fourteen and fifteen  of  this  act  shall  be
deemed  repealed on the same date and in the same manner as such section
is repealed.

                                 PART C

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  Section 1. Subdivision 1 of section 18 of chapter 266 of the  laws  of
1986,  amending the civil practice law and rules and other laws relating
to malpractice and professional medical conduct, is amended by adding  a
new paragraph (c) to read as follows:
  (C)  STARTING  WITH THE POLICY YEAR BEGINNING JULY FIRST, TWO THOUSAND
SIXTEEN, AND AT LEAST ONCE EVERY FIVE YEARS THEREAFTER, THE  SUPERINTEN-
DENT  OF FINANCIAL SERVICES SHALL RANK FROM HIGHEST TO LOWEST EACH CLASS
AND TERRITORY COMBINATION USED FOR THE PURPOSE OF  APPORTIONING  PREMIUM
FOR  POLICIES  PURCHASED  FROM  FUNDS  AVAILABLE  IN THE HOSPITAL EXCESS
LIABILITY POOL ACCORDING TO RELATIVITIES DERIVED FROM THE MEDICAL  MALP-
RACTICE  INSURANCE  POOL'S  PRIMARY RATES AND THE APPLICABLE EXCESS TIER
FACTORS.  ANNUALLY, THE SUPERINTENDENT SHALL  DETERMINE  THE  CLASS  AND
TERRITORY  COMBINATIONS FOR WHICH A POLICY OR POLICIES FOR EXCESS INSUR-
ANCE COVERAGE, OR FOR  EQUIVALENT  EXCESS  INSURANCE  COVERAGE,  MAY  BE
PURCHASED  FOR  ELIGIBLE PHYSICIANS OR DENTISTS WITHIN THE LIMITS OF THE
APPROPRIATION FOR THE HOSPITAL EXCESS LIABILITY POOL. THE SUPERINTENDENT
SHALL GRANT PRIORITY FOR PURCHASING POLICIES  IN  EACH  POLICY  YEAR  IN
DESCENDING  ORDER  BEGINNING  WITH  THE HIGHEST RISK CLASS AND TERRITORY
COMBINATION. THE SUPERINTENDENT AND COMMISSIONER OF HEALTH SHALL NOT  BE
OBLIGATED TO PURCHASE ANY MORE POLICIES THAN THE NUMBER OF POLICIES THAT
CAN BE PURCHASED AT THE RATES PROMULGATED ANNUALLY BY THE SUPERINTENDENT
WITHIN  THE  LIMITS OF THE APPROPRIATION. ONCE THE BALANCE OF THE APPRO-
PRIATION BECOMES INSUFFICIENT TO COVER ALL PHYSICIANS AND DENTISTS WITH-
IN A PARTICULAR CLASS AND TERRITORY COMBINATION, THE REMAINING FUNDS FOR
THAT COMBINATION SHALL BE ALLOCATED, FOR THE PURPOSE OF PURCHASING POLI-
CIES FOR SELECTED ADDITIONAL PHYSICIANS AND DENTISTS WITHIN THAT  COMBI-
NATION  TO  GENERAL  HOSPITALS IN PROPORTION TO THEIR SHARE OF THE TOTAL
NUMBER OF PHYSICIANS OR DENTISTS PRACTICING IN SUCH CLASS AND  TERRITORY
COMBINATION  WHO  WERE  CERTIFIED BY THE GENERAL HOSPITALS, AND FOR WHOM
POLICIES WERE PURCHASED, IN THE PRIOR YEAR, PROVIDED THAT ANY  SHARE  OF
LESS  THAN  ONE  PHYSICIAN OR DENTIST SHALL BE DEEMED TO EQUAL ZERO. FOR
THE PURPOSES OF THIS PARAGRAPH, WITH REGARD TO POLICIES ISSUED  FOR  THE
COVERAGE PERIOD BEGINNING JULY FIRST, TWO THOUSAND SIXTEEN, "PRIOR YEAR"
SHALL  MEAN  THE  POLICY  YEAR  THAT  BEGAN  ON JULY FIRST, TWO THOUSAND
FIFTEEN.
  S 2. Paragraph (a) of subdivision 1 of section 18 of  chapter  266  of
the  laws  of  1986, amending the civil practice law and rules and other
laws relating  to  malpractice  and  professional  medical  conduct,  as
amended  by  section  1  of part Y of chapter 57 of the laws of 2015, is
amended to read as follows:
  (a) The superintendent of financial services and the  commissioner  of
health  or  their  designee  shall, from funds available in the hospital
excess liability pool created pursuant to subdivision 5 of this section,
purchase a policy or policies for excess insurance coverage, as  author-
ized  by  paragraph 1 of subsection (e) of section 5502 of the insurance
law; or from an insurer, other than an insurer described in section 5502
of the insurance law, duly authorized to write such coverage and actual-
ly writing  medical  malpractice  insurance  in  this  state;  or  shall
purchase equivalent excess coverage in a form previously approved by the
superintendent  of  financial  services for purposes of providing equiv-
alent excess coverage in accordance with section 19 of  chapter  294  of
the  laws of 1985, for medical or dental malpractice occurrences between
July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30,  1988,
between  July  1,  1988 and June 30, 1989, between July 1, 1989 and June
30, 1990, between July 1, 1990 and June 30, 1991, between July  1,  1991
and  June 30, 1992, between July 1, 1992 and June 30, 1993, between July

S. 6407--A                         15                         A. 9007--A

1, 1993 and June 30, 1994, between July  1,  1994  and  June  30,  1995,
between  July  1,  1995 and June 30, 1996, between July 1, 1996 and June
30, 1997, between July 1, 1997 and June 30, 1998, between July  1,  1998
and  June 30, 1999, between July 1, 1999 and June 30, 2000, between July
1, 2000 and June 30, 2001, between July  1,  2001  and  June  30,  2002,
between  July  1,  2002 and June 30, 2003, between July 1, 2003 and June
30, 2004, between July 1, 2004 and June 30, 2005, between July  1,  2005
and  June 30, 2006, between July 1, 2006 and June 30, 2007, between July
1, 2007 and June 30, 2008, between July  1,  2008  and  June  30,  2009,
between  July  1,  2009 and June 30, 2010, between July 1, 2010 and June
30, 2011, between July 1, 2011 and June 30, 2012, between July  1,  2012
and  June 30, 2013, between July 1, 2013 and June 30, 2014, between July
1, 2014 and June 30, 2015, [and] between July 1, 2015 and June 30, 2016,
AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017  or  reimburse  the  hospital
where  the  hospital  purchases equivalent excess coverage as defined in
subparagraph (i) of paragraph (a) of subdivision 1-a of this section for
medical or dental malpractice occurrences between July 1, 1987 and  June
30,  1988,  between July 1, 1988 and June 30, 1989, between July 1, 1989
and June 30, 1990, between July 1, 1990 and June 30, 1991, between  July
1,  1991  and  June  30,  1992,  between July 1, 1992 and June 30, 1993,
between July 1, 1993 and June 30, 1994, between July 1,  1994  and  June
30,  1995,  between July 1, 1995 and June 30, 1996, between July 1, 1996
and June 30, 1997, between July 1, 1997 and June 30, 1998, between  July
1,  1998  and  June  30,  1999,  between July 1, 1999 and June 30, 2000,
between July 1, 2000 and June 30, 2001, between July 1,  2001  and  June
30,  2002,  between July 1, 2002 and June 30, 2003, between July 1, 2003
and June 30, 2004, between July 1, 2004 and June 30, 2005, between  July
1,  2005  and  June  30,  2006,  between July 1, 2006 and June 30, 2007,
between July 1, 2007 and June 30, 2008, between July 1,  2008  and  June
30,  2009,  between July 1, 2009 and June 30, 2010, between July 1, 2010
and June 30, 2011, between July 1, 2011 and June 30, 2012, between  July
1,  2012  and  June  30,  2013,  between July 1, 2013 and June 30, 2014,
between July 1, 2014 and June 30, 2015, [and] between July 1,  2015  and
June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 for physicians
or dentists certified as eligible for each such period or periods pursu-
ant  to  subdivision  2  of  this section by a general hospital licensed
pursuant to article 28 of the public health law; provided that no single
insurer shall write more than fifty percent of the total excess  premium
for  a  given  policy  year;  and  provided, however, that such eligible
physicians or dentists must have in force an individual policy, from  an
insurer licensed in this state of primary malpractice insurance coverage
in  amounts  of  no less than one million three hundred thousand dollars
for each claimant and three million nine hundred  thousand  dollars  for
all  claimants under that policy during the period of such excess cover-
age for such occurrences or be endorsed as additional insureds  under  a
hospital professional liability policy which is offered through a volun-
tary  attending physician ("channeling") program previously permitted by
the superintendent of financial  services  during  the  period  of  such
excess  coverage  for such occurrences.  During such period, such policy
for excess coverage or  such  equivalent  excess  coverage  shall,  when
combined with the physician's or dentist's primary malpractice insurance
coverage  or  coverage  provided through a voluntary attending physician
("channeling") program, total an aggregate level of  two  million  three
hundred  thousand dollars for each claimant and six million nine hundred
thousand dollars for all claimants from all such policies  with  respect
to  occurrences  in each of such years provided, however, if the cost of

S. 6407--A                         16                         A. 9007--A

primary malpractice insurance coverage in excess of one million dollars,
but below the excess medical  malpractice  insurance  coverage  provided
pursuant  to  this act, exceeds the rate of nine percent per annum, then
the  required  level of primary malpractice insurance coverage in excess
of one million dollars for each claimant shall be in an  amount  of  not
less  than  the dollar amount of such coverage available at nine percent
per annum; the required level of such coverage for all  claimants  under
that  policy  shall be in an amount not less than three times the dollar
amount of coverage for each claimant; and excess coverage, when combined
with such primary malpractice insurance  coverage,  shall  increase  the
aggregate  level  for  each  claimant  by  one million dollars and three
million dollars for all claimants;  and  provided  further,  that,  with
respect to policies of primary medical malpractice coverage that include
occurrences  between  April  1, 2002 and June 30, 2002, such requirement
that coverage be in amounts no less than one million three hundred thou-
sand dollars for each claimant and three million nine  hundred  thousand
dollars  for all claimants for such occurrences shall be effective April
1, 2002.
  S 3. Subdivision 3 of section 18 of chapter 266 of the laws  of  1986,
amending  the  civil  practice  law and rules and other laws relating to
malpractice and professional medical conduct, as amended by section 2 of
part Y of chapter 57 of the laws of 2015, is amended to read as follows:
  (3)(a) The superintendent of financial services  shall  determine  and
certify  to  each general hospital and to the commissioner of health the
cost of excess malpractice insurance for medical or  dental  malpractice
occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988
and  June 30, 1989, between July 1, 1989 and June 30, 1990, between July
1, 1990 and June 30, 1991, between July  1,  1991  and  June  30,  1992,
between  July  1,  1992 and June 30, 1993, between July 1, 1993 and June
30, 1994, between July 1, 1994 and June 30, 1995, between July  1,  1995
and  June 30, 1996, between July 1, 1996 and June 30, 1997, between July
1, 1997 and June 30, 1998, between July  1,  1998  and  June  30,  1999,
between  July  1,  1999 and June 30, 2000, between July 1, 2000 and June
30, 2001, between July 1, 2001 and June 30, 2002, between July  1,  2002
and  June 30, 2003, between July 1, 2003 and June 30, 2004, between July
1, 2004 and June 30, 2005, between July  1,  2005  and  June  30,  2006,
between  July  1,  2006 and June 30, 2007, between July 1, 2007 and June
30, 2008, between July 1, 2008 and June 30, 2009, between July  1,  2009
and  June 30, 2010, between July 1, 2010 and June 30, 2011, between July
1, 2011 and June 30, 2012, between July 1, 2012 and June 30,  2013,  and
between  July  1,  2013 and June 30, 2014, between July 1, 2014 and June
30, 2015, [and] between July 1, 2015 and June 30, 2016, AND BETWEEN JULY
1, 2016 AND JUNE 30, 2017 allocable to each general hospital for  physi-
cians  or  dentists  certified  as eligible for purchase of a policy for
excess insurance coverage by such general hospital  in  accordance  with
subdivision  2  of  this  section,  and may amend such determination and
certification as necessary.
  (b) The superintendent  of  financial  services  shall  determine  and
certify  to  each general hospital and to the commissioner of health the
cost of excess malpractice insurance or equivalent excess  coverage  for
medical  or dental malpractice occurrences between July 1, 1987 and June
30, 1988, between July 1, 1988 and June 30, 1989, between July  1,  1989
and  June 30, 1990, between July 1, 1990 and June 30, 1991, between July
1, 1991 and June 30, 1992, between July  1,  1992  and  June  30,  1993,
between  July  1,  1993 and June 30, 1994, between July 1, 1994 and June
30, 1995, between July 1, 1995 and June 30, 1996, between July  1,  1996

S. 6407--A                         17                         A. 9007--A

and  June 30, 1997, between July 1, 1997 and June 30, 1998, between July
1, 1998 and June 30, 1999, between July  1,  1999  and  June  30,  2000,
between  July  1,  2000 and June 30, 2001, between July 1, 2001 and June
30,  2002,  between July 1, 2002 and June 30, 2003, between July 1, 2003
and June 30, 2004, between July 1, 2004 and June 30, 2005, between  July
1,  2005  and  June  30,  2006,  between July 1, 2006 and June 30, 2007,
between July 1, 2007 and June 30, 2008, between July 1,  2008  and  June
30,  2009,  between July 1, 2009 and June 30, 2010, between July 1, 2010
and June 30, 2011, between July 1, 2011 and June 30, 2012, between  July
1,  2012  and  June  30,  2013,  between July 1, 2013 and June 30, 2014,
between July 1, 2014 and June 30, 2015, [and] between July 1,  2015  and
June  30,  2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 allocable to
each general hospital for physicians or dentists certified  as  eligible
for  purchase  of  a  policy for excess insurance coverage or equivalent
excess coverage by such general hospital in accordance with  subdivision
2 of this section, and may amend such determination and certification as
necessary.  The superintendent of financial services shall determine and
certify to each general hospital and to the commissioner of  health  the
ratable  share  of  such  cost  allocable  to the period July 1, 1987 to
December 31, 1987, to the period January 1, 1988 to June  30,  1988,  to
the  period  July 1, 1988 to December 31, 1988, to the period January 1,
1989 to June 30, 1989, to the period July 1, 1989 to December 31,  1989,
to  the  period  January 1, 1990 to June 30, 1990, to the period July 1,
1990 to December 31, 1990, to the period January 1,  1991  to  June  30,
1991,  to  the  period  July 1, 1991 to December 31, 1991, to the period
January 1, 1992 to June 30, 1992, to the period July 1, 1992 to December
31, 1992, to the period January 1, 1993 to June 30, 1993, to the  period
July 1, 1993 to December 31, 1993, to the period January 1, 1994 to June
30, 1994, to the period July 1, 1994 to December 31, 1994, to the period
January 1, 1995 to June 30, 1995, to the period July 1, 1995 to December
31,  1995, to the period January 1, 1996 to June 30, 1996, to the period
July 1, 1996 to December 31, 1996, to the period January 1, 1997 to June
30, 1997, to the period July 1, 1997 to December 31, 1997, to the period
January 1, 1998 to June 30, 1998, to the period July 1, 1998 to December
31, 1998, to the period January 1, 1999 to June 30, 1999, to the  period
July 1, 1999 to December 31, 1999, to the period January 1, 2000 to June
30, 2000, to the period July 1, 2000 to December 31, 2000, to the period
January 1, 2001 to June 30, 2001, to the period July 1, 2001 to June 30,
2002, to the period July 1, 2002 to June 30, 2003, to the period July 1,
2003  to  June 30, 2004, to the period July 1, 2004 to June 30, 2005, to
the period July 1, 2005 and June 30, 2006, to the period  July  1,  2006
and  June 30, 2007, to the period July 1, 2007 and June 30, 2008, to the
period July 1, 2008 and June 30, 2009, to the period July  1,  2009  and
June  30,  2010,  to  the  period July 1, 2010 and June 30, 2011, to the
period July 1, 2011 and June 30, 2012, to the period July  1,  2012  and
June  30,  2013,  to  the  period July 1, 2013 and June 30, 2014, to the
period July 1, 2014 and June 30, 2015, [and] to the period July 1,  2015
and June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017.
  S 4. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
18  of  chapter 266 of the laws of 1986, amending the civil practice law
and rules and  other  laws  relating  to  malpractice  and  professional
medical  conduct, as amended by section 3 of part Y of chapter 57 of the
laws of 2015, are amended to read as follows:
  (a) To the extent funds available to  the  hospital  excess  liability
pool  pursuant to subdivision 5 of this section as amended, and pursuant
to section 6 of part J of chapter 63 of the laws of 2001,  as  may  from

S. 6407--A                         18                         A. 9007--A

time  to  time  be amended, which amended this subdivision, are insuffi-
cient to meet the costs  of  excess  insurance  coverage  or  equivalent
excess  coverage  for coverage periods during the period July 1, 1992 to
June  30,  1993, during the period July 1, 1993 to June 30, 1994, during
the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
to June 30, 1996, during the period July  1,  1996  to  June  30,  1997,
during  the period July 1, 1997 to June 30, 1998, during the period July
1, 1998 to June 30, 1999, during the period July 1,  1999  to  June  30,
2000, during the period July 1, 2000 to June 30, 2001, during the period
July  1,  2001  to  October 29, 2001, during the period April 1, 2002 to
June 30, 2002, during the period July 1, 2002 to June 30,  2003,  during
the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
to  June  30,  2005,  during  the  period July 1, 2005 to June 30, 2006,
during the period July 1, 2006 to June 30, 2007, during the period  July
1,  2007  to  June  30, 2008, during the period July 1, 2008 to June 30,
2009, during the period July 1, 2009 to June 30, 2010, during the period
July 1, 2010 to June 30, 2011, during the period July 1,  2011  to  June
30,  2012,  during  the period July 1, 2012 to June 30, 2013, during the
period July 1, 2013 to June 30, 2014, during the period July 1, 2014  to
June  30,  2015, [and] during the period July 1, 2015 and June 30, 2016,
AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 allocated or  reallocated  in
accordance  with  paragraph  (a)  of  subdivision 4-a of this section to
rates of payment applicable to state governmental agencies, each  physi-
cian  or  dentist  for  whom  a  policy for excess insurance coverage or
equivalent excess coverage is purchased for such period shall be respon-
sible for payment to the provider of excess insurance coverage or equiv-
alent excess coverage of an allocable share of such insufficiency, based
on the ratio of the total cost of such coverage for  such  physician  to
the sum of the total cost of such coverage for all physicians applied to
such insufficiency.
  (b)  Each  provider  of excess insurance coverage or equivalent excess
coverage covering the period July 1, 1992 to June 30, 1993, or  covering
the period July 1, 1993 to June 30, 1994, or covering the period July 1,
1994  to  June 30, 1995, or covering the period July 1, 1995 to June 30,
1996, or covering the period July 1, 1996 to June 30, 1997, or  covering
the period July 1, 1997 to June 30, 1998, or covering the period July 1,
1998  to  June 30, 1999, or covering the period July 1, 1999 to June 30,
2000, or covering the period July 1, 2000 to June 30, 2001, or  covering
the  period  July  1,  2001  to October 29, 2001, or covering the period
April 1, 2002 to June 30, 2002, or covering the period July 1,  2002  to
June  30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
covering the period July 1, 2004 to June 30, 2005, or covering the peri-
od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
June 30, 2007, or covering the period July 1, 2007 to June 30, 2008,  or
covering the period July 1, 2008 to June 30, 2009, or covering the peri-
od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
June  30, 2011, or covering the period July 1, 2011 to June 30, 2012, or
covering the period July 1, 2012 to June 30, 2013, or covering the peri-
od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
June 30, 2015, or covering the period July 1, 2015 to June 30, 2016,  OR
COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 shall notify a covered
physician  or  dentist  by mail, mailed to the address shown on the last
application for excess insurance coverage or equivalent excess coverage,
of the amount due to such provider from such physician  or  dentist  for
such coverage period determined in accordance with paragraph (a) of this
subdivision.  Such amount shall be due from such physician or dentist to

S. 6407--A                         19                         A. 9007--A

such provider of excess insurance coverage or equivalent excess coverage
in a time and manner  determined  by  the  superintendent  of  financial
services.
  (c)  If  a physician or dentist liable for payment of a portion of the
costs of excess insurance coverage or equivalent excess coverage  cover-
ing  the  period  July  1, 1992 to June 30, 1993, or covering the period
July 1, 1993 to June 30, 1994, or covering the period July  1,  1994  to
June  30, 1995, or covering the period July 1, 1995 to June 30, 1996, or
covering the period July 1, 1996 to June 30, 1997, or covering the peri-
od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
June 30, 1999, or covering the period July 1, 1999 to June 30, 2000,  or
covering the period July 1, 2000 to June 30, 2001, or covering the peri-
od  July  1,  2001  to October 29, 2001, or covering the period April 1,
2002 to June 30, 2002, or covering the period July 1, 2002 to  June  30,
2003,  or covering the period July 1, 2003 to June 30, 2004, or covering
the period July 1, 2004 to June 30, 2005, or covering the period July 1,
2005 to June 30, 2006, or covering the period July 1, 2006 to  June  30,
2007,  or covering the period July 1, 2007 to June 30, 2008, or covering
the period July 1, 2008 to June 30, 2009, or covering the period July 1,
2009 to June 30, 2010, or covering the period July 1, 2010 to  June  30,
2011,  or covering the period July 1, 2011 to June 30, 2012, or covering
the period July 1, 2012 to June 30, 2013, or covering the period July 1,
2013 to June 30, 2014, or covering the period July 1, 2014 to  June  30,
2015,  or covering the period July 1, 2015 to June 30, 2016, OR COVERING
THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 determined in  accordance  with
paragraph  (a)  of  this  subdivision fails, refuses or neglects to make
payment to the provider  of  excess  insurance  coverage  or  equivalent
excess coverage in such time and manner as determined by the superinten-
dent  of  financial  services pursuant to paragraph (b) of this subdivi-
sion, excess insurance coverage or equivalent excess coverage  purchased
for  such  physician or dentist in accordance with this section for such
coverage period shall be cancelled and shall be null and void as of  the
first  day  on  or  after  the commencement of a policy period where the
liability for payment pursuant to this subdivision has not been met.
  (d) Each provider of excess insurance coverage  or  equivalent  excess
coverage  shall  notify the superintendent of financial services and the
commissioner of health or their designee of each physician  and  dentist
eligible  for  purchase  of  a  policy  for excess insurance coverage or
equivalent excess coverage covering the period July 1, 1992 to June  30,
1993,  or covering the period July 1, 1993 to June 30, 1994, or covering
the period July 1, 1994 to June 30, 1995, or covering the period July 1,
1995 to June 30, 1996, or covering the period July 1, 1996 to  June  30,
1997,  or covering the period July 1, 1997 to June 30, 1998, or covering
the period July 1, 1998 to June 30, 1999, or covering the period July 1,
1999 to June 30, 2000, or covering the period July 1, 2000 to  June  30,
2001, or covering the period July 1, 2001 to October 29, 2001, or cover-
ing  the  period  April 1, 2002 to June 30, 2002, or covering the period
July 1, 2002 to June 30, 2003, or covering the period July  1,  2003  to
June  30, 2004, or covering the period July 1, 2004 to June 30, 2005, or
covering the period July 1, 2005 to June 30, 2006, or covering the peri-
od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to
June 30, 2008, or covering the period July 1, 2008 to June 30, 2009,  or
covering the period July 1, 2009 to June 30, 2010, or covering the peri-
od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to
June  30, 2012, or covering the period July 1, 2012 to June 30, 2013, or
covering the period July 1, 2013 to June 30, 2014, or covering the peri-

S. 6407--A                         20                         A. 9007--A

od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to
June 30, 2016, OR COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 that
has made payment to such provider of excess insurance coverage or equiv-
alent  excess coverage in accordance with paragraph (b) of this subdivi-
sion and of each physician  and  dentist  who  has  failed,  refused  or
neglected to make such payment.
  (e)  A  provider  of  excess  insurance  coverage or equivalent excess
coverage shall refund to the hospital excess liability pool  any  amount
allocable to the period July 1, 1992 to June 30, 1993, and to the period
July  1,  1993  to June 30, 1994, and to the period July 1, 1994 to June
30, 1995, and to the period July 1, 1995 to June 30, 1996,  and  to  the
period  July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to
June 30, 1998, and to the period July 1, 1998 to June 30, 1999,  and  to
the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
to  June  30,  2001, and to the period July 1, 2001 to October 29, 2001,
and to the period April 1, 2002 to June 30, 2002, and to the period July
1, 2002 to June 30, 2003, and to the period July 1,  2003  to  June  30,
2004, and to the period July 1, 2004 to June 30, 2005, and to the period
July  1,  2005  to June 30, 2006, and to the period July 1, 2006 to June
30, 2007, and to the period July 1, 2007 to June 30, 2008,  and  to  the
period  July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
June 30, 2010, and to the period July 1, 2010 to June 30, 2011,  and  to
the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
to  June  30, 2013, and to the period July 1, 2013 to June 30, 2014, and
to the period July 1, 2014 to June 30, 2015, and to the period  July  1,
2015  to  June 30, 2016, AND TO THE PERIOD JULY 1, 2016 TO JUNE 30, 2017
received from the hospital excess liability pool for purchase of  excess
insurance  coverage  or  equivalent  excess coverage covering the period
July 1, 1992 to June 30, 1993, and covering the period July 1,  1993  to
June  30,  1994,  and covering the period July 1, 1994 to June 30, 1995,
and covering the period July 1, 1995 to June 30, 1996, and covering  the
period  July  1,  1996 to June 30, 1997, and covering the period July 1,
1997 to June 30, 1998, and covering the period July 1, 1998 to June  30,
1999,  and covering the period July 1, 1999 to June 30, 2000, and cover-
ing the period July 1, 2000 to June 30, 2001, and  covering  the  period
July  1, 2001 to October 29, 2001, and covering the period April 1, 2002
to June 30, 2002, and covering the period July 1, 2002 to June 30, 2003,
and covering the period July 1, 2003 to June 30, 2004, and covering  the
period  July  1,  2004 to June 30, 2005, and covering the period July 1,
2005 to June 30, 2006, and covering the period July 1, 2006 to June  30,
2007,  and covering the period July 1, 2007 to June 30, 2008, and cover-
ing the period July 1, 2008 to June 30, 2009, and  covering  the  period
July  1,  2009 to June 30, 2010, and covering the period July 1, 2010 to
June 30, 2011, and covering the period July 1, 2011 to  June  30,  2012,
and  covering the period July 1, 2012 to June 30, 2013, and covering the
period July 1, 2013 to June 30, 2014, and covering the  period  July  1,
2014  to June 30, 2015, and covering the period July 1, 2015 to June 30,
2016, AND COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 for a physi-
cian or dentist where  such  excess  insurance  coverage  or  equivalent
excess  coverage  is  cancelled in accordance with paragraph (c) of this
subdivision.
  S 5. Section 40 of chapter 266 of the laws of 1986, amending the civil
practice law and rules  and  other  laws  relating  to  malpractice  and
professional medical conduct, as amended by section 4 of part Y of chap-
ter 57 of the laws of 2015, is amended to read as follows:

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  S  40.  The superintendent of financial services shall establish rates
for policies providing coverage  for  physicians  and  surgeons  medical
malpractice  for the periods commencing July 1, 1985 and ending June 30,
[2016] 2017; provided, however, that notwithstanding any other provision
of  law,  the superintendent shall not establish or approve any increase
in rates for the period commencing July 1,  2009  and  ending  June  30,
2010.  The  superintendent shall direct insurers to establish segregated
accounts for premiums, payments, reserves and investment income  attrib-
utable to such premium periods and shall require periodic reports by the
insurers  regarding  claims and expenses attributable to such periods to
monitor whether such accounts will be sufficient to meet incurred claims
and expenses. On or after July 1, 1989, the superintendent shall  impose
a  surcharge  on  premiums  to  satisfy  a  projected deficiency that is
attributable to the premium levels established pursuant to this  section
for  such  periods;  provided, however, that such annual surcharge shall
not exceed eight percent of the established rate until  July  1,  [2016]
2017, at which time and thereafter such surcharge shall not exceed twen-
ty-five  percent  of  the  approved  adequate rate, and that such annual
surcharges shall continue for such period of time as shall be sufficient
to satisfy such deficiency. The superintendent  shall  not  impose  such
surcharge  during the period commencing July 1, 2009 and ending June 30,
2010.   On and after July 1, 1989,  the  surcharge  prescribed  by  this
section  shall  be  retained by insurers to the extent that they insured
physicians and surgeons during the July 1, 1985 through June 30,  [2016]
2017  policy  periods;  in  the  event  and to the extent physicians and
surgeons were insured by another insurer during such periods, all  or  a
pro  rata  share of the surcharge, as the case may be, shall be remitted
to such other insurer in accordance with rules  and  regulations  to  be
promulgated by the superintendent.  Surcharges collected from physicians
and  surgeons  who  were not insured during such policy periods shall be
apportioned among all insurers in proportion to the premium  written  by
each  insurer  during such policy periods; if a physician or surgeon was
insured by an insurer subject to rates established by the superintendent
during such policy periods, and  at  any  time  thereafter  a  hospital,
health  maintenance organization, employer or institution is responsible
for responding in damages for liability arising out of such  physician's
or  surgeon's  practice  of medicine, such responsible entity shall also
remit to such prior insurer the equivalent amount  that  would  then  be
collected  as  a  surcharge if the physician or surgeon had continued to
remain insured by such prior insurer. In  the  event  any  insurer  that
provided  coverage  during  such  policy  periods is in liquidation, the
property/casualty insurance security fund shall receive the  portion  of
surcharges to which the insurer in liquidation would have been entitled.
The surcharges authorized herein shall be deemed to be income earned for
the  purposes of section 2303 of the insurance law.  The superintendent,
in establishing adequate rates and in determining  any  projected  defi-
ciency  pursuant  to  the requirements of this section and the insurance
law, shall give substantial weight, determined  in  his  discretion  and
judgment,  to  the  prospective  anticipated  effect  of any regulations
promulgated and laws enacted and the  public  benefit  of    stabilizing
malpractice rates and minimizing rate level fluctuation during the peri-
od  of  time  necessary for the development of more reliable statistical
experience as to the efficacy of such  laws  and  regulations  affecting
medical, dental or podiatric malpractice enacted or promulgated in 1985,
1986,  by this act and at any other time.  Notwithstanding any provision
of the insurance law, rates already established and to be established by

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the superintendent pursuant to this section are deemed adequate if  such
rates  would be adequate when taken together with the maximum authorized
annual surcharges to be imposed for a reasonable period of time  whether
or  not  any  such  annual surcharge has been actually imposed as of the
establishment of such rates.
  S 6. Section 5 and subdivisions (a) and (e) of section 6 of part J  of
chapter  63  of  the  laws  of 2001, amending chapter 266 of the laws of
1986, amending the civil practice law and rules and other laws  relating
to malpractice and professional medical conduct, as amended by section 5
of  part  Y  of  chapter  57 of the laws of 2015, are amended to read as
follows:
  S 5. The superintendent of financial services and the commissioner  of
health shall determine, no later than June 15, 2002, June 15, 2003, June
15,  2004,  June  15, 2005, June 15, 2006, June 15, 2007, June 15, 2008,
June 15, 2009, June 15, 2010, June 15, 2011, June  15,  2012,  June  15,
2013,  June  15,  2014, June 15, 2015, [and] June 15, 2016, AND JUNE 15,
2017 the amount of funds available  in  the  hospital  excess  liability
pool, created pursuant to section 18 of chapter 266 of the laws of 1986,
and  whether such funds are sufficient for purposes of purchasing excess
insurance coverage for eligible participating  physicians  and  dentists
during the period July 1, 2001 to June 30, 2002, or July 1, 2002 to June
30,  2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July  1,  2006  to  June  30,
2007,  or  July  1,  2007  to June 30, 2008, or July 1, 2008 to June 30,
2009, or July 1, 2009 to June 30, 2010, or July  1,  2010  to  June  30,
2011,  or  July  1,  2011  to June 30, 2012, or July 1, 2012 to June 30,
2013, or July 1, 2013 to June 30, 2014, or July  1,  2014  to  June  30,
2015, or July 1, 2015 to June 30, 2016, OR JULY 1, 2016 TO JUNE 30, 2017
as applicable.
  (a)  This section shall be effective only upon a determination, pursu-
ant to section five of this act,  by  the  superintendent  of  financial
services  and  the  commissioner  of health, and a certification of such
determination to the state director of the  budget,  the  chair  of  the
senate  committee  on finance and the chair of the assembly committee on
ways and means, that the amount of funds in the hospital excess  liabil-
ity  pool,  created pursuant to section 18 of chapter 266 of the laws of
1986, is insufficient for purposes of purchasing excess insurance cover-
age for eligible participating physicians and dentists during the period
July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or  July  1,
2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007
to  June  30, 2008, or July 1, 2008 to June 30, 2009, or July 1, 2009 to
June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June
30, 2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June  30,
2014,  or  July  1,  2014  to June 30, 2015, or July 1, 2015 to June 30,
2016, OR JULY 1, 2016 TO JUNE 30, 2017 as applicable.
  (e) The commissioner of health  shall  transfer  for  deposit  to  the
hospital excess liability pool created pursuant to section 18 of chapter
266  of  the laws of 1986 such amounts as directed by the superintendent
of financial services for the purchase  of  excess  liability  insurance
coverage  for  eligible  participating  physicians  and dentists for the
policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to  June  30,
2003,  or  July  1,  2003  to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July  1,  2006  to  June  30,
2007,  as  applicable, and the cost of administering the hospital excess
liability pool for such applicable policy year,  pursuant to the program

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established in chapter 266 of the laws of 1986,  as  amended,  no  later
than  June  15,  2002, June 15, 2003, June 15, 2004, June 15, 2005, June
15, 2006, June 15, 2007, June 15, 2008, June 15, 2009,  June  15,  2010,
June  15,  2011,  June  15, 2012, June 15, 2013, June 15, 2014, June 15,
2015, [and] June 15, 2016, AND JUNE 15, 2017 as applicable.
  S 7. Notwithstanding any law, rule or regulation to the contrary, only
physicians or dentists who were eligible, and for whom  the  superinten-
dent  of  financial  services  and  the commissioner of health, or their
designee, purchased, with funds available in the hospital excess liabil-
ity pool, a full or partial policy for  excess  coverage  or  equivalent
excess  coverage  for  the coverage period ending the thirtieth of June,
two thousand sixteen, shall be eligible to apply for such  coverage  for
the  coverage  period beginning the first of July, two thousand sixteen;
provided, however, if the total number of  physicians  or  dentists  for
whom  such  excess  coverage or equivalent excess coverage was purchased
for the policy year ending the thirtieth of June, two  thousand  sixteen
exceeds the total number of physicians or dentists certified as eligible
for  the  coverage  period  beginning  the  first  of July, two thousand
sixteen, then the general  hospitals  may  certify  additional  eligible
physicians  or  dentists  in  a  number equal to such general hospital's
proportional share of the total number of  physicians  or  dentists  for
whom  excess  coverage  or equivalent excess coverage was purchased with
funds available in the hospital excess liability pool as of the  thirti-
eth  of June, two thousand sixteen, as applied to the difference between
the number of eligible physicians or dentists  for  whom  a  policy  for
excess  coverage  or  equivalent  excess  coverage was purchased for the
coverage period ending the thirtieth of June, two thousand  sixteen  and
the  number of such eligible physicians or dentists who have applied for
excess coverage or equivalent excess coverage for  the  coverage  period
beginning the first of July, two thousand sixteen.
  S  8.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016, provided,
however, section two of this act shall take effect July 1, 2016.

                                 PART D

  Section 1.  Paragraph (a) of subdivision 1 of section 212  of  chapter
474  of  the  laws  of  1996,  amending the education law and other laws
relating to rates for residential healthcare facilities, as  amended  by
section  2  of  part  B of chapter 56 of the laws of 2013, is amended to
read as follows:
  (a) Notwithstanding any inconsistent provision of law or regulation to
the contrary, effective beginning August 1, 1996, for the  period  April
1,  1997  through  March 31, 1998, April 1, 1998 for the period April 1,
1998 through March 31, 1999, August 1, 1999, for  the  period  April  1,
1999 through March 31, 2000, April 1, 2000, for the period April 1, 2000
through  March  31,  2001,  April  1, 2001, for the period April 1, 2001
through March 31, 2002, April 1, 2002, for  the  period  April  1,  2002
through March 31, 2003, and for the state fiscal year beginning April 1,
2005  through  March  31,  2006, and for the state fiscal year beginning
April 1, 2006 through March 31, 2007, and  for  the  state  fiscal  year
beginning April 1, 2007 through March 31, 2008, and for the state fiscal
year  beginning  April 1, 2008 through March 31, 2009, and for the state
fiscal year beginning April 1, 2009 through March 31, 2010, and for  the
state  fiscal  year  beginning April 1, 2010 through March 31, 2016, AND
ANNUALLY THEREAFTER, the department  of  health  is  authorized  to  pay

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public  general  hospitals, as defined in subdivision 10 of section 2801
of the public health law, operated by the state of New York  or  by  the
state  university  of New York or by a county, which shall not include a
city  with  a  population of over one million, of the state of New York,
and those public general hospitals located in the county of Westchester,
the county of Erie or the county  of  Nassau,  additional  payments  for
inpatient  hospital  services as medical assistance payments pursuant to
title 11 of article 5 of the social services law for  patients  eligible
for  federal  financial  participation  under  title  XIX of the federal
social security act in medical assistance pursuant to the  federal  laws
and  regulations  governing disproportionate share payments to hospitals
up to one hundred percent of each such public general hospital's medical
assistance and uninsured patient losses after all other medical  assist-
ance,  including  disproportionate share payments to such public general
hospital for 1996, 1997, 1998, and 1999, based  initially  for  1996  on
reported  1994  reconciled data as further reconciled to actual reported
1996 reconciled data, and for 1997  based  initially  on  reported  1995
reconciled data as further reconciled to actual reported 1997 reconciled
data,  for  1998  based  initially  on  reported 1995 reconciled data as
further reconciled to actual reported 1998  reconciled  data,  for  1999
based  initially  on reported 1995 reconciled data as further reconciled
to actual reported 1999 reconciled data, for  2000  based  initially  on
reported  1995  reconciled data as further reconciled to actual reported
2000 data, for 2001 based initially on reported 1995 reconciled data  as
further reconciled to actual reported 2001 data, for 2002 based initial-
ly  on  reported  2000  reconciled  data as further reconciled to actual
reported 2002 data, and for state fiscal years  beginning  on  April  1,
2005, based initially on reported 2000 reconciled data as further recon-
ciled  to  actual  reported  data  for  2005, and for state fiscal years
beginning on April 1, 2006, based initially on reported 2000  reconciled
data  as  further reconciled to actual reported data for 2006, for state
fiscal years beginning on and after April  1,  2007  through  March  31,
2009, based initially on reported 2000 reconciled data as further recon-
ciled to actual reported data for 2007 and 2008, respectively, for state
fiscal  years  beginning  on and after April 1, 2009, based initially on
reported 2007 reconciled data, adjusted  for  authorized  Medicaid  rate
changes  applicable  to the state fiscal year, and as further reconciled
to actual reported data for 2009, for state fiscal  years  beginning  on
and  after  April  1,  2010, based initially on reported reconciled data
from the base year two years prior to the  payment  year,  adjusted  for
authorized  Medicaid  rate  changes applicable to the state fiscal year,
and further reconciled to actual reported data from such  payment  year,
and  to  actual  reported data for each respective succeeding year.  The
payments may be added to rates of payment or made as aggregate  payments
to an eligible public general hospital.
  S  2.  Section  10  of  chapter  649 of the laws of 1996, amending the
public health law, the mental hygiene law and the  social  services  law
relating  to  authorizing  the  establishment of special needs plans, as
amended by section 20 of part D of chapter 59 of the laws  of  2011,  is
amended to read as follows:
  S  10.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after July 1, 1996[; provided,
however, that sections one, two and three of this act shall  expire  and
be  deemed  repealed on March 31, 2016 provided, however that the amend-
ments to section 364-j of the social services law made by  section  four
of this act shall not affect the expiration of such section and shall be

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deemed to expire therewith and provided, further, that the provisions of
subdivisions  8,  9  and 10 of section 4401 of the public health law, as
added by section one of this act; section 4403-d of  the  public  health
law  as  added  by section two of this act and the provisions of section
seven of this act, except for the provisions relating to the  establish-
ment of no more than twelve comprehensive HIV special needs plans, shall
expire and be deemed repealed on July 1, 2000].
  S  3.  Subdivision 8 of section 84 of part A of chapter 56 of the laws
of 2013, amending the public health  law  and  other  laws  relating  to
general hospital reimbursement for annual rates is REPEALED.
  S  4.  Subdivision  (f)  of section 129 of part C of chapter 58 of the
laws of 2009, amending the public health  law  relating  to  payment  by
governmental  agencies  for  general  hospital  inpatient  services,  is
REPEALED.
  S 5. Subdivision (c) of section 122 of part E of  chapter  56  of  the
laws  of  2013  amending  the  public health law relating to the general
public health work program is REPEALED.
  S 6. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2016.

                                 PART E

  Section  1. Subdivisions 9 and 10 of section 2541 of the public health
law, as added by chapter 428 of the laws of 1992, are amended to read as
follows:
  9. "Evaluation"  means  a  multidisciplinary  professional,  objective
[assessment]  EXAMINATION conducted by appropriately qualified personnel
and conducted pursuant to section twenty-five hundred forty-four of this
title to determine a child's eligibility under this title.
  10. "Evaluator" means a [team of two or  more  professionals  approved
pursuant to section twenty-five hundred fifty-one of this title] PROVID-
ER APPROVED BY THE DEPARTMENT to conduct screenings and evaluations.
  S  2.  Section  2541 of the public health law is amended by adding two
new subdivisions 12-a and 15-a to read as follows:
  12-A. "MULTIDISCIPLINARY" MEANS THE INVOLVEMENT OF TWO OR  MORE  SEPA-
RATE  DISCIPLINES  OR PROFESSIONS, WHICH MAY MEAN THE INVOLVEMENT OF ONE
INDIVIDUAL WHO MEETS THE DEFINITION OF QUALIFIED PERSONNEL AS DEFINED IN
SUBDIVISION FIFTEEN OF THIS SECTION AND WHO IS QUALIFIED, IN  ACCORDANCE
WITH  STATE  LICENSURE,  CERTIFICATION OR OTHER COMPARABLE STANDARDS, TO
EVALUATE ALL FIVE DEVELOPMENTAL DOMAINS.
  15-A. "SCREENING" MEANS THE PROCEDURES USED BY QUALIFIED PERSONNEL, AS
DEFINED IN SUBDIVISION FIFTEEN OF THIS SECTION, TO DETERMINE  WHETHER  A
CHILD  IS  SUSPECTED  OF HAVING A DISABILITY AND IN NEED OF EARLY INTER-
VENTION SERVICES, AND SHALL INCLUDE, WHERE AVAILABLE AND APPROPRIATE FOR
THE CHILD, THE ADMINISTRATION OF A STANDARDIZED  INSTRUMENT  OR  INSTRU-
MENTS  APPROVED  BY THE DEPARTMENT, IN ACCORDANCE WITH SUBDIVISION THREE
OF SECTION TWENTY-FIVE HUNDRED FORTY-FOUR OF THIS TITLE.
  S 3. Subdivision 3 of section  2542  of  the  public  health  law,  as
amended  by  chapter  231  of  the  laws  of 1993, is amended to read as
follows:
  3. [The following persons and entities, within] (A) UNLESS THE  PARENT
OBJECTS,  WITHIN  two  working  days of identifying an infant or toddler
suspected of having a disability or at risk of having a disability,  THE
FOLLOWING PERSONS AND ENTITIES shall refer such infant or toddler to the
early  intervention official or the health officer [of the public health
district in which the infant or toddler resides, as  designated  by  the

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municipality,  but  in no event over the objection of the parent made in
accordance with procedures established by the department for use by such
primary referral sources, unless the child has already been referred] OF
THE  PUBLIC  HEALTH DISTRICT DESIGNATED BY THE MUNICIPALITY IN WHICH THE
INFANT OR TODDLER RESIDES:  hospitals, child health care providers,  day
care  programs,  local school districts, public health facilities, early
childhood direction centers and such other  social  service  and  health
care  agencies  and providers as the commissioner shall specify in regu-
lation[; provided, however, that the].  THIS  SHALL  NOT  APPLY  IF  THE
INFANT  OR  TODDLER HAS ALREADY BEEN REFERRED TO SUCH EARLY INTERVENTION
OFFICIAL OR HEALTH OFFICER. THE department shall  establish  procedures,
including  regulations  if  required,  to  ensure  that primary referral
sources adequately inform the parent or guardian about the early  inter-
vention  program,  including  through  brochures  and  written materials
created or approved by the department.
  (B) THE PRIMARY REFERRAL SOURCES IDENTIFIED IN PARAGRAPH (A)  OF  THIS
SUBDIVISION  SHALL,  WITH PARENTAL CONSENT, COMPLETE AND TRANSMIT AT THE
TIME OF REFERRAL, A REFERRAL FORM  DEVELOPED  BY  THE  DEPARTMENT  WHICH
CONTAINS   INFORMATION  SUFFICIENT  TO  DOCUMENT  THE  PRIMARY  REFERRAL
SOURCE'S CONCERN OR BASIS FOR SUSPECTING THE CHILD HAS A  DISABILITY  OR
IS  AT  RISK OF HAVING A DISABILITY, AND WHERE APPLICABLE, SPECIFIES THE
CHILD'S DIAGNOSED CONDITION THAT ESTABLISHES THE CHILD'S ELIGIBILITY FOR
THE EARLY INTERVENTION PROGRAM. THE PRIMARY REFERRAL SOURCE SHALL INFORM
THE PARENT OF A CHILD WITH A DIAGNOSED CONDITION THAT HAS A HIGH  PROBA-
BILITY OF RESULTING IN DEVELOPMENTAL DELAY, THAT (I) ELIGIBILITY FOR THE
PROGRAM  MAY  BE ESTABLISHED BY MEDICAL OR OTHER RECORDS AND (II) OF THE
IMPORTANCE OF PROVIDING CONSENT FOR THE PRIMARY REFERRAL SOURCE TO TRAN-
SMIT RECORDS OR REPORTS NECESSARY TO  SUPPORT  THE  DIAGNOSIS,  OR,  FOR
PARENTS  OR GUARDIANS OF CHILDREN WHO DO NOT HAVE A DIAGNOSED CONDITION,
RECORDS OR REPORTS THAT WOULD ASSIST IN DETERMINING ELIGIBILITY FOR  THE
PROGRAM.
  S 4. Section 2544 of the public health law, as added by chapter 428 of
the  laws  of 1992, paragraph (c) of subdivision 2 as added by section 1
of part A of chapter 56 of the laws of 2012 and subdivision 11 as  added
by section 3 of part B3 of chapter 62 of the laws of 2003, is amended to
read as follows:
  S  2544.  Screening  and  evaluations.  1. Each child thought to be an
eligible child  is  entitled  to  [a  multidisciplinary]  AN  evaluation
CONDUCTED  IN  ACCORDANCE  WITH THIS SECTION, and the early intervention
official shall ensure such evaluation, with parental consent.
  2. (a) 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 APPLICABLE SCREENING AND/OR evaluation IN ACCORD-
ANCE WITH THIS SECTION.  The parent or evaluator shall immediately noti-
fy the early intervention official  of  such  selection.  THE  EVALUATOR
SHALL  REVIEW THE INFORMATION AND DOCUMENTATION PROVIDED WITH THE REFER-
RAL TO DETERMINE THE APPROPRIATE  SCREENING  OR  EVALUATION  PROCESS  TO
FOLLOW  IN  ACCORDANCE  WITH  THIS  SECTION. The evaluator may begin the
SCREENING OR evaluation no sooner than  four  working  days  after  such
notification, unless otherwise approved by the initial service coordina-
tor.
  (b)  [the  evaluator  shall  designate  an individual as the principal
contact for the multidisciplinary  team]  INITIAL  SERVICE  COORDINATORS
SHALL INFORM THE PARENT OF THE APPLICABLE SCREENING OR EVALUATION PROCE-
DURES  THAT  MAY  BE PERFORMED. FOR A CHILD REFERRED TO THE EARLY INTER-
VENTION OFFICIAL WHO HAS A DIAGNOSED PHYSICAL OR MENTAL  CONDITION  THAT

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HAS  A HIGH PROBABILITY OF RESULTING IN DEVELOPMENTAL DELAY, THE INITIAL
SERVICE COORDINATOR SHALL INFORM THE PARENT THAT THE EVALUATION  OF  THE
CHILD  SHALL BE CONDUCTED IN ACCORDANCE WITH THE PROCEDURES SET FORTH IN
SUBDIVISION FIVE OF THIS SECTION.
  (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.
  3.  [(a)  To  determine eligibility, an evaluator shall, with parental
consent, either (i) screen a child to determine what type of evaluation,
if any, is warranted, or (ii) provide a multidisciplinary evaluation. In
making the determination whether to provide an evaluation, the evaluator
may rely on a recommendation from a physician or other qualified  person
as designated by the commissioner.
  (b)]  SCREENINGS  FOR  CHILDREN  REFERRED  TO  THE  EARLY INTERVENTION
PROGRAM TO DETERMINE WHETHER THEY ARE SUSPECTED OF HAVING A  DISABILITY.
(A)  FOR  A CHILD REFERRED TO THE EARLY INTERVENTION PROGRAM, THE EVALU-
ATOR SHALL FIRST  PERFORM  A  SCREENING  OF  THE  CHILD,  WITH  PARENTAL
CONSENT,  TO  DETERMINE WHETHER THE CHILD IS SUSPECTED OF HAVING A DISA-
BILITY.
  (B) THE EVALUATOR SHALL UTILIZE A STANDARDIZED INSTRUMENT  OR  INSTRU-
MENTS APPROVED BY THE DEPARTMENT TO CONDUCT THE SCREENING. IF THE EVALU-
ATOR  DOES NOT UTILIZE A STANDARDIZED INSTRUMENT OR INSTRUMENTS APPROVED
BY THE DEPARTMENT FOR THE SCREENING, THE  EVALUATOR  SHALL  DOCUMENT  IN
WRITING  WHY SUCH STANDARDIZED INSTRUMENT OR INSTRUMENTS ARE UNAVAILABLE
OR INAPPROPRIATE FOR THE CHILD.
  (C) THE EVALUATOR SHALL EXPLAIN THE RESULTS OF THE  SCREENING  TO  THE
PARENT AND SHALL FULLY DOCUMENT THE RESULTS IN WRITING.
  (D) If, based upon the screening, a child is [believed to be eligible,
or if otherwise elected by the parent] SUSPECTED OF HAVING A DISABILITY,
the  child  shall,  with  [the  consent  of  a parent] PARENTAL CONSENT,
receive  [a  multidisciplinary  evaluation.  All  evaluations  shall  be
conducted  in  accordance with] AN EVALUATION TO BE CONDUCTED IN ACCORD-
ANCE WITH THE PROCEDURES SET FORTH IN SUBDIVISION FOUR OF THIS  SECTION,
the coordinated standards and procedures and with regulations promulgat-
ed by the commissioner.
  (E) IF, BASED UPON THE SCREENING, A CHILD IS NOT SUSPECTED OF HAVING A
DISABILITY, AN EVALUATION SHALL NOT BE PROVIDED, UNLESS REQUESTED BY THE
PARENT.  THE  EARLY  INTERVENTION OFFICIAL SHALL PROVIDE THE PARENT WITH
WRITTEN NOTICE OF THE SCREENING RESULTS, WHICH SHALL INCLUDE INFORMATION
ON THE PARENT'S RIGHT TO REQUEST AN EVALUATION.
  (F) A SCREENING SHALL NOT BE PROVIDED TO CHILDREN WHO ARE REFERRED  TO
THE  EARLY  INTERVENTION PROGRAM WHO HAVE A DIAGNOSED PHYSICAL OR MENTAL
CONDITION WITH A HIGH PROBABILITY OF RESULTING  IN  DEVELOPMENTAL  DELAY
THAT ESTABLISHES ELIGIBILITY FOR THE PROGRAM.
  4. The evaluation of [each] A child shall:
  (a)  INCLUDE  THE ADMINISTRATION OF AN EVALUATION STANDARDIZED INSTRU-
MENT OR INSTRUMENTS APPROVED BY THE DEPARTMENT. IF  THE  EVALUATOR  DOES
NOT  UTILIZE  A  STANDARDIZED  INSTRUMENT OR INSTRUMENTS APPROVED BY THE
DEPARTMENT AS PART OF THE EVALUATION OF THE CHILD, THE  EVALUATOR  SHALL
DOCUMENT  IN WRITING WHY SUCH STANDARDIZED INSTRUMENT OR INSTRUMENTS ARE
NOT APPROPRIATE OR AVAILABLE FOR THE CHILD;

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  (B) be conducted by personnel trained to utilize  appropriate  methods
and procedures;
  [(b)] (C) be based on informed clinical opinion;
  [(c)]  (D)  be  made without regard to the availability of services in
the municipality or who might provide such services; [and
  (d)] (E) with parental consent, include the following:
  (i) a review of pertinent  records  related  to  the  child's  current
health status and medical history; AND
  (ii)  an evaluation of the child's level of functioning in each of the
developmental areas set forth in paragraph (c) of subdivision  seven  of
section  twenty-five  hundred  forty-one  of  this title[;] TO DETERMINE
WHETHER THE CHILD HAS A DISABILITY AS DEFINED IN THIS TITLE THAT  ESTAB-
LISHES THE CHILD'S ELIGIBILITY FOR THE PROGRAM; AND
  (F)  IF  THE CHILD HAS BEEN DETERMINED ELIGIBLE BY THE EVALUATOR AFTER
CONDUCTING THE PROCEDURES SET FORTH IN PARAGRAPHS  (A)  THROUGH  (E)  OF
THIS SUBDIVISION, THE EVALUATION SHALL ALSO INCLUDE:
  [(iii)]  (I)  an assessment [of the unique needs of the child in terms
of] FOR THE PURPOSES OF IDENTIFYING THE  CHILD'S  UNIQUE  STRENGTHS  AND
NEEDS  IN each of the developmental areas [set forth in paragraph (c) of
subdivision seven of  section  twenty-five  hundred  forty-one  of  this
title,  including  the  identification  of]  AND  THE EARLY INTERVENTION
services appropriate to meet those needs;
  [(iv)] (II) A FAMILY-DIRECTED ASSESSMENT, IF CONSENTED TO BY THE FAMI-
LY, IN  ORDER  TO  IDENTIFY  THE  FAMILY'S  RESOURCES,  PRIORITIES,  AND
CONCERNS  AND THE SUPPORTS NECESSARY TO ENHANCE THE FAMILY'S CAPACITY TO
MEET THE DEVELOPMENTAL NEEDS OF THE CHILD. THE FAMILY  ASSESSMENT  SHALL
BE  VOLUNTARY  ON  THE  PART  OF EACH FAMILY MEMBER PARTICIPATING IN THE
ASSESSMENT;
  (III) an [evaluation] ASSESSMENT of the transportation  needs  of  the
child, if any; and
  [(v)]  (IV)  such  other  matters as the commissioner may prescribe in
regulation.
  5. EVALUATIONS FOR CHILDREN WHO ARE REFERRED TO THE EARLY INTERVENTION
OFFICIAL WITH DIAGNOSED PHYSICAL OR MENTAL CONDITIONS THAT HAVE  A  HIGH
PROBABILITY  OF  RESULTING  IN DEVELOPMENTAL DELAY. (A) IF A CHILD HAS A
DIAGNOSED PHYSICAL OR MENTAL CONDITION THAT HAS A  HIGH  PROBABILITY  OF
RESULTING  IN  DEVELOPMENTAL DELAY, THE CHILD'S MEDICAL OR OTHER RECORDS
SHALL BE USED, WHEN AVAILABLE, TO ESTABLISH THE CHILD'S ELIGIBILITY  FOR
THE PROGRAM.
  (B)  THE EVALUATOR SHALL, UPON REVIEW OF THE REFERRAL FORM PROVIDED IN
ACCORDANCE WITH SECTION TWENTY-FIVE HUNDRED FORTY-TWO OF THIS  TITLE  OR
ANY MEDICAL OR OTHER RECORDS, OR AT THE TIME OF INITIAL CONTACT WITH THE
CHILD'S  FAMILY,  DETERMINE  WHETHER THE CHILD HAS A DIAGNOSED CONDITION
THAT ESTABLISHES THE CHILD'S ELIGIBILITY FOR THE PROGRAM. IF THE  EVALU-
ATOR HAS REASON TO BELIEVE, AFTER SPEAKING WITH THE CHILD'S FAMILY, THAT
THE  CHILD  MAY  HAVE A DIAGNOSED CONDITION THAT ESTABLISHES THE CHILD'S
ELIGIBILITY BUT THE EVALUATOR HAS NOT  BEEN  PROVIDED  WITH  MEDICAL  OR
OTHER  DOCUMENTATION  OF  SUCH  DIAGNOSIS,  THE  EVALUATOR  SHALL,  WITH
PARENTAL CONSENT, OBTAIN SUCH DOCUMENTATION, WHEN  AVAILABLE,  PRIOR  TO
PROCEEDING WITH THE EVALUATION OF THE CHILD.
  (C)  THE  EVALUATOR SHALL REVIEW ALL RECORDS RECEIVED TO DOCUMENT THAT
THE CHILD'S DIAGNOSIS AS SET  FORTH  IN  SUCH  RECORDS  ESTABLISHES  THE
CHILD'S ELIGIBILITY FOR THE EARLY INTERVENTION PROGRAM.
  (D)  NOTWITHSTANDING  SUBDIVISION FOUR OF THIS SECTION, IF THE CHILD'S
ELIGIBILITY FOR THE EARLY INTERVENTION PROGRAM IS ESTABLISHED IN ACCORD-
ANCE WITH THIS SUBDIVISION,  THE  EVALUATION  OF  THE  CHILD  SHALL  (I)

S. 6407--A                         29                         A. 9007--A

CONSIST  OF A REVIEW OF THE RESULTS OF THE MEDICAL OR OTHER RECORDS THAT
ESTABLISHED THE CHILD'S ELIGIBILITY, AND ANY OTHER PERTINENT EVALUATIONS
OR RECORDS AVAILABLE AND (II) COMPLY WITH THE PROCEDURES  SET  FORTH  IN
PARAGRAPH (F) OF SUBDIVISION FOUR OF THIS SECTION. THE EVALUATION PROCE-
DURES  SET FORTH IN PARAGRAPHS (A) AND (E) OF SUBDIVISION FOUR SHALL NOT
BE REQUIRED OR CONDUCTED.
  6. An evaluation shall not include a reference to any specific provid-
er of early intervention services.
  [6.] 7. Nothing in this  section  shall  restrict  an  evaluator  from
utilizing, in addition to findings from his or her personal examination,
other examinations, evaluations or assessments conducted for such child,
including those conducted prior to the evaluation under this section, if
such  examinations,  evaluations  or assessments are consistent with the
coordinated standards and procedures.
  [7.] 8. Following completion of the evaluation,  the  evaluator  shall
provide  the  parent and service coordinator with a copy of a summary of
the full evaluation. To the extent practicable,  the  summary  shall  be
provided  in  the  native  language  of  the parent. Upon request of the
parent, early intervention official or service coordinator,  the  evalu-
ator  shall  provide a copy of the full evaluation to such parent, early
intervention official or service coordinator.
  [8.] 9. A parent who disagrees with the results of an  evaluation  may
obtain  an additional evaluation or partial evaluation at public expense
to the extent authorized by federal law or regulation.
  [9.] 10. Upon receipt of the results of an evaluation, a service coor-
dinator may, with parental consent, require additional diagnostic infor-
mation regarding the condition of the  child,  provided,  however,  that
such  evaluation or assessment is not unnecessarily duplicative or inva-
sive to the child, and provided further, that:
  (a) where the evaluation has established the child's eligibility, such
additional diagnostic information shall be used solely to provide  addi-
tional  information  to the parent and service coordinator regarding the
child's need for services and cannot be a basis for  refuting  eligibil-
ity;
  (b)  the service coordinator provides the parent with a written expla-
nation of the basis for requiring additional diagnostic information;
  (c) the additional diagnostic procedures are  at  no  expense  to  the
parent; and
  (d)  the  evaluation  is completed and a meeting to develop an IFSP is
held within the time prescribed in subdivision one  of  section  twenty-
five hundred forty-five of this title.
  [10.] 11. (a) If the screening indicates that the infant or toddler is
not  an  eligible child and the parent elects not to have an evaluation,
or if the evaluation indicates that the infant  or  toddler  is  not  an
eligible child, the service coordinator shall inform the parent of other
programs or services that may benefit such child, and the child's family
and,  with  parental  consent,  refer  such  child  to  such programs or
services.
  (b) A parent may appeal a determination that  a  child  is  ineligible
pursuant  to the provisions of section twenty-five hundred forty-nine of
this title, provided, however, that  a  parent  may  not  initiate  such
appeal  until  all  evaluations are completed.  IN ADDITION, FOR A CHILD
REFERRED TO THE EARLY INTERVENTION OFFICIAL WHO HAS A DIAGNOSED PHYSICAL
OR MENTAL CONDITION THAT ESTABLISHES THE  CHILD'S  ELIGIBILITY  FOR  THE
PROGRAM  IN ACCORDANCE WITH SUBDIVISION FIVE OF THIS SECTION, THE PARENT
MAY REQUEST, AND SUCH REQUEST  SHALL  BE  GRANTED,  THAT  THE  EVALUATOR

S. 6407--A                         30                         A. 9007--A

CONDUCT  THE  EVALUATION  PROCEDURES SET FORTH IN PARAGRAPHS (A) THROUGH
(E) OF SUBDIVISION FOUR OF THIS SECTION,  PROVIDED,  HOWEVER,  THAT  THE
PARENT  MAY  NOT  MAKE  SUCH  REQUEST  UNTIL THE EVALUATION CONDUCTED IN
ACCORDANCE WITH SUBDIVISION FIVE OF THIS SECTION IS COMPLETED.
  [11.]  12. Notwithstanding any other provision of law to the contrary,
where a request has been made to review an IFSP prior to  the  six-month
interval  provided  in  subdivision seven of section twenty-five hundred
forty-five of this title for purposes of increasing frequency  or  dura-
tion  of  an approved service, including service coordination, the early
intervention official may require an additional  evaluation  or  partial
evaluation  at  public  expense  by an approved evaluator other than the
current provider of service, with parent consent.
  S 5. Paragraph (a) of subdivision 3 of  section  2559  of  the  public
health  law,  is amended by adding two new subparagraphs (iv) and (v) to
read as follows:
  (IV) PROVIDERS SHALL SUBMIT ALL CLAIMS, IN  ACCORDANCE  WITH  SUBPARA-
GRAPH  (III)  OF  THIS  PARAGRAPH  AND WITHIN NINETY DAYS OF THE DATE OF
SERVICE, UNLESS THE SUBMISSION IS DELAYED DUE TO  EXTRAORDINARY  CIRCUM-
STANCES  DOCUMENTED  BY  THE PROVIDER. ALL CLAIMS SUBMITTED AFTER NINETY
DAYS SHALL BE SUBMITTED WITHIN THIRTY DAYS FROM THE  TIME  THE  PROVIDER
WAS  RELIEVED  FROM  THE  EXTRAORDINARY  CIRCUMSTANCES  THAT  PREVIOUSLY
DELAYED A TIMELY SUBMISSION. CLAIMS THAT ARE NOT SUBMITTED WITHIN  TIME-
FRAMES SET FORTH WILL NOT BE REIMBURSED BY THE DEPARTMENT'S FISCAL AGENT
FROM THE ESCROW ACCOUNT FUNDED BY MUNICIPAL GOVERNMENTAL PAYERS.
  (V)  PROVIDERS  SHALL  ENROLL,  ON  REQUEST  OF  THE DEPARTMENT OR THE
DEPARTMENT'S FISCAL AGENT, WITH ONE OR MORE HEALTH CARE  CLEARINGHOUSES,
AS  NECESSARY,  FOR  PROCESSING  OF CLAIMS TO THIRD PARTY PAYORS AND FOR
RECEIPT OF REMITTANCE ADVICES  IN  STANDARD  ELECTRONIC  FORMAT  AND  IN
COMPLIANCE WITH ANY APPLICABLE FEDERAL OR STATE REGULATIONS WITH RESPECT
TO ELECTRONIC CLAIMS TRANSACTIONS.
  S 6. Section 3224-a of the insurance law, as amended by chapter 666 of
the laws of 1997, the opening paragraph and subsections (a), (b) and (c)
as  amended  and  subsections (g) and (h) as added by chapter 237 of the
laws of 2009, paragraph 2 of subsection (d) as amended by  section  57-b
of  part A of chapter 56 of the laws of 2013, subsection (i) as added by
chapter 297 of the laws of 2012 and subsection (j) as added by section 5
of part H of chapter 60 of the laws of  2014,  is  amended  to  read  as
follows:
  S  3224-a.  Standards  for  prompt,  fair  and equitable settlement of
claims for health care and payments for health  care  services.  In  the
processing of all health care claims submitted under contracts or agree-
ments  issued  or  entered  into  pursuant  to this article and articles
forty-two, forty-three and  forty-seven  of  this  chapter  and  article
forty-four  of  the  public  health  law  and  all bills for health care
services rendered by health care providers pursuant to such contracts or
agreements, any insurer  or  organization  or  corporation  licensed  or
certified pursuant to article forty-three or forty-seven of this chapter
or  article  forty-four  of  the  public  health law shall adhere to the
following standards:
  (a) Except in a case where the obligation of an insurer or  an  organ-
ization  or corporation licensed or certified pursuant to article forty-
three or forty-seven of this chapter or article forty-four of the public
health law to pay a claim submitted by a policyholder or person  covered
under  such policy ("covered person") or make a payment to a health care
provider is not reasonably clear, or when there is  a  reasonable  basis
supported  by  specific  information  available for review by the super-

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intendent that such claim or bill for health care services rendered  was
submitted  fraudulently,  such  insurer  or  organization or corporation
shall pay the claim to a  policyholder  or  covered  person  or  make  a
payment  to  a  health  care provider within thirty days of receipt of a
claim or bill for services rendered that is transmitted via the internet
or electronic mail, or forty-five days of receipt of a claim or bill for
services rendered that is submitted by other means,  such  as  paper  or
facsimile.
  (A-1)  AN INSURER, ORGANIZATION, INCLUDING AN APPROVED ORGANIZATION AS
DEFINED IN SUBDIVISION TWO OF SECTION TWENTY-FIVE  HUNDRED  TEN  OF  THE
PUBLIC HEALTH LAW, OR CORPORATION SHALL, WITHIN FIFTEEN BUSINESS DAYS OF
RECEIPT  OF A CLAIM OR BILL FOR SERVICES RENDERED UNDER THE EARLY INTER-
VENTION PROGRAM, ESTABLISHED IN TITLE TWO-A OF  ARTICLE  TWENTY-FIVE  OF
THE  PUBLIC HEALTH LAW, NOTIFY THE HEALTH CARE PROVIDER, IN A MANNER AND
FORMAT DETERMINED BY THE DEPARTMENT OF HEALTH, THROUGH THE DEPARTMENT OF
HEALTH'S DESIGNATED FISCAL AGENT, WHETHER THE CONTRACT OR  AGREEMENT  IS
SUBJECT TO THE PROVISIONS OF THIS CHAPTER.
  (b) In a case where the obligation of an insurer or an organization or
corporation  licensed  or  certified  pursuant to article forty-three or
forty-seven of this chapter or article forty-four of the  public  health
law  to  pay a claim or make a payment for health care services rendered
is not reasonably clear due to a good faith dispute regarding the eligi-
bility of a person for coverage, the liability  of  another  insurer  or
corporation  or organization for all or part of the claim, the amount of
the claim, the benefits covered under a contract or  agreement,  or  the
manner in which services were accessed or provided, an insurer or organ-
ization  or corporation shall pay any undisputed portion of the claim in
accordance with this subsection and  notify  the  policyholder,  covered
person or health care provider in writing within thirty calendar days of
the receipt of the claim:
  (1)  that  it  is  not  obligated to pay the claim or make the medical
payment, stating the specific reasons why it is not liable; or
  (2) to request all additional information needed to determine  liabil-
ity  to  pay the claim or make the health care payment, EXCEPT THAT WITH
RESPECT TO A CLAIM OR BILL FOR SERVICES RENDERED UNDER THE EARLY  INTER-
VENTION PROGRAM ESTABLISHED IN TITLE TWO-A OF ARTICLE TWENTY-FIVE OF THE
PUBLIC HEALTH LAW, THE INSURER OR CORPORATION OR ORGANIZATION, INCLUDING
AN  APPROVED ORGANIZATION AS DEFINED IN SUBDIVISION TWO OF SECTION TWEN-
TY-FIVE HUNDRED TEN OF THE PUBLIC HEALTH LAW, SHALL REQUEST  SUCH  ADDI-
TIONAL INFORMATION FROM THE HEALTH CARE PROVIDER WITHIN FIFTEEN BUSINESS
DAYS OF RECEIPT OF THE CLAIM.
  Upon  receipt  of  the  information requested in paragraph two of this
subsection or an appeal of a claim or  bill  for  health  care  services
denied  pursuant  to  paragraph  one  of  this subsection, an insurer or
organization or corporation licensed or certified  pursuant  to  article
forty-three  or forty-seven of this chapter or article forty-four of the
public health law shall comply with subsection (a) of this section.
  (c) (1) Except as provided in [paragraph] PARAGRAPHS two AND THREE  of
this  subsection,  each claim or bill for health care services processed
in violation of this section shall constitute a separate  violation.  In
addition  to  the  penalties  provided  in  this chapter, any insurer or
organization or corporation  that  fails  to  adhere  to  the  standards
contained  in  this section shall be obligated to pay to the health care
provider or person submitting the claim, in full settlement of the claim
or bill for health care services, the amount of the claim or health care
payment plus interest on the amount of such claim or health care payment

S. 6407--A                         32                         A. 9007--A

of the greater of the rate equal to the rate set by the commissioner  of
taxation  and  finance  for corporate taxes pursuant to paragraph one of
subsection (e) of section one thousand ninety-six  of  the  tax  law  or
twelve  percent  per  annum,  to  be computed from the date the claim or
health care payment was required to be made. When the amount of interest
due on such a claim is less [then] THAN  two  dollars,  and  insurer  or
organization  or  corporation  shall  not be required to pay interest on
such claim.
  (2) Where a violation of this section is determined by the superinten-
dent as a result of the superintendent's own investigation, examination,
audit or inquiry, an insurer or organization or corporation licensed  or
certified pursuant to article forty-three or forty-seven of this chapter
or article forty-four of the public health law shall not be subject to a
civil  penalty  prescribed  in  paragraph one of this subsection, if the
superintendent determines that the insurer  or  organization  or  corpo-
ration  has  otherwise  processed  at  least ninety-eight percent of the
claims submitted in a calendar year in  compliance  with  this  section;
provided,  however,  nothing  in this paragraph shall limit, preclude or
exempt an insurer or organization or corporation from payment of a claim
and payment of interest pursuant to this section. This  paragraph  shall
not apply to violations of this section determined by the superintendent
resulting  from individual complaints submitted to the superintendent by
health care providers or policyholders.
  (3) WHERE AN INSURER OR ORGANIZATION, INCLUDING AN APPROVED  ORGANIZA-
TION AS DEFINED IN SUBDIVISION TWO OF SECTION TWENTY-FIVE HUNDRED TEN OF
THE  PUBLIC  HEALTH LAW, OR CORPORATION FAILS TO ADHERE TO THE STANDARDS
CONTAINED IN THIS SECTION IN RELATION TO A CLAIM OR  BILL  FOR  SERVICES
SUBMITTED  FOR  A  SERVICE RENDERED UNDER THE EARLY INTERVENTION PROGRAM
ESTABLISHED IN TITLE TWO-A OF ARTICLE TWENTY-FIVE OF THE  PUBLIC  HEALTH
LAW,  THE  CLAIM OR BILL FOR SERVICES SHALL BE DEEMED COVERED OR PAYABLE
UNDER THE CONTRACT OR AGREEMENT, AND  THE  INSURER  OR  ORGANIZATION  OR
CORPORATION SHALL BE OBLIGATED TO PAY SUCH CLAIM OR BILL FOR SERVICES AT
THE HIGHER OF EITHER A RATE ESTABLISHED BY THE COMMISSIONER OF HEALTH OR
A RATE NEGOTIATED BY THE INSURER IN ACCORDANCE WITH REGULATION.
  (d) For the purposes of this section:
  (1)  "policyholder" shall mean a person covered under such policy or a
representative designated by such person; and
  (2) "health care provider" shall mean an entity licensed or  certified
pursuant  to  article  twenty-eight,  thirty-six  or forty of the public
health law, a facility licensed pursuant to article nineteen or  thirty-
one  of  the  mental  hygiene law, a fiscal intermediary operating under
section three hundred sixty five-f of the social services law, AN  INDI-
VIDUAL  OR AGENCY APPROVED BY THE DEPARTMENT OF HEALTH PURSUANT TO TITLE
TWO-A OF ARTICLE TWENTY-FIVE OF THE PUBLIC HEALTH  LAW,  a  health  care
professional  licensed,  registered or certified pursuant to title eight
of  the  education  law,  a  dispenser  or  provider  of  pharmaceutical
products,  services  or  durable  medical equipment, or a representative
designated by such entity or person.
  (e) Nothing in this section shall in any way be deemed to  impair  any
right  available  to  the state to adjust the timing of its payments for
medical assistance pursuant to title  eleven  of  article  five  of  the
social  services law, or for child health insurance plan benefits pursu-
ant to title one-a of article twenty-five of the public  health  law  or
otherwise  be  deemed to require adjustment of payments by the state for
such medical assistance or child health insurance.

S. 6407--A                         33                         A. 9007--A

  (f) In any action brought  by  the  superintendent  pursuant  to  this
section  or article twenty-four of this chapter relating to this section
regarding payments for medical assistance pursuant to  title  eleven  of
article  five  of  the  social services law, child health insurance plan
benefits  pursuant  to  title one-a of article twenty-five of the public
health law, benefits under the voucher  insurance  program  pursuant  to
section  one  thousand one hundred twenty-one of this chapter, and bene-
fits under the New York state small business health  insurance  partner-
ship  program  pursuant  to  article nine-A of the public health law, it
shall be a mitigating factor that the insurer, corporation or  organiza-
tion  is owed any premium amounts, premium adjustments, stop-loss recov-
eries or other payments from the state or one  of  its  fiscal  interme-
diaries under any such program.
  (g)  Time  period  for  submission  of claims. (1) Except as otherwise
provided by law, health care  claims  must  be  initially  submitted  by
health  care  providers within one hundred twenty days after the date of
service to be valid and enforceable against an insurer  or  organization
or  corporation licensed or certified pursuant to article forty-three or
article forty-seven of this chapter or article forty-four of the  public
health  law.  Provided,  however,  that nothing in this subsection shall
preclude the parties from agreeing to a time period or other terms which
are more favorable to the health care provider. Provided  further  that,
in  connection  with  contracts  between  organizations  or corporations
licensed or certified pursuant to article forty-three of this chapter or
article forty-four of the public health law and  health  care  providers
for  the  provision of services pursuant to section three hundred sixty-
four-j or three hundred sixty-nine-ee of  the  social  services  law  or
title I-A of article twenty-five of the public health law, nothing here-
in  shall  be  deemed:  (i)  to  preclude the parties from agreeing to a
different time period but in no event less than ninety days; or (ii)  to
supersede  contract  provisions in existence at the time this subsection
takes effect except to the extent that  such  contracts  impose  a  time
period of less than ninety days.
  (2)  This  subsection  shall not abrogate any right or reduce or limit
any additional time period for claim submission provided by law or regu-
lation specifically applicable to coordination  of  benefits  in  effect
prior to the effective date of this subsection.
  (h)  (1)  An insurer or organization or corporation licensed or certi-
fied pursuant to article forty-three  or  article  forty-seven  of  this
chapter  or  article  forty-four of the public health law shall permit a
participating health care provider to request reconsideration of a claim
that is denied exclusively because it was untimely submitted pursuant to
subsection (g) of this section. The insurer or  organization  or  corpo-
ration  shall pay such claim pursuant to the provisions of paragraph two
of this subsection if the health  care  provider  can  demonstrate  both
that:  (i)  the health care provider's non-compliance was a result of an
unusual occurrence; and (ii) the health care provider has a  pattern  or
practice  of  timely  submitting claims in compliance with [subdivision]
SUBSECTION (g) of this section.
  (2) An insurer or organization or corporation  licensed  or  certified
pursuant  to  article forty-three or article forty-seven of this chapter
or article forty-four of the public health law may reduce the reimburse-
ment due to a health care provider for an untimely claim that  otherwise
meets  the requirements of paragraph one of this subsection by an amount
not to exceed twenty-five percent of the amount  that  would  have  been
paid had the claim been submitted in a timely manner; provided, however,

S. 6407--A                         34                         A. 9007--A

that  nothing  in  this subsection shall preclude a health care provider
and an insurer or organization or corporation from agreeing to a  lesser
reduction.  The  provisions  of  this  subsection shall not apply to any
claim submitted three hundred sixty-five days after the date of service,
in  which  case  the insurer or organization or corporation may deny the
claim in full.
  (i) Except where the parties have developed  a  mutually  agreed  upon
process for the reconciliation of coding disputes that includes a review
of  submitted  medical  records  to  ascertain  the  correct  coding for
payment, a general hospital certified pursuant to  article  twenty-eight
of  the  public health law shall, upon receipt of payment of a claim for
which payment has been adjusted  based  on  a  particular  coding  to  a
patient  including  the  assignment of diagnosis and procedure, have the
opportunity to submit the affected claim with medical records supporting
the hospital's initial coding of the claim within thirty days of receipt
of payment. Upon receipt of such  medical  records,  an  insurer  or  an
organization  or  corporation  licensed or certified pursuant to article
forty-three or forty-seven of this chapter or article forty-four of  the
public health law shall review such information to ascertain the correct
coding  for  payment  and process the claim in accordance with the time-
frames set forth in subsection (a) of this section.  In  the  event  the
insurer,  organization,  or  corporation  processes the claim consistent
with its initial determination, such decision shall be accompanied by  a
statement  of the insurer, organization or corporation setting forth the
specific reasons why the initial adjustment was appropriate. An insurer,
organization, or corporation that increases the  payment  based  on  the
information  submitted  by  the  general hospital, but fails to do so in
accordance with the timeframes set  forth  in  subsection  (a)  of  this
section,  shall  pay  to  the general hospital interest on the amount of
such increase at the rate  set  by  the  commissioner  of  taxation  and
finance for corporate taxes pursuant to paragraph one of subdivision (e)
of  section  one thousand ninety-six of the tax law, to be computed from
the end of the forty-five day period after  resubmission  of  the  addi-
tional medical record information. Provided, however, a failure to remit
timely  payment  shall  not  constitute  a  violation  of  this section.
Neither the initial or subsequent processing of the claim by the  insur-
er,  organization,  or  corporation  shall be deemed an adverse determi-
nation as defined in section four thousand nine hundred of this  chapter
if  based  solely  on a coding determination. Nothing in this subsection
shall apply to those instances in which the insurer or organization,  or
corporation has a reasonable suspicion of fraud or abuse.
  (j) An insurer or an organization or corporation licensed or certified
pursuant  to article forty-three or forty-seven of this chapter or arti-
cle forty-four of the public health law or a student health plan  estab-
lished  or maintained pursuant to section one thousand one hundred twen-
ty-four of this chapter shall accept claims submitted by a  policyholder
or  covered person, in writing, including through the internet, by elec-
tronic mail or by facsimile.
  S 7. Section 3235-a of the insurance law, as added  by  section  3  of
part  C  of  chapter 1 of the laws of 2002, subsection (c) as amended by
section 17 of part A of chapter 56 of the laws of 2012,  is  amended  to
read as follows:
  S  3235-a.  Payment  for early intervention services. (a) No policy of
accident and health insurance, including contracts  issued  pursuant  to
article  forty-three  of this chapter, shall exclude coverage for other-
wise covered services solely on the basis that the  services  constitute

S. 6407--A                         35                         A. 9007--A

early  intervention  program services under title two-A of article twen-
ty-five of the public health law.
  (b)  Where  a  policy  of  accident  and health insurance, including a
contract  issued  pursuant  to  article  forty-three  of  this  chapter,
provides coverage for an early intervention program service, such cover-
age shall not be applied against any maximum annual or lifetime monetary
limits  set  forth  in  such  policy or contract. Visit limitations [and
other terms and conditions of the policy]  will  continue  to  apply  to
early  intervention  services. However, any visits used for early inter-
vention program services shall not reduce the number of visits otherwise
available under the policy or contract for such  services.    WHEN  SUCH
POLICY  OF  ACCIDENT  AND  HEALTH INSURANCE, INCLUDING A CONTRACT ISSUED
PURSUANT TO ARTICLE FORTY-THREE AND SECTION  ELEVEN  HUNDRED  TWENTY  OF
THIS  CHAPTER,  PROVIDES  COVERAGE  FOR  ESSENTIAL  HEALTH  BENEFITS, AS
DEFINED IN SECTION 1302(B) OF THE  AFFORDABLE  CARE  ACT,  42  U.S.C.  S
18022(B),  AND  CONSTITUTES  EARLY INTERVENTION SERVICES AS SET FORTH IN
PARAGRAPH (H)  OF  SUBDIVISION  SEVEN  OF  SECTION  TWENTY-FIVE  HUNDRED
FORTY-ONE  OF  THE  PUBLIC  HEALTH LAW, OR EARLY INTERVENTION EVALUATION
SERVICES AS SET FORTH IN SUBDIVISION NINE OF SECTION TWENTY-FIVE HUNDRED
FORTY-ONE OF THE PUBLIC HEALTH LAW, A WRITTEN ORDER, REFERRAL, RECOMMEN-
DATION FOR DIAGNOSTIC SERVICES TO DETERMINE PROGRAM ELIGIBILITY, OR  THE
INDIVIDUALIZED  FAMILY SERVICES PLAN CERTIFIED BY THE EARLY INTERVENTION
OFFICIAL, AS DEFINED IN SECTION TWENTY-FIVE  HUNDRED  FORTY-ONE  OF  THE
PUBLIC  HEALTH  LAW  OR SUCH OFFICIAL'S DESIGNEE, SHALL BE SUFFICIENT TO
MEET  PRECERTIFICATION,  PREAUTHORIZATION   AND/OR   MEDICAL   NECESSITY
REQUIREMENTS IMPOSED UNDER SUCH POLICY.
  (C)  REIMBURSEMENT  FOR ANY EARLY INTERVENTION PROGRAM SERVICE, AS SET
FORTH IN PARAGRAPH (H)  OF  SUBDIVISION  SEVEN  OF  SECTION  TWENTY-FIVE
HUNDRED FORTY-ONE OF THE PUBLIC HEALTH LAW, OR EARLY INTERVENTION EVALU-
ATION  SERVICE,  AS SET FORTH IN SUBDIVISION NINE OF SECTION TWENTY-FIVE
HUNDRED FORTY-ONE OF THE PUBLIC HEALTH LAW, THAT IS  A  COVERED  SERVICE
UNDER  THE POLICY OF ACCIDENT AND HEALTH INSURANCE, INCLUDING A CONTRACT
ISSUED PURSUANT TO ARTICLE FORTY-THREE OF THIS CHAPTER, SHALL BE AT  THE
HIGHER  OF  EITHER A RATE ESTABLISHED BY THE COMMISSIONER OF HEALTH OR A
RATE NEGOTIATED BY THE INSURER IN ACCORDANCE WITH REGULATION.
  (D) A POLICY OF ACCIDENT AND HEALTH INSURANCE,  INCLUDING  A  CONTRACT
ISSUED PURSUANT TO ARTICLE FORTY-THREE AND SECTION ELEVEN HUNDRED TWENTY
OF THIS CHAPTER, SHALL NOT DENY COVERAGE BASED ON THE FOLLOWING:
  (I) THE LOCATION WHERE SERVICES ARE PROVIDED;
  (II)  THE  DURATION  OF  THE CHILD'S CONDITION AND/OR THAT THE CHILD'S
CONDITION IS NOT AMENABLE TO SIGNIFICANT IMPROVEMENT  WITHIN  A  CERTAIN
PERIOD OF TIME AS SPECIFIED IN THE POLICY;
  (III)  THE SERVICE IS NOT A COVERED BENEFIT BUT IS AN ESSENTIAL HEALTH
BENEFIT AS DEFINED IN SECTION 1302(B) OF THE  AFFORDABLE  CARE  ACT,  42
U.S.C. S 18022(B); OR
  (IV)  THE  PROVIDER OF SERVICES IS NOT A PARTICIPATING PROVIDER IN THE
INSURER'S NETWORK.
  [(c)] (E) Any right of subrogation to benefits which a municipality or
provider 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  acci-
dent  and  health  insurance  policy  prior to receipt by the insurer of
written notice from the municipality or provider, as applicable.  IF  AN
INSURER  MAKES  PAYMENT  IN  WHOLE  OR  IN  PART FOR A CLAIM OR BILL FOR

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SERVICES RENDERED UNDER THE EARLY INTERVENTION  PROGRAM  ESTABLISHED  IN
TITLE  TWO-A  OF  ARTICLE  TWENTY-FIVE  OF  THE  PUBLIC HEALTH LAW, SUCH
PAYMENT SHALL BE MADE TO THE PROVIDER WHO SUBMITTED THE CLAIM AND NOT TO
THE  RENDERING  PROFESSIONAL  WHO  DELIVERED  THE SERVICE OR THE COVERED
PERSON REGARDLESS OF WHETHER SUCH PROVIDER IS IN THE INSURER'S  NETWORK.
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 writ-
ten request and notice authorizing such release. The service coordinator
shall provide such information to the  rendering  provider  assigned  to
provide services to the child.
  [(d)]  (F)    No  insurer, including a health maintenance organization
issued a certificate of authority under article forty-four of the public
health law and a corporation organized under article forty-three of this
chapter, shall refuse to issue an accident and health  insurance  policy
or  contract  or refuse to renew an accident and health insurance policy
or contract  solely  because  the  applicant  or  insured  is  receiving
services under the early intervention program.
  S  8.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016;  provided
however,  that  the amendments to section 3224-a of the insurance law as
made by section six of this act and the amendments to section 3235-a  of
the  insurance law as made by section seven of this act shall apply only
to policies, benefit packages, and contracts issued, renewed,  modified,
altered or amended on or after such date.

                                 PART F

  Section  1.  Section  2825-b  of  the  public  health law, as added by
section 2 of part J of chapter 60 of the laws of  2015,  is  amended  to
read as follows:
  S  2825-b.  [Oneida county health] HEALTH care facility transformation
program:  [Oneida county project] STATEWIDE. 1.  [An  Oneida  county]  A
STATEWIDE  health  care facility transformation program is hereby estab-
lished under the joint administration of the commissioner and the presi-
dent of the dormitory authority of the state of New York for the purpose
of strengthening and protecting continued access to health care services
in communities. The program shall provide capital funding in support  of
projects [located in the largest population center in Oneida county that
consolidate  multiple licensed health care facilities into an integrated
system of care] THAT REPLACE INEFFICIENT AND OUTDATED FACILITIES AS PART
OF A MERGER, CONSOLIDATION, ACQUISITION OR OTHER  SIGNIFICANT  CORPORATE
RESTRUCTURING  ACTIVITY  THAT  IS PART OF AN OVERALL TRANSFORMATION PLAN
INTENDED TO CREATE A FINANCIALLY SUSTAINABLE SYSTEM OF CARE.  The  issu-
ance of any bonds or notes hereunder shall be subject to the approval of
the  director  of  the  division  of the budget, and any projects funded
through the issuance of bonds or notes hereunder shall  be  approved  by
the  New  York state public authorities control board, as required under
section fifty-one of the public authorities law.
  2. The commissioner and the president of  the  authority  shall  enter
into  an  agreement,  subject to approval by the director of the budget,
and subject to section sixteen hundred eighty-r of the  public  authori-
ties  law, for the purposes of awarding, distributing, and administering
the funds made available pursuant to this section.  Such  funds  may  be
distributed  by  the commissioner and the president of the authority for
capital grants to general hospitals [for the purposes  of  consolidating

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multiple  licensed  health  care facilities into an integrated system of
care], RESIDENTIAL HEALTH  CARE  FACILITIES,  DIAGNOSTIC  AND  TREATMENT
CENTERS  AND  CLINICS  LICENSED  PURSUANT  TO THIS CHAPTER OR THE MENTAL
HYGIENE  LAW,  PRIMARY CARE PROVIDERS, AND HOME CARE PROVIDERS CERTIFIED
OR LICENSED PURSUANT TO ARTICLE THIRTY-SIX OF THIS CHAPTER, for  capital
non-operational works or purposes that support the purposes set forth in
this  section.  A  copy  of  such agreement, and any amendments thereto,
shall be provided to the chair of  the  senate  finance  committee,  the
chair  of the assembly ways and means committee, and the director of the
division of budget no later than thirty days prior to the release  of  a
request  for  applications  for  funding  under  this  program. Projects
awarded, IN WHOLE OR PART, under section  twenty-eight  hundred  twenty-
five  of  this  article  shall not be eligible for grants or awards made
available under this section.
  3. Notwithstanding  section  one  hundred  sixty-three  of  the  state
finance  law or any inconsistent provision of law to the contrary, up to
[three] TWO hundred million dollars of the funds appropriated  for  this
program  shall  be  awarded  without  a  competitive  bid or request for
proposal process for capital grants to health care providers  (hereafter
"applicants")  [located  in  the county of Oneida].  ELIGIBLE APPLICANTS
SHALL BE THOSE DEEMED BY THE COMMISSIONER TO BE A PROVIDER THAT FULFILLS
OR WILL FULFILL A HEALTH CARE  NEED  FOR  ACUTE  INPATIENT,  OUTPATIENT,
PRIMARY, HOME CARE OR RESIDENTIAL HEALTH CARE SERVICES IN A COMMUNITY.
  4.  In  determining awards for eligible applicants under this section,
the commissioner and the  president  of  the  authority  shall  consider
criteria including, but not limited to:
  (a)  the  extent to which the proposed capital project will contribute
to the integration of health care services and long term  sustainability
of  the  applicant  or  preservation of essential health services in the
community or communities served by the applicant;
  (b) the extent to which the proposed project  or  purpose  is  aligned
with  delivery  system  reform incentive payment ("DSRIP") program goals
and objectives;
  (c) CONSIDERATION OF GEOGRAPHIC DISTRIBUTION OF FUNDS;
  (D) the relationship between the proposed capital project and  identi-
fied community need;
  [(d)]  (E) THE EXTENT TO WHICH THE APPLICANT HAS ACCESS TO ALTERNATIVE
FINANCING;
  (F) the extent that the proposed capital project furthers the develop-
ment of primary care and other outpatient services;
  [(e)] (G) the extent to which the proposed  capital  project  benefits
Medicaid enrollees and uninsured individuals;
  [(f)]  (H) the extent to which the applicant has engaged the community
affected by the proposed capital project and the manner in which  commu-
nity engagement has shaped such capital project; and
  [(g)]  (I)  the extent to which the proposed capital project addresses
potential risk to patient safety and welfare.
  5. DISBURSEMENT OF AWARDS MADE  PURSUANT  TO  THIS  SECTION  SHALL  BE
CONDITIONED  ON  THE  AWARDEE  ACHIEVING CERTAIN PROCESS AND PERFORMANCE
METRICS AND MILESTONES AS DETERMINED  IN  THE  SOLE  DISCRETION  OF  THE
COMMISSIONER.  SUCH METRICS AND MILESTONES SHALL BE STRUCTURED TO ENSURE
THAT THE HEALTH CARE TRANSFORMATION AND PROVIDER SUSTAINABILITY GOALS OF
THE PROJECT ARE ACHIEVED, AND  SUCH  METRICS  AND  MILESTONES  SHALL  BE
INCLUDED IN GRANT DISBURSEMENT AGREEMENTS OR OTHER CONTRACTUAL DOCUMENTS
AS REQUIRED BY THE COMMISSIONER.

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  6.  The  department shall provide a report on a quarterly basis to the
chairs of the senate finance, assembly ways and means, senate health and
assembly health committees. Such reports shall  be  submitted  no  later
than  sixty  days  after the close of the quarter, and shall [conform to
the reporting requirements of subdivision twenty of section twenty-eight
hundred  seven  of this article, as applicable] INCLUDE, FOR EACH AWARD,
THE NAME OF THE APPLICANT, A DESCRIPTION OF THE PROJECT OR PURPOSE,  THE
AMOUNT  OF  THE  AWARD,  DISBURSEMENT DATE, AND STATUS OF ACHIEVEMENT OF
PROCESS AND PERFORMANCE METRICS AND MILESTONES PURSUANT  TO  SUBDIVISION
FIVE OF THIS SECTION.
  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, 2016.

                                 PART G

  Section 1. Section 2801-a of the  public  health  law  is  amended  by
adding a new subdivision 17 to read as follows:
  17.  (A) DIAGNOSTIC OR TREATMENT CENTERS ESTABLISHED TO PROVIDE HEALTH
CARE SERVICES WITHIN THE SPACE OF A RETAIL BUSINESS OPERATION, SUCH AS A
PHARMACY OR A STORE OPEN TO THE GENERAL PUBLIC, OR WITHIN SPACE USED  BY
AN  EMPLOYER FOR PROVIDING HEALTH CARE SERVICES TO ITS EMPLOYEES, MAY BE
OPERATED BY LEGAL ENTITIES FORMED UNDER THE LAWS OF  THE  STATE  OF  NEW
YORK:
  (I)  WHOSE  STOCKHOLDERS  OR  MEMBERS,  AS APPLICABLE, ARE NOT NATURAL
PERSONS;
  (II) WHOSE PRINCIPAL STOCKHOLDERS  AND  MEMBERS,  AS  APPLICABLE,  AND
CONTROLLING  PERSONS  COMPLY  WITH  ALL  APPLICABLE REQUIREMENTS OF THIS
SECTION; AND
  (III) THAT DEMONSTRATE, TO THE SATISFACTION OF THE PUBLIC  HEALTH  AND
HEALTH PLANNING COUNCIL, SUFFICIENT EXPERIENCE AND EXPERTISE IN DELIVER-
ING HIGH QUALITY HEALTH CARE SERVICES, AND FURTHER DEMONSTRATE A COMMIT-
MENT  TO OPERATE LIMITED SERVICES CLINICS IN MEDICALLY UNDERSERVED AREAS
OF THE STATE. SUCH DIAGNOSTIC AND TREATMENT CENTERS SHALL BE REFERRED TO
IN THIS SECTION AS "LIMITED SERVICES CLINICS".
  (B) FOR PURPOSES OF PARAGRAPH (A)  OF  THIS  SUBDIVISION,  THE  PUBLIC
HEALTH AND HEALTH PLANNING COUNCIL SHALL ADOPT AND AMEND RULES AND REGU-
LATIONS,  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, TO
ADDRESS ANY MATTER IT DEEMS PERTINENT TO THE  ESTABLISHMENT  OF  LIMITED
SERVICES  CLINICS.  SUCH RULES AND REGULATIONS SHALL INCLUDE, BUT NOT BE
LIMITED TO, PROVISIONS GOVERNING OR RELATING TO:
  (I) ANY DIRECT OR INDIRECT CHANGES OR TRANSFERS OF OWNERSHIP INTERESTS
OR VOTING RIGHTS IN SUCH ENTITIES OR THEIR STOCKHOLDERS OR  MEMBERS,  AS
APPLICABLE;
  (II)  PUBLIC HEALTH AND HEALTH PLANNING COUNCIL APPROVAL OF ANY CHANGE
IN CONTROLLING INTERESTS, PRINCIPAL STOCKHOLDERS,  CONTROLLING  PERSONS,
PARENT COMPANY OR SPONSORS;
  (III)  OVERSIGHT  OF  THE OPERATOR AND ITS SHAREHOLDERS OR MEMBERS, AS
APPLICABLE, INCLUDING LOCAL GOVERNANCE OF THE LIMITED SERVICES  CLINICS;
AND
  (IV)  THE  CHARACTER AND COMPETENCE AND QUALIFICATIONS OF, AND CHANGES
RELATING TO, THE DIRECTORS AND OFFICERS OF THE OPERATOR AND ITS  PRINCI-
PAL STOCKHOLDERS, CONTROLLING PERSONS, PARENT COMPANY OR SPONSORS.
  (C) THE FOLLOWING PROVISIONS OF THIS SECTION SHALL NOT APPLY TO LIMIT-
ED SERVICES CLINICS:
  (I) PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION;

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  (II)  PARAGRAPH  (B) OF SUBDIVISION THREE OF THIS SECTION, RELATING TO
STOCKHOLDERS AND MEMBERS OTHER THAN PRINCIPAL STOCKHOLDERS AND PRINCIPAL
MEMBERS;
  (III)  PARAGRAPH  (C) OF SUBDIVISION FOUR OF THIS SECTION, RELATING TO
THE DISPOSITION OF STOCK OR VOTING RIGHTS; AND
  (IV) PARAGRAPH (E) OF SUBDIVISION FOUR OF THIS  SECTION,  RELATING  TO
THE OWNERSHIP OF STOCK OR MEMBERSHIP.
  (D)  A  LIMITED  SERVICES  CLINIC SHALL BE DEEMED TO BE A "HEALTH CARE
PROVIDER" FOR THE PURPOSES OF TITLE TWO-D OF ARTICLE TWO OF  THIS  CHAP-
TER.  A  PRESCRIBER PRACTICING IN A LIMITED SERVICES CLINIC SHALL NOT BE
DEEMED TO BE IN THE EMPLOY OF A PHARMACY OR PRACTICING IN A HOSPITAL FOR
PURPOSES OF SUBDIVISION TWO OF SECTION SIXTY-EIGHT HUNDRED SEVEN OF  THE
EDUCATION LAW.
  (E) THE COMMISSIONER SHALL PROMULGATE REGULATIONS SETTING FORTH OPERA-
TIONAL  AND PHYSICAL PLANT STANDARDS FOR LIMITED SERVICES CLINICS, WHICH
MAY BE DIFFERENT FROM THE REGULATIONS OTHERWISE APPLICABLE TO DIAGNOSTIC
OR TREATMENT CENTERS, INCLUDING, BUT NOT LIMITED TO:
  (I) REQUIRING  THAT  LIMITED  SERVICES  CLINICS  ATTAIN  AND  MAINTAIN
ACCREDITATION  AND  REQUIRING  TIMELY  REPORTING  TO THE DEPARTMENT IF A
LIMITED SERVICES CLINIC LOSES ITS ACCREDITATION;
  (II) DESIGNATING OR LIMITING THE TREATMENTS AND SERVICES THAT  MAY  BE
PROVIDED, INCLUDING:
  (A)  LIMITING  THE  SCOPE  OF SERVICES TO THE FOLLOWING, PROVIDED THAT
SUCH SERVICES SHALL NOT INCLUDE MONITORING  OR  TREATMENT  AND  SERVICES
OVER PROLONGED PERIODS:
  (1)  THE  PROVISION  OF  TREATMENT  AND SERVICES TO PATIENTS FOR MINOR
ACUTE EPISODIC ILLNESSES OR CONDITIONS;
  (2) EPISODIC PREVENTIVE AND WELLNESS TREATMENTS AND SERVICES  SUCH  AS
IMMUNIZATIONS; AND
  (3)  TREATMENT  AND SERVICES FOR MINOR TRAUMAS THAT ARE NOT REASONABLY
LIKELY TO BE LIFE THREATENING OR  POTENTIALLY  DISABLING  IF  AMBULATORY
CARE WITHIN THE CAPACITY OF THE LIMITED SERVICES CLINIC IS PROVIDED;
  (B)  PROHIBITING  THE  PROVISION  OF  SERVICES TO PATIENTS TWENTY-FOUR
MONTHS OF AGE OR YOUNGER;
  (C) THE PROVISION OF SPECIFIC IMMUNIZATIONS TO PATIENTS  YOUNGER  THAN
EIGHTEEN YEARS OF AGE;
  (III)  REQUIRING LIMITED SERVICES CLINICS TO ACCEPT WALK-INS AND OFFER
EXTENDED BUSINESS HOURS;
  (IV) SETTING FORTH GUIDELINES FOR ADVERTISING AND SIGNAGE, WHICH SHALL
INCLUDE  SIGNAGE  INDICATING  THAT  PRESCRIPTIONS  AND  OVER-THE-COUNTER
SUPPLIES MAY BE PURCHASED BY A PATIENT FROM ANY BUSINESS AND DO NOT NEED
TO BE PURCHASED ON-SITE;
  (V)  SETTING  FORTH  GUIDELINES FOR DISCLOSURE OF OWNERSHIP INTERESTS,
INFORMED CONSENT, RECORD KEEPING, REFERRAL FOR TREATMENT AND  CONTINUITY
OF  CARE,  CASE  REPORTING TO THE PATIENT'S PRIMARY CARE OR OTHER HEALTH
CARE PROVIDERS, DESIGN, CONSTRUCTION, FIXTURES, AND EQUIPMENT; AND
  (VI) REQUIRING THE OPERATOR TO DIRECTLY EMPLOY A MEDICAL DIRECTOR  WHO
IS  LICENSED  AND CURRENTLY REGISTERED TO PRACTICE MEDICINE IN THE STATE
OF NEW YORK.
  (F) SUCH REGULATIONS ALSO SHALL PROMOTE AND STRENGTHEN PRIMARY CARE BY
REQUIRING LIMITED SERVICES CLINICS TO:
  (I) INQUIRE OF EACH PATIENT WHETHER HE  OR  SHE  HAS  A  PRIMARY  CARE
PROVIDER;
  (II)  MAINTAIN  AND  REGULARLY  UPDATE  A  LIST  OF LOCAL PRIMARY CARE
PROVIDERS AND PROVIDE SUCH LIST TO EACH PATIENT WHO INDICATES THAT HE OR
SHE DOES NOT HAVE A PRIMARY CARE PROVIDER;

S. 6407--A                         40                         A. 9007--A

  (III) REFER PATIENTS TO THEIR PRIMARY CARE PROVIDERS OR  OTHER  HEALTH
CARE PROVIDERS AS APPROPRIATE;
  (IV)  TRANSMIT,  BY  ELECTRONIC  MEANS  WHENEVER  POSSIBLE, RECORDS OF
SERVICES TO PATIENTS' PRIMARY CARE PROVIDERS;
  (V) EXECUTE PARTICIPATION AGREEMENTS WITH HEALTH INFORMATION ORGANIZA-
TIONS, ALSO KNOWN AS  QUALIFIED  ENTITIES,  PURSUANT  TO  WHICH  LIMITED
SERVICES  CLINICS  AGREE TO PARTICIPATE IN THE STATEWIDE HEALTH INFORMA-
TION NETWORK FOR NEW YORK (SHIN-NY); AND
  (VI) DECLINE TO TREAT ANY PATIENT FOR THE SAME  CONDITION  OR  ILLNESS
MORE THAN THREE TIMES IN A YEAR.
  (G) A LIMITED SERVICES CLINIC SHALL PROVIDE TREATMENT WITHOUT DISCRIM-
INATION AS TO SOURCE OF PAYMENT.
  (H)  NOTWITHSTANDING  THIS  SUBDIVISION AND OTHER LAW OR REGULATION TO
THE CONTRARY AND SUBJECT  TO  THE  PROVISIONS  OF  SECTION  TWENTY-EIGHT
HUNDRED TWO OF THIS ARTICLE, A DIAGNOSTIC AND TREATMENT CENTER, COMMUNI-
TY  HEALTH  CENTER  OR  FEDERALLY  QUALIFIED HEALTH CENTER MAY OPERATE A
LIMITED SERVICES CLINIC WHICH MEETS THE REGULATION PROMULGATED  PURSUANT
TO  PARAGRAPH  (E)  OF  THIS  SUBDIVISION REGARDING OPERATIONAL PHYSICAL
PLANT STANDARDS.
  (I) IN DETERMINING WHETHER  TO  APPROVE  ADDITIONAL  LIMITED  SERVICES
CLINIC LOCATIONS, THE DEPARTMENT SHALL CONSIDER WHETHER THE OPERATOR HAS
FULFILLED   ITS  COMMITMENT  TO  OPERATE  LIMITED  SERVICES  CLINICS  IN
MEDICALLY UNDERSERVED AREAS OF THE STATE.
  S 2. This act shall take effect immediately.

                                 PART H

  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, as amended
by section 1 of part JJ of chapter 58 of the laws of 2015, 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,
[2016]  2019;  and for programs located within the city of New York, the
applicable fiscal periods shall be July 1, 2003 through  June  30,  2010
and July 1, 2011 through June 30, [2016] 2019.
  S 2. This act shall take effect immediately.

                                 PART I

  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  K  of
chapter 56 of the laws of 2012, are amended to read as follows:
  S  19. Notwithstanding any other provision of law, the commissioner of
mental health shall, until July 1, [2016] 2020, be solely authorized, in

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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, [2016] 2020, 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, 2016.

                                 PART J

  Section  1.  Subdivision  a of section 9 of chapter 420 of the laws of
2002 amending the education law relating to  the  profession  of  social
work,  as  amended  by section 1 of part AA of chapter 57 of the laws of
2013, is amended to read as follows:
  a. Nothing in this act shall  prohibit  or  limit  the  activities  or
services on the part of any person in the employ of a program or service
operated,  regulated,  funded,  or  approved by the department of mental
hygiene, the office of children  and  family  services,  the  office  of
temporary  and  disability assistance, the department of corrections and
community supervision, the state office for the aging, the department of
health, or a local governmental unit as that term is defined in  article
41 of the mental hygiene law or a social services district as defined in
section  61  of the social services law, provided, however, this section
shall not authorize the use of any title authorized pursuant to  article
154  of  the  education  law,  except  that this section shall be deemed
repealed on July 1, [2016] 2021.
  S 2. Subdivision a of section 17-a of chapter 676 of the laws of  2002
amending  the  education  law relating to the practice of psychology, as
amended by section 2 of part AA of chapter 57 of the laws  of  2013,  is
amended to read as follows:
  a.  In  relation to activities and services provided under article 153
of the education law, nothing in this act shall prohibit or  limit  such
activities  or  services  on  the  part of any person in the employ of a
program or service operated,  regulated,  funded,  or  approved  by  the
department  of  mental  hygiene  or  the  office  of children and family
services, or a local governmental unit as that term is defined in  arti-
cle  41  of  the  mental  hygiene  law  or a social services district as
defined in section 61 of the social services law.  In relation to activ-
ities and services provided under article  163  of  the  education  law,
nothing  in this act shall prohibit or limit such activities or services
on the part of any person in the employ of a program  or  service  oper-
ated,  regulated,  funded,  or  approved  by  the  department  of mental
hygiene, the office of children and family services, the  department  of
corrections and community supervision, the office of temporary and disa-
bility  assistance, the state office for the aging and the department of
health or a local governmental unit as that term is defined  in  article
41 of the mental hygiene law or a social services district as defined in
section  61 of the social services law, pursuant to authority granted by
law. This section shall not authorize the use of  any  title  authorized

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pursuant to article 153 or 163 of the education law by any such employed
person,  except  as  otherwise  provided  by such articles respectively.
This section shall be deemed repealed July 1, [2016] 2021.
  S 3. Section 16 of chapter 130 of the laws of 2010 amending the educa-
tion law and other laws relating to the registration of entities provid-
ing   certain   professional  services  and  the  licensure  of  certain
professions, as amended by section 3 of part AA of  chapter  57  of  the
laws of 2013, is amended to read as follows:
  S  16.  This act shall take effect immediately; provided that sections
thirteen, fourteen and fifteen of this act shall take effect immediately
and shall be deemed to have been in full force and effect on  and  after
June  1,  2010 and such sections shall be deemed repealed July 1, [2016]
2021; provided further that the amendments to section 9 of  chapter  420
of  the  laws of 2002 amending the education law relating to the profes-
sion of social work made by section thirteen of this act shall repeal on
the same date as such section repeals; provided further that the  amend-
ments  to  section  17-a of chapter 676 of the laws of 2002 amending the
education law relating to the practice of  psychology  made  by  section
fourteen  of  this  act  shall  repeal  on the same date as such section
repeals.
  S 4. This act shall take effect immediately.

                                 PART K

  Section 1. Subdivision 9 of section 730.10 of the  criminal  procedure
law,  as added by section 1 of part Q of chapter 56 of the laws of 2012,
is amended 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; [or] (b) 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
provided,  however,  that  any such hospital that is not operated by the
state shall qualify as an "appropriate institution" only pursuant to the
terms of an agreement between the commissioner and the hospital; OR  (C)
A  MENTAL  HEALTH UNIT OPERATING WITHIN A CORRECTIONAL FACILITY OR LOCAL
CORRECTIONAL FACILITY PROVIDED HOWEVER THAT ANY SUCH MENTAL HEALTH  UNIT
OPERATING  WITHIN  A  LOCAL  CORRECTIONAL  FACILITY  SHALL QUALIFY AS AN
"APPROPRIATE INSTITUTION" ONLY PURSUANT TO THE  TERMS  OF  AN  AGREEMENT
BETWEEN THE COMMISSIONER AND THE SHERIFF AND ANY SUCH MENTAL HEALTH UNIT
OPERATING  WITHIN A CORRECTIONAL FACILITY SHALL QUALIFY AS AN "APPROPRI-
ATE INSTITUTION" ONLY PURSUANT TO THE TERMS OF AN AGREEMENT BETWEEN  THE
COMMISSIONER  AND  THE COMMISSIONER OF THE DEPARTMENT OF CORRECTIONS AND
COMMUNITY SUPERVISION. Nothing in this article  shall  be  construed  as
requiring a hospital, CORRECTIONAL FACILITY OR LOCAL CORRECTIONAL FACIL-
ITY  to  consent  to  providing  care  and treatment to an incapacitated
person at such hospital, CORRECTIONAL  FACILITY  OR  LOCAL  CORRECTIONAL
FACILITY.
  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, 2016.

                                 PART L

  Section 1. The mental hygiene law is amended by adding a  new  section
16.25 to read as follows:
S 16.25 TEMPORARY OPERATOR.

S. 6407--A                         43                         A. 9007--A

  (A) FOR THE PURPOSES OF THIS SECTION:
  (1)  "ESTABLISHED  OPERATOR"  SHALL MEAN THE PROVIDER OF SERVICES THAT
HAS BEEN ESTABLISHED AND ISSUED AN  OPERATING  CERTIFICATE  PURSUANT  TO
THIS ARTICLE.
  (2)  "EXTRAORDINARY  FINANCIAL  ASSISTANCE"  SHALL  MEAN  STATE  FUNDS
PROVIDED TO, OR REQUESTED BY, A  PROGRAM  FOR  THE  EXPRESS  PURPOSE  OF
PREVENTING  THE  CLOSURE  OF  THE  PROGRAM  THAT  THE COMMISSIONER FINDS
PROVIDES ESSENTIAL AND NECESSARY SERVICES WITHIN THE COMMUNITY.
  (3) "SERIOUS FINANCIAL INSTABILITY" SHALL INCLUDE BUT NOT  BE  LIMITED
TO  DEFAULTING  OR  VIOLATING  MATERIAL COVENANTS OF BOND ISSUES, MISSED
MORTGAGE PAYMENTS, MISSED RENT PAYMENTS, A PATTERN OF  UNTIMELY  PAYMENT
OF DEBTS, FAILURE TO PAY ITS EMPLOYEES OR VENDORS, INSUFFICIENT FUNDS TO
MEET  THE GENERAL OPERATING EXPENSES OF THE PROGRAM, FAILURE TO MAINTAIN
REQUIRED DEBT SERVICE COVERAGE RATIOS  AND/OR,  AS  APPLICABLE,  FACTORS
THAT  HAVE  TRIGGERED A WRITTEN EVENT OF DEFAULT NOTICE TO THE OFFICE BY
THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK.
  (4) "OFFICE" SHALL MEAN THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISA-
BILITIES.
  (5) "TEMPORARY OPERATOR" SHALL MEAN ANY PROVIDER OF SERVICES THAT  HAS
BEEN  ESTABLISHED  AND  ISSUED AN OPERATING CERTIFICATE PURSUANT TO THIS
ARTICLE OR WHICH IS DIRECTLY OPERATED BY THE OFFICE, THAT:
  A. AGREES TO PROVIDE SERVICES CERTIFIED PURSUANT TO THIS ARTICLE ON  A
TEMPORARY  BASIS  IN THE BEST INTERESTS OF ITS INDIVIDUALS SERVED BY THE
PROGRAM; AND
  B. HAS A HISTORY OF COMPLIANCE WITH APPLICABLE LAWS, RULES, AND  REGU-
LATIONS AND A RECORD OF PROVIDING CARE OF GOOD QUALITY, AS DETERMINED BY
THE COMMISSIONER; AND
  C.  PRIOR TO APPOINTMENT AS TEMPORARY OPERATOR, DEVELOPS A PLAN DETER-
MINED TO BE SATISFACTORY BY THE COMMISSIONER TO  ADDRESS  THE  PROGRAM'S
DEFICIENCIES.
  (B)  (1)  IN  THE  EVENT THAT: (I) THE ESTABLISHED OPERATOR IS SEEKING
EXTRAORDINARY FINANCIAL ASSISTANCE; (II) OFFICE  COLLECTED  DATA  DEMON-
STRATES  THAT THE ESTABLISHED OPERATOR IS EXPERIENCING SERIOUS FINANCIAL
INSTABILITY ISSUES; (III) OFFICE COLLECTED DATA  DEMONSTRATES  THAT  THE
ESTABLISHED OPERATOR'S BOARD OF DIRECTORS OR ADMINISTRATION IS UNABLE OR
UNWILLING  TO ENSURE THE PROPER OPERATION OF THE PROGRAM; OR (IV) OFFICE
COLLECTED DATA INDICATES THERE ARE CONDITIONS THAT SERIOUSLY ENDANGER OR
JEOPARDIZE CONTINUED ACCESS TO NECESSARY SERVICES WITHIN THE  COMMUNITY,
THE  COMMISSIONER  SHALL  NOTIFY  THE ESTABLISHED OPERATOR OF HIS OR HER
INTENTION TO APPOINT A TEMPORARY OPERATOR TO ASSUME SOLE  RESPONSIBILITY
FOR  THE  PROVIDER OF SERVICES' OPERATIONS FOR A LIMITED PERIOD OF TIME.
THE APPOINTMENT OF A TEMPORARY OPERATOR SHALL BE EFFECTUATED PURSUANT TO
THIS SECTION, AND SHALL BE IN ADDITION TO ANY OTHER REMEDIES PROVIDED BY
LAW.
  (2) THE ESTABLISHED OPERATOR 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  NECES-
SARY,  ENTER  INTO  AN  AGREEMENT  WITH THE ESTABLISHED OPERATOR FOR THE
APPOINTMENT OF A TEMPORARY OPERATOR TO RESTORE OR MAINTAIN THE PROVISION
OF QUALITY CARE TO THE INDIVIDUALS UNTIL THE  ESTABLISHED  OPERATOR  CAN
RESUME  OPERATIONS  WITHIN THE DESIGNATED TIME PERIOD OR OTHER ACTION IS
TAKEN AS DESCRIBED IN SECTION 16.17 OF THIS ARTICLE.
  (C) (1) A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION  SHALL
USE HIS OR HER BEST EFFORTS TO IMPLEMENT THE PLAN DEEMED SATISFACTORY BY
THE COMMISSIONER TO CORRECT OR ELIMINATE ANY DEFICIENCIES IN THE PROGRAM

S. 6407--A                         44                         A. 9007--A

AND TO PROMOTE THE QUALITY AND ACCESSIBILITY OF SERVICES IN THE COMMUNI-
TY SERVED BY THE PROVIDER OF SERVICES.
  (2)  DURING THE TERM OF APPOINTMENT, THE TEMPORARY OPERATOR SHALL HAVE
THE AUTHORITY TO DIRECT THE STAFF OF THE ESTABLISHED OPERATOR AS  NECES-
SARY  TO  APPROPRIATELY  PROVIDE SERVICES FOR INDIVIDUALS. THE TEMPORARY
OPERATOR SHALL, DURING THIS PERIOD, PROVIDE SERVICES IN SUCH A MANNER AS
TO PROMOTE SAFETY AND THE QUALITY AND ACCESSIBILITY OF SERVICES  IN  THE
COMMUNITY  SERVED  BY  THE  ESTABLISHED OPERATOR UNTIL EITHER THE ESTAB-
LISHED OPERATOR CAN RESUME OPERATIONS OR UNTIL THE  OFFICE  REVOKES  THE
OPERATING CERTIFICATE FOR THE SERVICES ISSUED UNDER THIS ARTICLE.
  (3) THE ESTABLISHED OPERATOR SHALL GRANT ACCESS TO THE TEMPORARY OPER-
ATOR  TO  THE  ESTABLISHED  OPERATOR'S  ACCOUNTS AND RECORDS IN ORDER TO
ADDRESS ANY DEFICIENCIES RELATED TO  THE  PROGRAM  EXPERIENCING  SERIOUS
FINANCIAL  INSTABILITY  OR  AN ESTABLISHED OPERATOR REQUESTING FINANCIAL
ASSISTANCE IN ACCORDANCE WITH THIS SECTION. THE TEMPORARY OPERATOR SHALL
APPROVE ANY FINANCIAL DECISION RELATED TO AN ESTABLISHED PROVIDER'S  DAY
TO  DAY  OPERATIONS  OR  THE  ESTABLISHED  PROVIDER'S ABILITY TO PROVIDE
SERVICES.
  (4) THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE ANY BOND.  NO
SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRISING THE ESTAB-
LISHED OPERATOR OR CONTAINED WITHIN THE ESTABLISHED OPERATOR OR  IN  ANY
FIXTURE  OF  THE PROGRAM, SHALL BE IMPAIRED OR DIMINISHED IN PRIORITY BY
THE TEMPORARY OPERATOR. NEITHER THE TEMPORARY OPERATOR  NOR  THE  OFFICE
SHALL  ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION OF PROPER-
TY.
  (D) THE TEMPORARY OPERATOR SHALL BE ENTITLED TO A REASONABLE  FEE,  AS
DETERMINED BY THE COMMISSIONER AND SUBJECT TO THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, AND NECESSARY EXPENSES INCURRED WHILE
SERVING  AS A TEMPORARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE
ONLY IN ITS CAPACITY AS TEMPORARY OPERATOR  FOR  INJURY  TO  PERSON  AND
PROPERTY  BY REASON OF ITS OPERATION OF SUCH PROGRAM; NO LIABILITY SHALL
INCUR IN THE TEMPORARY OPERATOR'S PERSONAL CAPACITY,  EXCEPT  FOR  GROSS
NEGLIGENCE AND INTENTIONAL ACTS.
  (E)  (1) THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR
SHALL NOT EXCEED NINETY DAYS. AFTER NINETY  DAYS,  IF  THE  COMMISSIONER
DETERMINES  THAT  TERMINATION  OF  THE  TEMPORARY  OPERATOR  WOULD CAUSE
SIGNIFICANT DETERIORATION OF THE QUALITY OF, OR ACCESS TO, CARE  IN  THE
COMMUNITY OR THAT REAPPOINTMENT IS NECESSARY TO CORRECT THE DEFICIENCIES
THAT REQUIRED THE APPOINTMENT OF THE TEMPORARY OPERATOR, THE COMMISSION-
ER  MAY AUTHORIZE AN ADDITIONAL NINETY-DAY TERM.  HOWEVER, SUCH AUTHORI-
ZATION SHALL INCLUDE THE COMMISSIONER'S REQUIREMENTS FOR  CONCLUSION  OF
THE TEMPORARY OPERATORSHIP TO BE SATISFIED WITHIN THE ADDITIONAL TERM.
  (2)  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:
  A. THE ACTIONS TAKEN DURING THE APPOINTMENT TO ADDRESS THE  IDENTIFIED
PROGRAM DEFICIENCIES, THE RESUMPTION OF PROGRAM OPERATIONS BY THE ESTAB-
LISHED OPERATOR, OR THE REVOCATION OF AN OPERATING CERTIFICATE ISSUED BY
THE OFFICE;
  B.  OBJECTIVES  FOR  THE CONTINUATION OF THE TEMPORARY OPERATORSHIP IF
NECESSARY AND A SCHEDULE FOR SATISFACTION OF SUCH OBJECTIVES; AND
  C. IF APPLICABLE, THE RECOMMENDED ACTIONS FOR THE ONGOING PROVISION OF
SERVICES SUBSEQUENT TO THE TEMPORARY OPERATORSHIP.
  (3) THE TERM OF THE INITIAL APPOINTMENT AND OF  ANY  SUBSEQUENT  REAP-
POINTMENT  MAY  BE  TERMINATED PRIOR TO THE EXPIRATION OF THE DESIGNATED

S. 6407--A                         45                         A. 9007--A

TERM, IF THE ESTABLISHED OPERATOR AND THE COMMISSIONER AGREE ON  A  PLAN
OF CORRECTION AND THE IMPLEMENTATION OF SUCH PLAN.
  (F)  (1)  THE  COMMISSIONER  SHALL,  UPON MAKING A DETERMINATION OF AN
INTENTION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH  ONE  OF
SUBDIVISION  (B)  OF  THIS SECTION, CAUSE THE ESTABLISHED OPERATOR TO BE
NOTIFIED OF THE INTENTION BY REGISTERED OR CERTIFIED MAIL  ADDRESSED  TO
THE  PRINCIPAL  OFFICE  OF  THE  ESTABLISHED OPERATOR. SUCH NOTIFICATION
SHALL INCLUDE A DETAILED DESCRIPTION  OF  THE  FINDINGS  UNDERLYING  THE
INTENTION  TO  APPOINT  A TEMPORARY OPERATOR, AND THE DATE AND TIME OF A
REQUIRED MEETING WITH THE COMMISSIONER AND/OR HIS OR HER DESIGNEE WITHIN
TEN BUSINESS DAYS OF THE RECEIPT OF SUCH NOTICE. AT  SUCH  MEETING,  THE
ESTABLISHED  OPERATOR  SHALL  HAVE THE OPPORTUNITY TO REVIEW AND DISCUSS
ALL RELEVANT FINDINGS. AT SUCH MEETING, THE COMMISSIONER AND THE  ESTAB-
LISHED OPERATOR SHALL ATTEMPT TO DEVELOP A MUTUALLY SATISFACTORY PLAN OF
CORRECTION  AND  SCHEDULE FOR IMPLEMENTATION. IN SUCH EVENT, THE COMMIS-
SIONER SHALL NOTIFY THE ESTABLISHED OPERATOR THAT THE COMMISSIONER  WILL
ABSTAIN  FROM APPOINTING A TEMPORARY OPERATOR CONTINGENT UPON THE ESTAB-
LISHED OPERATOR  REMEDIATING  THE  IDENTIFIED  DEFICIENCIES  WITHIN  THE
AGREED UPON TIMEFRAME.
  (2)  SHOULD THE COMMISSIONER AND THE ESTABLISHED OPERATOR BE UNABLE TO
ESTABLISH A PLAN OF CORRECTION PURSUANT TO PARAGRAPH ONE OF THIS  SUBDI-
VISION,  OR  SHOULD  THE  ESTABLISHED  OPERATOR  FAIL  TO RESPOND TO THE
COMMISSIONER'S INITIAL NOTIFICATION, THERE SHALL  BE  AN  ADMINISTRATIVE
HEARING ON THE COMMISSIONER'S DETERMINATION TO APPOINT A TEMPORARY OPER-
ATOR  TO  BEGIN NO LATER THAN THIRTY DAYS FROM THE DATE OF THE NOTICE TO
THE ESTABLISHED OPERATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED  TO
THE  ISSUE OF WHETHER THE DETERMINATION OF THE COMMISSIONER TO APPOINT A
TEMPORARY OPERATOR IS SUPPORTED BY SUBSTANTIAL EVIDENCE. A COPY  OF  THE
DECISION SHALL BE SENT TO THE ESTABLISHED OPERATOR.
  (3)  IF  THE  DECISION  TO APPOINT A TEMPORARY OPERATOR IS UPHELD SUCH
TEMPORARY OPERATOR SHALL BE APPOINTED AS  SOON  AS  IS  PRACTICABLE  AND
SHALL PROVIDE SERVICES PURSUANT TO THE PROVISIONS OF THIS SECTION.
  (G)  NOTWITHSTANDING  THE  APPOINTMENT  OF  A  TEMPORARY OPERATOR, THE
ESTABLISHED OPERATOR SHALL REMAIN OBLIGATED FOR THE CONTINUED  PROVISION
OF  SERVICES.  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 OF THE PROGRAM HEREUNDER;
NOR SHALL ANYTHING CONTAINED IN THIS SECTION  BE  CONSTRUED  TO  SUSPEND
DURING  THE  TERM  OF  THE  APPOINTMENT OF THE TEMPORARY OPERATOR OF THE
PROGRAM ANY OBLIGATION OF THE ESTABLISHED OPERATOR OR ANY  OTHER  PERSON
FOR  THE  MAINTENANCE  AND  REPAIR OF THE FACILITY, PROVISION OF UTILITY
SERVICES, 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  2.  The mental hygiene law is amended by adding a new section 31.20
to read as follows:
S 31.20 TEMPORARY OPERATOR.
  (A) FOR THE PURPOSES OF THIS SECTION:
  (1) "ESTABLISHED OPERATOR" SHALL MEAN THE OPERATOR OF A MENTAL  HEALTH
PROGRAM  THAT  HAS  BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE
PURSUANT TO THIS ARTICLE.
  (2)  "EXTRAORDINARY  FINANCIAL  ASSISTANCE"  SHALL  MEAN  STATE  FUNDS
PROVIDED  TO,  OR  REQUESTED  BY,  A  PROGRAM FOR THE EXPRESS PURPOSE OF

S. 6407--A                         46                         A. 9007--A

PREVENTING THE CLOSURE  OF  THE  PROGRAM  THAT  THE  COMMISSIONER  FINDS
PROVIDES ESSENTIAL AND NECESSARY SERVICES WITHIN THE COMMUNITY.
  (3)  "MENTAL  HEALTH  PROGRAM"  SHALL  MEAN A PROVIDER OF SERVICES FOR
PERSONS WITH SERIOUS MENTAL  ILLNESS,  AS  SUCH  TERMS  ARE  DEFINED  IN
SECTION  1.03  OF  THIS  CHAPTER,  WHICH  IS LICENSED OR OPERATED BY THE
OFFICE.
  (4) "OFFICE" SHALL MEAN THE OFFICE OF MENTAL HEALTH.
  (5) "SERIOUS FINANCIAL INSTABILITY" SHALL INCLUDE BUT NOT  BE  LIMITED
TO  DEFAULTING  OR  VIOLATING  MATERIAL COVENANTS OF BOND ISSUES, MISSED
MORTGAGE PAYMENTS, A PATTERN OF UNTIMELY PAYMENT OF  DEBTS,  FAILURE  TO
PAY  ITS  EMPLOYEES  OR  VENDORS, INSUFFICIENT FUNDS TO MEET THE GENERAL
OPERATING EXPENSES OF THE PROGRAM, FAILURE  TO  MAINTAIN  REQUIRED  DEBT
SERVICE  COVERAGE  RATIOS AND/OR, AS APPLICABLE, FACTORS THAT HAVE TRIG-
GERED A WRITTEN EVENT OF DEFAULT NOTICE TO THE OFFICE BY  THE  DORMITORY
AUTHORITY OF THE STATE OF NEW YORK.
  (6)  "TEMPORARY  OPERATOR"  SHALL MEAN ANY OPERATOR OF A MENTAL HEALTH
PROGRAM THAT HAS BEEN ESTABLISHED AND ISSUED  AN  OPERATING  CERTIFICATE
PURSUANT  TO THIS ARTICLE OR WHICH IS DIRECTLY OPERATED BY THE OFFICE OF
MENTAL HEALTH, THAT:
  A. AGREES TO OPERATE A MENTAL HEALTH PROGRAM ON A TEMPORARY  BASIS  IN
THE BEST INTERESTS OF ITS PATIENTS SERVED BY THE PROGRAM; AND
  B.  HAS A HISTORY OF COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REGU-
LATIONS AND A RECORD OF PROVIDING CARE OF GOOD QUALITY, AS DETERMINED BY
THE COMMISSIONER; AND
  C. PRIOR TO APPOINTMENT AS TEMPORARY OPERATOR, DEVELOPS A PLAN  DETER-
MINED  TO  BE  SATISFACTORY BY THE COMMISSIONER TO ADDRESS THE PROGRAM'S
DEFICIENCIES.
  (B) (1) IN THE EVENT THAT: (I) THE  ESTABLISHED  OPERATOR  IS  SEEKING
EXTRAORDINARY  FINANCIAL  ASSISTANCE;  (II) OFFICE COLLECTED DATA DEMON-
STRATES THAT THE ESTABLISHED OPERATOR IS EXPERIENCING SERIOUS  FINANCIAL
INSTABILITY  ISSUES;  (III)  OFFICE COLLECTED DATA DEMONSTRATES THAT THE
ESTABLISHED OPERATOR'S BOARD OF DIRECTORS OR ADMINISTRATION IS UNABLE OR
UNWILLING TO ENSURE THE PROPER OPERATION OF THE PROGRAM; OR (IV)  OFFICE
COLLECTED DATA INDICATES THERE ARE CONDITIONS THAT SERIOUSLY ENDANGER OR
JEOPARDIZE  CONTINUED  ACCESS TO NECESSARY MENTAL HEALTH SERVICES WITHIN
THE COMMUNITY, THE COMMISSIONER SHALL NOTIFY THE ESTABLISHED OPERATOR OF
HIS OR HER INTENTION TO APPOINT A  TEMPORARY  OPERATOR  TO  ASSUME  SOLE
RESPONSIBILITY  FOR  THE  PROGRAM'S  TREATMENT  OPERATIONS FOR A LIMITED
PERIOD OF TIME. THE APPOINTMENT OF A TEMPORARY OPERATOR SHALL BE  EFFEC-
TUATED  PURSUANT  TO THIS SECTION, AND SHALL BE IN ADDITION TO ANY OTHER
REMEDIES PROVIDED BY LAW.
  (2) THE ESTABLISHED OPERATOR 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  NECES-
SARY,  ENTER  INTO  AN  AGREEMENT  WITH THE ESTABLISHED OPERATOR FOR THE
APPOINTMENT OF A TEMPORARY OPERATOR TO RESTORE OR MAINTAIN THE PROVISION
OF QUALITY CARE TO THE  PATIENTS  UNTIL  THE  ESTABLISHED  OPERATOR  CAN
RESUME OPERATIONS WITHIN THE DESIGNATED TIME PERIOD; THE PATIENTS MAY BE
TRANSFERRED  TO OTHER MENTAL HEALTH PROGRAMS OPERATED OR LICENSED BY THE
OFFICE; OR THE  OPERATIONS  OF  THE  MENTAL  HEALTH  PROGRAM  SHOULD  BE
COMPLETELY DISCONTINUED.
  (C)  (1) A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION SHALL
USE HIS OR HER BEST EFFORTS TO IMPLEMENT THE PLAN DEEMED SATISFACTORY BY
THE COMMISSIONER TO CORRECT OR ELIMINATE ANY DEFICIENCIES IN THE  MENTAL
HEALTH  PROGRAM  AND  TO PROMOTE THE QUALITY AND ACCESSIBILITY OF MENTAL
HEALTH SERVICES IN THE COMMUNITY SERVED BY THE MENTAL HEALTH PROGRAM.

S. 6407--A                         47                         A. 9007--A

  (2) IF THE IDENTIFIED DEFICIENCIES CANNOT BE  ADDRESSED  IN  THE  TIME
PERIOD  DESIGNATED  IN  THE  PLAN,  THE PATIENTS SHALL BE TRANSFERRED TO
OTHER APPROPRIATE MENTAL HEALTH PROGRAMS LICENSED  OR  OPERATED  BY  THE
OFFICE.
  (3)  DURING THE TERM OF APPOINTMENT, THE TEMPORARY OPERATOR SHALL HAVE
THE AUTHORITY TO DIRECT THE STAFF OF THE ESTABLISHED OPERATOR AS  NECES-
SARY  TO APPROPRIATELY TREAT AND/OR TRANSFER THE PATIENTS. THE TEMPORARY
OPERATOR SHALL, DURING THIS PERIOD, OPERATE THE MENTAL HEALTH PROGRAM IN
SUCH A MANNER AS TO PROMOTE SAFETY AND THE QUALITY AND ACCESSIBILITY  OF
MENTAL HEALTH SERVICES IN THE COMMUNITY SERVED BY THE ESTABLISHED OPERA-
TOR  UNTIL EITHER THE ESTABLISHED OPERATOR CAN RESUME PROGRAM OPERATIONS
OR UNTIL THE PATIENTS ARE APPROPRIATELY TRANSFERRED  TO  OTHER  PROGRAMS
LICENSED OR OPERATED BY THE OFFICE.
  (4) THE ESTABLISHED OPERATOR SHALL GRANT ACCESS TO THE TEMPORARY OPER-
ATOR  TO  THE  ESTABLISHED  OPERATOR'S  ACCOUNTS AND RECORDS IN ORDER TO
ADDRESS ANY DEFICIENCIES RELATED TO A MENTAL HEALTH PROGRAM EXPERIENCING
SERIOUS FINANCIAL INSTABILITY  OR  AN  ESTABLISHED  OPERATOR  REQUESTING
FINANCIAL  ASSISTANCE  IN  ACCORDANCE  WITH  THIS SECTION. THE TEMPORARY
OPERATOR SHALL APPROVE ANY FINANCIAL DECISION RELATED TO A PROGRAM'S DAY
TO  DAY  OPERATIONS  OR  PROGRAM'S  ABILITY  TO  PROVIDE  MENTAL  HEALTH
SERVICES.
  (5) THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE ANY BOND.  NO
SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRISING THE ESTAB-
LISHED  OPERATOR  OR CONTAINED WITHIN THE ESTABLISHED OPERATOR OR IN ANY
FIXTURE OF THE MENTAL HEALTH PROGRAM, SHALL BE IMPAIRED OR DIMINISHED IN
PRIORITY BY THE TEMPORARY OPERATOR. NEITHER THE TEMPORARY  OPERATOR  NOR
THE  OFFICE SHALL ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION
OF PROPERTY.
  (D) THE TEMPORARY OPERATOR SHALL BE ENTITLED TO A REASONABLE  FEE,  AS
DETERMINED BY THE COMMISSIONER AND SUBJECT TO THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, AND NECESSARY EXPENSES INCURRED WHILE
SERVING  AS A TEMPORARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE
ONLY IN ITS CAPACITY AS TEMPORARY OPERATOR OF THE MENTAL HEALTH  PROGRAM
FOR  INJURY  TO  PERSON  AND PROPERTY BY REASON OF ITS OPERATION OF SUCH
PROGRAM; NO LIABILITY SHALL INCUR IN THE TEMPORARY  OPERATOR'S  PERSONAL
CAPACITY, EXCEPT FOR GROSS NEGLIGENCE AND INTENTIONAL ACTS.
  (E)  (1) THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR
SHALL NOT EXCEED NINETY DAYS. AFTER NINETY  DAYS,  IF  THE  COMMISSIONER
DETERMINES  THAT  TERMINATION  OF  THE  TEMPORARY  OPERATOR  WOULD CAUSE
SIGNIFICANT DETERIORATION OF THE QUALITY OF, OR ACCESS TO, MENTAL HEALTH
CARE IN THE COMMUNITY OR THAT REAPPOINTMENT IS NECESSARY TO CORRECT  THE
DEFICIENCIES  THAT  REQUIRED  THE APPOINTMENT OF THE TEMPORARY OPERATOR,
THE COMMISSIONER MAY AUTHORIZE AN ADDITIONAL NINETY-DAY  TERM.  HOWEVER,
SUCH  AUTHORIZATION  SHALL  INCLUDE  THE COMMISSIONER'S REQUIREMENTS FOR
CONCLUSION OF THE TEMPORARY OPERATORSHIP  TO  BE  SATISFIED  WITHIN  THE
ADDITIONAL TERM.
  (2)  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:
  A. THE ACTIONS TAKEN DURING THE APPOINTMENT TO ADDRESS THE  IDENTIFIED
MENTAL  HEALTH  PROGRAM  DEFICIENCIES,  THE  RESUMPTION OF MENTAL HEALTH
PROGRAM OPERATIONS BY THE ESTABLISHED OPERATOR, OR THE TRANSFER  OF  THE
PATIENTS TO OTHER PROVIDERS LICENSED OR OPERATED BY THE OFFICE;
  B.  OBJECTIVES  FOR  THE CONTINUATION OF THE TEMPORARY OPERATORSHIP IF
NECESSARY AND A SCHEDULE FOR SATISFACTION OF SUCH OBJECTIVES; AND

S. 6407--A                         48                         A. 9007--A

  C. IF APPLICABLE, THE RECOMMENDED ACTIONS FOR THE ONGOING OPERATION OF
THE MENTAL HEALTH PROGRAM SUBSEQUENT TO THE TEMPORARY OPERATORSHIP.
  (3)  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.
  (F) (1) THE COMMISSIONER SHALL, UPON  MAKING  A  DETERMINATION  OF  AN
INTENTION  TO  APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH ONE OF
SUBDIVISION (B) OF THIS SECTION CAUSE THE  ESTABLISHED  OPERATOR  TO  BE
NOTIFIED  OF  THE INTENTION BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO
THE PRINCIPAL OFFICE OF  THE  ESTABLISHED  OPERATOR.  SUCH  NOTIFICATION
SHALL  INCLUDE  A  DETAILED  DESCRIPTION  OF THE FINDINGS UNDERLYING THE
INTENTION TO APPOINT A TEMPORARY OPERATOR, AND THE DATE AND  TIME  OF  A
REQUIRED MEETING WITH THE COMMISSIONER AND/OR HIS OR HER DESIGNEE WITHIN
TEN  BUSINESS  DAYS  OF THE RECEIPT OF SUCH NOTICE. AT SUCH MEETING, THE
ESTABLISHED OPERATOR SHALL HAVE THE OPPORTUNITY TO  REVIEW  AND  DISCUSS
ALL  RELEVANT FINDINGS. AT SUCH MEETING, THE COMMISSIONER AND THE ESTAB-
LISHED OPERATOR SHALL ATTEMPT TO DEVELOP A MUTUALLY SATISFACTORY PLAN OF
CORRECTION AND SCHEDULE FOR IMPLEMENTATION. IN SUCH EVENT,  THE  COMMIS-
SIONER  SHALL NOTIFY THE ESTABLISHED OPERATOR THAT THE COMMISSIONER WILL
ABSTAIN FROM APPOINTING A TEMPORARY OPERATOR CONTINGENT UPON THE  ESTAB-
LISHED  OPERATOR  REMEDIATING  THE  IDENTIFIED  DEFICIENCIES  WITHIN THE
AGREED UPON TIMEFRAME.
  (2) SHOULD THE COMMISSIONER AND THE ESTABLISHED OPERATOR BE UNABLE  TO
ESTABLISH  A PLAN OF CORRECTION PURSUANT TO PARAGRAPH ONE OF THIS SUBDI-
VISION, OR SHOULD THE  ESTABLISHED  OPERATOR  FAIL  TO  RESPOND  TO  THE
COMMISSIONER'S  INITIAL  NOTIFICATION,  THERE SHALL BE AN ADMINISTRATIVE
HEARING ON THE COMMISSIONER'S DETERMINATION TO APPOINT A TEMPORARY OPER-
ATOR TO BEGIN NO LATER THAN THIRTY DAYS FROM THE DATE OF THE  NOTICE  TO
THE  ESTABLISHED OPERATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED TO
THE ISSUE OF WHETHER THE DETERMINATION OF THE COMMISSIONER TO APPOINT  A
TEMPORARY  OPERATOR  IS SUPPORTED BY SUBSTANTIAL EVIDENCE. A COPY OF THE
DECISION SHALL BE SENT TO THE ESTABLISHED OPERATOR.
  (3) IF THE DECISION TO APPOINT A TEMPORARY  OPERATOR  IS  UPHELD  SUCH
TEMPORARY  OPERATOR  SHALL  BE  APPOINTED  AS SOON AS IS PRACTICABLE AND
SHALL OPERATE THE MENTAL HEALTH PROGRAM PURSUANT TO  THE  PROVISIONS  OF
THIS SECTION.
  (G)  NOTWITHSTANDING  THE  APPOINTMENT  OF  A  TEMPORARY OPERATOR, THE
ESTABLISHED OPERATOR SHALL REMAIN OBLIGATED FOR THE CONTINUED  OPERATION
OF  THE  MENTAL  HEALTH  PROGRAM  SO THAT SUCH PROGRAM CAN FUNCTION IN A
NORMAL MANNER. 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 OF THE PROGRAM HEREUNDER;
NOR SHALL ANYTHING CONTAINED IN THIS SECTION  BE  CONSTRUED  TO  SUSPEND
DURING  THE  TERM  OF  THE  APPOINTMENT OF THE TEMPORARY OPERATOR OF THE
PROGRAM ANY OBLIGATION OF THE ESTABLISHED OPERATOR OR ANY  OTHER  PERSON
FOR  THE  MAINTENANCE  AND  REPAIR OF THE FACILITY, PROVISION OF UTILITY
SERVICES, 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  3.  Subdivision  (i)  of  section 17 of the social services law, as
relettered by section 1 of part K3 of chapter 57 of the laws of 2007, is
relettered subdivision (j).

S. 6407--A                         49                         A. 9007--A

  S 4. Section 17 of the social services law is amended by adding a  new
subdivision (i) to read as follows:
  (I) HAVE THE AUTHORITY TO UNDERTAKE, OR AUTHORIZE A DESIGNEE TO UNDER-
TAKE,  AN  INVESTIGATION  OF  THE FINANCIAL MATTERS, THE AFFAIRS AND THE
MANAGEMENT OF ANY EMERGENCY SHELTER,  OR  OF  ANY  PERSON,  CORPORATION,
SOCIETY,  ASSOCIATION OR ORGANIZATION WHICH OPERATES OR HOLDS ITSELF OUT
AS BEING AUTHORIZED TO OPERATE ANY SUCH EMERGENCY  SHELTER,  OR  OF  THE
CONDUCT  OF  ANY  OFFICERS  OR  EMPLOYERS OF ANY SUCH EMERGENCY SHELTER.
PERSONS EMPOWERED BY THE COMMISSIONER OR BY A DESIGNEE  TO  CONDUCT  ANY
SUCH  INVESTIGATION ARE HEREBY EMPOWERED TO ISSUE COMPULSORY PROCESS FOR
THE ATTENDANCE OF WITNESSES AND THE PRODUCTION OF PAPERS, TO  ADMINISTER
OATHS AND TO EXAMINE PERSONS UNDER OATH, AND TO EXERCISE THE SAME POWERS
IN RESPECT TO THE CONDUCT OF SUCH AN INVESTIGATION AS THOSE BELONGING TO
REFEREES APPOINTED BY THE SUPREME COURT, CONSISTENT WITH, BUT NOT LIMIT-
ED  BY,  THE  AUTHORITY  CONFERRED PURSUANT TO PARAGRAPHS (A) AND (B) OF
SUBDIVISION FIVE OF SECTION THIRTY-FOUR OF THIS ARTICLE.
  WHENEVER THE COMMISSIONER OR A DESIGNEE HAS  DETERMINED  AN  EMERGENCY
SHELTER  DESCRIBED  IN  THIS  SUBDIVISION  HAS FAILED TO COMPLY WITH THE
REQUIREMENTS OF STATE OR LOCAL LAWS OR  REGULATIONS  APPLICABLE  TO  THE
OPERATION  OF  SUCH  EMERGENCY  SHELTER,  THEN  THE FOLLOWING PROVISIONS
APPLY:
  (1) FOR THE PURPOSES OF THIS SECTION:
  (I) "BUILDING" SHALL MEAN AN ENTIRE BUILDING OR  A  UNIT  WITHIN  THAT
PROVIDES EMERGENCY SHELTER TO HOMELESS PERSONS.
  (II)  "COMMISSIONER"  SHALL MEAN THE COMMISSIONER OF THE OFFICE OR HIS
OR HER DESIGNEE.
  (III) "DATA" SHALL MEAN WRITTEN DOCUMENTATION  OR  KNOWLEDGE  OBTAINED
VIA  ANNOUNCED OR UNANNOUNCED INSPECTIONS, AUDITS, OR OTHER METHODS MADE
BY ANY STATE OR  LOCAL  ENTITY  AUTHORIZED  TO  CONDUCT  INSPECTIONS  OR
AUDITS, INCLUDING STATE OR LOCAL COMPTROLLERS.
  (IV)  "EMERGENCY  SHELTER"  MEANS ANY BUILDING WITH OVERNIGHT SLEEPING
ACCOMMODATIONS, THE PRIMARY PURPOSE OF WHICH  IS  TO  PROVIDE  TEMPORARY
SHELTER  FOR  THE HOMELESS IN GENERAL OR FOR SPECIFIC POPULATIONS OF THE
HOMELESS,  INCLUDING  RESIDENTIAL  PROGRAMS  FOR  VICTIMS  OF   DOMESTIC
VIOLENCE AND RUNAWAY AND HOMELESS YOUTH PROGRAMS CERTIFIED BY THE OFFICE
OF CHILDREN AND FAMILY SERVICES.
  (V) "ESTABLISHED OPERATOR" SHALL MEAN A PROVIDER OF EMERGENCY SHELTER.
  (VI)  "SERIOUS  FINANCIAL, HEALTH OR SAFETY DEFICIENCY" SHALL INCLUDE,
BUT NOT BE LIMITED TO, MISSED MORTGAGE PAYMENTS, MISSED RENT PAYMENTS, A
PATTERN OF UNTIMELY PAYMENT OF DEBTS, FAILURE TO PAY  ITS  EMPLOYEES  OR
VENDORS,  INSUFFICIENT  FUNDS  TO MEET THE GENERAL OPERATING EXPENSES OF
THE PROGRAM, OR A VIOLATION OF LAW, REGULATION, OR CODE WITH RESPECT  TO
A BUILDING THAT PROVIDES EMERGENCY SHELTER TO HOMELESS PERSONS, IN WHICH
THERE  ARE  CONDITIONS  THAT ARE DANGEROUS, HAZARDOUS, IMMINENTLY DETRI-
MENTAL TO LIFE OR HEALTH, OR OTHERWISE RENDER THE BUILDING NOT  FIT  FOR
HUMAN HABITATION.
  (VII)  "TEMPORARY OPERATOR" SHALL MEAN ANY PROVIDER OF EMERGENCY SHEL-
TER THAT:
  (A) AGREES TO PROVIDE EMERGENCY SHELTER PURSUANT TO THIS CHAPTER ON  A
TEMPORARY  BASIS  IN  THE BEST INTERESTS OF ITS HOMELESS INDIVIDUALS AND
FAMILIES SERVED BY THE BUILDING;
  (B) HAS A HISTORY OF COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REGU-
LATIONS AND A RECORD OF PROVIDING EMERGENCY SHELTER OF GOOD QUALITY,  AS
DETERMINED BY THE COMMISSIONER; AND

S. 6407--A                         50                         A. 9007--A

  (C) PRIOR TO APPOINTMENT AS TEMPORARY OPERATOR, DEVELOPS A PLAN DETER-
MINED  TO  BE SATISFACTORY BY THE COMMISSIONER TO ADDRESS THE BUILDING'S
DEFICIENCIES.
  (2)  (I) IN THE EVENT THAT: (A) DATA DEMONSTRATES THAT THE BUILDING IS
EXHIBITING A SERIOUS FINANCIAL, HEALTH, OR SAFETY DEFICIENCY;  (B)  DATA
DEMONSTRATES  THAT  THE  ESTABLISHED  OPERATOR IS UNABLE OR UNWILLING TO
ENSURE THE PROPER OPERATION OF THE BUILDING; OR (C) DATA INDICATES THERE
EXIST CONDITIONS THAT SERIOUSLY ENDANGER OR JEOPARDIZE EMERGENCY SHELTER
RESIDENTS, THE COMMISSIONER MAY NOTIFY THE ESTABLISHED OPERATOR  OF  HIS
OR  HER INTENTION TO APPOINT A TEMPORARY OPERATOR TO ASSUME SOLE RESPON-
SIBILITY FOR THE PROVIDER OF THE EMERGENCY SHELTER'S  OPERATIONS  FOR  A
LIMITED PERIOD OF TIME. THE APPOINTMENT OF A TEMPORARY OPERATOR SHALL BE
EFFECTUATED  PURSUANT  TO  THIS SECTION, AND SHALL BE IN ADDITION TO ANY
OTHER REMEDIES PROVIDED BY LAW.
  (II) THE ESTABLISHED OPERATOR 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 NECES-
SARY, ENTER INTO AN AGREEMENT WITH  THE  ESTABLISHED  OPERATOR  FOR  THE
APPOINTMENT OF A TEMPORARY OPERATOR TO RESTORE OR MAINTAIN THE PROVISION
OF  QUALITY  EMERGENCY  SHELTER TO THE EMERGENCY SHELTER RESIDENTS UNTIL
THE ESTABLISHED OPERATOR CAN RESUME  OPERATIONS  WITHIN  THE  DESIGNATED
TIME  PERIOD  OR  OTHER ACTION IS TAKEN TO SUSPEND, REVOKE, OR LIMIT THE
AUTHORITY OF THE ESTABLISHED OPERATOR.
  (3) (I) A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION  SHALL
USE HIS OR HER BEST EFFORTS TO IMPLEMENT THE PLAN DEEMED SATISFACTORY BY
THE  COMMISSIONER TO CORRECT OR ELIMINATE ANY DEFICIENCIES IN THE BUILD-
ING AND TO PROMOTE THE QUALITY AND ACCESSIBILITY OF THE EMERGENCY  SHEL-
TER IN THE COMMUNITY SERVED BY THE PROVIDER OF EMERGENCY SHELTER.
  (II) DURING THE TERM OF APPOINTMENT, THE TEMPORARY OPERATOR SHALL HAVE
THE  AUTHORITY TO DIRECT THE STAFF OF THE ESTABLISHED OPERATOR AS NECES-
SARY TO APPROPRIATELY PROVIDE EMERGENCY SHELTER FOR HOMELESS INDIVIDUALS
AND FAMILIES. THE TEMPORARY OPERATOR SHALL, DURING THIS PERIOD,  PROVIDE
EMERGENCY  SHELTER IN SUCH A MANNER AS TO PROMOTE SAFETY AND THE QUALITY
AND ACCESSIBILITY OF EMERGENCY SHELTER IN THE COMMUNITY  SERVED  BY  THE
ESTABLISHED  OPERATOR  UNTIL  EITHER THE ESTABLISHED OPERATOR CAN RESUME
OPERATIONS OR UNTIL THE OFFICE REVOKES THE AUTHORITY  OF  THE  EMERGENCY
SHELTER TO OPERATE UNDER THIS CHAPTER.
  (III)  THE  ESTABLISHED  OPERATOR  SHALL GRANT ACCESS TO THE TEMPORARY
OPERATOR TO THE ESTABLISHED OPERATOR'S ACCOUNTS AND RECORDS IN ORDER  TO
ADDRESS  ANY  SERIOUS FINANCIAL, HEALTH OR SAFETY DEFICIENCY. THE TEMPO-
RARY OPERATOR SHALL APPROVE  ANY  DECISION  RELATED  TO  AN  ESTABLISHED
PROVIDER'S  DAY  TO DAY OPERATIONS OR THE ESTABLISHED PROVIDER'S ABILITY
TO PROVIDE EMERGENCY SHELTER.
  (IV) THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE ANY BOND. NO
SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRISING THE ESTAB-
LISHED OPERATOR OR CONTAINED WITHIN THE ESTABLISHED OPERATOR OR  IN  ANY
FIXTURE  OF THE BUILDING, SHALL BE IMPAIRED OR DIMINISHED IN PRIORITY BY
THE TEMPORARY OPERATOR. NEITHER THE TEMPORARY OPERATOR  NOR  THE  OFFICE
SHALL  ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION OF PROPER-
TY.
  (4) THE TEMPORARY OPERATOR SHALL BE ENTITLED TO A REASONABLE  FEE,  AS
DETERMINED BY THE COMMISSIONER AND SUBJECT TO THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, AND NECESSARY EXPENSES INCURRED WHILE
SERVING  AS A TEMPORARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE
ONLY IN ITS CAPACITY AS TEMPORARY OPERATOR  FOR  INJURY  TO  PERSON  AND
PROPERTY BY REASON OF ITS OPERATION OF SUCH BUILDING; NO LIABILITY SHALL

S. 6407--A                         51                         A. 9007--A

INCUR  IN  THE  TEMPORARY OPERATOR'S PERSONAL CAPACITY, EXCEPT FOR GROSS
NEGLIGENCE AND INTENTIONAL ACTS.
  (5)  (I) THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR
SHALL NOT EXCEED NINETY DAYS. AFTER NINETY  DAYS,  IF  THE  COMMISSIONER
DETERMINES  THAT  TERMINATION  OF  THE  TEMPORARY  OPERATOR  WOULD CAUSE
SIGNIFICANT DETERIORATION OF THE QUALITY OF,  OR  ACCESS  TO,  EMERGENCY
SHELTER  IN  THE COMMUNITY OR THAT REAPPOINTMENT IS NECESSARY TO CORRECT
THE DEFICIENCIES THAT REQUIRED THE APPOINTMENT OF THE  TEMPORARY  OPERA-
TOR,  THE  COMMISSIONER  MAY  AUTHORIZE  AN  ADDITIONAL NINETY-DAY TERM.
HOWEVER, SUCH AUTHORIZATION SHALL INCLUDE  THE  COMMISSIONER'S  REQUIRE-
MENTS FOR CONCLUSION OF THE TEMPORARY OPERATORSHIP TO BE SATISFIED WITH-
IN THE ADDITIONAL TERM.
  (II) 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:
  (A) THE ACTIONS TAKEN DURING THE APPOINTMENT TO ADDRESS THE IDENTIFIED
BUILDING  DEFICIENCIES,  THE  RESUMPTION  OF  BUILDING OPERATIONS BY THE
ESTABLISHED OPERATOR, OR THE REVOCATION OF AUTHORITY TO OPERATE AN EMER-
GENCY SHELTER;
  (B) OBJECTIVES FOR THE CONTINUATION OF THE TEMPORARY  OPERATORSHIP  IF
NECESSARY AND A SCHEDULE FOR SATISFACTION OF SUCH OBJECTIVES; AND
  (C)  IF  APPLICABLE, THE RECOMMENDED ACTIONS FOR THE ONGOING PROVISION
OF EMERGENCY SHELTER SUBSEQUENT TO THE TEMPORARY OPERATORSHIP.
  (III) 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)  (I)  THE  COMMISSIONER  SHALL,  UPON MAKING A DETERMINATION OF AN
INTENTION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO  SUBPARAGRAPH  (I)
OF  PARAGRAPH TWO OF THIS SUBDIVISION, CAUSE THE ESTABLISHED OPERATOR TO
BE NOTIFIED OF THE INTENTION BY REGISTERED OR CERTIFIED  MAIL  ADDRESSED
TO  THE  PRINCIPAL OFFICE OF THE ESTABLISHED OPERATOR. SUCH NOTIFICATION
SHALL INCLUDE A DETAILED DESCRIPTION  OF  THE  FINDINGS  UNDERLYING  THE
INTENTION  TO  APPOINT  A TEMPORARY OPERATOR, AND THE DATE AND TIME OF A
REQUIRED MEETING WITH THE COMMISSIONER WITHIN TEN BUSINESS DAYS  OF  THE
RECEIPT OF SUCH NOTICE.  AT SUCH MEETING, THE ESTABLISHED OPERATOR SHALL
HAVE  THE  OPPORTUNITY  TO  REVIEW AND DISCUSS ALL RELEVANT FINDINGS. AT
SUCH MEETING,  THE  COMMISSIONER  AND  THE  ESTABLISHED  OPERATOR  SHALL
ATTEMPT TO DEVELOP A MUTUALLY SATISFACTORY PLAN OF CORRECTION AND SCHED-
ULE  FOR  IMPLEMENTATION.  IF A MUTUALLY SATISFACTORY PLAN OF CORRECTION
AND SCHEDULE FOR IMPLEMENTATION IS  DEVELOPED,  THE  COMMISSIONER  SHALL
NOTIFY  THE ESTABLISHED OPERATOR THAT THE COMMISSIONER WILL ABSTAIN FROM
APPOINTING A TEMPORARY OPERATOR CONTINGENT UPON THE ESTABLISHED OPERATOR
REMEDIATING THE IDENTIFIED DEFICIENCIES WITHIN  THE  AGREED  UPON  TIME-
FRAME.
  (II) SHOULD THE COMMISSIONER AND THE ESTABLISHED OPERATOR BE UNABLE TO
ESTABLISH  A  PLAN  OF  CORRECTION  PURSUANT TO SUBPARAGRAPH (I) OF THIS
PARAGRAPH, OR SHOULD THE ESTABLISHED OPERATOR FAIL  TO  RESPOND  TO  THE
COMMISSIONER'S  INITIAL  NOTIFICATION,  THERE SHALL BE AN ADMINISTRATIVE
HEARING ON THE COMMISSIONER'S DETERMINATION TO APPOINT A TEMPORARY OPER-
ATOR TO BEGIN NO LATER THAN THIRTY DAYS FROM THE DATE OF THE  NOTICE  TO
THE  ESTABLISHED OPERATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED TO
THE ISSUE OF WHETHER THE DETERMINATION OF THE COMMISSIONER TO APPOINT  A
TEMPORARY  OPERATOR  IS SUPPORTED BY SUBSTANTIAL EVIDENCE. A COPY OF THE
DECISION SHALL BE SENT TO THE ESTABLISHED OPERATOR.

S. 6407--A                         52                         A. 9007--A

  (III) IF THE DECISION TO APPOINT A TEMPORARY OPERATOR IS  UPHELD  SUCH
TEMPORARY  OPERATOR  SHALL  BE  APPOINTED  AS SOON AS IS PRACTICABLE AND
SHALL PROVIDE EMERGENCY SHELTER  PURSUANT  TO  THE  PROVISIONS  OF  THIS
SECTION.
  (7)  NOTWITHSTANDING  THE  APPOINTMENT  OF  A  TEMPORARY OPERATOR, THE
ESTABLISHED OPERATOR SHALL REMAIN OBLIGATED FOR THE CONTINUED  PROVISION
OF  EMERGENCY  SHELTER.  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 OF THE BUILD-
ING HEREUNDER; NOR SHALL ANYTHING CONTAINED IN THIS SECTION BE CONSTRUED
TO SUSPEND DURING THE TERM OF THE APPOINTMENT OF THE TEMPORARY  OPERATOR
OF  THE BUILDING ANY OBLIGATION OF THE ESTABLISHED OPERATOR OR ANY OTHER
PERSON FOR THE MAINTENANCE AND REPAIR  OF  THE  BUILDING,  PROVISION  OF
UTILITY  SERVICES,  PAYMENT  OF TAXES OR OTHER OPERATING AND MAINTENANCE
EXPENSES OF THE BUILDING, NOR OF THE ESTABLISHED OPERATOR OR  ANY  OTHER
PERSON FOR THE PAYMENT OF MORTGAGES OR LIENS.
  S 5. Nothing in section four of this act shall be deemed in any way to
limit  the  authority of the commissioner of the office of temporary and
disability assistance or the commissioner of the office of children  and
family  services  or his or her designee to take additional actions with
respect to a building that provides emergency shelter,  in  which  there
are  conditions that are dangerous, hazardous, imminently detrimental to
life or health, or otherwise render the building not fit for human habi-
tation.
  S 6. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2016.

                                 PART M

  Section 1. Subdivision (d) of section 33.13 of the mental hygiene law,
as amended by section 3 of part E of chapter 111 of the laws of 2010, is
amended to read as follows:
  (d)  Nothing  in  this  section  shall prevent the electronic or other
exchange of information concerning patients or clients, including  iden-
tification,  between  and  among  (i)  facilities  or  others  providing
services for such patients or clients  pursuant  to  an  approved  local
services  plan,  as  defined  in  article  forty-one of this chapter, or
pursuant to agreement with the department, and (ii)  the  department  or
any  of  its  licensed or operated facilities. NEITHER SHALL ANYTHING IN
THIS SECTION PREVENT THE EXCHANGE OF INFORMATION CONCERNING PATIENTS  OR
CLIENTS,  INCLUDING  IDENTIFICATION, BETWEEN FACILITIES AND MANAGED CARE
ORGANIZATIONS, BEHAVIORAL HEALTH ORGANIZATIONS, HEALTH  HOMES  OR  OTHER
ENTITIES  AUTHORIZED  BY  THE  DEPARTMENT OR THE DEPARTMENT OF HEALTH TO
PROVIDE, ARRANGE  FOR  OR  COORDINATE  HEALTH  CARE  SERVICES  FOR  SUCH
PATIENTS  OR CLIENTS WHO ARE ENROLLED IN OR RECEIVING SERVICES FROM SUCH
ORGANIZATIONS OR ENTITIES. Furthermore, subject to the prior approval of
the commissioner of mental health, hospital emergency services  licensed
pursuant  to  article  twenty-eight  of  the  public health law shall be
authorized to exchange information concerning patients or clients  elec-
tronically  or otherwise with other hospital emergency services licensed
pursuant to article twenty-eight of the public health law and/or  hospi-
tals  licensed or operated by the office of mental health; provided that
such exchange of information is consistent with standards, developed  by
the  commissioner  of mental health, which are designed to ensure confi-

S. 6407--A                         53                         A. 9007--A

dentiality of such information. Additionally, information  so  exchanged
shall  be  kept  confidential and any limitations on the release of such
information imposed on the party giving the information shall  apply  to
the party receiving the information.
  S  2.  Subdivision  (d) of section 33.13 of the mental hygiene law, as
amended by section 4 of part E of chapter 111 of the laws  of  2010,  is
amended to read as follows:
  (d)  Nothing in this section shall prevent the exchange of information
concerning patients or clients, including  identification,  between  (i)
facilities  or  others  providing  services for such patients or clients
pursuant to an approved local  services  plan,  as  defined  in  article
forty-one,  or  pursuant  to  agreement with the department and (ii) the
department or any of its facilities.  NEITHER  SHALL  ANYTHING  IN  THIS
SECTION  PREVENT  THE  EXCHANGE  OF  INFORMATION  CONCERNING PATIENTS OR
CLIENTS, INCLUDING IDENTIFICATION, BETWEEN FACILITIES AND  MANAGED  CARE
ORGANIZATIONS,  BEHAVIORAL  HEALTH  ORGANIZATIONS, HEALTH HOMES OR OTHER
ENTITIES AUTHORIZED BY THE DEPARTMENT OR THE  DEPARTMENT  OF  HEALTH  TO
PROVIDE,  ARRANGE  FOR  OR  COORDINATE  HEALTH  CARE  SERVICES  FOR SUCH
PATIENTS OR CLIENTS WHO ARE ENROLLED IN OR RECEIVING SERVICES  FOR  SUCH
ORGANIZATIONS OR ENTITIES. Information so exchanged shall be kept confi-
dential  and  any limitations on the release of such information imposed
on the party giving the information shall apply to the  party  receiving
the information.
  S  3. This act shall take effect immediately; provided that the amend-
ments to subdivision (d) of section 33.13 of the mental hygiene law made
by section one of this act shall be subject to the expiration and rever-
sion of such subdivision pursuant to section 18 of chapter  408  of  the
laws  of 1999, as amended, when upon such date the provisions of section
two of this act shall take effect.

                                 PART N

  Section 1. Subdivision 10 of section 3 of section 1 of chapter 359  of
the  laws  of  1968, constituting the facilities development corporation
act, as amended by chapter 723 of the laws of 1993, is amended  to  read
as follows:
  10. "Mental  hygiene  facility" shall mean a building, a unit within a
building, a laboratory, a classroom, a housing unit, a dining  hall,  an
activities  center, a library, real property of any kind or description,
or any structure on or improvement to real property, or an  interest  in
real  property, of any kind or description, owned by or under the juris-
diction of the corporation, including fixtures and equipment  which  are
an integral part of any such building, unit, structure or improvement, a
walkway,  a  roadway  or a parking lot, and improvements and connections
for water, sewer, gas, electrical, telephone, heating, air  conditioning
and  other  utility  services, or a combination of any of the foregoing,
whether for patient care and treatment or staff, staff family or service
use, located at or related to any psychiatric center, any  developmental
center, or any state psychiatric or research institute or other facility
now  or  hereafter  established  under  the department. A mental hygiene
facility shall also mean and  include  a  residential  care  center  for
adults,  a  "community  mental  health  and  retardation facility" and a
treatment facility for use in the conduct of an alcoholism or  substance
abuse treatment program as defined in the mental hygiene law unless such
residential care center for adults, community mental health and retarda-
tion  facility  or  alcoholism  or substance abuse facility is expressly

S. 6407--A                         54                         A. 9007--A

excepted, or the context clearly requires otherwise, AND SHALL ALSO MEAN
AND INCLUDE ANY TREATMENT FACILITY FOR USE IN THE CONDUCT OF AN ALCOHOL-
ISM OR SUBSTANCE ABUSE TREATMENT PROGRAM THAT IS  ALSO  OPERATED  AS  AN
ASSOCIATED HEALTH CARE FACILITY. The definition contained in this subdi-
vision  shall  not be construed to exclude therefrom a facility owned or
leased by one or more voluntary agencies that is to be  financed,  refi-
nanced, designed, constructed, acquired, reconstructed, rehabilitated or
improved  under  any  lease, sublease, loan or other financing agreement
entered into with such voluntary agencies, and shall not be construed to
exclude therefrom a facility to be made available from  the  corporation
to a voluntary agency at the request of the commissioners of the offices
of  the department having jurisdiction thereof. The definition contained
in this subdivision shall not be construed to exclude therefrom a facil-
ity with respect to which a voluntary agency has an  ownership  interest
in,  and  proprietary lease from, an organization formed for the purpose
of the cooperative ownership of real estate.
  S 2. Section 3 of section 1 of  chapter  359  of  the  laws  of  1968,
constituting  the  facilities development corporation act, is amended by
adding a new subdivision 20 to read as follows:
  20. "ASSOCIATED HEALTH CARE FACILITY" SHALL MEAN A  FACILITY  LICENSED
UNDER  AND  OPERATED  PURSUANT TO ARTICLE 28 OF THE PUBLIC HEALTH LAW OR
ANY HEALTH CARE FACILITY LICENSED UNDER AND OPERATED IN ACCORDANCE  WITH
ANY  OTHER PROVISIONS OF THE PUBLIC HEALTH LAW OR THE MENTAL HYGIENE LAW
THAT PROVIDES HEALTH CARE SERVICES  AND/OR  TREATMENT  TO  ALL  PERSONS,
REGARDLESS  OF  WHETHER  SUCH PERSONS ARE PERSONS RECEIVING TREATMENT OR
SERVICES FOR ALCOHOL, SUBSTANCE ABUSE, OR CHEMICAL DEPENDENCY.
  S 3. 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 N of this act shall  be
as specifically set forth in the last section of such Parts.

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

                                 6407--B

                            I N  S E N A T E

                            January 14, 2016
                               ___________

A  BUDGET  BILL,  submitted by the Governor pursuant to article 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

AN ACT to amend 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 the expenditure cap for the
  medical assistance program for needy persons (Part A);  to  amend  the
  social  services  law, in relation to reimbursement for transportation
  costs; in relation to ambulance non-emergency  medical  transportation
  rate  adequacy review; authorizing the commissioner of health to apply
  federally established  consumer  price  index  penalties  for  generic
  drugs,  to apply prior authorization requirements for opioid drugs, to
  impose penalties on managed care plans for reporting late or incorrect
  encounter data, to authorize funding for the  criminal  justice  pilot
  program within health home rates; to amend part H of chapter 59 of the
  laws of 2011, amending the social services law and other laws relating
  to  covered  part  D  drugs,  in  relation  to the medicaid allocation
  savings plan; to amend part O of  chapter  56  of  the  laws  of  2013
  authorizing the actions necessary to manage the loss of federal reven-
  ue  and  create  the Mental Hygiene Stabilization Fund, in relation to
  the effectiveness thereof;  to  amend  the  social  services  law,  in
  relation  to  establishing a medicaid redesign accountability process;
  to amend the social services law, in  relation  to  the  provision  of
  services to certain persons suffering from traumatic brain injuries or
  qualifying  for  nursing  home  diversion  and transition services; to
  amend the social services law,  in  relation  to  school-based  health
  centers;  to  amend  the  public  health  law, in relation to rates of
  payment to residential health care facilities based on the  historical
  costs  to  the  owner;  to amend the public health law, in relation to
  case payment rates for pediatric ventilator  services;  to  amend  the
  public  health  law, in relation to payments to rural hospitals desig-
  nated as critical access hospitals; to amend the public health law, in
  relation to rates of payments at residential health  care  facilities;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD12671-04-6

S. 6407--B                          2

  to amend part H of chapter 59 of the laws of 2011, amending the public
  health  law  and  other  laws,  relating to general hospital inpatient
  reimbursement for annual rates, in relation to  supplemental  Medicaid
  managed  care  payments; to amend the public health law and the insur-
  ance law, in relation to the use  of  abuse-deterrent  technology  for
  opioids  as  a  mechanism  for  reducing abuse and diversion of opioid
  drugs; requiring the department of health to  make  bi-annual  assess-
  ments  of  non-preferred  drugs  in the best clinical interests of New
  York Medicaid beneficiaries;  to  amend  the  public  health  law,  in
  relation  to  establishing  a  Medicaid  drug rebate remittance demon-
  stration program; to amend the public health law and the general busi-
  ness law, in relation to price gouging on prescription drugs; to amend
  the social services law, in relation to claims for  payment  furnished
  by  providers  under  the  medical  assistance  program; to direct the
  commissioner of health to implement a  restorative  care  unit  demon-
  stration  program;  and  to  repeal  certain  provisions of the social
  services law and section 31 of part B of chapter 57  of  the  laws  of
  2015  amending the social services law relating to insurance payments,
  relating thereto (Part B); to amend chapter 60 of  the  laws  of  2014
  amending  the  social  services law relating to eliminating prescriber
  prevails for brand name drugs with generic equivalents, in relation to
  directing the commissioner of  health  to  establish  a  developmental
  disability  clinician  advisory group (Part B-1); to amend chapter 266
  of the laws of 1986, amending the civil practice  law  and  rules  and
  other  laws  relating to malpractice and professional medical conduct,
  in relation to apportioning premium for certain policies; and to amend
  part J of chapter 63 of the laws of 2001 amending chapter 266  of  the
  laws of 1986, amending the civil practice law and rules and other laws
  relating  to malpractice and professional medical conduct, in relation
  to extending certain provisions concerning the hospital excess liabil-
  ity pool; to amend the insurance  law,  in  relation  to  grounds  for
  liquidation;  to  amend the insurance law, in relation to removing the
  superintendent of financial services' prior approval of a schedule  of
  premiums  within  an  insurance  contract; to direct the department of
  financial services to study and report upon the provision of long term
  care insurance coverage in this state; and to direct  the  superinten-
  dent  of  financial services to provide for the conducting of a review
  and audit of FAIR Health, Inc. (Part C); to amend chapter 474  of  the
  laws  of  1996,  amending the education law and other laws relating to
  rates for residential healthcare facilities, in relation to  extending
  the  authority  of  the  department of health to make disproportionate
  share payments to public hospitals outside of New York City; to  amend
  chapter  649  of the laws of 1996, amending the public health law, the
  mental hygiene law and the social services law relating to authorizing
  the establishment of special needs plans, in relation  to  the  effec-
  tiveness  thereof;  to amend part C of chapter 58 of the laws of 2009,
  amending the public health law relating  to  payment  by  governmental
  agencies  for  general hospital inpatient services, in relation to the
  effectiveness thereof; to amend the public health law, in relation  to
  the appointment of a temporary operator of a facility; to amend subdi-
  vision (c) of section 122 of part E of chapter 56 of the laws of 2013,
  amending  the  public health law relating to the general public health
  work program, in relation to the effectiveness thereof; to  amend  the
  environmental  conservation law and the public health law, in relation
  to the updating of cancer incidence and environmental  facility  maps;
  to  amend  chapter  77  of the laws of 2010 amending the environmental

S. 6407--B                          3

  conservation law and the public health law  relating  to  an  environ-
  mental facility and cancer incidence map, in relation to extending the
  expiration date of the provisions thereof; to amend chapter 465 of the
  laws  of  2012,  constituting  Lauren's law, in relation to making the
  provisions of such law permanent;  and  to  repeal  subdivision  8  of
  section  84  of part A of chapter 56 of the laws of 2013, amending the
  public  health  law  and  other  laws  relating  to  general  hospital
  reimbursement  for annual rates, relating to the effectiveness thereof
  (Part D); intentionally omitted (Part E); to amend the  public  health
  law,  in  relation  to  establishing  a statewide health care facility
  transformation program (Part F); to amend the public  health  law,  in
  relation  to  authorizing the establishment of limited service clinics
  (Part G); to amend 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, in  relation
  to  the  effectiveness  thereof;  and  to provide a report on impacted
  providers (Part H); 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  the  effectiveness  of
  certain  provisions  thereof (Part I); intentionally omitted (Part J);
  intentionally omitted (Part K); to amend the mental  hygiene  law,  in
  relation  to  the appointment of temporary operators for the continued
  operation of programs, the provision  of  services  for  persons  with
  serious  mental illness and/or developmental disabilities; and requir-
  ing notification to legislative  leaders  upon  the  determination  to
  appoint  a  temporary  operator  of  a  chemical  dependence treatment
  program; to amend chapter 56 of the laws of 2013 amending  the  public
  health law and other laws relating to the general public work program,
  in relation to the expiration of provisions providing for the appoint-
  ment  of  temporary operators of certain chemical dependence treatment
  programs; and providing for the repeal of certain provision upon expi-
  ration thereof (Part L); to amend the mental hygiene law, in  relation
  to  sharing clinical records with managed care organizations (Part M);
  to amend the facilities development corporation act,  in  relation  to
  the  definition  of  mental  hygiene  facility  (Part N); to amend the
  mental hygiene law, in relation to services for persons with  develop-
  mental  disabilities  (Part O); to amend the elder law, in relation to
  the  naturally  occurring  retirement  community  supportive   service
  program  and  the  authority  of the office for the aging to conduct a
  public education campaign relating to elder abuse; to amend the public
  health law, in relation to screening for elder abuse and maltreatment;
  to amend the social services law, in relation to providing  protective
  services to certain individuals and investigating reports of suspected
  elder  abuse or maltreatment; and to amend the social services law and
  the banking law, in relation to authorizing  banking  institutions  to
  refuse  to disburse moneys in circumstances of the financial exploita-
  tion of a vulnerable adult (Part P); to amend the mental hygiene  law,
  in  relation  to  integrated  employment  plans; and providing for the
  repeal of certain provisions upon  expiration  thereof  (Part  Q);  to
  amend the public health law, in relation to requiring the commissioner
  of health to establish an office of accountability; to amend the state
  finance  law,  the  public health law, the social services law and the
  education law, in relation to the date in which certain reports  shall
  be  submitted;  to  amend  part  A  of chapter 56 of the laws of 2013,
  relating to the report on the transition of behavioral health services
  as a managed care  benefit  in  the  medical  assistance  program,  in

S. 6407--B                          4

  relation to the date the report shall be submitted; to amend part H of
  chapter 60 of the laws of 2014, amending the insurance law, the public
  health  law  and  the  financial services law relating to establishing
  protections  to  prevent  surprise  medical  bills  including  network
  adequacy requirements, claim submission requirements, access  to  out-
  of-network  care  and  prohibition  of excessive emergency charges, in
  relation to the date the report shall be submitted; to amend part W of
  chapter 57 of the laws of 2015, requiring the commissioner  of  health
  to  convene  a task force to evaluate and make recommendations related
  to increasing the transparency and accountability of the  health  care
  reform act resources fund, in relation to the date the report shall be
  submitted;  and  to  amend  part  B of chapter 57 of the laws of 2015,
  amending the public health law  relating  to  physician  profiles,  in
  relation to the date the report shall be submitted for the young adult
  special  populations  demonstration programs (Part R); to amend part A
  of chapter 56 of the laws of 2013 amending chapter 59 of the  laws  of
  2011 amending the public health law and other laws relating to general
  hospital  reimbursement  for annual rates relating to the cap on local
  Medicaid expenditures, in relation to rates of payment paid to certain
  providers by the Child Health Plus Program; and to amend  chapter  111
  of  the  laws  of  2010  relating  to  increasing Medicaid payments to
  providers through managed care organizations and providing  equivalent
  fees  through  an ambulatory patient group methodology, in relation to
  rates of payment paid to certain providers by the  Child  Health  Plus
  Program  (Part  S);  to  amend  the mental hygiene law, in relation to
  directing the office for people  with  developmental  disabilities  to
  establish a direct support professional credential pilot program (Part
  T);  to amend the public health law and the executive law, in relation
  to the reporting, processing and secure transport  of  sexual  offense
  evidence  kits (Part U); to amend the public health law and the educa-
  tion law, in relation to electronic prescriptions; to amend the public
  health law and  the  education  law,  in  relation  to  exceptions  to
  requirements  for electronic prescriptions; to amend the public health
  law, in relation to loan forgiveness and practice support  for  physi-
  cians;  to  amend  the  social services law, in relation to the use of
  EQUAL program funds for adult care facilities; in relation  to  estab-
  lishing  the  health  care  facility infrastructure development demon-
  stration program; to amend  the  public  health  law  and  the  public
  authorities  law,  in  relation to establishing a private equity pilot
  program; to amend the public health law, in  relation  to  authorizing
  the  comptroller  to  act  as  the  fiscal agent for the department of
  health and municipalities; and to repeal certain  provisions  of  such
  law  relating  thereto; to amend the public health law, in relation to
  the amount of reimbursement;  to  amend  the  public  health  law,  in
  relation  to  limitations on state aid; and to amend the public health
  law, in relation to state aid during public health  emergencies  (Part
  V);  and  to  provide  for  the  administration  of  certain funds and
  accounts related to the 2016-17 budget, authorizing  certain  payments
  and  transfers;  to  amend  the  state finance law, in relation to the
  rainy day reserve fund, the dedicated infrastructure  investment  fund
  infrastructure  investment account, and the school tax relief fund; to
  amend the state finance law, in relation to  payments,  transfers  and
  deposits;  to  amend  the state finance law, in relation to the period
  for which appropriations can be made; to amend chapter 60 of the  laws
  of  2015,  providing  for  the  administration  of  certain  funds and
  accounts related to the 2015-16 budget, in relation to certain  trans-

S. 6407--B                          5

  fers  and to the effectiveness of certain provisions thereof; to amend
  the New York state urban development corporation act, in  relation  to
  funding  project  costs for certain capital projects; to amend chapter
  389 of the laws of 1997, relating to the financing of the correctional
  facilities  improvement  fund and the youth facility improvement fund,
  in relation to the issuance of bonds; to  amend  the  private  housing
  finance  law, in relation to housing program bonds and notes; to amend
  chapter 329 of the laws of 1991, amending the state  finance  law  and
  other  laws relating to the establishment of the dedicated highway and
  bridge trust fund, in relation to the issuance of bonds; to amend  the
  public authorities law, in relation to the issuance of bonds; to amend
  the public authorities law, in relation to the dormitory authority; to
  amend  chapter  61  of  the laws of 2005 relating to providing for the
  administration of certain funds and accounts related to the  2005-2006
  budget,  in  relation  to  issuance  of bonds by the urban development
  corporation; to amend the New York state urban development corporation
  act, in relation to the issuance of bonds; to amend the public author-
  ities law, in  relation  to  the  state  environmental  infrastructure
  projects;  to  amend  the New York state urban development corporation
  act, in relation to authorizing the urban development  corporation  to
  issue  bonds to fund project costs for the implementation of a NY-CUNY
  challenge grant program; to amend chapter 81  of  the  laws  of  2002,
  relating  to  providing  for  the  administration of certain funds and
  accounts related to the 2002-2003 budget, in  relation  to  increasing
  the aggregate amount of bonds to be issued by the New York state urban
  development  corporation;  to  amend  the  public  authorities law, in
  relation to financing  of  peace  bridge  and  transportation  capital
  projects; to amend the public authorities law, in relation to dormito-
  ries  at  certain  educational  institutions other than state operated
  institutions and statutory or contract colleges under the jurisdiction
  of the state university of New York;  to  amend  the  New  York  state
  medical  care  facilities finance agency act, in relation to bonds and
  mental health facilities improvement notes; to amend chapter 63 of the
  laws of 2005, relating to the composition and responsibilities of  the
  New  York  state  higher  education  capital  matching grant board, in
  relation to increasing  the  amount  of  authorized  matching  capital
  grants;  to amend the public authorities law, in relation to bonds for
  the  health  care  facility  transformation  program;  to  direct  the
  distribution  of local sales tax revenue from the city of New York; to
  amend the civil practice law and rules, in relation to the undertaking
  required during the pendency of a stay of enforcement  of  a  judgment
  against  tobacco  product  master  settlement agreement signatories or
  their  successors  or  affiliates;  to  authorize  NYSERDA  to  expend
  proceeds collected from the auction at sale of carbon dioxide emission
  allowances;  and  providing  for the repeal of certain provisions upon
  expiration thereof (Part W)

  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 2016-2017
state fiscal year. Each component is  wholly  contained  within  a  Part
identified  as Parts A through W. The effective date for each particular
provision contained within such Part is set forth in the last section of

S. 6407--B                          6

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.  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, subdivision (a)  as  amended  by
section 3-e of part B of chapter 58 of the laws of 2010, subdivision (b)
as  amended  by section 24 of part B of chapter 109 of the laws of 2010,
subdivision (c-1) as added by section 1 of part F of chapter 56  of  the
laws  of  2012,  subdivision  (f)  as amended by section 23 of part B of
chapter 109 of the laws of 2010, paragraph (iii) of subdivision  (g)  as
amended by section 2 of part F of chapter 56 of the laws of 2012, subdi-
vision (h) as added by section 61 of part D of chapter 56 of the laws of
2012, is amended to read as follows:
  Section 1.  (a) Notwithstanding the provisions of section 368-a of the
social  services  law,  or any other provision of law, the department of
health shall provide reimbursement for expenditures made by or on behalf
of social services districts for medical assistance for  needy  persons,
and  the  administration  thereof,  in accordance with the provisions of
this section; provided, however, that this section shall  not  apply  to
amounts expended for health care services under FORMER section 369-ee of
the social services law, which amounts shall be reimbursed in accordance
with  paragraph  (t)  of  subdivision 1 of section 368-a of such law and
shall be excluded from all calculations made pursuant to  this  section;
and  provided further that amounts paid to the public hospitals pursuant
to subdivision 14-f of section 2807-c  of  the  public  health  law  and
amounts  expended  pursuant  to:  subdivision  12 of section 2808 of the
public health law; sections 211 and 212 of chapter 474 of  the  laws  of
1996,  as  amended; and sections 11 through 14 of part A and sections 13
and 14 of part B of chapter 1 of the laws of 2002; and amounts  paid  to
public  diagnostic and treatment centers as provided in sections 3-a and
3-b of part B of [the] chapter 58 of the laws  of  2010  [which  amended
this subdivision], amounts paid to public general hospitals as certified
public  expenditures as provided in section 3-c of part B of [the] chap-
ter 58 of the laws of 2010 [which amended this subdivision], and amounts
paid to managed care providers pursuant to section  3-d  of  part  B  of
[the]  chapter  58 of the laws of 2010 [which amended this subdivision],
shall be excluded from all calculations made pursuant to this section.
  (b) Commencing with the period April 1, 2005 though March 31, 2006,  a
social  services  district's  yearly  net  share  of  medical assistance
expenditures shall be calculated in relation  to  a  reimbursement  base
year  which, for purposes of this section, is defined as January 1, 2005
through December 31, 2005. The final base year  expenditure  calculation
for  each  social services district shall be made by the commissioner of
health, and approved by the director of the division of the  budget,  no
later  than  June 30, 2006.   Such calculations shall be based on actual
expenditures made by or on behalf  of  social  services  districts,  and
revenues received by social services districts, during the base year and
shall  be  made  without  regard  to  expenditures  made,  and  revenues

S. 6407--B                          7

received, outside the base year that are related  to  services  provided
during, or prior to, the base year. Such base year calculations shall be
based   on  the  social  services  district  medical  assistance  shares
provisions  in  effect on January 1, 2005.  Subject to the provisions of
subdivision four of section six of this  part,  the  state/local  social
services  district  relative  percentages  of  the  non-federal share of
medical assistance expenditures incurred prior to January 1, 2006  shall
not be subject to adjustment on and after July 1, 2006.
  (c)  Commencing  with  the  calendar  year  beginning January 1, 2006,
calendar year social services district  medical  assistance  expenditure
amounts  for each social services district shall be calculated by multi-
plying the results of the calculations performed pursuant  to  paragraph
(b) of this section by a non-compounded trend factor, as follows:
  (i) 2006 (January 1, 2006 through December 31, 2006):  3.5%;
  (ii)  2007  (January 1, 2007 through December 31, 2007):  6.75% (3.25%
plus the prior year's 3.5%);
  (iii) 2008 (January 1, 2008 through December 31,  2008):    9.75%  (3%
plus the prior year's 6.75%);
  (iv)  2009  (January  1,  2009  through  December  31, 2009), and each
succeeding calendar year: prior year's trend factor percentage plus 3%.
  (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%.
  (C-2)  NOTWITHSTANDING  ANY  PROVISIONS  OF  SUBDIVISION (C-1) OF THIS
SECTION TO THE CONTRARY, EFFECTIVE APRIL 1, 2016, FOR THE PERIOD JANUARY
1, 2016 THROUGH DECEMBER 31, 2016 AND FOR EACH CALENDAR YEAR THEREAFTER,
THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT FOR A SOCIAL SERVICES DISTRICT
HAVING A POPULATION OF MORE THAN FIVE MILLION  SHALL  BE  EQUAL  TO  THE
AMOUNT CALCULATED PURSUANT TO SUBDIVISIONS (B) AND (C) OF THIS SECTION.
  (d) The base year expenditure amounts calculated pursuant to paragraph
(b)  of  this  section  and  the  calendar year social services district
expenditure amounts calculated pursuant to paragraph (c) of this section
shall be converted into  state  fiscal  year  social  services  district
expenditure cap amounts for each social services district such that each
such state fiscal year amount is proportional to the portions of the two
calendar years within each fiscal year, as follows:
  (i)  fiscal year 2005-2006 (April 1, 2005 through March 31, 2006): 75%
of the base year amount plus 25% of the 2006 calendar year amount;
  (ii) fiscal year 2006-2007 (April 1, 2006 through March 31, 2007): 75%
of the 2006 year calendar amount plus 25%  of  the  2007  calendar  year
amount;
  (iii)  each  succeeding  fiscal  year:  75% of the first calendar year
within that fiscal year's amount plus 25% of the  second  calendar  year
within that fiscal year's amount.
  (D-1)  NOTWITHSTANDING  ANY  PROVISIONS  OF  SUBDIVISION  (D)  OF THIS
SECTION TO THE CONTRARY, FOR FISCAL YEARS 2015-2016 AND  2016-2017,  THE
BASE  YEAR  EXPENDITURE  AMOUNT  CALCULATED PURSUANT TO PARAGRAPH (B) OF

S. 6407--B                          8

THIS SECTION AND THE CALENDAR YEAR SOCIAL SERVICES DISTRICT  EXPENDITURE
AMOUNT  CALCULATED  PURSUANT  TO  PARAGRAPH (C) OF THIS SECTION SHALL BE
CONVERTED INTO A STATE FISCAL YEAR SOCIAL SERVICES DISTRICT  EXPENDITURE
CAP  AMOUNT  FOR  A SOCIAL SERVICES DISTRICT HAVING A POPULATION OF MORE
THAN FIVE MILLION AS FOLLOWS:
  (I) FISCAL YEAR 2015-2016 (APRIL 1, 2015 THROUGH MARCH 31, 2016):  75%
OF  THE 2015 BASE YEAR AMOUNT PLUS 25% OF THE 2016 CALENDAR YEAR AMOUNT,
IF SUCH 2016 CALENDAR YEAR AMOUNT WERE CALCULATED WITHOUT REGARD TO  THE
PROVISIONS OF SUBDIVISION (C-2) OF THIS SECTION;
  (II) FISCAL YEAR 2016-2017 (APRIL 1, 2016 THROUGH MARCH 31, 2017): 75%
OF  THE 2016 BASE YEAR AMOUNT PLUS 25% OF THE 2017 CALENDAR YEAR AMOUNT;
THIS CAP AMOUNT SHALL BE REDUCED BY ONE-HALF OF THE  DIFFERENCE  BETWEEN
THIS  AMOUNT  AND  THE  CAP  AMOUNT FOR THIS PERIOD THAT WOULD RESULT IF
CALCULATED WITHOUT REGARD TO THE PROVISIONS OF SUBDIVISION (C-2) OF THIS
SECTION.
  (e) No later than April 1, 2007,  the  commissioner  of  health  shall
certify  the  2006-2007 fiscal year social services district expenditure
cap amounts for each social services  district  calculated  pursuant  to
subparagraph (ii) of paragraph (d) of this section and shall communicate
such amounts to the commissioner of taxation and finance.
  (f)  Subject  to  paragraph (g) of this section, the state fiscal year
social services district expenditure  cap  amount  calculated  for  each
social services district pursuant to paragraph (d) of this section shall
be  allotted  to  each  district during that fiscal year and paid to the
department in equal weekly amounts in a manner to be determined  by  the
commissioner  and  communicated  to  such  districts and, subject to the
provisions of subdivision four of section six of this part, shall repre-
sent each  district's  maximum  responsibility  for  medical  assistance
expenditures   governed  by  this  section.  HOWEVER,  FOR  FISCAL  YEAR
2016-2017, THE EXPENDITURE CAP AMOUNT CALCULATED FOR A  SOCIAL  SERVICES
DISTRICT  HAVING A POPULATION OF MORE THAN FIVE MILLION SHALL BE PAID TO
THE DEPARTMENT IN WEEKLY AMOUNTS IN A MANNER TO  BE  DETERMINED  BY  THE
COMMISSIONER,  IN  CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF THE
BUDGET, AND COMMUNICATED TO SUCH DISTRICT.
  (g) (i) No allotment pursuant to paragraph (f) of this  section  shall
be applied against a social services district during the period April 1,
2005  through  December  31,  2005.    Social  services district medical
assistance shares shall be determined for such period pursuant to shares
provisions in effect on January 1, 2005.
  (ii) For the period January 1, 2006 through June 30, 2006, the commis-
sioner is authorized to allot against each district an amount  based  on
the  commissioner's  best  estimate  of  the final base year expenditure
calculation required by paragraph (b) of this section.  Upon  completion
of  such calculation, the commissioner shall, no later than December 31,
2006, reconcile such estimated allotments with the  fiscal  year  social
services district expenditure cap amounts calculated pursuant to subpar-
agraphs (i) and (ii) of paragraph (d) of this section.
  (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

S. 6407--B                          9

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.
  (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 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2016.

                                 PART B

  Section 1.  Subdivision 4 of section 365-h of the social services law,
as  separately  amended by section 50 of part B and section 24 of part D
of chapter 57 of the laws of 2015, is amended to read as follows:
  4. The commissioner of health is authorized to  assume  responsibility
from  a  local social services official for the provision and reimburse-
ment of transportation costs under this  section.  If  the  commissioner
elects  to assume such responsibility, the commissioner shall notify the
local social services official in writing as to the election,  the  date
upon  which  the  election shall be effective and such information as to
transition of responsibilities as the commissioner  deems  prudent.  The
commissioner  is authorized to contract with a transportation manager or
managers to manage transportation services in any local social  services
district,  other  than  transportation services provided or arranged for
enrollees of managed long term care plans issued certificates of author-
ity under section forty-four hundred three-f of the public  health  law;
REGISTRANTS  OF  ADULT DAY HEALTH CARE PROGRAMS THAT DIRECTLY PROVIDE OR
ARRANGE FOR SUCH TRANSPORTATION SERVICES; AND  INDIVIDUALS  RESIDING  IN
NURSING  HOMES.  Any  transportation manager or managers selected by the
commissioner to manage transportation services shall have proven experi-
ence in coordinating transportation services in a geographic  and  demo-
graphic  area  similar  to  the  area in New York state within which the
contractor would manage the provision of services  under  this  section.
Such  a  contract  or  contracts may include responsibility for: review,
approval and processing of  transportation  orders;  management  of  the

S. 6407--B                         10

appropriate  level of transportation based on documented patient medical
need; and development of new technologies leading to efficient transpor-
tation services. If the commissioner elects to assume such  responsibil-
ity  from a local social services district, the commissioner shall exam-
ine and, if appropriate,  adopt  quality  assurance  measures  that  may
include,  but  are  not  limited  to, global positioning tracking system
reporting requirements and service verification mechanisms. Any and  all
reimbursement  rates  developed  by  transportation  managers under this
subdivision shall be subject to the review and approval of  the  commis-
sioner.
  (A) THE COMMISSIONER SHALL CONDUCT AN ANNUAL REVIEW OF ANY TRANSPORTA-
TION  MANAGER  OR  MANAGERS  SELECTED BY THE COMMISSIONER TO ENSURE: (I)
ONLY SUCH TRANSPORTATION THAT  IS  ESSENTIAL,  MEDICALLY  NECESSARY  AND
APPROPRIATE  TO  OBTAIN  MEDICAL  CARE,  SERVICES  OR SUPPLIES OTHERWISE
AVAILABLE UNDER THIS TITLE IS PROVIDED; (II) FOR RIDES ORIGINATING WITH-
IN A RURAL COUNTY AS DEFINED UNDER SECTION FOUR  HUNDRED  EIGHTY-ONE  OF
THE EXECUTIVE LAW, NO EXPENDITURES FOR TAXI OR LIVERY TRANSPORTATION ARE
MADE  WHEN PUBLIC TRANSPORTATION OR LOWER COST TRANSPORTATION IS REASON-
ABLY AVAILABLE TO ELIGIBLE PERSONS; AND  (III)  TRANSPORTATION  SERVICES
ARE  PROVIDED  IN  A SAFE, TIMELY, AND RELIABLE MANNER BY PROVIDERS THAT
COMPLY WITH STATE AND LOCAL REGULATORY REQUIREMENTS  AND  MEET  CONSUMER
SATISFACTION  CRITERIA  APPROVED  BY THE COMMISSIONER. THE ANNUAL REVIEW
SHALL BE CONDUCTED BY AN ENTITY UNRELATED TO THE TRANSPORTATION MANAGER.
  (B) THE COMMISSIONER SHALL PROVIDE AN ANNUAL REPORT TO THE LEGISLATURE
DETAILING: (I) THE FINDINGS OF THE ANNUAL REVIEW REQUIRED  BY  PARAGRAPH
(A)  OF  THIS  SUBDIVISION;  (II)  THE  TOTAL  NUMBER  OF  COMPLAINTS BY
COMPLAINT TYPE AND PROVIDER  TYPE  RECEIVED  BY  ENROLLEES  PER  COUNTY,
INCLUDING  ALLEGED  INSTANCES OF FRAUD; (III) THE TOTAL NUMBER OF TRANS-
PORTS PROVIDED PER COUNTY; (IV) THE TOTAL NUMBER FOR EACH TYPE OF TRANS-
PORTATION METHOD UTILIZED PER COUNTY, INCLUDING TAXI OR LIVERY TRANSPOR-
TATION, PUBLIC  TRANSPORTATION  INCLUDING  FIXED  AND  DIAL-A-RIDE,  AND
VOLUNTEER  DRIVING  SERVICES;  (V) THE TOTAL FISCAL IMPACT TO THE STATE;
AND (VI) THE TOTAL FISCAL IMPACT TO THE STATE PER COUNTY.
  S 1-a. Ambulance non-emergency medical  transportation  rate  adequacy
review.  The  commissioner  shall review the rates of reimbursement made
through the medicaid program for ambulance non-emergency medical  trans-
portation  for rate adequacy. At a minimum, such analysis shall consider
by region the costs  of  operation  compared  to  the  current  Medicaid
reimbursement  rate;  access  to  services; provider sustainability; and
payer mix. By December 31, 2016 the commissioner shall report the  find-
ings,  of  the  rate  adequacy  review to the temporary president of the
senate and the speaker of the assembly.
  S 2. Intentionally omitted.
  S 3. Intentionally omitted.
  S 4. Intentionally omitted.
  S 5. Intentionally omitted.
  S 6. Intentionally omitted.
  S 7. Intentionally omitted.
  S 8. Intentionally omitted.
  S 9. Subdivision 25 of section 364-j of the social  services  law,  as
added  by  section  55  of  part D of chapter 56 of the laws of 2012, is
amended to read as follows:
  25. [Effective January first, two thousand thirteen,  notwithstanding]
NOTWITHSTANDING  any  provision  of  law  to  the contrary, managed care
providers shall cover medically necessary  prescription  drugs  [in  the
atypical   antipsychotic  therapeutic  class],  including  non-formulary

S. 6407--B                         11

drugs[, upon demonstration by]. IF the prescriber, after consulting with
the  managed  care  provider,  DETERMINES  that  such  drugs,   in   the
prescriber's  reasonable  professional judgment, are medically necessary
and warranted, THE PRESCRIBER'S DETERMINATION SHALL BE FINAL.
  S  10. Subdivision 25-a of section 364-j of the social services law is
REPEALED.
  S 11. Intentionally omitted.
  S 12. Intentionally omitted.
  S 13. Intentionally omitted.
  S 14. Section 364-j of the social services law is amended by adding  a
new subdivision 26-a to read as follows:
  26-A.  MANAGED  CARE  PROVIDERS  SHALL  REQUIRE PRIOR AUTHORIZATION OF
PRESCRIPTIONS OF OPIOID ANALGESICS IN EXCESS OF FOUR PRESCRIPTIONS IN  A
THIRTY-DAY PERIOD.  PRIOR AUTHORIZATION OF PRESCRIPTIONS OF OPIOID ANAL-
GESICS  SHALL  NOT  BE  REQUIRED  WHEN  A PATIENT IS UNDER THE CARE OF A
HOSPICE.
  S 15. Section 364-j of the social services law is amended by adding  a
new subdivision 32 to read as follows:
  32.  (A)  THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, APPLY PENAL-
TIES AS PRESCRIBED BELOW TO MANAGED CARE ORGANIZATIONS SUBJECT  TO  THIS
SECTION  AND ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW FOR UNTIMELY OR
INACCURATE SUBMISSION OF ENCOUNTER DATA ONLY IF:
  (I) THE DEPARTMENT PROVIDES WRITTEN NOTICE OF THE  SPECIFIC  DEFICIEN-
CIES  TO  THE MANAGED CARE ORGANIZATION, AND SUCH MANAGED CARE ORGANIZA-
TION FAILS TO SUBMIT A PLAN OF CORRECTION OR MAKE A GOOD FAITH EFFORT TO
CURE THE IDENTIFIED DEFICIENCIES WITHIN FIFTEEN BUSINESS DAYS OF RECEIV-
ING SUCH NOTICE; AND
  (II) THE DEFECTIVE OR  UNTIMELY  SUBMISSION  IS  NOT  ATTRIBUTABLE  TO
FACTORS BEYOND THE CONTROL OF THE MANAGED CARE ORGANIZATION.
  FOR  PURPOSES  OF THIS SECTION, "ENCOUNTER DATA" SHALL MEAN THE TRANS-
ACTIONS REQUIRED TO BE REPORTED UNDER THE MODEL  CONTRACT.  ANY  PENALTY
ASSESSED  UNDER  THIS SUBDIVISION SHALL BE CALCULATED AS A PERCENTAGE OF
THE ADMINISTRATIVE COMPONENT OF THE MEDICAID PREMIUM CALCULATED  BY  THE
DEPARTMENT  AND SHALL BE THE EXCLUSIVE REMEDY FOR UNTIMELY OR INACCURATE
SUBMISSION OF ENCOUNTER DATA.
  (B) SUCH PENALTIES SHALL BE LIMITED TO:
  (I) FOR ENCOUNTER DATA SUBMITTED OR RESUBMITTED PAST THE DEADLINES SET
FORTH IN THE MODEL CONTRACT, MEDICAID PREMIUMS SHALL BE REDUCED  BY  ONE
AND ONE-HALF PERCENT; AND
  (II) FOR INCOMPLETE OR INACCURATE ENCOUNTER DATA THAT FAILS TO CONFORM
TO  DEPARTMENT DEVELOPED BENCHMARKS FOR COMPLETENESS AND ACCURACY, MEDI-
CAID PREMIUMS SHALL BE REDUCED BY ONE-HALF PERCENT; AND
  (III) FOR SUBMITTED DATA THAT RESULTS IN A REJECTION RATE IN EXCESS OF
TEN PERCENT OF DEPARTMENT DEVELOPED VOLUME BENCHMARKS, MEDICAID PREMIUMS
SHALL BE REDUCED BY ONE HALF-PERCENT.
  (C) PENALTIES UNDER THIS SUBDIVISION MAY BE APPLIED  TO  ANY  AND  ALL
CIRCUMSTANCES  DESCRIBED  IN PARAGRAPH (B) OF THIS SUBDIVISION FOR UP TO
FOUR MONTHS FROM THE DATE SUCH PENALTIES ARE IMPOSED.    NO  OTHER  RATE
MODIFICATIONS  OR  ADJUSTMENTS  TO  PAYMENTS MAY BE MADE FOR UNTIMELY OR
INACCURATE SUBMISSION OF ENCOUNTER DATA.  THE COMMISSIONER MAY,  IN  HIS
OR HER DISCRETION, WAIVE SUCH PENALTY.
  S 16. Intentionally omitted.
  S  16-a. Section 31 of part B of chapter 57 of the laws of 2015 amend-
ing the social services law relating to insurance payments is REPEALED.

S. 6407--B                         12

  S 17. Subdivision 2-b of section 365-l of the social services law,  as
added  by  section  25  of  part B of chapter 57 of the laws of 2015, is
amended to read as follows:
  2-b.    The  commissioner  is  authorized  to  make  [grants] LUMP SUM
PAYMENTS OR ADJUST RATES OF PAYMENT TO PROVIDERS up to a gross amount of
five million dollars, to establish coordination between the health homes
and the criminal justice system and for the integration  of  information
of  health  homes  with  state and local correctional facilities, to the
extent permitted by law.  SUCH RATE ADJUSTMENTS MAY BE  MADE  TO  HEALTH
HOMES PARTICIPATING IN A CRIMINAL JUSTICE PILOT PROGRAM WITH THE PURPOSE
OF  ENROLLING  INCARCERATED INDIVIDUALS WITH SERIOUS MENTAL ILLNESS, TWO
OR MORE CHRONIC CONDITIONS,  INCLUDING  SUBSTANCE  ABUSE  DISORDERS,  OR
HIV/AIDS, INTO SUCH HEALTH HOME. Health homes receiving funds under this
subdivision  shall be required to document and demonstrate the effective
use of funds distributed herein.
  S 18. Intentionally omitted.
  S 19. Subdivisions 3 and 4 of section 92 of part H of  chapter  59  of
the laws of 2011, amending the social services law and other laws relat-
ing to covered part D drugs, are amended to read as follows:
  3. (a) The commissioner of health shall seek the input of the legisla-
ture,  as  well  as  organizations  representing  health care providers,
consumers, businesses, workers, health insurers, and others  with  rele-
vant  expertise, in developing such medicaid savings allocation plan, to
the extent that all or part of such  plan,  in  the  discretion  of  the
commissioner,  is  likely  to  have  [a material] MORE THAN A DE MINIMIS
impact on the overall  medicaid  program,  [particular  categories]  ANY
SINGLE  CATEGORY  of  service,  ON  THE  DISBURSEMENT OF FUNDS UNDER THE
GLOBAL MEDICAID CAP, or [particular]  ON  ANY  ONE  OR  MORE  geographic
regions of the [states] STATE.
  (b)(i)  The  commissioner  of  health  [shall]  MUST post the medicaid
savings allocation plan, INCLUDING THE EXPECTED IMPACTS OF ITS IMPLEMEN-
TATION, on the department of health's website and shall provide  written
copies of such plan to the chairs of the senate finance and the assembly
ways  and  means  committees  at  least 30 days before the date on which
implementation is expected to begin.   ANY  ADJUSTMENTS  MADE  TO  AVOID
EXCEEDING  THE  DEPARTMENT  OF  HEALTH MEDICAID STATE FUNDS DISBURSEMENT
AMOUNT IN THE ENACTED BUDGET FINANCIAL PLAN SHALL BE DEEMED A  COMPONENT
OF THE MEDICAID SAVINGS ALLOCATION PLAN.
  (ii)  The commissioner of health may revise the medicaid savings allo-
cation plan [subsequent to the provision of notice and prior  to  imple-
mentation  but need provide a new notice pursuant to subparagraph (i) of
this paragraph only if  the  commissioner  determines,  in  his  or  her
discretion, that such revisions materially alter the plan] UPON APPROVAL
OF  THE  SECRETARY  OF THE SENATE FINANCE COMMITTEE AND THE SECRETARY OF
THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  (c) [Notwithstanding the provisions of paragraphs (a) and (b) of  this
subdivision,  the  commissioner  of  health  need  not  seek  the  input
described in paragraph (a) of this subdivision or provide notice  pursu-
ant  to  paragraph  (b)  of  this paragraph if, in the discretion of the
commissioner, expedited development and  implementation  of  a  medicaid
savings  allocation plan is necessary due to a public health emergency.]
For purposes of this section, a public health emergency is  defined  as:
(i)  a  disaster, natural or otherwise, that significantly increases the
immediate need for health care personnel in an area of the  state;  (ii)
an  event  or  condition that creates a widespread risk of exposure to a
serious communicable disease, or the potential for such widespread  risk

S. 6407--B                         13

of  exposure;  or  (iii)  any other event or condition determined by the
commissioner to constitute an imminent threat to public health.  IF  THE
COMMISSIONER  MAKES A PUBLIC DETERMINATION THAT THERE IS A PUBLIC HEALTH
EMERGENCY, THE APPROVALS REQUIRED PURSUANT TO SUBPARAGRAPH (II) OF PARA-
GRAPH (B) OF THIS SUBDIVISION MAY BE MADE SUBSEQUENT TO ACTIVITY.
  [(d)  Nothing in this paragraph shall be deemed to prevent all or part
of such medical savings allocation plan from taking effect retroactively
to the extent permitted by the federal centers for medicare and medicaid
services.]
  4. In accordance  with  the  medicaid  savings  allocation  plan,  the
commissioner  of  the  department  of  health shall reduce department of
health state funds medicaid disbursements by the amount of the projected
overspending [through, actions including, but not limited  to  modifying
or  suspending  reimbursement  methods, including but not limited to all
fees, premium levels and rates of payment, notwithstanding any provision
of law that sets a specific amount or methodology for any such  payments
or  rates  of  payment; modifying Medicaid program benefits; seeking all
necessary Federal approvals, including,  but  not  limited  to  waivers,
waiver  amendments;  and  suspending time frames for notice, approval or
certification of rate requirements,  notwithstanding  any  provision  of
law,  rule  or  regulation to the contrary, including but not limited to
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)] UPON APPROVAL  PURSUANT  TO
SUBDIVISION THREE OF THIS SECTION.
  S  20. Section 7 of part O of chapter 56 of the laws of 2013 authoriz-
ing the actions necessary to manage the  loss  of  federal  revenue  and
create  the  Mental  Hygiene  Stabilization  Fund, is amended to read as
follows:
  S 7. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2013, AND SHALL
EXPIRE AND BE DEEMED REPEALED ON AND AFTER MARCH 31, 2021.
  S 21. The social services law is amended by adding a new section 365-o
to read as follows:
  S  365-O.    MEDICAID REDESIGN ACCOUNTABILITY PROCESS. (A) THE COMMIS-
SIONER, IN CONSULTATION WITH THE DIRECTOR OF  THE  DIVISION  OF  BUDGET,
SHALL  ESTABLISH  A  PROCESS  TO  REVIEW AND REPORT ON EACH PHASE OF THE
MEDICAID REDESIGN TEAM, INCLUDING  ADMINISTRATIVE  ACTIONS,  AND  INITI-
ATIVES  THAT  WERE  AUTHORIZED  AND  NOT  IMPLEMENTED. THE PROCESS SHALL
INCLUDE A REVIEW OF EACH MEDICAID  REDESIGN  TEAM  INITIATIVE  AT  LEAST
EVERY  FIVE  YEARS  FROM THE EFFECTIVE DATE OF THIS SECTION. THE DEPART-
MENT, IN CONSULTATION WITH THE DIVISION  OF  BUDGET,  SHALL  PROVIDE  AN
ANNUAL  REPORT DETAILING THE FINDINGS OF THE ANNUAL REVIEW OF EACH MEDI-
CAID REDESIGN TEAM PHASE TO THE CHAIR OF THE  SENATE  FINANCE  COMMITTEE
AND  THE  CHAIR  OF  THE  ASSEMBLY WAYS AND MEANS COMMITTEE ON OR BEFORE
OCTOBER FIRST OF EACH YEAR.
  (B) FOR EACH MEDICAID REDESIGN TEAM PHASE ANNUAL REVIEW,  THE  COMMIS-
SIONER  AND  THE  DIRECTOR  SHALL  REVIEW  EACH INITIATIVE AND PROVIDE A
DETAILED REPORT, INCLUDING BUT NOT LIMITED TO:
  (I) A COMPARISON OF EACH RECOMMENDED  INITIATIVE  TO  THE  IMPLEMENTED
INITIATIVE, INCLUDING AN ANALYSIS OF INITIATIVE COMPLETENESS, ANY SUBSE-
QUENT  MODIFICATIONS  AND  ANY ADMINISTRATIVE ACTION BEYOND THE SCOPE OF
THE RECOMMENDED INITIATIVE;
  (II) A COST BENEFIT ANALYSIS OF EACH INITIATIVE, INCLUDING  THE  LEVEL
OF FEDERAL FINANCIAL PARTICIPATION AND FISCAL IMPLICATIONS TO THE STATE,
LOCAL  GOVERNMENTS,  HEALTH  CARE  PROVIDERS,  AND  INSURANCE AND HEALTH
PLANS;

S. 6407--B                         14

  (III) AN ANALYSIS OF THE IMPACT OF EACH INITIATIVE ON  THE  ACCESS  TO
CARE, QUALITY OF CARE, ADMINISTRATIVE PROCESS AND PROCEDURES, AND SHIFTS
IN CARE SETTING;
  (IV) AN ANALYSIS OF THE IMPACT ON PROVIDER SUSTAINABILITY;
  (V)  AN  ANALYSIS  OF  PHARMACY REIMBURSEMENT RATES, DRUG FILL SETTING
TRENDS, DRUG UTILIZATION, TOTAL STATE DRUG SPENDING DURING  EACH  IMPLE-
MENTATION  PHASE  AND  THE  FACTORS  RESPONSIBLE  FOR  ANY DRUG SPENDING
REDUCTIONS OVER THE COURSE OF REFORM INITIATIVES;
  (VI) AN ANALYSIS  OF  UNINTENDED  CONSEQUENCES  TO  THE  STATE,  LOCAL
GOVERNMENTS, HEALTH CARE PROVIDERS, INSURANCE AND HEALTH PLANS, MEDICAID
ENROLLEES AND OTHER STAKEHOLDERS; AND
  (VII) IF APPLICABLE, THE BASIS FOR NOT IMPLEMENTING AN INITIATIVE.
  S  22.  Subdivision  3  of section 364-j of the social services law is
amended by adding a new paragraph (d-2) to read as follows:
  (D-2) SERVICES PROVIDED  PURSUANT  TO  WAIVERS,  GRANTED  PURSUANT  TO
SUBSECTION  (C)  OF  SECTION 1915 OF THE FEDERAL SOCIAL SECURITY ACT, TO
PERSONS SUFFERING FROM TRAUMATIC BRAIN INJURIES OR QUALIFYING FOR  NURS-
ING  HOME  DIVERSION  AND  TRANSITION  SERVICES SHALL NOT BE PROVIDED TO
MEDICAL ASSISTANCE RECIPIENTS THROUGH MANAGED CARE PROGRAMS  ESTABLISHED
PURSUANT  TO  THIS SECTION, AND SHALL CONTINUE TO BE PROVIDED OUTSIDE OF
MANAGED CARE PROGRAMS AND IN ACCORDANCE WITH  SUCH  WAIVER  PROGRAMS  AS
THEY  EXISTED  ON JANUARY FIRST, TWO THOUSAND FIFTEEN; PROVIDED, FURTHER
THAT THE COMMISSIONER OF HEALTH IS HEREBY DIRECTED TO  TAKE  ANY  ACTION
REQUIRED,  INCLUDING BUT NOT LIMITED TO FILING WAIVERS AND WAIVER EXTEN-
SIONS  AS  NECESSARY  WITH  THE  FEDERAL  GOVERNMENT,  TO  CONTINUE  THE
PROVISION OF SUCH SERVICES.
  S  23.  Subdivision  1  of section 364-j of the social services law is
amended by adding a new paragraph (w) to read as follows:
  (W) "SCHOOL-BASED HEALTH CENTER."  A  CLINIC  LICENSED  UNDER  ARTICLE
TWENTY-EIGHT  OF  THE  PUBLIC  HEALTH  LAW  OR  SPONSORED  BY A FACILITY
LICENSED UNDER THE PUBLIC HEALTH LAW WHICH PROVIDES PRIMARY HEALTH  CARE
SERVICES  INCLUDING  URGENT  CARE,  WELL CHILD CARE, REPRODUCTIVE HEALTH
CARE, DENTAL CARE, BEHAVIORAL HEALTH SERVICES, VISION CARE, AND  MANAGE-
MENT OF CHRONIC DISEASES TO CHILDREN AND ADOLESCENTS WITHIN AN ELEMENTA-
RY, SECONDARY OR PREKINDERGARTEN PUBLIC SCHOOL SETTING.
  S  24.  Subdivision  2  of section 364-j of the social services law is
amended by adding a new paragraph (d) to read as follows:
  (D) THE COMMISSIONER OF HEALTH SHALL  BE  AUTHORIZED  TO  INCLUDE  THE
SERVICES  OF  A  SCHOOL-BASED  HEALTH CENTER IN THE MANAGED CARE PROGRAM
PURSUANT TO THIS SECTION ON AND AFTER JULY FIRST,  TWO  THOUSAND  SEVEN-
TEEN.
  S  25.  Subdivision  3  of section 364-j of the social services law is
amended by adding a new paragraph (d-2) to read as follows:
  (D-2) BEHAVIORAL HEALTH AND REPRODUCTIVE HEALTH CARE SERVICES PROVIDED
BY SCHOOL-BASED HEALTH CENTERS SHALL NOT BE PROVIDED TO MEDICAL  ASSIST-
ANCE  RECIPIENTS  THROUGH  MANAGED CARE PROGRAMS ESTABLISHED PURSUANT TO
THIS SECTION, AND SHALL CONTINUE TO BE PROVIDED  OUTSIDE  OF  MANAGEMENT
CARE PROGRAMS IN ACCORDANCE WITH APPLICABLE REIMBURSEMENT METHODOLOGIES.
APPLICABLE REIMBURSEMENT METHODOLOGIES SHALL MEAN:
  (I) FOR SCHOOL-BASED HEALTH CENTERS SPONSORED BY A FEDERALLY QUALIFIED
HEALTH  CENTER,  RATES  OF  REIMBURSEMENT AND REQUIREMENTS IN ACCORDANCE
WITH THOSE MANDATED BY 42 U.S.C. SECS. 1396A(BB), 1396(M)(2)(A)(IX)  AND
1936(A)(13)(C); AND
  (II)  FOR  SCHOOL-BASED HEALTH CENTERS SPONSORED BY AN ENTITY LICENSED
PURSUANT TO ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH LAW THAT IS NOT  A
FEDERALLY QUALIFIED HEALTH CENTER, RATES OF REIMBURSEMENT AT THE FEE FOR

S. 6407--B                         15

SERVICE  RATE FOR SUCH SERVICES IN EFFECT PRIOR TO THE ENACTMENT OF THIS
CHAPTER FOR  THE  AMBULATORY  PATIENT  GROUP  RATE  FOR  THE  APPLICABLE
SERVICE.
  (III)  FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "BEHAVIORAL HEALTH
SERVICES"  SHALL  MEAN  PRIMARY  PREVENTION,  INDIVIDUAL  MENTAL  HEALTH
ASSESSMENT,  TREATMENT  AND  FOLLOW-UP,  CRISIS  INTERVENTION, GROUP AND
FAMILY COUNSELING, AND SHORT AND LONG-TERM COUNSELING.
  S 26. Paragraph (d) of subdivision 2-a of section 2808 of  the  public
health law, as amended by section 52 of part B of chapter 57 of the laws
of 2015, is amended to read as follows:
  (d)  For  facilities  granted operating certificates on or after March
tenth, nineteen hundred seventy-five, recognition of real property costs
in such regulations shall be based upon historical costs to the owner of
the facility, provided that payment for real property costs shall not be
in excess of the actual debt service, including principal and  interest,
and  payment  with respect to owner's equity, and further provided that,
subject to federal financial participation, and subject to the  approval
of  the  commissioner,  effective April first, two thousand fifteen, the
commissioner may modify  such  payments  for  real  property  costs  for
purposes  of  effectuating  a shared savings program, whereby facilities
share a minimum of fifty percent of savings, for facilities  that  elect
to  refinance  their  mortgage  loans. For purposes of this subdivision,
owner's equity shall be calculated without regard to any surplus created
by revaluation of assets and shall not include  amounts  resulting  from
mortgage  amortization  where  the payment therefor has been provided by
real property cost reimbursement; PROVIDED, HOWEVER,  AS  USED  IN  THIS
SUBDIVISION  THE  TERMS  "HISTORICAL  COSTS"  AND "OWNER'S EQUITY" SHALL
INCLUDE THE FULL REVALUATION OF THE ASSETS OF A FACILITY  PURCHASED  AND
TRANSFERRED IMMEDIATELY FOLLOWING THE OPERATION OF SUCH FACILITY UNDER A
COURT-ORDERED RECEIVERSHIP, BUT ONLY IF:
  (I) THE FACILITY HAS BEEN CONTINUOUSLY OPERATED AND OCCUPIED PRIMARILY
WITH  PERSONS WHO ARE IN RECEIPT OF MEDICAL ASSISTANCE BENEFITS FROM THE
TIME THAT THE RECEIVERSHIP WAS ESTABLISHED UNTIL THE TIME OF PURCHASE OR
TRANSFER;
  (II) THE PUBLIC HEALTH AND HEALTH PLANNING COUNCIL HAS CONSIDERED  THE
APPLICATION  FOR  THE  ESTABLISHMENT  OF A NEW OPERATOR OF A RESIDENTIAL
HEALTH CARE FACILITY AT THE SITE OF THE FACILITY;
  (III) THE COMMISSIONER HAS REQUIRED SIGNIFICANT UPGRADE TO THE FACILI-
TY'S PHYSICAL PLANT IN CONSIDERATION OF  HIS  OR  HER  APPROVAL  OF  THE
CONSTRUCTION  OF  A  RESIDENTIAL HEALTH CARE FACILITY AT THE SITE OF THE
FACILITY; AND
  (IV) THE COMMISSIONER HAS DETERMINED EACH OF THE FOLLOWING  CONDITIONS
IS TRUE:
  (1) THERE IS A CONTINUING NEED FOR THE BEDS AT THEIR CURRENT LOCATION;
  (2) THE ESTIMATED TOTAL PROJECT COST FOR NEW CONSTRUCTION OF A FACILI-
TY  OF  THE SAME BED CAPACITY IN THE AREA WOULD SUBSTANTIALLY EXCEED THE
COMBINED PURCHASE PRICE AND TOTAL PROJECT COST FOR  APPROVED  RENOVATION
COSTS OF THE REVALUED FACILITY;
  (3) THE PURCHASE PRICE IS REASONABLE; AND
  (4)  THE  CONTINUED  USE  OF THE FACILITY AS A RESIDENTIAL HEALTH CARE
FACILITY IS IN THE PUBLIC INTEREST.
  S 27. Paragraph (d) of subdivision 2-a of section 2808 of  the  public
health  law,  as added by chapter 483 of the laws of 1978, is amended to
read as follows:
  (d) For facilities granted operating certificates on  or  after  March
tenth, nineteen hundred seventy-five, recognition of real property costs

S. 6407--B                         16

in such regulations shall be based upon historical costs to the owner of
the facility, provided that payment for real property costs shall not be
in  excess of the actual debt service, including principal and interest,
and  payment with respect to owner's equity. For purposes of this subdi-
vision, owner's equity shall be calculated without regard to any surplus
created by revaluation of assets and shall not include amounts resulting
from mortgage amortization where the payment therefor has been  provided
by  real property cost reimbursement; PROVIDED, HOWEVER, AS USED IN THIS
SUBDIVISION THE TERMS "HISTORICAL  COSTS"  AND  "OWNER'S  EQUITY"  SHALL
INCLUDE  THE  FULL REVALUATION OF THE ASSETS OF A FACILITY PURCHASED AND
TRANSFERRED IMMEDIATELY FOLLOWING THE OPERATION OF SUCH FACILITY UNDER A
COURT-ORDERED RECEIVERSHIP, BUT ONLY IF:
  (I) THE FACILITY HAS BEEN CONTINUOUSLY OPERATED AND OCCUPIED PRIMARILY
WITH PERSONS WHO ARE IN RECEIPT OF MEDICAL ASSISTANCE BENEFITS FROM  THE
TIME THAT THE RECEIVERSHIP WAS ESTABLISHED UNTIL THE TIME OF PURCHASE OR
TRANSFER;
  (II)  THE PUBLIC HEALTH AND HEALTH PLANNING COUNCIL HAS CONSIDERED THE
APPLICATION FOR THE ESTABLISHMENT OF A NEW  OPERATOR  OF  A  RESIDENTIAL
HEALTH CARE FACILITY AT THE SITE OF THE FACILITY;
  (III) THE COMMISSIONER HAS REQUIRED SIGNIFICANT UPGRADE TO THE FACILI-
TY'S  PHYSICAL  PLANT  IN  CONSIDERATION  OF  HIS OR HER APPROVAL OF THE
CONSTRUCTION OF A RESIDENTIAL HEALTH CARE FACILITY AT THE  SITE  OF  THE
FACILITY; AND
  (IV)  THE COMMISSIONER HAS DETERMINED EACH OF THE FOLLOWING CONDITIONS
IS TRUE:
  (1) THERE IS A CONTINUING NEED FOR THE BEDS AT THEIR CURRENT LOCATION;
  (2) THE ESTIMATED TOTAL PROJECT COST FOR NEW CONSTRUCTION OF A FACILI-
TY OF THE SAME BED CAPACITY IN THE AREA WOULD SUBSTANTIALLY  EXCEED  THE
COMBINED  PURCHASE  PRICE AND TOTAL PROJECT COST FOR APPROVED RENOVATION
COSTS OF THE REVALUED FACILITY;
  (3) THE PURCHASE PRICE IS REASONABLE; AND
  (4) THE CONTINUED USE OF THE FACILITY AS  A  RESIDENTIAL  HEALTH  CARE
FACILITY IS IN THE PUBLIC INTEREST.
  S  28. Subparagraph (i) of paragraph (e-2) of subdivision 4 of section
2807-c of the public health law, as added by section 13  of  part  C  of
chapter 58 of the laws of 2009, is amended to read as follows:
  (i)  For  physical  medical  rehabilitation  services and for chemical
dependency rehabilitation services, the operating cost component of such
rates shall reflect the use of two thousand  five  operating  costs  for
each respective category of services as reported by each facility to the
department  prior  to  July first, two thousand nine and as adjusted for
inflation pursuant to paragraph (c) of subdivision ten of this  section,
as otherwise modified by any applicable statute, provided, however, that
such  two  thousand  five  reported  operating  costs, but not including
reported  direct  medical  education  cost,  shall,   for   rate-setting
purposes, be held to a ceiling of one hundred ten percent of the average
of  such  reported costs in the region in which the facility is located,
as determined pursuant to clause (E) of  subparagraph  [(iii)]  (IV)  of
paragraph (1) of this subdivision; AND PROVIDED, FURTHER, THAT FOR PHYS-
ICAL  MEDICAL REHABILITATION SERVICES, THE COMMISSIONER IS AUTHORIZED TO
MAKE ADJUSTMENTS TO SUCH RATES FOR THE PURPOSES OF REIMBURSING PEDIATRIC
VENTILATOR SERVICES.
  S 29. Subdivision 2-a of section 2807 of  the  public  health  law  is
amended by adding a new paragraph (j) to read as follows:
  (J)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF THIS SUBDIVISION OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY AND, SUBJECT TO AN  APPROPRIATION

S. 6407--B                         17

THEREFOR,  ON  AND  AFTER  APRIL FIRST, TWO THOUSAND SEVENTEEN, RATES OF
PAYMENT  FOR  DIAGNOSTIC  AND  TREATMENT  CENTER   SERVICES,   EMERGENCY
SERVICES,  GENERAL  HOSPITAL  OUTPATIENT  SERVICES,  AMBULATORY SURGICAL
SERVICES  AND REFERRED AMBULATORY SERVICES, PROVIDED BY A RURAL HOSPITAL
DESIGNATED AS A CRITICAL ACCESS HOSPITAL IN ACCORDANCE WITH TITLE  XVIII
OF  THE  FEDERAL  SOCIAL  SECURITY ACT SHALL BE EQUAL TO ONE HUNDRED ONE
PERCENT OF THE REASONABLE COSTS OF A FACILITY IN PROVIDING SUCH SERVICES
TO PATIENTS ELIGIBLE FOR PAYMENTS MADE IN ACCORDANCE WITH THIS  SUBDIVI-
SION.  REASONABLE  COSTS SHALL BE DETERMINED IN A MANNER CONSISTENT WITH
THAT USED TO DETERMINE PAYMENT FOR OUTPATIENT CRITICAL  ACCESS  HOSPITAL
SERVICES  PROVIDED TO BENEFICIARIES OF TITLE XVIII OF THE FEDERAL SOCIAL
SECURITY ACT. FOR FACILITIES  WITHOUT  ADEQUATE  COST  EXPERIENCE,  SUCH
RATES  SHALL  BE  BASED  ON  BUDGETED COSTS SUBSEQUENTLY ADJUSTED TO ONE
HUNDRED ONE PERCENT OF REASONABLE ACTUAL COSTS.
  S 30. Paragraph d of subdivision 20 of  section  2808  of  the  public
health law, as added by section 8 of part H of section 59 of the laws of
2011, is amended to read as follows:
  d.  Notwithstanding any contrary provision of law, rule or regulation,
for rate periods on and after April first, two thousand  eleven  THROUGH
MARCH THIRTY-FIRST, TWO THOUSAND SIXTEEN, the commissioner may reduce or
eliminate  the  payment  factor for return on or return of equity in the
capital cost  component  of  Medicaid  rates  of  payment  for  services
provided by residential health care facilities.
  S 31. Section 26 of part H of chapter 59 of the laws of 2011, amending
the public health law and other laws, relating to general hospital inpa-
tient reimbursement for annual rates, is amended to read as follows:
  S 26. Notwithstanding any provision of law to the contrary and subject
to  the  availability of federal financial participation, for periods on
and after April 1, 2011, clinics certified pursuant  to  [articles  16,]
ARTICLE  31 or 32 of the mental hygiene law shall be subject to targeted
Medicaid reimbursement rate reductions in accordance with the provisions
of this section. Such reductions shall be based on  utilization  thresh-
olds  which  may  be established either as provider-specific or patient-
specific thresholds. Provider-specific  thresholds  shall  be  based  on
average patient utilization for a given provider in comparison to a peer
based  standard to be determined for each service.  The commissioners of
the office of mental health[, the office for persons with  developmental
disabilities,]   and  the  office  of  alcoholism  and  substance  abuse
services, in consultation with the commissioner of health,  are  author-
ized  to  waive utilization thresholds for patients of clinics certified
pursuant to article [16,] 31[,] or 32 of the mental hygiene law who  are
enrolled  in  specific  treatment programs or otherwise meet criteria as
may be specified by such commissioners.  When applying  a  provider-spe-
cific  threshold,  rates will be reduced on a prospective basis based on
the  amount  any  provider  is  over  the  determined  threshold  level.
Patient-specific  thresholds  will  be based on annual thresholds deter-
mined for each service over which the per visit payment for  each  visit
in  excess of the standard during a twelve month period shall be reduced
by a pre-determined amount. The thresholds, peer based standards and the
payment reductions shall be determined by the department of health, with
the approval of the division of the budget, and in consultation with the
office of mental health[, the office for people with developmental disa-
bilities] and the office of alcoholism and substance abuse services, and
any such resulting rates shall be subject to certification by the appro-
priate commissioners pursuant to subdivision (a) of section 43.02 of the
mental hygiene law. The base period used  to  establish  the  thresholds

S. 6407--B                         18

shall  be  the  2009  calendar  year.  The total annualized reduction in
payments shall be not more than $10,900,000 for Article 31 clinics[, not
more than  $2,400,000  for  Article  16  clinics,]  and  not  more  than
$13,250,000  for  Article  32  clinics.  The  commissioner of health may
promulgate regulations to implement the provisions of this section.
  S 32. The public health law is amended by adding a new section 3340 to
read as follows:
  S 3340. SUBSTITUTION OF OPIOIDS WITH  ABUSE-DETERRENT  TECHNOLOGY.  1.
(A)  NOTWITHSTANDING  THE  PROVISIONS  OF  SECTION  SIXTY-EIGHT  HUNDRED
SIXTEEN-A OF THE EDUCATION  LAW,  NO  PHARMACIST  SHALL  INTERCHANGE  OR
SUBSTITUTE  AN  ABUSE-DETERRENT  OPIOID ANALGESIC DRUG PRODUCT, BRAND OR
GENERIC, WITH AN OPIOID ANALGESIC DRUG PRODUCT  LACKING  ABUSE-DETERRENT
PROPERTIES   WHEN   THE  PRESCRIBER  WRITES  OR  ELECTRONICALLY  NOTATES
"DISPENSE AS WRITTEN" OR "DAW" ON THE PRESCRIPTION, WITHOUT OBTAINING  A
NEW PRESCRIPTION FOR A NON-ABUSE DETERRENT OPIOID DRUG FROM THE PRESCRI-
BER. ANY SUBSTITUTABLE OPIOID DRUG PRODUCT SHALL CONTAIN THE SAME OPIOID
ACTIVE  PHARMACEUTICAL  INGREDIENT  AND THE SAME DRUG RELEASE CHARACTER-
ISTICS WITH REGARD TO IMMEDIATE RELEASE, OR EXTENDED RELEASE LONG ACTING
PROPERTIES. A DETERMINATION OF INTERCHANGEABILITY BETWEEN TWO ABUSE-DET-
ERRENT OPIOID ANALGESIC  DRUG  PRODUCTS  SHALL  NOT  REQUIRE  THAT  BOTH
PRODUCTS  INCORPORATE THE SAME METHODS OF ABUSE-DETERRENCE, BUT THAT THE
OPIOID DRUG PRODUCTS HAVE THE SAME LEVEL OF  FDA-APPROVED  ABUSE  DETER-
RENCE LABELING CLAIMS.
  (B)  THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SECTION SHALL NOT APPLY
TO A PHARMACIST DISPENSING MEDICATION IN THE INPATIENT HOSPITAL  SETTING
WHEN THE PRESCRIBED MEDICATION WILL BE ADMINISTERED TO THE PATIENT BY AN
EMPLOYEE OF THE HOSPITAL.
  2. DEFINITIONS. AS USED IN THIS SECTION:
  (A)  "OPIOID  ANALGESIC DRUG PRODUCT" MEANS A DRUG IN THE OPIOID ANAL-
GESIC DRUG CLASS PRESCRIBED TO TREAT MODERATE TO SEVERE  PAIN  OR  OTHER
CONDITIONS, WHETHER IN IMMEDIATE RELEASE OR EXTENDED RELEASE LONG ACTING
FORM  AND  WHETHER  OR NOT COMBINED WITH OTHER DRUG SUBSTANCES TO FORM A
SINGLE DRUG PRODUCT OR OTHER DOSAGE FORM.
  (B) "ABUSE-DETERRENT OPIOID ANALGESIC DRUG PRODUCT" MEANS A  BRAND  OR
GENERIC  OPIOID  ANALGESIC DRUG PRODUCT APPROVED BY THE FEDERAL FOOD AND
DRUG ADMINISTRATION WITH ABUSE-DETERRENCE LABELING CLAIMS INDICATING ITS
ABUSE-DETERRENT PROPERTIES ARE EXPECTED TO DETER OR REDUCE ITS ABUSE.
  (C) "INTERCHANGE OR SUBSTITUTION OF AN OPIOID DRUG" MEANS THE  SUBSTI-
TUTION  OF  ANY  ABUSE-DETERRENT  OPIOID DRUG PRODUCT, BRAND OR GENERIC,
WITH AN OPIOID ANALGESIC DRUG LACKING ABUSE-DETERRENT PROPERTIES.
  (D) "PHARMACIST" INCLUDES ANY PHARMACIST DISPENSING  DRUGS  UNDER  THE
JURISDICTION  OF  THE STATE BOARD OF PHARMACY, INCLUDING BUT NOT LIMITED
TO, COMMUNITY PHARMACISTS  AND  PHARMACISTS  IN  MAIL  ORDER  PHARMACIES
LICENSED BY THE STATE TO DISTRIBUTE IN THE STATE.
  S  33.  The insurance law is amended by adding a new section 3216-a to
read as follows:
  S 3216-A.  ACCESS TO ABUSE-DETERRENT OPIOID MEDICATIONS. (A) AN INSUR-
ANCE CARRIER OR HEALTH PLAN SHALL PROVIDE  COVERAGE  ON  ITS  FORMULARY,
DRUG  LIST  OR  OTHER  LISTS  OF  SIMILAR  CONSTRUCT  FOR  AT  LEAST ONE
ABUSE-DETERRENT OPIOID  ANALGESIC  DRUG  PRODUCT  PER  OPIOID  ANALGESIC
ACTIVE INGREDIENT.
  (1)  COST-SHARING FOR BRAND NAME ABUSE-DETERRENT OPIOID ANALGESIC DRUG
PRODUCTS COVERED PURSUANT TO THIS SECTION SHALL NOT  EXCEED  THE  LOWEST
COST-SHARING  LEVEL  APPLIED  TO  BRAND  NAME NON-ABUSE DETERRENT OPIOID
DRUGS COVERED UNDER THE APPLICABLE HEALTH PLAN OR POLICY.

S. 6407--B                         19

  (2) COST-SHARING FOR GENERIC  ABUSE-DETERRENT  OPIOID  ANALGESIC  DRUG
PRODUCTS  COVERED  PURSUANT  TO THIS SECTION SHALL NOT EXCEED THE LOWEST
COST-SHARING LEVEL APPLIED TO GENERIC NON-ABUSE DETERRENT  OPIOID  DRUGS
COVERED UNDER THE APPLICABLE HEALTH PLAN OR POLICY.
  (3)  AN INCREASE IN PATIENT COST-SHARING OR DISINCENTIVES FOR PRESCRI-
BERS OR DISPENSERS SHALL NOT BE ALLOWED TO ACHIEVE COMPLIANCE WITH  THIS
SECTION.
  (B)  ANY  PRIOR-AUTHORIZATION REQUIREMENTS OR OTHER UTILIZATION REVIEW
MEASURES FOR OPIOID ANALGESICS, AND ANY SERVICE  DENIALS  MADE  PURSUANT
THERETO, SHALL NOT REQUIRE USE OF OPIOID ANALGESIC DRUG PRODUCTS WITHOUT
ABUSE-DETERRENT  PROPERTIES  IN  ORDER  TO ACCESS ABUSE-DETERRENT OPIOID
ANALGESIC DRUG PRODUCTS.
  (C) DEFINITIONS. AS USED IN THIS SECTION:
  (1) "OPIOID ANALGESIC DRUG PRODUCT" MEANS A DRUG IN THE  OPIOID  ANAL-
GESIC  DRUG  CLASS  PRESCRIBED TO TREAT MODERATE TO SEVERE PAIN OR OTHER
CONDITIONS, WHETHER IN IMMEDIATE RELEASE OR EXTENDED LONG ACTING RELEASE
FORM AND WHETHER OR NOT COMBINED WITH OTHER DRUG SUBSTANCES  TO  FORM  A
SINGLE DRUG PRODUCT OR OTHER DOSAGE FORM.
  (2)  "ABUSE  DETERRENT OPIOID ANALGESIC DRUG PRODUCT" MEANS A BRAND OR
GENERIC OPIOID ANALGESIC DRUG PRODUCT APPROVED BY THE FEDERAL  FOOD  AND
DRUG ADMINISTRATION WITH ABUSE-DETERRENCE LABELING CLAIMS INDICATING ITS
ABUSE-DETERRENT PROPERTIES ARE EXPECTED TO DETER OR REDUCE ITS ABUSE.
  (3)  "COST-SHARING"  MEANS ANY COVERAGE LIMIT, COPAYMENT, COINSURANCE,
DEDUCTIBLE OR OTHER OUT-OF-POCKET PATIENT EXPENSE REQUIREMENTS.
  S 34. In Medicaid FFS, the department of health shall  make  bi-annual
assessments of non-preferred drugs in the best clinical interests of New
York  Medicaid  beneficiaries.  The  department  shall  include,  at the
manufacturer's option, a non-preferred drug as a preferred drug when  at
least  35  percent  of  prescriptions filled in that drug's class in the
previous two quarters were for a non-preferred  drug  on  the  preferred
drug  list,  provided  that the manufacturer of such previously non-pre-
ferred drug agrees to the rebate required  under  section  1927  of  the
Social  Security  Act and an additional supplemental rebate. The depart-
ment of health  and  the  manufacturer  may  negotiate  the  alternative
supplemental  rebate.  The  previously  non-preferred  drug  will not be
disadvantaged, including but not limited to imposing prior authorization
or utilization management requirements, relative to the other  preferred
drugs  in  its  class  other  than  what is required by the FDA-approved
label.
  S 35. The department of health shall provide an annual report  to  the
legislature  that  outlines,  with  respect  to  any  drug  class on the
preferred drug list in which only a single  therapeutic  pathway,  which
may  involve  one  or  more drugs prescribed in combination for the same
patient, is preferred, the financial impact  of  the  state's  preferred
drug  list decision, the clinical evidence the state relied on in estab-
lishing preferences for the class, and the clinical criteria that permit
beneficiaries to access non-preferred drugs in such a class.
  S 36. The public health law is amended by adding a new  section  276-a
to read as follows:
  S 276-A. MEDICAID DRUG REBATE REMITTANCE DEMONSTRATION PROGRAM. 1. THE
DEPARTMENT  SHALL  ESTABLISH  A  MEDICAID  DRUG REBATE REMITTANCE DEMON-
STRATION PROGRAM FOR THE PURPOSE OF WORKING COLLABORATIVELY  WITH  THIRD
PARTY  VENDORS  TO VALIDATE THE EXISTING MEDICAID DRUG REBATE CLAIMS AND
DETERMINE WHETHER THE DATA CONTAINS DUPLICATE CLAIMS OR CLAIMS ON  WHICH
REBATES  MAY  ALREADY  HAVE  BEEN PAID ALL OR IN PART TO MEDICARE PART D
PLANS OR SOME OTHER THIRD PARTIES IN ORDER TO RECTIFY DISPUTED CLAIMS.

S. 6407--B                         20

  2. FOR THE PURPOSES OF  THIS  DEMONSTRATION  PROGRAM,  THE  DEPARTMENT
SHALL  PROVIDE UTILIZATION INFORMATION TYING TO INVOICES SENT TO PHARMA-
CEUTICAL MANUFACTURERS, WHICH HAVE ENTERED INTO A REBATE AGREEMENT  WITH
THE  DEPARTMENT  OR  WITH  THE  FEDERAL  SECRETARY  OF  HEALTH AND HUMAN
SERVICES  ON  BEHALF OF THE DEPARTMENT UNDER SECTION 1927 OF THE FEDERAL
SOCIAL SECURITY ACT, AND TO THIRD PARTY DATA VENDORS, FOR THE PURPOSE OF
VALIDATING CLAIMS SUBMITTED  UNDER  SUCH  REBATE  AGREEMENT  OR  PROGRAM
INCLUDING  BUT  NOT  LIMITED  TO, THE PROGRAM FOR ELDERLY PHARMACEUTICAL
INSURANCE COVERAGE, AND THE MEDICAID DRUG REBATE PROGRAM IN GENERAL  FOR
THE  PERIOD FROM JANUARY FIRST, TWO THOUSAND FOURTEEN THROUGH JUNE THIR-
TIETH,  TWO  THOUSAND  SEVENTEEN.  SUCH  UTILIZATION  INFORMATION  SHALL
INCLUDE,  BUT  NOT  BE  LIMITED  TO: PRESCRIPTION NUMBERS, NATIONAL DRUG
CODES, NUMBER OF UNITS DISPENSED, CLAIMS PAID  DATE,  DATE  OF  SERVICE,
PRESCRIBING  PHYSICIAN  STATE  IDENTIFICATION  NUMBER, AMOUNT BILLED FOR
EACH  PRESCRIPTION,  AMOUNT   OF   REIMBURSEMENT   RECEIVED   FOR   EACH
PRESCRIPTION  (INCLUDING  ANY  ADJUSTMENT  CODES), DISPENSING PHARMACY'S
STATE IDENTIFICATION NUMBER, DISPENSING FEE, ANY APPLICABLE  THIRD-PARTY
PAYMENTS,  APPLICABLE CO-PAYMENTS, REFILL CODE, INTERNAL CLAIM NUMBER OF
THE SCRIPT, DAYS SUPPLY,  J-CODE  CLAIMS  INCLUDING  SINGLE  SOURCE  AND
MULTISOURCE  PHYSICIAN ADMINISTERED DRUGS, NPI NUMBERS, MCO PLAN IDENTI-
FIER, MCO PLAN NAME, AND THE NAME, ADDRESS, CITY, STATE AND ZIP CODE  OF
THE  PRESCRIBING PRACTITIONER AND PHARMACY. THE PRESCRIPTION DRUG UTILI-
ZATION INFORMATION SHALL BE PROVIDED TO THE THIRD PARTY DATA VENDORS  AS
SOON AS PRACTICABLE FOLLOWING ESTABLISHMENT OF THIS PROGRAM. THERE SHALL
BE  NO COST TO THE DEPARTMENT FOR SERVICES PERFORMED BY THIRD PARTY DATA
VENDORS. ANY PRESCRIPTION DRUG UTILIZATION DATA PROVIDED TO THIRD  PARTY
DATA  VENDORS  UNDER THIS DEMONSTRATION PROGRAM SHALL NOT BE SHARED WITH
OTHER PARTIES, EXCEPT PARTICIPATING DRUG MANUFACTURERS WHO HAVE  ENTERED
INTO  A  REBATE AGREEMENT WITH THE DEPARTMENT OR WITH THE FEDERAL SECRE-
TARY OF HEALTH AND HUMAN SERVICES ON  BEHALF  OF  THE  DEPARTMENT  UNDER
SECTION  1927  OF  THE  FEDERAL  SOCIAL  SECURITY  ACT. UTILIZATION DATA
PROVIDED UNDER THIS SECTION SHALL BE USED  FOR  THE  FOLLOWING  PURPOSE:
REBATE  VALIDATION  SERVICES  FOR  THE  BENEFIT  OF  DRUG  COMPANIES AND
STATE/FEDERAL AGENCIES  INCLUDING  DRUG  USE  TREND  REVIEW.  INDIVIDUAL
PATIENT IDENTIFYING INFORMATION SHALL BE KEPT CONFIDENTIAL BY ANY PERSON
OR  ENTITY  TO  WHOM  OR TO WHICH IT IS PROVIDED UNDER THIS SECTION. THE
DISCLOSURE OF THE FOREGOING DATA BY THE DEPARTMENT SHALL BE  CONSIDERED,
FOR  PURPOSES OF SECTION THREE HUNDRED SIXTY-NINE OF THE SOCIAL SERVICES
LAW, TO BE DIRECTLY CONNECTED WITH THE ADMINISTRATION OF MEDICAL ASSIST-
ANCE FOR NEEDY PERSONS.
  3. THE DEPARTMENT SHALL PROVIDE A REPORT ON THE RESULTS OF THE  DEMON-
STRATION  PROGRAM,  WITH  INPUT  FROM STAKEHOLDERS, TO THE GOVERNOR, THE
DIRECTOR OF THE DIVISION OF BUDGET, THE STATE COMPTROLLER AND THE LEGIS-
LATURE ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN.   THE
REPORT SHALL INCLUDE FINDINGS AS TO THE DEMONSTRATION PROGRAM'S CONTRIB-
UTION TO IMPROVING THE ABILITY OF THE DEPARTMENT TO VALIDATE DRUG REBATE
CLAIMS  AND RECTIFY DISPUTED CLAIMS. IN THE REPORT, THE DEPARTMENT SHALL
OFFER RECOMMENDATIONS AS TO WHETHER THE DEMONSTRATION PROGRAM SHOULD  BE
EXTENDED, MODIFIED, ELIMINATED OR MADE PERMANENT.
  S  37.  The public health law is amended by adding a new section 278-a
to read as follows:
  S 278-A. LIMITATION ON EXCESSIVE PRICE INCREASES; PRESCRIPTION  DRUGS:
1.  IN THE EVENT A MANUFACTURER, AS DEFINED IN SUBDIVISION TWENTY-ONE OF
SECTION SIXTY-EIGHT HUNDRED TWO OF THE EDUCATION  LAW,  OF  A  BRAND  OR
GENERIC DRUG, MADE AVAILABLE IN NEW YORK, INCREASES THE WHOLESALE ACQUI-
SITION  COST  (WAC)  OF A DRUG BY A PERCENT EQUAL TO OR GREATER THAN ONE

S. 6407--B                         21

HUNDRED PERCENT AT ANY ONE TIME OR IN THE AGGREGATE IN ANY TWELVE  MONTH
PERIOD:
  (A)  THE MANUFACTURER SHALL, NOT LESS THAN THIRTY DAYS PRIOR TO INSTI-
TUTING SUCH INCREASE, NOTIFY THE COMMISSIONER AND THE  DRUG  UTILIZATION
REVIEW  BOARD  ESTABLISHED  UNDER SECTION THREE HUNDRED SIXTY-NINE-BB OF
THE SOCIAL SERVICES LAW. NOTICE SHALL BE PROVIDED  ON  THE  FORM  ESTAB-
LISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION; AND
  (B)  THE  COMMISSIONER SHALL REQUIRE PRIOR AUTHORIZATION AND AUTHORIZE
MEDICAID MANAGED CARE PLANS TO REQUIRE PRIOR AUTHORIZATION FOR THE  DRUG
EFFECTIVE  AS  OF  THE DATE OF THE PRICE INCREASE AND CONTINUING UNTIL A
DETERMINATION IS MADE BY THE DRUG UTILIZATION REVIEW BOARD.
  2. THE COMMISSIONER, IN CONSULTATION WITH THE DRUG UTILIZATION  REVIEW
BOARD,  SHALL  PRODUCE  AND  MAKE  AVAILABLE  TO  MANUFACTURERS  A PRICE
INCREASE NOTIFICATION FORM THAT SHALL ELICIT:
  (A) THE MOST RECENT WHOLESALE ACQUISITION COST (WAC) OF THE DRUG PRIOR
TO AN INCREASE EQUAL TO OR GREATER THAN ONE HUNDRED PERCENT AT  ANY  ONE
TIME  OR  IN  THE AGGREGATE IN ANY TWELVE MONTH PERIOD IN EITHER PRICING
MEASURE. FOR THE PURPOSES OF THIS  SECTION  WHOLESALE  ACQUISITION  COST
(WAC) SHALL INCLUDE THE PRICES FOR EACH DOSAGE, SIZE OR CONCENTRATION OF
THE DRUG OFFERED OR SOLD BY THE MANUFACTURER;
  (B)  THE  WHOLESALE  ACQUISITION COST (WAC) OF THE DRUG WHEN EXCEEDING
THE ONE HUNDRED PERCENT THRESHOLD;
  (C) ANY MATERIAL CHANGE IN INGREDIENT,  PRODUCTION,  OR  MANUFACTURING
COSTS RESULTING IN THE PRICE INCREASE;
  (D) IN THE CASE OF A BRAND DRUG, THE EXPIRATION DATE OF THE PATENT;
  (E)  IN  THE CASE OF A GENERIC DRUG, WHETHER THE DRUG IS A SOLE SOURCE
DRUG; AND
  (F) ANY OTHER INFORMATION  THE  MANUFACTURER  DEEMS  RELEVANT  TO  THE
BOARD'S REVIEW.
  3. UPON RECEIPT OF A PRICE INCREASE NOTIFICATION FORM, THE DRUG UTILI-
ZATION  REVIEW BOARD SHALL REVIEW THE PRICE INCREASE AND MAKE A DETERMI-
NATION AS TO WHETHER THE PRICE INCREASE IS EXCESSIVE. IN MAKING A DETER-
MINATION THE BOARD SHALL CONSIDER:
  (A) THE WHOLESALE ACQUISITION COST (WAC) OF THE DRUG IN COMPARISON  TO
ANY GENERIC EQUIVALENT OR THERAPEUTICALLY EQUIVALENT DRUG;
  (B) THE FDA APPROVED OR COMPENDIUM SUPPORTED USE OF THE DRUG AND CRIT-
ICAL NEED TO THE PATIENT;
  (C)  ANY KNOWN MARKET FACTORS JUSTIFYING THE PRICE INCREASE, INCLUDING
BUT NOT LIMITED TO:
  (I) WHETHER THE DRUG HAS BEEN ABSENT FROM THE MARKET FOR ANY PERIOD OF
TIME; AND
  (II) CHANGES IN MANUFACTURING OR REGULATORY REQUIREMENTS OR COSTS.
  (D) ANY MATERIAL CHANGE IN THE PREVALENCE OR SEVERITY OF  THE  DISEASE
OR MEDICAL CONDITION OR CONDITIONS THAT THE DRUG IS APPROVED TO TREAT;
  (E)  IN  THE  CASE OF A BRAND DRUG, THE EXPIRATION DATE OF THE PATENT;
AND
  (F) IN THE CASE OF A GENERIC DRUG, WHETHER THE DRUG IS A  SOLE  SOURCE
DRUG.
  4. UPON A FINDING BY THE DRUG UTILIZATION REVIEW BOARD THAT A MANUFAC-
TURER  HAS  INSTITUTED  AN EXCESSIVE PRICE INCREASE, (I) THE BOARD SHALL
REQUIRE PRIOR AUTHORIZATION FOR THE DRUG AND AUTHORIZE MEDICAID  MANAGED
CARE  PLANS  TO  REQUIRE  PRIOR AUTHORIZATION UNTIL THE BOARD DETERMINES
OTHERWISE; AND (II) THE BOARD MAY  REFER  THE  MATTER  TO  THE  ATTORNEY
GENERAL  WITH ANY INFORMATION NECESSARY FOR THE INVESTIGATION AND PROSE-
CUTION  OF  PRICE  GOUGING  VIOLATIONS  UNDER  SECTION   THREE   HUNDRED
NINETY-SIX-RRR  OF THE GENERAL BUSINESS LAW. IN THE EVENT THE BOARD DOES

S. 6407--B                         22

NOT FIND THAT  THE  MANUFACTURER  HAS  ENGAGED  IN  AN  EXCESSIVE  PRICE
INCREASE, THE BOARD SHALL REMOVE THE REQUIREMENT FOR PRIOR AUTHORIZATION
AND  SUCH  AUTHORITY GRANTED TO MEDICAID MANAGED CARE PLANS TO INSTITUTE
PRIOR AUTHORIZATION UNDER THIS SECTION SHALL CEASE.
  S  38.  The  general  business  law is amended by adding a new section
396-rrr to read as follows:
  S 396-RRR. PRICE GOUGING; PRESCRIPTION DRUGS. 1. LEGISLATIVE  FINDINGS
AND  DECLARATION.  THE  LEGISLATURE  HEREBY  FINDS  THAT EXCESSIVE PRICE
INCREASES TO PRESCRIPTION DRUGS THAT LACK JUSTIFICATION BASED ON  MARKET
FORCES  CREATE  A  PUBLIC  HEALTH  RISK  TO CONSUMERS THAT RELY ON THESE
PRESCRIPTION DRUGS. IN ORDER TO PREVENT A MANUFACTURER,  AS  DEFINED  IN
SUBDIVISION  TWENTY-ONE OF SECTION SIXTY-EIGHT HUNDRED TWO OF THE EDUCA-
TION LAW, FROM TAKING UNFAIR ADVANTAGE OF CONSUMERS WHO  RELY  UPON  AND
MAY LOSE ACCESS TO THE PRESCRIPTION DRUGS IF THE MEDICATION HAS A SUDDEN
AND  EXCESSIVE  PRICE INCREASE, THE LEGISLATURE DECLARES THAT THE PUBLIC
INTEREST REQUIRES THAT SUCH CONDUCT BE PROHIBITED AND  MADE  SUBJECT  TO
CIVIL PENALTIES.
  2.  IN ORDER TO PREVENT A DRUG MANUFACTURER, AS DEFINED IN SUBDIVISION
TWENTY-ONE OF SECTION SIXTY-EIGHT HUNDRED TWO OF THE EDUCATION LAW, FROM
IMPOSING UNCONSCIONABLY AND UNJUSTIFIABLY EXCESSIVE PRICE INCREASES, THE
ATTORNEY GENERAL MAY, UPON REFERRAL FROM  THE  DRUG  UTILIZATION  REVIEW
BOARD  AS  CODIFIED IN SECTION TWO HUNDRED SEVENTY-EIGHT-A OF THE PUBLIC
HEALTH LAW, APPLY IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK  TO
THE  SUPREME COURT OF THE STATE OF NEW YORK WITHIN THE JUDICIAL DISTRICT
IN WHICH SUCH VIOLATIONS ARE ALLEGED TO HAVE OCCURRED, ON NOTICE OF FIVE
DAYS, FOR AN ORDER ENJOINING OR RESTRAINING COMMISSION OR CONTINUANCE OF
THE ALLEGED UNLAWFUL ACTS. IN ANY SUCH PROCEEDING, THE COURT MAY  IMPOSE
A  CIVIL PENALTY IN AN AMOUNT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS
AND, WHERE APPROPRIATE, ORDER RESTITUTION TO AGGRIEVED CONSUMERS.
  3. WHETHER A PRICE IS UNCONSCIONABLY AND UNJUSTIFIABLY EXCESSIVE IS  A
QUESTION  OF  LAW  FOR  THE  COURT.  THE  COURT'S  DETERMINATION  THAT A
VIOLATION OF THIS SECTION HAS OCCURRED SHALL BE BASED UPON THE FOLLOWING
FACTORS:
  (A) THE INCREASE IN PRICE IS UNCONSCIONABLY EXTREME;
  (B) THE DRUG IS VITAL AND MEDICALLY NECESSARY TO  THE  HEALTH  OF  THE
CONSUMER;
  (C)  THE  DRUG IS A SOLE SOURCE DRUG WITHOUT A THERAPEUTIC EQUIVALENT;
AND
  (D) THE PRICE INCREASE WAS WITHIN THE CONTROL OF THE MANUFACTURER  AND
NOT  CAUSED  BY  COSTS  IMPOSED  ON OR FACTORS BEYOND THE CONTROL OF THE
MANUFACTURER.
  S 39. Section 367-b of the social services law is amended by adding  a
new subdivision 15 to read as follows:
  15. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, CLAIMS FOR PAYMENT
FOR  MEDICAL  CARE, SERVICES OR SUPPLIES FURNISHED BY ANY PROVIDER UNDER
THE MEDICAL ASSISTANCE PROGRAM MUST BE INITIALLY SUBMITTED WITHIN NINETY
DAYS OF THE DATE THE MEDICAL CARE, SERVICES OR SUPPLIES  WERE  FURNISHED
TO AN ELIGIBLE PERSON TO BE VALID AND ENFORCEABLE AGAINST THE DEPARTMENT
OR  A  SOCIAL SERVICES DISTRICT, UNLESS THE PROVIDER'S SUBMISSION OF THE
CLAIMS IS DELAYED BEYOND NINETY DAYS DUE TO CIRCUMSTANCES OUTSIDE OF THE
CONTROL OF THE PROVIDER. SUCH CIRCUMSTANCES INCLUDE, BUT ARE NOT LIMITED
TO, ATTEMPTS TO RECOVER FROM A THIRD-PARTY  INSURER,  LEGAL  PROCEEDINGS
AGAINST  A RESPONSIBLE THIRD-PARTY OR THE RECIPIENT OF THE MEDICAL CARE,
SERVICES OR SUPPLIES, AN UNFORESEEABLE COMPUTER OR  SYSTEMS  MALFUNCTION
WHICH,  IN  THE JUDGMENT OF THE DEPARTMENT, IMPACTED THE SUBMISSION OF A
SIGNIFICANT NUMBER OF CLAIMS AND WAS UNKNOWN TO THE  PROVIDER  PRIOR  TO

S. 6407--B                         23

THE  EXPIRATION OF THE NINETY DAY TIME PERIOD, OR DELAYS IN THE DETERMI-
NATION OF CLIENT ELIGIBILITY BY THE SOCIAL SERVICES DISTRICT. ALL CLAIMS
SUBMITTED AFTER NINETY DAYS MUST BE ACCOMPANIED BY A  STATEMENT  OF  THE
REASON  FOR SUCH DELAY AND MUST BE SUBMITTED WITHIN THIRTY DAYS FROM THE
TIME SUBMISSION CAME WITHIN THE CONTROL OF THE PROVIDER, SUBJECT TO  THE
LIMITATIONS OF PARAGRAPH (C) OF THIS SUBDIVISION.
  (B)  ANY  CLAIM  RETURNED  TO  A PROVIDER DUE TO DATA INSUFFICIENCY OR
CLAIMING  ERRORS  MAY  BE  RESUBMITTED  BY  THE  PROVIDER  UPON   PROPER
COMPLETION  OF  THE  CLAIM  IN  ACCORDANCE  WITH  THE  CLAIMS PROCESSING
REQUIREMENTS OF THE DEPARTMENT WITHIN SIXTY DAYS  OF  THE  DATE  OF  THE
NOTIFICATION TO THE PROVIDER ADVISING THE PROVIDER OF SUCH INSUFFICIENCY
OR INVALIDITY. ANY RETURNED CLAIM NOT CORRECTLY RESUBMITTED WITHIN SIXTY
DAYS  OR  ON  THE  SECOND  RESUBMISSION IS NEITHER VALID NOR ENFORCEABLE
AGAINST THE DEPARTMENT OR A SOCIAL SERVICES DISTRICT.
  (C) NOTWITHSTANDING PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION TO  THE
CONTRARY:
  (I)  ALL  CLAIMS  FOR  PAYMENT  FOR MEDICAL CARE, SERVICES OR SUPPLIES
FURNISHED BY NON-PUBLIC PROVIDERS UNDER THE MEDICAL  ASSISTANCE  PROGRAM
MUST  BE  FINALLY SUBMITTED TO THE DEPARTMENT OR ITS FISCAL AGENT AND BE
PAYABLE WITHIN TWO YEARS FROM THE DATE THE CARE,  SERVICES  OR  SUPPLIES
WERE  FURNISHED  IN  ORDER  TO  BE  VALID AND ENFORCEABLE AS AGAINST THE
DEPARTMENT OR A SOCIAL SERVICES DISTRICT; AND
  (II) ALL CLAIMS FOR PAYMENT FOR MEDICAL  CARE,  SERVICES  OR  SUPPLIES
FURNISHED  BY  PUBLIC PROVIDERS MUST BE FINALLY SUBMITTED TO THE DEPART-
MENT OR ITS FISCAL AGENT AND BE PAYABLE WITHIN TWO YEARS FROM  THE  DATE
THE  CARE,  SERVICES  OR  SUPPLIES  WERE FURNISHED (OR WITHIN SUCH OTHER
PERIOD AS AGREED BY THE DEPARTMENT AND THE PUBLIC PROVIDER FOR  PAYMENTS
INITIALLY  MADE  BY  THE  PUBLIC PROVIDER UNDER A PROGRAM OTHER THAN THE
MEDICAL ASSISTANCE PROGRAM) IN ORDER TO  BE  VALID  AND  ENFORCEABLE  AS
AGAINST THE DEPARTMENT OR A SOCIAL SERVICES DISTRICT.
  (D)  FOR PURPOSES OF THIS SUBDIVISION, A CLAIM IS CONSIDERED SUBMITTED
UPON ITS RECEIPT BY THE DEPARTMENT OR ITS FISCAL AGENT.
  S 40. Restorative care unit demonstration program. 1.  Notwithstanding
any law, rule or regulation to the contrary, the commissioner of health,
within amounts appropriated, shall implement  a  restorative  care  unit
demonstration  program  within  one  year  of the effective date of this
section to reduce hospital admissions and readmissions from  residential
health  care facilities established pursuant to article 28 of the public
health law, through the establishment of restorative  care  units.  Such
units  shall  provide  higher-intensity treatment services for residents
who are at risk of hospitalization upon an acute  change  in  condition,
and  seek  to improve the capacity of nursing facilities to identify and
treat higher acuity patients with multiple co-morbidities as effectively
as possible in-situ, rather than through  admission  to  an  acute  care
facility. The unit shall utilize evidence based tools, as well as: (a) a
critical indicator monitoring system to evaluate performance indicators;
(b)  patient-focused  education  to  support  advanced care planning and
palliative care decisions; and (c) protocols to effect  care  monitoring
practices  designed to reduce the likelihood of change in patient status
conditions that may require acute care evaluation.  A residential health
care facility, established pursuant to article 28 of the  public  health
law,  wishing  to establish restorative care units must contract with an
eligible applicant.
  2. For the purposes of this section, an eligible applicant must  at  a
minimum  meet  the following criteria: (a) be a New York state entity in
good standing; and (b) have  demonstrated  experience  and  capacity  in

S. 6407--B                         24

developing  and  implementing  a  similar  unit  as described herein. An
eligible applicant for this demonstration program shall contract with  a
residential  health care facility, established pursuant to article 28 of
the public health law, with a license in good standing that: (i) employs
a nursing home administrator with at least two years operational experi-
ence; (ii) has a minimum of 160 certified beds; (iii) accepts reimburse-
ment pursuant to title XVIII and title XIX of the federal social securi-
ty  act;  (iv)  has  achieved at least a three star overall nursing home
compare rating from the Center for Medicare and Medicaid Services  five-
star  quality  rating  system;  and  (v)  operates  a discreet dedicated
restorative care unit with a  minimum  of  18  beds.  Additionally,  the
contracting  facility must have at the time of application, and maintain
during the course of the  demonstration,  functional  wireless  internet
connectivity  throughout the facility, including backup, with sufficient
bandwidth to support technological monitoring.
  3. Restorative care units; requirements. Restorative care units  shall
provide  on-site healthcare services, including, but not limited to: (a)
radiology; (b) peripherally inserted  central  catheter  insertion;  (c)
blood  sugar,  hemoglobin/hematocrit, electrolytes and blood gases moni-
toring; (d) 12-lead transmissible  electrocardiograms;  (e)  specialized
cardiac services, including rapid response teams, crash carts, and defi-
brillators; (f) telemedicine and telemetry which shall have the capabil-
ity to notify the user, in real time, when an urgent or emergent physio-
logical   change   has  occurred  in  a  patient's  condition  requiring
intervention, and to generate  reports  that  can  be  accessed  by  any
provider,  in real time, in any location to allow for immediate clinical
intervention.  For the purposes of this demonstration,  each  such  unit
must maintain the following clinical staffing levels: (a) one registered
nurse for every six patients, each of whom must be certified in intrave-
nous therapy and advanced cardiovascular life support; and (b) a medical
director  certified  by  the American Board of Critical Care Medicine or
the American Board of Hospital Medicine.
  4. Electronic health records. For the duration of  the  demonstration,
the  restorative  care  unit  shall  utilize  and maintain an electronic
health record system that connects to the local regional health informa-
tion organization to facilitate the exchange of health information.
  5. The department of health shall monitor the quality  and  effective-
ness  of  the  demonstration program in reducing hospital admissions and
readmissions over a three year period and shall report to  the  legisla-
ture,  within one year of implementation, on the demonstration program's
effectiveness in providing a higher level of care  at  lower  cost,  and
include  recommendations  regarding  the  utilization of the restorative
care unit model in the state.
  S 41. This act shall take effect immediately and shall  be  deemed  to
have  been in full force and effect on and after April 1, 2016; provided
that:
  (a) section one of this act shall take effect October 1, 2016;
  (b) subdivisions 26-a and 32 of section 364-j of the  social  services
law,  as  added  by  sections  fourteen and fifteen of this act shall be
deemed repealed on the same date and in the same manner as such  section
is repealed;
  (c)  the  amendments to section 364-j of the social services law, made
by section twenty-two of this act shall not affect  the  expiration  and
repeal  of  such section, and shall expire and be deemed repealed there-
with;

S. 6407--B                         25

  (d) the amendments to subdivision 1 of section  364-j  of  the  social
services  law  made by section twenty-three of this act shall not affect
the repeal of such section and shall be deemed to repeal therewith;
  (e)  the  amendments  to  subdivision 2 of section 364-j of the social
services law made by section twenty-four of this act  shall  not  affect
the repeal of such section and shall be deemed to repeal therewith;
  (f)  the  amendments  to  subdivision 3 of section 364-j of the social
services law made by section twenty-five of this act  shall  not  affect
the repeal of such section and shall be deemed to repeal therewith;
  (g) the amendments to paragraph (d) of subdivision 2-a of section 2808
of  the  public  health law made by section twenty-six of this act shall
not affect the expiration of such  paragraph  and  shall  be  deemed  to
expire  therewith,  when upon such date section twenty-seven of this act
shall take effect;
  (h) the implementation of the provisions  of  section  twenty-nine  of
this  act  shall  be subject to the appropriation of moneys specifically
for the purposes thereof;
  (i) the provisions of sections thirty-two and thirty-three of this act
shall take effect on the one hundred twentieth day after it  shall  have
become  a  law,  and  shall  apply to all policies and contracts issued,
renewed, modified, altered or amended on or after such date; and
  (j) section thirty-nine of this act shall apply to all provider claims
that were the subject of an appeal or department of health review on  or
after January 1, 2015.

                                PART B-1

  Section  1.  Section  18  of part C of chapter 60 of the laws of 2014,
amending the social services  law  relating  to  eliminating  prescriber
prevails  for  brand  name drugs with generic equivalents, is amended to
read as follows:
  S 18. The commissioner of health [is authorized to] SHALL establish  a
disability clinician advisory group of experienced clinicians and clinic
administrators  who  have an understanding of the comprehensive needs of
people with disabilities INCLUDING BUT NOT LIMITED TO PEOPLE WITH DEVEL-
OPMENTAL DISABILITIES.  Such group shall provide  the  commissioner  and
the  department  of  health  with  information and data on the effect of
policies, including proposed regulations  or  statutes,  and  of  fiscal
proposals, including rate setting and appropriations, on the delivery of
supports and services, INCLUDING BUT NOT LIMITED TO THE ROLE OF SPECIAL-
TY SERVICES for individuals with disabilities [including but not limited
to  the role of specialty services.], INCLUDING BUT NOT LIMITED TO INDI-
VIDUALS WITH DEVELOPMENTAL DISABILITIES.   SUCH GROUP SHALL  CONSIST  OF
THE  FOLLOWING  PERSONS OR THEIR DESIGNEES: THE COMMISSIONER OF DEVELOP-
MENTAL DISABILITIES,  THE  COMMISSIONER  OF  HEALTH,  THREE  INDIVIDUALS
APPOINTED  BY  THE  GOVERNOR,  AND TWO INDIVIDUALS EACH BY THE TEMPORARY
PRESIDENT OF THE SENATE AND BY THE SPEAKER OF THE ASSEMBLY. THE  MEMBERS
OF  THE  GROUP SHALL BE APPOINTED FOR A TERM OF TWO YEARS AND SHALL MEET
AT LEAST THREE TIMES IN EACH FULL CALENDAR YEAR  DURING  THE  FIRST  TWO
YEARS  AND  ADDITIONALLY UPON THE REQUEST OF THE COMMISSIONER OF HEALTH.
THE MEMBERS OF  THE  GROUP  SHALL  RECEIVE  NO  COMPENSATION  FOR  THEIR
SERVICES  AS MEMBERS, BUT EACH SHALL BE ALLOWED THE NECESSARY AND ACTUAL
EXPENSES INCURRED IN THE PERFORMANCE OF HIS OR HER DUTIES.
  S 2. This act shall take effect immediately; provided,  however,  that
any appointments pursuant to section one of this act shall be made with-
in one hundred eighty days of such effective date.

S. 6407--B                         26

                                 PART C

  Section 1. Intentionally Omitted.
  S  2.  Paragraph  (a) of subdivision 1 of section 18 of chapter 266 of
the laws of 1986, amending the civil practice law and  rules  and  other
laws  relating  to  malpractice  and  professional  medical  conduct, as
amended by section 1 of part Y of chapter 57 of the  laws  of  2015,  is
amended to read as follows:
  (a)  The  superintendent of financial services and the commissioner of
health or their designee shall, from funds  available  in  the  hospital
excess liability pool created pursuant to subdivision 5 of this section,
purchase  a policy or policies for excess insurance coverage, as author-
ized by paragraph 1 of subsection (e) of section 5502 of  the  insurance
law; or from an insurer, other than an insurer described in section 5502
of the insurance law, duly authorized to write such coverage and actual-
ly  writing  medical  malpractice  insurance  in  this  state;  or shall
purchase equivalent excess coverage in a form previously approved by the
superintendent of financial services for purposes  of  providing  equiv-
alent  excess  coverage  in accordance with section 19 of chapter 294 of
the laws of 1985, for medical or dental malpractice occurrences  between
July  1, 1986 and June 30, 1987, between July 1, 1987 and June 30, 1988,
between July 1, 1988 and June 30, 1989, between July 1,  1989  and  June
30,  1990,  between July 1, 1990 and June 30, 1991, between July 1, 1991
and June 30, 1992, between July 1, 1992 and June 30, 1993, between  July
1,  1993  and  June  30,  1994,  between July 1, 1994 and June 30, 1995,
between July 1, 1995 and June 30, 1996, between July 1,  1996  and  June
30,  1997,  between July 1, 1997 and June 30, 1998, between July 1, 1998
and June 30, 1999, between July 1, 1999 and June 30, 2000, between  July
1,  2000  and  June  30,  2001,  between July 1, 2001 and June 30, 2002,
between July 1, 2002 and June 30, 2003, between July 1,  2003  and  June
30,  2004,  between July 1, 2004 and June 30, 2005, between July 1, 2005
and June 30, 2006, between July 1, 2006 and June 30, 2007, between  July
1,  2007  and  June  30,  2008,  between July 1, 2008 and June 30, 2009,
between July 1, 2009 and June 30, 2010, between July 1,  2010  and  June
30,  2011,  between July 1, 2011 and June 30, 2012, between July 1, 2012
and June 30, 2013, between July 1, 2013 and June 30, 2014, between  July
1, 2014 and June 30, 2015, [and] between July 1, 2015 and June 30, 2016,
AND  BETWEEN  JULY  1,  2016 AND JUNE 30, 2017 or reimburse the hospital
where the hospital purchases equivalent excess coverage  as  defined  in
subparagraph (i) of paragraph (a) of subdivision 1-a of this section for
medical  or dental malpractice occurrences between July 1, 1987 and June
30, 1988, between July 1, 1988 and June 30, 1989, between July  1,  1989
and  June 30, 1990, between July 1, 1990 and June 30, 1991, between July
1, 1991 and June 30, 1992, between July  1,  1992  and  June  30,  1993,
between  July  1,  1993 and June 30, 1994, between July 1, 1994 and June
30, 1995, between July 1, 1995 and June 30, 1996, between July  1,  1996
and  June 30, 1997, between July 1, 1997 and June 30, 1998, between July
1, 1998 and June 30, 1999, between July  1,  1999  and  June  30,  2000,
between  July  1,  2000 and June 30, 2001, between July 1, 2001 and June
30, 2002, between July 1, 2002 and June 30, 2003, between July  1,  2003
and  June 30, 2004, between July 1, 2004 and June 30, 2005, between July
1, 2005 and June 30, 2006, between July  1,  2006  and  June  30,  2007,
between  July  1,  2007 and June 30, 2008, between July 1, 2008 and June
30, 2009, between July 1, 2009 and June 30, 2010, between July  1,  2010
and  June 30, 2011, between July 1, 2011 and June 30, 2012, between July
1, 2012 and June 30, 2013, between July  1,  2013  and  June  30,  2014,

S. 6407--B                         27

between  July  1, 2014 and June 30, 2015, [and] between July 1, 2015 and
June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 for physicians
or dentists certified as eligible for each such period or periods pursu-
ant  to  subdivision  2  of  this section by a general hospital licensed
pursuant to article 28 of the public health law; provided that no single
insurer shall write more than fifty percent of the total excess  premium
for  a  given  policy  year;  and  provided, however, that such eligible
physicians or dentists must have in force an individual policy, from  an
insurer licensed in this state of primary malpractice insurance coverage
in  amounts  of  no less than one million three hundred thousand dollars
for each claimant and three million nine hundred  thousand  dollars  for
all  claimants under that policy during the period of such excess cover-
age for such occurrences or be endorsed as additional insureds  under  a
hospital professional liability policy which is offered through a volun-
tary  attending physician ("channeling") program previously permitted by
the superintendent of financial  services  during  the  period  of  such
excess  coverage  for such occurrences.  During such period, such policy
for excess coverage or  such  equivalent  excess  coverage  shall,  when
combined with the physician's or dentist's primary malpractice insurance
coverage  or  coverage  provided through a voluntary attending physician
("channeling") program, total an aggregate level of  two  million  three
hundred  thousand dollars for each claimant and six million nine hundred
thousand dollars for all claimants from all such policies  with  respect
to  occurrences  in each of such years provided, however, if the cost of
primary malpractice insurance coverage in excess of one million dollars,
but below the excess medical  malpractice  insurance  coverage  provided
pursuant  to  this act, exceeds the rate of nine percent per annum, then
the required level of primary malpractice insurance coverage  in  excess
of  one  million  dollars for each claimant shall be in an amount of not
less than the dollar amount of such coverage available at  nine  percent
per  annum;  the required level of such coverage for all claimants under
that policy shall be in an amount not less than three times  the  dollar
amount of coverage for each claimant; and excess coverage, when combined
with  such  primary  malpractice  insurance coverage, shall increase the
aggregate level for each claimant  by  one  million  dollars  and  three
million  dollars  for  all  claimants;  and provided further, that, with
respect to policies of primary medical malpractice coverage that include
occurrences between April 1, 2002 and June 30,  2002,  such  requirement
that coverage be in amounts no less than one million three hundred thou-
sand  dollars  for each claimant and three million nine hundred thousand
dollars for all claimants for such occurrences shall be effective  April
1, 2002.
  S  3.  Subdivision 3 of section 18 of chapter 266 of the laws of 1986,
amending the civil practice law and rules and  other  laws  relating  to
malpractice and professional medical conduct, as amended by section 2 of
part Y of chapter 57 of the laws of 2015, is amended to read as follows:
  (3)(a)  The  superintendent  of financial services shall determine and
certify to each general hospital and to the commissioner of  health  the
cost  of  excess malpractice insurance for medical or dental malpractice
occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988
and June 30, 1989, between July 1, 1989 and June 30, 1990, between  July
1,  1990  and  June  30,  1991,  between July 1, 1991 and June 30, 1992,
between July 1, 1992 and June 30, 1993, between July 1,  1993  and  June
30,  1994,  between July 1, 1994 and June 30, 1995, between July 1, 1995
and June 30, 1996, between July 1, 1996 and June 30, 1997, between  July
1,  1997  and  June  30,  1998,  between July 1, 1998 and June 30, 1999,

S. 6407--B                         28

between July 1, 1999 and June 30, 2000, between July 1,  2000  and  June
30,  2001,  between July 1, 2001 and June 30, 2002, between July 1, 2002
and June 30, 2003, between July 1, 2003 and June 30, 2004, between  July
1,  2004  and  June  30,  2005,  between July 1, 2005 and June 30, 2006,
between July 1, 2006 and June 30, 2007, between July 1,  2007  and  June
30,  2008,  between July 1, 2008 and June 30, 2009, between July 1, 2009
and June 30, 2010, between July 1, 2010 and June 30, 2011, between  July
1,  2011  and June 30, 2012, between July 1, 2012 and June 30, 2013, and
between July 1, 2013 and June 30, 2014, between July 1,  2014  and  June
30, 2015, [and] between July 1, 2015 and June 30, 2016, AND BETWEEN JULY
1,  2016 AND JUNE 30, 2017 allocable to each general hospital for physi-
cians or dentists certified as eligible for purchase  of  a  policy  for
excess  insurance  coverage  by such general hospital in accordance with
subdivision 2 of this section, and  may  amend  such  determination  and
certification as necessary.
  (b)  The  superintendent  of  financial  services  shall determine and
certify to each general hospital and to the commissioner of  health  the
cost  of  excess malpractice insurance or equivalent excess coverage for
medical or dental malpractice occurrences between July 1, 1987 and  June
30,  1988,  between July 1, 1988 and June 30, 1989, between July 1, 1989
and June 30, 1990, between July 1, 1990 and June 30, 1991, between  July
1,  1991  and  June  30,  1992,  between July 1, 1992 and June 30, 1993,
between July 1, 1993 and June 30, 1994, between July 1,  1994  and  June
30,  1995,  between July 1, 1995 and June 30, 1996, between July 1, 1996
and June 30, 1997, between July 1, 1997 and June 30, 1998, between  July
1,  1998  and  June  30,  1999,  between July 1, 1999 and June 30, 2000,
between July 1, 2000 and June 30, 2001, between July 1,  2001  and  June
30,  2002,  between July 1, 2002 and June 30, 2003, between July 1, 2003
and June 30, 2004, between July 1, 2004 and June 30, 2005, between  July
1,  2005  and  June  30,  2006,  between July 1, 2006 and June 30, 2007,
between July 1, 2007 and June 30, 2008, between July 1,  2008  and  June
30,  2009,  between July 1, 2009 and June 30, 2010, between July 1, 2010
and June 30, 2011, between July 1, 2011 and June 30, 2012, between  July
1,  2012  and  June  30,  2013,  between July 1, 2013 and June 30, 2014,
between July 1, 2014 and June 30, 2015, [and] between July 1,  2015  and
June  30,  2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017 allocable to
each general hospital for physicians or dentists certified  as  eligible
for  purchase  of  a  policy for excess insurance coverage or equivalent
excess coverage by such general hospital in accordance with  subdivision
2 of this section, and may amend such determination and certification as
necessary.  The superintendent of financial services shall determine and
certify to each general hospital and to the commissioner of  health  the
ratable  share  of  such  cost  allocable  to the period July 1, 1987 to
December 31, 1987, to the period January 1, 1988 to June  30,  1988,  to
the  period  July 1, 1988 to December 31, 1988, to the period January 1,
1989 to June 30, 1989, to the period July 1, 1989 to December 31,  1989,
to  the  period  January 1, 1990 to June 30, 1990, to the period July 1,
1990 to December 31, 1990, to the period January 1,  1991  to  June  30,
1991,  to  the  period  July 1, 1991 to December 31, 1991, to the period
January 1, 1992 to June 30, 1992, to the period July 1, 1992 to December
31, 1992, to the period January 1, 1993 to June 30, 1993, to the  period
July 1, 1993 to December 31, 1993, to the period January 1, 1994 to June
30, 1994, to the period July 1, 1994 to December 31, 1994, to the period
January 1, 1995 to June 30, 1995, to the period July 1, 1995 to December
31,  1995, to the period January 1, 1996 to June 30, 1996, to the period
July 1, 1996 to December 31, 1996, to the period January 1, 1997 to June

S. 6407--B                         29

30, 1997, to the period July 1, 1997 to December 31, 1997, to the period
January 1, 1998 to June 30, 1998, to the period July 1, 1998 to December
31, 1998, to the period January 1, 1999 to June 30, 1999, to the  period
July 1, 1999 to December 31, 1999, to the period January 1, 2000 to June
30, 2000, to the period July 1, 2000 to December 31, 2000, to the period
January 1, 2001 to June 30, 2001, to the period July 1, 2001 to June 30,
2002, to the period July 1, 2002 to June 30, 2003, to the period July 1,
2003  to  June 30, 2004, to the period July 1, 2004 to June 30, 2005, to
the period July 1, 2005 and June 30, 2006, to the period  July  1,  2006
and  June 30, 2007, to the period July 1, 2007 and June 30, 2008, to the
period July 1, 2008 and June 30, 2009, to the period July  1,  2009  and
June  30,  2010,  to  the  period July 1, 2010 and June 30, 2011, to the
period July 1, 2011 and June 30, 2012, to the period July  1,  2012  and
June  30,  2013,  to  the  period July 1, 2013 and June 30, 2014, to the
period July 1, 2014 and June 30, 2015, [and] to the period July 1,  2015
and June 30, 2016, AND BETWEEN JULY 1, 2016 AND JUNE 30, 2017.
  S 4. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
18  of  chapter 266 of the laws of 1986, amending the civil practice law
and rules and  other  laws  relating  to  malpractice  and  professional
medical  conduct, as amended by section 3 of part Y of chapter 57 of the
laws of 2015, are amended to read as follows:
  (a) To the extent funds available to  the  hospital  excess  liability
pool  pursuant to subdivision 5 of this section as amended, and pursuant
to section 6 of part J of chapter 63 of the laws of 2001,  as  may  from
time  to  time  be amended, which amended this subdivision, are insuffi-
cient to meet the costs  of  excess  insurance  coverage  or  equivalent
excess  coverage  for coverage periods during the period July 1, 1992 to
June 30, 1993, during the period July 1, 1993 to June 30,  1994,  during
the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
to  June  30,  1996,  during  the  period July 1, 1996 to June 30, 1997,
during the period July 1, 1997 to June 30, 1998, during the period  July
1,  1998  to  June  30, 1999, during the period July 1, 1999 to June 30,
2000, during the period July 1, 2000 to June 30, 2001, during the period
July 1, 2001 to October 29, 2001, during the period  April  1,  2002  to
June  30,  2002, during the period July 1, 2002 to June 30, 2003, during
the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
to June 30, 2005, during the period July  1,  2005  to  June  30,  2006,
during  the period July 1, 2006 to June 30, 2007, during the period July
1, 2007 to June 30, 2008, during the period July 1,  2008  to  June  30,
2009, during the period July 1, 2009 to June 30, 2010, during the period
July  1,  2010  to June 30, 2011, during the period July 1, 2011 to June
30, 2012, during the period July 1, 2012 to June 30,  2013,  during  the
period  July 1, 2013 to June 30, 2014, during the period July 1, 2014 to
June 30, 2015, [and] during the period July 1, 2015 and June  30,  2016,
AND  BETWEEN  JULY 1, 2016 AND JUNE 30, 2017 allocated or reallocated in
accordance with paragraph (a) of subdivision  4-a  of  this  section  to
rates  of payment applicable to state governmental agencies, each physi-
cian or dentist for whom a  policy  for  excess  insurance  coverage  or
equivalent excess coverage is purchased for such period shall be respon-
sible for payment to the provider of excess insurance coverage or equiv-
alent excess coverage of an allocable share of such insufficiency, based
on  the  ratio  of the total cost of such coverage for such physician to
the sum of the total cost of such coverage for all physicians applied to
such insufficiency.
  (b) Each provider of excess insurance coverage  or  equivalent  excess
coverage  covering the period July 1, 1992 to June 30, 1993, or covering

S. 6407--B                         30

the period July 1, 1993 to June 30, 1994, or covering the period July 1,
1994 to June 30, 1995, or covering the period July 1, 1995 to  June  30,
1996,  or covering the period July 1, 1996 to June 30, 1997, or covering
the period July 1, 1997 to June 30, 1998, or covering the period July 1,
1998  to  June 30, 1999, or covering the period July 1, 1999 to June 30,
2000, or covering the period July 1, 2000 to June 30, 2001, or  covering
the  period  July  1,  2001  to October 29, 2001, or covering the period
April 1, 2002 to June 30, 2002, or covering the period July 1,  2002  to
June  30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
covering the period July 1, 2004 to June 30, 2005, or covering the peri-
od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
June 30, 2007, or covering the period July 1, 2007 to June 30, 2008,  or
covering the period July 1, 2008 to June 30, 2009, or covering the peri-
od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
June  30, 2011, or covering the period July 1, 2011 to June 30, 2012, or
covering the period July 1, 2012 to June 30, 2013, or covering the peri-
od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
June 30, 2015, or covering the period July 1, 2015 to June 30, 2016,  OR
COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 shall notify a covered
physician  or  dentist  by mail, mailed to the address shown on the last
application for excess insurance coverage or equivalent excess coverage,
of the amount due to such provider from such physician  or  dentist  for
such coverage period determined in accordance with paragraph (a) of this
subdivision.  Such amount shall be due from such physician or dentist to
such provider of excess insurance coverage or equivalent excess coverage
in a time and manner  determined  by  the  superintendent  of  financial
services.
  (c)  If  a physician or dentist liable for payment of a portion of the
costs of excess insurance coverage or equivalent excess coverage  cover-
ing  the  period  July  1, 1992 to June 30, 1993, or covering the period
July 1, 1993 to June 30, 1994, or covering the period July  1,  1994  to
June  30, 1995, or covering the period July 1, 1995 to June 30, 1996, or
covering the period July 1, 1996 to June 30, 1997, or covering the peri-
od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
June 30, 1999, or covering the period July 1, 1999 to June 30, 2000,  or
covering the period July 1, 2000 to June 30, 2001, or covering the peri-
od  July  1,  2001  to October 29, 2001, or covering the period April 1,
2002 to June 30, 2002, or covering the period July 1, 2002 to  June  30,
2003,  or covering the period July 1, 2003 to June 30, 2004, or covering
the period July 1, 2004 to June 30, 2005, or covering the period July 1,
2005 to June 30, 2006, or covering the period July 1, 2006 to  June  30,
2007,  or covering the period July 1, 2007 to June 30, 2008, or covering
the period July 1, 2008 to June 30, 2009, or covering the period July 1,
2009 to June 30, 2010, or covering the period July 1, 2010 to  June  30,
2011,  or covering the period July 1, 2011 to June 30, 2012, or covering
the period July 1, 2012 to June 30, 2013, or covering the period July 1,
2013 to June 30, 2014, or covering the period July 1, 2014 to  June  30,
2015,  or covering the period July 1, 2015 to June 30, 2016, OR COVERING
THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 determined in  accordance  with
paragraph  (a)  of  this  subdivision fails, refuses or neglects to make
payment to the provider  of  excess  insurance  coverage  or  equivalent
excess coverage in such time and manner as determined by the superinten-
dent  of  financial  services pursuant to paragraph (b) of this subdivi-
sion, excess insurance coverage or equivalent excess coverage  purchased
for  such  physician or dentist in accordance with this section for such
coverage period shall be cancelled and shall be null and void as of  the

S. 6407--B                         31

first  day  on  or  after  the commencement of a policy period where the
liability for payment pursuant to this subdivision has not been met.
  (d)  Each  provider  of excess insurance coverage or equivalent excess
coverage shall notify the superintendent of financial services  and  the
commissioner  of  health or their designee of each physician and dentist
eligible for purchase of a  policy  for  excess  insurance  coverage  or
equivalent  excess coverage covering the period July 1, 1992 to June 30,
1993, or covering the period July 1, 1993 to June 30, 1994, or  covering
the period July 1, 1994 to June 30, 1995, or covering the period July 1,
1995  to  June 30, 1996, or covering the period July 1, 1996 to June 30,
1997, or covering the period July 1, 1997 to June 30, 1998, or  covering
the period July 1, 1998 to June 30, 1999, or covering the period July 1,
1999  to  June 30, 2000, or covering the period July 1, 2000 to June 30,
2001, or covering the period July 1, 2001 to October 29, 2001, or cover-
ing the period April 1, 2002 to June 30, 2002, or  covering  the  period
July  1,  2002  to June 30, 2003, or covering the period July 1, 2003 to
June 30, 2004, or covering the period July 1, 2004 to June 30, 2005,  or
covering the period July 1, 2005 to June 30, 2006, or covering the peri-
od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to
June  30, 2008, or covering the period July 1, 2008 to June 30, 2009, or
covering the period July 1, 2009 to June 30, 2010, or covering the peri-
od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to
June 30, 2012, or covering the period July 1, 2012 to June 30, 2013,  or
covering the period July 1, 2013 to June 30, 2014, or covering the peri-
od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to
June 30, 2016, OR COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 that
has made payment to such provider of excess insurance coverage or equiv-
alent  excess coverage in accordance with paragraph (b) of this subdivi-
sion and of each physician  and  dentist  who  has  failed,  refused  or
neglected to make such payment.
  (e)  A  provider  of  excess  insurance  coverage or equivalent excess
coverage shall refund to the hospital excess liability pool  any  amount
allocable to the period July 1, 1992 to June 30, 1993, and to the period
July  1,  1993  to June 30, 1994, and to the period July 1, 1994 to June
30, 1995, and to the period July 1, 1995 to June 30, 1996,  and  to  the
period  July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to
June 30, 1998, and to the period July 1, 1998 to June 30, 1999,  and  to
the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
to  June  30,  2001, and to the period July 1, 2001 to October 29, 2001,
and to the period April 1, 2002 to June 30, 2002, and to the period July
1, 2002 to June 30, 2003, and to the period July 1,  2003  to  June  30,
2004, and to the period July 1, 2004 to June 30, 2005, and to the period
July  1,  2005  to June 30, 2006, and to the period July 1, 2006 to June
30, 2007, and to the period July 1, 2007 to June 30, 2008,  and  to  the
period  July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
June 30, 2010, and to the period July 1, 2010 to June 30, 2011,  and  to
the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
to  June  30, 2013, and to the period July 1, 2013 to June 30, 2014, and
to the period July 1, 2014 to June 30, 2015, and to the period  July  1,
2015  to  June 30, 2016, AND TO THE PERIOD JULY 1, 2016 TO JUNE 30, 2017
received from the hospital excess liability pool for purchase of  excess
insurance  coverage  or  equivalent  excess coverage covering the period
July 1, 1992 to June 30, 1993, and covering the period July 1,  1993  to
June  30,  1994,  and covering the period July 1, 1994 to June 30, 1995,
and covering the period July 1, 1995 to June 30, 1996, and covering  the
period  July  1,  1996 to June 30, 1997, and covering the period July 1,

S. 6407--B                         32

1997 to June 30, 1998, and covering the period July 1, 1998 to June  30,
1999,  and covering the period July 1, 1999 to June 30, 2000, and cover-
ing the period July 1, 2000 to June 30, 2001, and  covering  the  period
July  1, 2001 to October 29, 2001, and covering the period April 1, 2002
to June 30, 2002, and covering the period July 1, 2002 to June 30, 2003,
and covering the period July 1, 2003 to June 30, 2004, and covering  the
period  July  1,  2004 to June 30, 2005, and covering the period July 1,
2005 to June 30, 2006, and covering the period July 1, 2006 to June  30,
2007,  and covering the period July 1, 2007 to June 30, 2008, and cover-
ing the period July 1, 2008 to June 30, 2009, and  covering  the  period
July  1,  2009 to June 30, 2010, and covering the period July 1, 2010 to
June 30, 2011, and covering the period July 1, 2011 to  June  30,  2012,
and  covering the period July 1, 2012 to June 30, 2013, and covering the
period July 1, 2013 to June 30, 2014, and covering the  period  July  1,
2014  to June 30, 2015, and covering the period July 1, 2015 to June 30,
2016, AND COVERING THE PERIOD JULY 1, 2016 TO JUNE 30, 2017 for a physi-
cian or dentist where  such  excess  insurance  coverage  or  equivalent
excess  coverage  is  cancelled in accordance with paragraph (c) of this
subdivision.
  S 5. Section 40 of chapter 266 of the laws of 1986, amending the civil
practice law and rules  and  other  laws  relating  to  malpractice  and
professional medical conduct, as amended by section 4 of part Y of chap-
ter 57 of the laws of 2015, is amended to read as follows:
  S  40.  The superintendent of financial services shall establish rates
for policies providing coverage  for  physicians  and  surgeons  medical
malpractice  for the periods commencing July 1, 1985 and ending June 30,
[2016] 2017; provided, however, that notwithstanding any other provision
of law, the superintendent shall not establish or approve  any  increase
in  rates  for  the  period  commencing July 1, 2009 and ending June 30,
2010. The superintendent shall direct insurers to  establish  segregated
accounts  for premiums, payments, reserves and investment income attrib-
utable to such premium periods and shall require periodic reports by the
insurers regarding claims and expenses attributable to such  periods  to
monitor whether such accounts will be sufficient to meet incurred claims
and  expenses. On or after July 1, 1989, the superintendent shall impose
a surcharge on premiums  to  satisfy  a  projected  deficiency  that  is
attributable  to the premium levels established pursuant to this section
for such periods; provided, however, that such  annual  surcharge  shall
not  exceed  eight  percent of the established rate until July 1, [2016]
2017, at which time and thereafter such surcharge shall not exceed twen-
ty-five percent of the approved adequate  rate,  and  that  such  annual
surcharges shall continue for such period of time as shall be sufficient
to  satisfy  such  deficiency.  The superintendent shall not impose such
surcharge during the period commencing July 1, 2009 and ending June  30,
2010.    On  and  after  July  1, 1989, the surcharge prescribed by this
section shall be retained by insurers to the extent  that  they  insured
physicians  and surgeons during the July 1, 1985 through June 30, [2016]
2017 policy periods; in the event  and  to  the  extent  physicians  and
surgeons  were  insured by another insurer during such periods, all or a
pro rata share of the surcharge, as the case may be, shall  be  remitted
to  such  other  insurer  in accordance with rules and regulations to be
promulgated by the superintendent.  Surcharges collected from physicians
and surgeons who were not insured during such policy  periods  shall  be
apportioned  among  all insurers in proportion to the premium written by
each insurer during such policy periods; if a physician or  surgeon  was
insured by an insurer subject to rates established by the superintendent

S. 6407--B                         33

during  such  policy  periods,  and  at  any time thereafter a hospital,
health maintenance organization, employer or institution is  responsible
for  responding in damages for liability arising out of such physician's
or  surgeon's  practice  of medicine, such responsible entity shall also
remit to such prior insurer the equivalent amount  that  would  then  be
collected  as  a  surcharge if the physician or surgeon had continued to
remain insured by such prior insurer. In  the  event  any  insurer  that
provided  coverage  during  such  policy  periods is in liquidation, the
property/casualty insurance security fund shall receive the  portion  of
surcharges to which the insurer in liquidation would have been entitled.
The surcharges authorized herein shall be deemed to be income earned for
the  purposes of section 2303 of the insurance law.  The superintendent,
in establishing adequate rates and in determining  any  projected  defi-
ciency  pursuant  to  the requirements of this section and the insurance
law, shall give substantial weight, determined  in  his  discretion  and
judgment,  to  the  prospective  anticipated  effect  of any regulations
promulgated and laws enacted and the  public  benefit  of    stabilizing
malpractice rates and minimizing rate level fluctuation during the peri-
od  of  time  necessary for the development of more reliable statistical
experience as to the efficacy of such  laws  and  regulations  affecting
medical, dental or podiatric malpractice enacted or promulgated in 1985,
1986,  by this act and at any other time.  Notwithstanding any provision
of the insurance law, rates already established and to be established by
the superintendent pursuant to this section are deemed adequate if  such
rates  would be adequate when taken together with the maximum authorized
annual surcharges to be imposed for a reasonable period of time  whether
or  not  any  such  annual surcharge has been actually imposed as of the
establishment of such rates.
  S 6. Section 5 and subdivisions (a) and (e) of section 6 of part J  of
chapter  63  of  the  laws  of 2001, amending chapter 266 of the laws of
1986, amending the civil practice law and rules and other laws  relating
to malpractice and professional medical conduct, as amended by section 5
of  part  Y  of  chapter  57 of the laws of 2015, are amended to read as
follows:
  S 5. The superintendent of financial services and the commissioner  of
health shall determine, no later than June 15, 2002, June 15, 2003, June
15,  2004,  June  15, 2005, June 15, 2006, June 15, 2007, June 15, 2008,
June 15, 2009, June 15, 2010, June 15, 2011, June  15,  2012,  June  15,
2013,  June  15,  2014, June 15, 2015, [and] June 15, 2016, AND JUNE 15,
2017 the amount of funds available  in  the  hospital  excess  liability
pool, created pursuant to section 18 of chapter 266 of the laws of 1986,
and  whether such funds are sufficient for purposes of purchasing excess
insurance coverage for eligible participating  physicians  and  dentists
during the period July 1, 2001 to June 30, 2002, or July 1, 2002 to June
30,  2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July  1,  2006  to  June  30,
2007,  or  July  1,  2007  to June 30, 2008, or July 1, 2008 to June 30,
2009, or July 1, 2009 to June 30, 2010, or July  1,  2010  to  June  30,
2011,  or  July  1,  2011  to June 30, 2012, or July 1, 2012 to June 30,
2013, or July 1, 2013 to June 30, 2014, or July  1,  2014  to  June  30,
2015, or July 1, 2015 to June 30, 2016, OR JULY 1, 2016 TO JUNE 30, 2017
as applicable.
  (a)  This section shall be effective only upon a determination, pursu-
ant to section five of this act,  by  the  superintendent  of  financial
services  and  the  commissioner  of health, and a certification of such
determination to the state director of the  budget,  the  chair  of  the

S. 6407--B                         34

senate  committee  on finance and the chair of the assembly committee on
ways and means, that the amount of funds in the hospital excess  liabil-
ity  pool,  created pursuant to section 18 of chapter 266 of the laws of
1986, is insufficient for purposes of purchasing excess insurance cover-
age for eligible participating physicians and dentists during the period
July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
1,  2003  to June 30, 2004, or July 1, 2004 to June 30, 2005, or July 1,
2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007
to June 30, 2008, or July 1, 2008 to June 30, 2009, or July 1,  2009  to
June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June
30,  2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June 30,
2014, or July 1, 2014 to June 30, 2015, or July  1,  2015  to  June  30,
2016, OR JULY 1, 2016 TO JUNE 30, 2017 as applicable.
  (e)  The  commissioner  of  health  shall  transfer for deposit to the
hospital excess liability pool created pursuant to section 18 of chapter
266 of the laws of 1986 such amounts as directed by  the  superintendent
of  financial  services  for  the purchase of excess liability insurance
coverage for eligible participating  physicians  and  dentists  for  the
policy  year  July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30,
2003, or July 1, 2003 to June 30, 2004, or July  1,  2004  to  June  30,
2005,  or  July  1,  2005  to June 30, 2006, or July 1, 2006 to June 30,
2007, as applicable, and the cost of administering the  hospital  excess
liability pool for such applicable policy year,  pursuant to the program
established  in  chapter  266  of the laws of 1986, as amended, no later
than June 15, 2002, June 15, 2003, June 15, 2004, June  15,  2005,  June
15,  2006,  June  15, 2007, June 15, 2008, June 15, 2009, June 15, 2010,
June 15, 2011, June 15, 2012, June 15, 2013, June  15,  2014,  June  15,
2015, [and] June 15, 2016, AND JUNE 15, 2017 as applicable.
  S 7. Notwithstanding any law, rule or regulation to the contrary, only
physicians  or  dentists who were eligible, and for whom the superinten-
dent of financial services and the  commissioner  of  health,  or  their
designee, purchased, with funds available in the hospital excess liabil-
ity  pool,  a  full  or partial policy for excess coverage or equivalent
excess coverage for the coverage period ending the  thirtieth  of  June,
two  thousand  sixteen, shall be eligible to apply for such coverage for
the coverage period beginning the first of July, two  thousand  sixteen;
provided,  however,  if  the  total number of physicians or dentists for
whom such excess coverage or equivalent excess  coverage  was  purchased
for  the  policy year ending the thirtieth of June, two thousand sixteen
exceeds the total number of physicians or dentists certified as eligible
for the coverage period  beginning  the  first  of  July,  two  thousand
sixteen,  then  the  general  hospitals  may certify additional eligible
physicians or dentists in a number  equal  to  such  general  hospital's
proportional  share  of  the  total number of physicians or dentists for
whom excess coverage or equivalent excess coverage  was  purchased  with
funds  available in the hospital excess liability pool as of the thirti-
eth of June, two thousand sixteen, as applied to the difference  between
the  number  of  eligible  physicians  or dentists for whom a policy for
excess coverage or equivalent excess  coverage  was  purchased  for  the
coverage  period  ending the thirtieth of June, two thousand sixteen and
the number of such eligible physicians or dentists who have applied  for
excess  coverage  or  equivalent excess coverage for the coverage period
beginning the first of July, two thousand sixteen.
  S 8. Section 7404 of the insurance law, as amended by chapter  215  of
the laws of 1993, is amended to read as follows:

S. 6407--B                         35

  S  7404.  Grounds  for  liquidation.  (A) The superintendent may apply
under this article for an order directing the superintendent  to  liqui-
date  the business of a domestic insurer, or of the United States branch
of an alien insurer having trusteed assets in this state,  upon  any  of
the  grounds  specified  in subsections [(a)] (B) through (o) of section
seven thousand four hundred two of this article, whether  or  not  there
has been a prior order directing the superintendent to rehabilitate such
insurer.
  (B)   WITHIN  THIRTY  DAYS  OF  BEING  DEEMED  INSOLVENT  PURSUANT  TO
SUBSECTION (A) OF SECTION SEVEN THOUSAND FOUR HUNDRED TWO OF THIS  ARTI-
CLE,  THE  SUPERINTENDENT  SHALL APPLY FOR AN ORDER DIRECTING THE SUPER-
INTENDENT TO LIQUIDATE THE BUSINESS OF A DOMESTIC  INSURER,  OR  OF  THE
UNITED  STATES BRANCH OF AN ALIEN INSURER HAVING TRUSTEED ASSETS IN THIS
STATE, UNLESS THERE HAS BEEN A PRIOR ORDER DIRECTING THE  SUPERINTENDENT
TO REHABILITATE SUCH INSURER.
  S  9.  Subsections  (d)  and (e) of section 3231 of the insurance law,
subsection (d) as amended by section 1 of part A of chapter 494  of  the
laws  of  2009,  subsection (e) as amended by chapter 107 of the laws of
2010, subparagraph (A) of paragraph  1  of  subsection  (e)  as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011 and
subparagraph (B) of paragraph 1 of subsection (e) as amended by  section
61  of  part D of chapter 56 of the laws of 2013, are amended to read as
follows:
  (d) (1) Notwithstanding any other provision of  this  chapter  to  the
contrary,  no  policy  form  subject  to this section shall be issued or
delivered, nor any insurance contract entered into, unless and until the
insurer has filed with the superintendent a schedule of premiums, not to
exceed twelve months in duration, to be paid under the policy forms [and
obtained the superintendent's approval thereof. The  superintendent  may
refuse  such  approval  if he or she finds that such premiums are exces-
sive, inadequate, or unfairly  discriminatory.  The  superintendent  may
consider  the financial condition of such insurer in approving or disap-
proving any premium. In determining whether to approve the  schedule  of
premiums  filed,  the superintendent shall, subject to the provisions of
section three thousand two hundred thirty-three of this article, consid-
er the prior experience of the insurer's community pool and  the  insur-
er's projections relating to claim costs, utilization and administrative
expenses  and  shall not adjust the insurer's rates based upon the rates
approved for other insurers.
  (2) An insurer shall provide specific claims experience to a municipal
corporation, as defined in subsection (f) of section four thousand seven
hundred two of this chapter, covered by the insurer  under  a  community
rated  policy when the municipal corporation requests its claims experi-
ence for purposes of forming or joining a municipal  cooperative  health
benefit  plan certified pursuant to article forty-seven of this chapter.
Notwithstanding the forgoing provisions, no insurer shall be required to
provide more than three years' claims experience to a  municipal  corpo-
ration making this request.
  (e)  (1)  (A) An insurer desiring to increase or decrease premiums for
any policy form subject to this section shall submit a  rate  filing  or
application to the superintendent.
  An  insurer shall send written notice of the proposed rate adjustment,
including the specific change  requested,  to  each  policy  holder  and
certificate  holder affected by the adjustment on or before the date the
rate filing or application  is  submitted  to  the  superintendent.  The
notice  shall prominently include mailing and website addresses for both

S. 6407--B                         36

the department of financial services and the  insurer  through  which  a
person may, within thirty days from the date the rate filing or applica-
tion  is  submitted  to  the  superintendent,  contact the department of
financial  services  or  insurer to receive additional information or to
submit written comments to the department of financial services  on  the
rate filing or application. The superintendent shall establish a process
to  post  on  the department's website, in a timely manner, all relevant
written comments received pertaining to rate  filings  or  applications.
The  insurer  shall  provide  a copy of the notice to the superintendent
with the rate filing or application. The superintendent shall immediate-
ly cause the  notice  to  be  posted  on  the  department  of  financial
services' website. The superintendent shall determine whether the filing
or  application  shall become effective as filed, shall become effective
as modified, or shall be disapproved. The superintendent may  modify  or
disapprove  the  rate  filing or application if the superintendent finds
that the premiums are unreasonable, excessive, inadequate,  or  unfairly
discriminatory,  and may consider the financial condition of the insurer
when approving, modifying or disapproving any  premium  adjustment.  The
determination of the superintendent shall be supported by sound actuari-
al  assumptions  and  methods,  and shall be rendered in writing between
thirty and sixty days from the date the rate filing  or  application  is
submitted to the superintendent. Should the superintendent require addi-
tional  information  from  the insurer in order to make a determination,
the superintendent shall require the insurer to  furnish  such  informa-
tion, and in such event, the sixty days shall be tolled and shall resume
as  of the date the insurer furnishes the information to the superinten-
dent. If the superintendent requests additional  information  less  than
ten  days  from the expiration of the sixty days (exclusive of tolling),
the superintendent may extend the sixty day period an additional  twenty
days  to  make  a  determination. The application or rate filing will be
deemed approved if a determination  is  not  rendered  within  the  time
allotted  under  this  section.  An  insurer  shall not implement a rate
adjustment unless the insurer provides at least sixty days advance writ-
ten notice of the premium rate adjustment approved by the superintendent
to each policy holder  and  certificate  holder  affected  by  the  rate
adjustment.
  (B)  The expected minimum loss ratio for a policy form subject to this
section, for which a rate filing or application is made pursuant to this
paragraph, other than a medicare supplemental insurance policy, or, with
the approval of the superintendent, an aggregation of policy forms  that
are  combined  into  one  community  rating  experience  pool  and rated
consistent with community rating requirements, shall not  be  less  than
eighty-two  percent.  In  reviewing  a  rate  filing or application, the
superintendent may modify the eighty-two percent expected  minimum  loss
ratio  requirement  if the superintendent determines the modification to
be in the interests of the people of this state or if the superintendent
determines that a modification is necessary to maintain insurer  solven-
cy.  No later than July thirty-first of each year, every insurer subject
to this subparagraph shall annually report the actual loss ratio for the
previous calendar year in a format acceptable to the superintendent.  If
an  expected  loss  ratio  is not met, the superintendent may direct the
insurer to take corrective action, which may include the submission of a
rate filing to reduce future premiums, or to  issue  dividends,  premium
refunds or credits, or any combination of these.
  (2)  (A)  Until September thirtieth, two thousand ten, as an alternate
procedure to the requirements of paragraph one of  this  subsection,  an

S. 6407--B                         37

insurer  desiring  to  increase or decrease premiums for any policy form
subject to this section may instead submit a rate filing or  application
to  the  superintendent  and such application or].  SUCH filing shall be
deemed  approved,  provided that: (i) the anticipated minimum loss ratio
for a policy form shall not be  less  than  eighty-two  percent  of  the
premium; and (ii) the insurer submits, as part of such filing, a certif-
ication  by a member of the American Academy of Actuaries or other indi-
vidual acceptable to the superintendent that the insurer is  in  compli-
ance  with  the  provisions  of this paragraph, based upon that person's
examination, including a review of the appropriate records  and  of  the
actuarial  assumptions  and  methods used by the insurer in establishing
premium rates for policy forms subject  to  this  section.  [An  insurer
shall  not utilize the alternate procedure pursuant to this paragraph to
implement a change in rates to be effective on or after  October  first,
two  thousand ten] AN INSURER SHALL NOT IMPLEMENT A PREMIUM RATE ADJUST-
MENT UNLESS THE INSURER  PROVIDES  AT  LEAST  ONE  HUNDRED  TWENTY  DAYS
ADVANCE  NOTICE OF THE PREMIUM RATE ADJUSTMENT BY WRITTEN NOTICE TO EACH
POLICY HOLDER AND CERTIFICATE HOLDER AFFECTED BY THE RATE ADJUSTMENT.
  [(B)] (2) Each calendar year, an insurer shall return, in the form  of
aggregate benefits for each policy form [filed pursuant to the alternate
procedure  set  forth  in this paragraph] at least eighty-two percent of
the aggregate premiums collected for the policy form during that  calen-
dar year. Insurers shall annually report, no later than [June thirtieth]
JULY  THIRTY-FIRST  of  each year, the loss ratio calculated pursuant to
this paragraph for each such policy form for the previous calendar year.
In each case where the loss ratio for a policy form fails to comply with
the eighty-two percent loss ratio requirement, the insurer shall issue a
dividend or credit against future premiums for all policy  holders  with
that  policy  form  in an amount sufficient to assure that the aggregate
benefits paid in the previous calendar year plus the amount of the divi-
dends and credits shall equal eighty-two percent of the aggregate premi-
ums collected for the policy form in the  previous  calendar  year.  The
dividend or credit shall be issued to each policy holder who had a poli-
cy which was in effect at any time during the applicable year. The divi-
dend or credit shall be prorated based on the direct premiums earned for
the  applicable  year  among all policy holders eligible to receive such
dividend or credit. An insurer shall make a reasonable effort to identi-
fy the current address of, and issue dividends  or  credits  to,  former
policy  holders  entitled  to  the dividend or credit. An insurer shall,
with respect to dividends or credits to which former policy holders that
the insurer is unable to identify after a reasonable effort would other-
wise be entitled, have the option, as deemed acceptable  by  the  super-
intendent,  of  prospectively  adjusting  premium rates by the amount of
such dividends or credits, issuing the amount of such dividends or cred-
its to existing policy holders, depositing the amount of such  dividends
or  credits  in  the  fund established pursuant to section four thousand
three hundred twenty-two-a of this chapter, or utilizing any other meth-
od which offsets the amount of such dividends or credits. All  dividends
and  credits  must  be  distributed  by  September thirtieth of the year
following the calendar year in which the loss  ratio  requirements  were
not  satisfied.  The  annual  report  required  by  this paragraph shall
include an insurer's calculation of the dividends and credits,  as  well
as  an  explanation of the insurer's plan to issue dividends or credits.
The instructions and format for calculating and  reporting  loss  ratios
and  issuing  dividends or credits shall be specified by the superinten-
dent by regulation. Such regulations shall include  provisions  for  the

S. 6407--B                         38

distribution  of  a  dividend  or credit in the event of cancellation or
termination by a policy holder.
  [(3)  All policy forms subject to this subsection, other than medicare
supplemental insurance policy forms, issued or in effect during calendar
year two thousand ten shall be subject to a minimum loss ratio  require-
ment of eighty-two percent. Insurers may use the alternate filing proce-
dure  set  forth  in  paragraph two of this subsection to adjust premium
rates in order to meet the required minimum loss ratio for calendar year
two thousand ten. The rate filing or application shall be  submitted  no
later than September thirtieth, two thousand ten.]
  S  10. Section 4308 of the insurance law, as amended by chapter 107 of
the laws of 2010, paragraph 2 of subsection (c) as  further  amended  by
section 104 of part A of chapter 62 of the laws of 2011 and subparagraph
(A)  of paragraph 3 of subsection (c) as amended by section 62 of part D
of chapter 56 of the laws of 2013, is amended to read as follows:
  S 4308. Supervision of superintendent. (a) No corporation  subject  to
the  provisions of this article shall enter into any contract unless and
until it shall have filed with the superintendent a copy of the contract
or certificate [and of], all applications, riders and  endorsements  for
use  in connection with the issuance or renewal thereof[, to be formally
approved by him as conforming to the applicable provisions of this arti-
cle and not inconsistent with any  other  provision  of  law  applicable
thereto.  The  superintendent  shall, within a reasonable time after the
filing of any such form, notify the corporation filing the  same  either
of his approval or of his disapproval of such form.
  (b)  No  corporation  subject  to the provisions of this article shall
enter into any contract unless and until it shall have  filed  with  the
superintendent  a  schedule  of  the premiums or, if appropriate, rating
formula from which  premiums  are  determined,  to  be  paid  under  the
contracts and shall have obtained the superintendent's approval thereof.
The superintendent may refuse such approval if he finds that such premi-
ums,  or  the  premiums  derived from the rating formula, are excessive,
inadequate or unfairly discriminatory,  provided,  however,  the  super-
intendent  may also consider the financial condition of such corporation
in approving or disapproving any premium or rating formula.  Any adjust-
ments to an approved schedule of premiums  or  to  the  approved  rating
formula  for  non-community rated contracts shall also be subject to the
approval of the superintendent provided, however, such adjustments shall
not be subject to the requirements of subsection (c)  of  this  section.
Any  premium  or  formula  approved  by  the  superintendent  shall make
provision for such increase as may be necessary to meet the requirements
of a plan approved by the superintendent in  the  manner  prescribed  in
section  four thousand three hundred ten of this article for restoration
of the statutory reserve fund required by such section.  Notwithstanding
any other provision of law, the superintendent,  as  part  of  the  rate
increase  approval  process, may defer, reduce or reject a rate increase
if, in the judgment of the  superintendent,  the  salary  increases  for
senior  level  management executives employed at corporations subject to
the provisions of this article are excessive or  unwarranted  given  the
financial  condition  or  overall  performance  of such corporation. The
superintendent is authorized to promulgate rules and  regulations  which
the superintendent deems necessary to carry out such deferral, reduction
or rejection.
  (c)  (1) An increase or decrease in premiums with respect to community
rated contracts shall not be approved by the superintendent unless it is

S. 6407--B                         39

in compliance with the provisions of this subsection as  well  as  other
applicable provisions of law.
  (2)  A  corporation  desiring to increase or decrease premiums for any
contract subject to this subsection shall submit a rate filing or appli-
cation to the superintendent. A corporation shall send written notice of
the proposed rate adjustment, including the specific  change  requested,
to  each contract holder and subscriber affected by the adjustment on or
before the date the rate filing  or  application  is  submitted  to  the
superintendent. The notice shall prominently include mailing and website
addresses  for  both the department of financial services and the corpo-
ration through which a person may, within thirty days from the date  the
rate  filing  or application is submitted to the superintendent, contact
the department of financial services or  corporation  to  receive  addi-
tional  information  or  to submit written comments to the department of
financial services on the rate filing or application. The superintendent
shall establish a process to post on  the  department's  website,  in  a
timely manner, all relevant written comments received pertaining to rate
filings  or  applications.  The  corporation shall provide a copy of the
notice to the superintendent with the rate filing  or  application.  The
superintendent  shall  immediately  cause the notice to be posted on the
department of financial  services'  website.  The  superintendent  shall
determine  whether  the  filing or application shall become effective as
filed, shall become effective as modified, or shall be disapproved.  The
superintendent  may  modify or disapprove the rate filing or application
if the superintendent finds that the premiums are  unreasonable,  exces-
sive,  inadequate,  or  unfairly  discriminatory,  and  may consider the
financial condition of the corporation in approving, modifying or disap-
proving any premium adjustment. The determination of the  superintendent
shall be supported by sound actuarial assumptions and methods, and shall
be  rendered  in writing between thirty and sixty days from the date the
rate filing or application is submitted to  the  superintendent.  Should
the  superintendent  require additional information from the corporation
in order to make a determination, the superintendent shall  require  the
corporation  to  furnish  such information, and in such event, the sixty
days shall be tolled and shall resume as of  the  date  the  corporation
furnishes  the  information to the superintendent. If the superintendent
requests additional information less than ten days from  the  expiration
of  the sixty days (exclusive of tolling), the superintendent may extend
the sixty day period an additional twenty days, to make a determination.
The application or rate filing will be deemed  approved  if  a  determi-
nation  is  not  rendered within the time allotted under this section. A
corporation shall not implement a rate adjustment unless the corporation
provides at least sixty days advance written notice of the premium  rate
adjustment  approved  by  the superintendent to each contract holder and
subscriber affected by the rate adjustment.
  (3) (A) The expected minimum loss ratio for a contract form subject to
this subsection for which a rate filing or application is made  pursuant
to   this  paragraph,  other  than  a  medicare  supplemental  insurance
contract, or, with the approval of the superintendent, an aggregation of
contract forms that are combined into one  community  rating  experience
pool  and rated consistent with community rating requirements, shall not
be less than eighty-two percent. In reviewing a rate filing or  applica-
tion,  the  superintendent  may  modify  the eighty-two percent expected
minimum loss ratio requirement  if  the  superintendent  determines  the
modification  to  be  in the interests of the people of this state or if
the superintendent determines that a modification is necessary to  main-

S. 6407--B                         40

tain  insurer  solvency.  No  later than July thirty-first of each year,
every corporation subject to this subparagraph shall annually report the
actual loss ratio for the previous calendar year in a format  acceptable
to  the superintendent. If an expected loss ratio is not met, the super-
intendent may direct the corporation to take  corrective  action,  which
may  include  the submission of a rate filing to reduce future premiums,
or to issue dividends, premium refunds or credits, or any combination of
these.
  (B) The expected minimum loss ratio for a medicare supplemental insur-
ance contract form shall not be less than eighty percent. No later  than
May  first  of each year, every corporation subject to this subparagraph
shall annually report the actual  loss  ratio  for  each  contract  form
subject  to  this  section  for  the  previous calendar year in a format
acceptable to the superintendent. In each case where the loss ratio  for
the  contract  form  fails  to comply with the eighty percent loss ratio
requirement, the corporation shall submit a corrective  action  plan  to
the  superintendent  for assuring compliance with the applicable minimum
loss ratio standard. The corrective action plan shall  be  submitted  to
the  superintendent within sixty days of the corporation's submission of
the annual report required by this subparagraph. The corporation's  plan
may  utilize  premium refunds or credits, subject to the approval of the
superintendent.
  (4) In  case  of  conflict  between  this  subsection  and  any  other
provision  of  law, this subsection shall prevail] AND A SCHEDULE OF THE
PREMIUMS OR, IF APPROPRIATE, RATING  FORMULA  FROM  WHICH  PREMIUMS  ARE
DETERMINED, TO BE PAID UNDER SUCH CONTRACTS.  SUCH APPLICATION OR FILING
SHALL  BE  DEEMED  APPROVED,  PROVIDED THAT (A) THE ANTICIPATED INCURRED
LOSS RATIO FOR A CONTRACT FORM SHALL NOT BE LESS THAN EIGHTY-TWO PERCENT
FOR INDIVIDUAL DIRECT PAYMENT CONTRACTS OR EIGHTY-TWO PERCENT FOR  SMALL
GROUP  AND  SMALL  GROUP  REMITTANCE  CONTRACTS, AND (B) THE CORPORATION
SUBMITS, AS PART OF SUCH FILING, A CERTIFICATION  BY  A  MEMBER  OF  THE
AMERICAN  ACADEMY  OF  ACTUARIES  OR  OTHER INDIVIDUAL ACCEPTABLE TO THE
SUPERINTENDENT  THAT  THAT  CORPORATION  IS  IN  COMPLIANCE   WITH   THE
PROVISIONS  OF  THIS  SUBSECTION,  BASED UPON THAT PERSON'S EXAMINATION,
INCLUDING A REVIEW OF THE  APPROPRIATE  RECORDS  AND  OF  THE  ACTUARIAL
ASSUMPTIONS  AND METHODS USED BY THE CORPORATION IN ESTABLISHING PREMIUM
RATES FOR CONTRACTS SUBJECT  TO  THIS  SECTION.  FOR  PURPOSES  OF  THIS
SECTION,  A  SMALL  GROUP  IS ANY GROUP WHOSE CONTRACT IS SUBJECT TO THE
REQUIREMENTS OF SECTION FORTY-THREE HUNDRED SEVENTEEN OF  THIS  ARTICLE.
THE  PROVISIONS  OF  THIS  SUBSECTION  SHALL  APPLY TO INDIVIDUAL DIRECT
PAYMENT CONTRACTS  ISSUED  PURSUANT  TO  SECTIONS  FOUR  THOUSAND  THREE
HUNDRED  TWENTY-ONE  AND  FOUR THOUSAND THREE HUNDRED TWENTY-TWO OF THIS
ARTICLE. A CORPORATION SHALL NOT IMPLEMENT  A  PREMIUM  RATE  ADJUSTMENT
UNLESS THE CORPORATION PROVIDES AT LEAST ONE HUNDRED TWENTY DAYS ADVANCE
NOTICE  OF  THE PREMIUM RATE ADJUSTMENT BY WRITTEN NOTICE TO EACH POLICY
HOLDER AND CERTIFICATE HOLDER AFFECTED BY THE RATE ADJUSTMENT.
  (B)(1) EACH CALENDAR YEAR, A CORPORATION SUBJECT TO THE PROVISIONS  OF
THIS  ARTICLE  SHALL  RETURN, IN THE FORM OF AGGREGATE BENEFITS INCURRED
FOR EACH CONTRACT FORM FILED, AT LEAST EIGHTY-TWO PERCENT FOR INDIVIDUAL
DIRECT PAYMENT CONTRACTS OR EIGHTY-TWO PERCENT FOR SMALL GROUP AND SMALL
GROUP REMITTANCE CONTRACTS. CORPORATIONS SUBJECT TO  THE  PROVISIONS  OF
THIS  ARTICLE  SHALL ANNUALLY REPORT, NO LATER THAN JULY THIRTY-FIRST OF
EACH YEAR, THE LOSS RATIO CALCULATED PURSUANT  TO  THIS  SUBSECTION  FOR
EACH SUCH CONTRACT FORM FOR THE PREVIOUS CALENDAR YEAR.
  (2)  IN  EACH  CASE  WHERE THE LOSS RATIO FOR A CONTRACT FORM FAILS TO
COMPLY WITH THE EIGHTY-TWO PERCENT MINIMUM LOSS  RATIO  REQUIREMENT  FOR

S. 6407--B                         41

INDIVIDUAL  DIRECT  PAYMENT CONTRACTS, OR THE EIGHTY-TWO PERCENT MINIMUM
LOSS RATIO REQUIREMENT  FOR  SMALL  GROUP  AND  SMALL  GROUP  REMITTANCE
CONTRACTS,  AS SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION, THE CORPO-
RATION  SHALL ISSUE A DIVIDEND OR CREDIT AGAINST FUTURE PREMIUMS FOR ALL
CONTRACT HOLDERS WITH THAT CONTRACT FORM  IN  AN  AMOUNT  SUFFICIENT  TO
ASSURE  THAT  THE  AGGREGATE  BENEFITS INCURRED IN THE PREVIOUS CALENDAR
YEAR PLUS THE AMOUNT OF THE DIVIDENDS AND CREDITS SHALL  EQUAL  NO  LESS
THAN  EIGHTY-TWO  PERCENT  FOR  INDIVIDUAL  DIRECT PAYMENT CONTRACTS, OR
EIGHTY-TWO PERCENT FOR SMALL GROUP AND SMALL GROUP REMITTANCE CONTRACTS,
OF THE AGGREGATE PREMIUMS EARNED FOR THE CONTRACT FORM IN  THE  PREVIOUS
CALENDAR  YEAR.  THE DIVIDEND OR CREDIT SHALL BE ISSUED TO EACH CONTRACT
HOLDER OR SUBSCRIBER WHO HAD A CONTRACT THAT WAS IN EFFECT AT  ANY  TIME
DURING  THE  APPLICABLE  YEAR.  THE DIVIDEND OR CREDIT SHALL BE PRORATED
BASED ON THE DIRECT PREMIUMS EARNED FOR THE APPLICABLE  YEAR  AMONG  ALL
CONTRACT  HOLDERS  OR  SUBSCRIBERS  ELIGIBLE TO RECEIVE SUCH DIVIDEND OR
CREDIT. A CORPORATION SHALL MAKE A REASONABLE  EFFORT  TO  IDENTIFY  THE
CURRENT  ADDRESS  OF, AND ISSUE DIVIDENDS OR CREDITS TO, FORMER CONTRACT
HOLDERS OR SUBSCRIBERS ENTITLED TO THE DIVIDEND OR CREDIT. A CORPORATION
SHALL, WITH RESPECT TO DIVIDENDS OR CREDITS  TO  WHICH  FORMER  CONTRACT
HOLDERS  THAT  THE  CORPORATION IS UNABLE TO IDENTIFY AFTER A REASONABLE
EFFORT WOULD OTHERWISE BE ENTITLED, HAVE THE OPTION, AS DEEMED  ACCEPTA-
BLE  BY  THE SUPERINTENDENT, OF PROSPECTIVELY ADJUSTING PREMIUM RATES BY
THE AMOUNT OF SUCH DIVIDENDS OR CREDITS,  ISSUING  THE  AMOUNT  OF  SUCH
DIVIDENDS OR CREDITS TO EXISTING CONTRACT HOLDERS, DEPOSITING THE AMOUNT
OF SUCH DIVIDENDS OR CREDITS IN THE FUND ESTABLISHED PURSUANT TO SECTION
FOUR  THOUSAND  THREE HUNDRED TWENTY-TWO-A OF THIS ARTICLE, OR UTILIZING
ANY OTHER METHOD WHICH OFFSETS THE AMOUNT OF SUCH DIVIDENDS OR  CREDITS.
ALL  DIVIDENDS AND CREDITS MUST BE DISTRIBUTED BY SEPTEMBER THIRTIETH OF
THE YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE  LOSS  RATIO  REQUIRE-
MENTS WERE NOT SATISFIED. THE ANNUAL REPORT REQUIRED BY PARAGRAPH ONE OF
THIS  SUBSECTION  SHALL INCLUDE A CORPORATION'S CALCULATION OF THE DIVI-
DENDS AND CREDITS, AS WELL AS AN EXPLANATION OF THE  CORPORATION'S  PLAN
TO  ISSUE  DIVIDENDS OR CREDITS.  THE INSTRUCTIONS AND FORMAT FOR CALCU-
LATING AND REPORTING LOSS RATIOS AND ISSUING DIVIDENDS OR CREDITS  SHALL
BE  SPECIFIED  BY  THE  SUPERINTENDENT BY REGULATION.   SUCH REGULATIONS
SHALL INCLUDE PROVISIONS FOR THE DISTRIBUTION OF A DIVIDEND OR CREDIT IN
THE EVENT OF  CANCELLATION  OR  TERMINATION  BY  A  CONTRACT  HOLDER  OR
SUBSCRIBER.
  [(d)] (C) The superintendent shall order an independent management and
financial  audit of corporations subject to the provisions of this arti-
cle with a combined premium volume exceeding two billion dollars annual-
ly in order to develop a detailed understanding  of  such  corporation's
financial  status  and  to determine the viability of such corporation's
products.  Such  audit  shall  be  performed  by  an  organization  upon
submission  of  a  program  plan  in  response to a request for proposal
approved by the superintendent in consultation with the commissioner  of
health  and  the state comptroller. Such audit shall not be performed by
any organization that has in any way performed or furnished services  of
any  kind  to  the  corporation within the past five years, unless it is
adequately demonstrated that such services  would  not  compromise  that
organization's performance and objectivity. The audit shall be completed
and  a  report  submitted by May first, nineteen hundred ninety-three to
the superintendent, the commissioner of health, and the  chairs  of  the
senate and assembly committees on health and insurance. The scope of the
audit  shall  include,  but not be limited to, financial and competitive
position, corporate structure and governance, organization  and  manage-

S. 6407--B                         42

ment, strategic direction, rate adequacy, and the regulatory and compet-
itive  environment  in  the  state  of New York. Specifically, the audit
shall include, but not be limited to:
  (i)  determining  the  corporation's  financial  and  market position,
including its reserves, trends in membership, market share, and  profit-
ability by market segment;
  (ii)  evaluating  the  corporation's product offerings with respect to
market requirements and trends, the corporation's responses to  the  New
York health care market, and its management of medical claims costs;
  (iii) assessing the effectiveness of the organizational and management
structure  and  performance,  including,  but  not  limited to, possible
improvement in the size, structure, composition  and  operation  of  the
board  of  directors,  productivity  improvement,  information  systems,
management development, personnel practices, mix and  level  of  skills,
personnel turnover, investment practices and rate of return upon invest-
ment activities;
  (iv) analyzing the corporation's strategic directions, its adequacy to
meet  competitive,  market, and existing regulatory trends, including an
evaluation of the use of brokers in marketing products, and  the  impact
of  those  strategies  on the corporation's future financial performance
and on the health care system of New York;
  (v) evaluating the adequacy of rates for  existing  products,  partic-
ularly  (but  not  limited  to)  small group, medicare supplemental, and
direct payment to identify areas that may need immediate remedial atten-
tion;
  (vi) identifying any changes to the regulatory and  legislative  envi-
ronment  that  may  need  to  be made to ensure that the corporation can
continue to be financially viable and competitive;
  (vii) identifying and assessing  specific  transactions  such  as  the
procurement of reinsurance, sale of real property and the sale of future
investment income to improve the financial condition of the corporation;
and
  (viii)  evaluating and identifying possible improvements in the corpo-
ration's managed care strategies, operations and claims handling.
  [(e)] (D) Notwithstanding any other provision of law, the  superinten-
dent  shall  have the power to require independent management and finan-
cial audits of corporations subject to the provisions  of  this  article
whenever  in  the  judgment of the superintendent, losses sustained by a
corporation jeopardize its ability to  provide  meaningful  coverage  at
affordable  rates  or  when such audit would be necessary to protect the
interests of subscribers. The audit shall include, but  not  be  limited
to,  an  investigation  of  the  corporation's  provision of benefits to
senior citizens, individual and family, and small group and small  busi-
ness  subscribers  in  relation  to  the needs of those subscribers. The
audit shall also include an evaluation of the efficiency of  the  corpo-
ration's  management,  particularly  with  respect  to lines of business
which are experiencing losses. In every case in which the superintendent
chooses to require an audit provided for in this subsection, the  super-
intendent  shall  have  the  authority  to select the auditor. Any costs
incurred as a result of  the  operation  of  this  subsection  shall  be
assessed  on all domestic insurers in the same manner as provided for in
section [three hundred thirty-two of this chapter] TWO  HUNDRED  SIX  OF
THE FINANCIAL SERVICES LAW.
  [(f)]  (E)  The results of any audit conducted pursuant to subsections
[(d)] (C) and [(e)] (D) of this section shall be provided to the  corpo-
ration  and  each  member  of its board of directors. The superintendent

S. 6407--B                         43

shall have the authority to direct the corporation in writing to  imple-
ment  any  recommendations resulting from the audit that the superinten-
dent finds to be necessary and reasonable; provided, however,  that  the
superintendent  shall  first  consider any written response submitted by
the corporation or the board of directors prior to making such  finding.
Upon  any  application  for  a  rate  adjustment by the corporation, the
superintendent  shall  review  the  corporation's  compliance  with  the
directions and recommendations made previously by the superintendent, as
a  result  of  the most recently completed management or financial audit
and shall include such findings in any written decision concerning  such
application.
  [(g)(1)  Until  September thirtieth, two thousand ten, as an alternate
procedure to the requirements of  subsection  (c)  of  this  section,  a
corporation  subject  to  the  provisions  of  this  article desiring to
increase or decrease premiums for any contract subject to  this  section
may  instead  submit  a rate filing or application to the superintendent
and such application or filing shall be deemed approved,  provided  that
(A) the anticipated incurred loss ratio for a contract form shall not be
less  than eighty-two percent for individual direct payment contracts or
eighty-two percent for small group and small group remittance contracts,
nor, except in the case of individual direct payment  contracts  with  a
loss  ratio  of  greater  than  one hundred five percent during nineteen
hundred ninety-four, shall the loss ratio for any direct payment,  group
or  group  remittance  contract be more than one hundred five percent of
the anticipated earned premium, and (B) the corporation submits, as part
of such filing, a certification by a member of the American  Academy  of
Actuaries or other individual acceptable to the superintendent that that
corporation  is  in  compliance  with the provisions of this subsection,
based upon that person's examination, including a review of  the  appro-
priate  records and of the actuarial assumptions and methods used by the
corporation in establishing premium rates for contracts subject to  this
section.  A corporation shall not utilize the alternate procedure pursu-
ant to this subsection to implement a change in rates to be effective on
or after October first, two thousand ten. For purposes of this  section,
a small group is any group whose contract is subject to the requirements
of section forty-three hundred seventeen of this article.
  (2) Prior to January first, two thousand, no rate increase or decrease
may  be  deemed  approved  under  this  subsection  if  that increase or
decrease, together with any other rate increases or decreases imposed on
the same contract form, would  cause  the  aggregate  rate  increase  or
decrease for that contract form to exceed ten percent during any contin-
uous  twelve  month  period. No rate increase may be imposed pursuant to
this subsection unless at least thirty days advance  written  notice  of
such increase has been provided to each contract holder and subscriber.
  (h)(1)  Each calendar year, a corporation subject to the provisions of
this article shall return, in the form of  aggregate  benefits  incurred
for  each  contract  form  filed pursuant to the alternate procedure set
forth in subsection (g) of this section, at least eighty-two percent for
individual direct payment contracts  or  eighty-two  percent  for  small
group  and  small group remittance contracts, but, except in the case of
individual direct payment contracts with a loss ratio  of  greater  than
one hundred five percent in nineteen hundred ninety-four, for any direct
payment,  group  or  group  remittance  contract,  not  in excess of one
hundred five percent of the aggregate premiums earned for  the  contract
form  during  that calendar year. Corporations subject to the provisions
of this article shall annually report, no later than June  thirtieth  of

S. 6407--B                         44

each  year,  the  loss  ratio calculated pursuant to this subsection for
each such contract form for the previous calendar year.
  (2)  In  each  case  where the loss ratio for a contract form fails to
comply with the eighty-two percent minimum loss  ratio  requirement  for
individual  direct  payment contracts, or the eighty-two percent minimum
loss ratio requirement  for  small  group  and  small  group  remittance
contracts,  as set forth in paragraph one of this subsection, the corpo-
ration shall issue a dividend or credit against future premiums for  all
contract  holders  with  that  contract  form in an amount sufficient to
assure that the aggregate benefits incurred  in  the  previous  calendar
year  plus  the  amount of the dividends and credits shall equal no less
than eighty-two percent for  individual  direct  payment  contracts,  or
eighty-two percent for small group and small group remittance contracts,
of  the  aggregate premiums earned for the contract form in the previous
calendar year. The dividend or credit shall be issued to  each  contract
holder  or  subscriber who had a contract that was in effect at any time
during the applicable year. The dividend or  credit  shall  be  prorated
based  on  the  direct premiums earned for the applicable year among all
contract holders or subscribers eligible to  receive  such  dividend  or
credit.  A  corporation  shall  make a reasonable effort to identify the
current address of, and issue dividends or credits to,  former  contract
holders or subscribers entitled to the dividend or credit. A corporation
shall,  with  respect  to  dividends or credits to which former contract
holders that the corporation is unable to identify  after  a  reasonable
effort  would otherwise be entitled, have the option, as deemed accepta-
ble by the superintendent, of prospectively adjusting premium  rates  by
the  amount  of  such  dividends  or credits, issuing the amount of such
dividends or credits to existing contract holders, depositing the amount
of such dividends or credits in the fund established pursuant to section
four thousand three hundred twenty-two-a of this article,  or  utilizing
any  other method which offsets the amount of such dividends or credits.
All dividends and credits must be distributed by September thirtieth  of
the  year  following  the calendar year in which the loss ratio require-
ments were not satisfied. The annual report required by paragraph one of
this subsection shall include a corporation's calculation of  the  divi-
dends  and  credits, as well as an explanation of the corporation's plan
to issue dividends or credits. The instructions and format for calculat-
ing and reporting loss ratios and issuing dividends or credits shall  be
specified  by  the  superintendent by regulation. Such regulations shall
include provisions for the distribution of a dividend or credit  in  the
event of cancellation or termination by a contract holder or subscriber.
  (3)  In  each  case  where the loss ratio for a contract form fails to
comply with the one hundred five percent maximum loss ratio  requirement
of  paragraph  one of this subsection, the corporation shall institute a
premium rate increase in an amount sufficient to assure that the  aggre-
gate benefits incurred in the previous calendar year shall equal no more
than  one  hundred  five  percent  of  the sum of the aggregate premiums
earned for the contract form in  the  previous  calendar  year  and  the
aggregate  premium  rate increase. The rate increase shall be applied to
each contract that was in effect as  of  December  thirty-first  of  the
applicable  year  and remains in effect as of the date the rate increase
is imposed. All rate increases must be imposed by September thirtieth of
the year following the calendar year in which the  loss  ratio  require-
ments were not satisfied. The annual report required by paragraph one of
this subsection shall include a corporation's calculation of the premium
rate  increase,  as  well as an explanation of the corporation's plan to

S. 6407--B                         45

implement the rate increase. The instructions and format for calculating
and reporting loss ratios and implementing rate increases shall be spec-
ified by the superintendent by regulation.
  (i)  The  alternate  procedure described in subsections (g) and (h) of
this section shall apply to individual direct payment  contracts  issued
pursuant  to  sections  four  thousand three hundred twenty-one and four
thousand three hundred twenty-two of this article on and  after  January
first, nineteen hundred ninety-seven. Such alternate procedure shall not
be  utilized  to implement a change in rates to be effective on or after
October first, two thousand ten.
  (j) All community rated contracts, other  than  medicare  supplemental
insurance  contracts, issued or in effect during calendar year two thou-
sand ten shall be subject to a minimum loss ratio requirement of  eight-
y-two percent. Corporations may use the alternate procedure set forth in
subsection  (g) of this section to adjust premium rates in order to meet
the required minimum loss ratio for calendar year two thousand ten.  The
rate  filing  or  application shall be submitted no later than September
thirtieth, two thousand ten.]
  S 11. 1. The department of financial services shall examine, evaluate,
and make recommendations concerning the  provision  of  long  term  care
insurance coverage in this state, as authorized pursuant to section 1117
of  the  insurance law.   In conducting its study, such department shall
seek input from a representation of interested parties, such as  policy-
holders,  insurance  carriers, and caregivers.  Such study shall specif-
ically include, but not be limited to the following:
  (a) the present state of the long term  care  insurance  market,  with
respect  to the growing aging population and other demographic shifts as
well as market participation by insurance carriers;
  (b) the impact of long term care coverage to public benefits  such  as
Medicaid, care recipients and caregivers;
  (c)  identifiable trends in life expectancy, policy claim and utiliza-
tion rates, and policy lapse rates;
  (d) a review of the National Association  of  Insurance  Commissioners
(NAIC)  activities as well as studies and reports prepared by the Ameri-
can Academy of Actuaries and/or the Society of Actuaries regarding  long
term care insurance premium rates increases;
  (e)  the  actuarial assumptions and methodologies used by such depart-
ment to ensure benefits are reasonable to premiums charged when  approv-
ing  and adjusting premium for this product, at this product's inception
and presently;
  (f) the impact of premium rates on the solvency of the plans  offering
this product;
  (g)  the  impact  of premium increases, and options offered to policy-
holders, on the affordability of long term care insurance and the abili-
ty of policyholders to maintain meaningful benefits; and
  (h) solutions to  making  this  public  benefit  more  affordable  and
attractive to consumers.
  2.  Within twelve months of the effective date of this act, the super-
intendent of financial services shall submit a report to  the  governor,
the  temporary president of the senate, and the speaker of the assembly,
of the department's findings, conclusions, and recommendations.
  S 12. Notwithstanding any other provision of law,  to  encourage  high
standards  of  conflict-free and transparent data, the superintendent of
financial services shall procure an independent not-for-profit  research
organization to review and audit the nonprofit organization FAIR Health,
Inc.,  established  pursuant to the 2009 attorney general settlement and

S. 6407--B                         46

referenced in subdivision 7 of section 4408 of the  public  health  law,
subdivision  (i)  of  section  603  of  the  financial services law, and
subsection (f) of section 4324 and paragraph (2) of  subsection  (b)  of
section 3241 of the insurance law.
  (a)  Such  audit  shall  include, but not be limited to, reviewing the
sources, data, modifiers, values, metrics and methodologies FAIR Health,
Inc., utilizes to determine fee schedules.
  (b) Upon completion of the review and  audit,  the  superintendent  of
financial services shall review and discuss the findings and recommenda-
tions  with FAIR Health, Inc. Such superintendent shall compile a report
of the findings and recommendations to be made available to  any  inter-
ested parties, and to be distributed to the chairs of the senate finance
committee  and  the  assembly ways and means committee within 60 days of
the initial findings.
  S 13. This act shall take effect immediately and shall  be  deemed  to
have  been in full force and effect on and after April 1, 2016, provided
however, section two of this act shall take  effect  on  July  1,  2016;
provided  further  that  for  any insurer that has been deemed insolvent
within six months prior to the effective date of this  act,  the  super-
intendent  shall have thirty days from the effective date of this act to
comply with subsection (b) of section 7404 of the insurance law as added
by section eight of this act.

                                 PART D

  Section 1.  Paragraph (a) of subdivision 1 of section 212  of  chapter
474  of  the  laws  of  1996,  amending the education law and other laws
relating to rates for residential healthcare facilities, as  amended  by
section  2  of  part  B of chapter 56 of the laws of 2013, is amended to
read as follows:
  (a) Notwithstanding any inconsistent provision of law or regulation to
the contrary, effective beginning August 1, 1996, for the  period  April
1,  1997  through  March 31, 1998, April 1, 1998 for the period April 1,
1998 through March 31, 1999, August 1, 1999, for  the  period  April  1,
1999 through March 31, 2000, April 1, 2000, for the period April 1, 2000
through  March  31,  2001,  April  1, 2001, for the period April 1, 2001
through March 31, 2002, April 1, 2002, for  the  period  April  1,  2002
through March 31, 2003, and for the state fiscal year beginning April 1,
2005  through  March  31,  2006, and for the state fiscal year beginning
April 1, 2006 through March 31, 2007, and  for  the  state  fiscal  year
beginning April 1, 2007 through March 31, 2008, and for the state fiscal
year  beginning  April 1, 2008 through March 31, 2009, and for the state
fiscal year beginning April 1, 2009 through March 31, 2010, and for  the
state  fiscal  year  beginning April 1, 2010 through March 31, 2016, AND
FOR THE STATE FISCAL YEAR BEGINNING APRIL  1,  2016  THROUGH  MARCH  31,
2017,  the  department  of  health  is  authorized to pay public general
hospitals, as defined in subdivision 10 of section 2801  of  the  public
health law, operated by the state of New York or by the state university
of  New York or by a county, which shall not include a city with a popu-
lation of over one million, of the state of New York, and  those  public
general  hospitals  located  in the county of Westchester, the county of
Erie or the county of Nassau, additional payments for inpatient hospital
services as medical assistance payments pursuant to title 11 of  article
5 of the social services law for patients eligible for federal financial
participation  under  title  XIX  of  the federal social security act in
medical assistance pursuant to the federal laws and regulations  govern-

S. 6407--B                         47

ing  disproportionate  share  payments  to  hospitals  up to one hundred
percent of each such public general hospital's  medical  assistance  and
uninsured  patient  losses after all other medical assistance, including
disproportionate  share  payments  to  such  public general hospital for
1996, 1997, 1998, and 1999, based initially for 1996  on  reported  1994
reconciled data as further reconciled to actual reported 1996 reconciled
data,  and  for 1997 based initially on reported 1995 reconciled data as
further reconciled to actual reported 1997  reconciled  data,  for  1998
based  initially  on reported 1995 reconciled data as further reconciled
to actual reported 1998 reconciled data, for  1999  based  initially  on
reported  1995  reconciled data as further reconciled to actual reported
1999 reconciled data, for 2000 based initially on reported  1995  recon-
ciled  data as further reconciled to actual reported 2000 data, for 2001
based initially on reported 1995 reconciled data as  further  reconciled
to  actual reported 2001 data, for 2002 based initially on reported 2000
reconciled data as further reconciled to actual reported 2002 data,  and
for  state  fiscal  years beginning on April 1, 2005, based initially on
reported 2000 reconciled data as further reconciled to  actual  reported
data  for  2005,  and for state fiscal years beginning on April 1, 2006,
based initially on reported 2000 reconciled data as  further  reconciled
to  actual  reported  data for 2006, for state fiscal years beginning on
and after April 1, 2007 through  March  31,  2009,  based  initially  on
reported  2000  reconciled data as further reconciled to actual reported
data for 2007 and 2008, respectively, for state fiscal  years  beginning
on  and after April 1, 2009, based initially on reported 2007 reconciled
data, adjusted for authorized Medicaid rate changes  applicable  to  the
state fiscal year, and as further reconciled to actual reported data for
2009, for state fiscal years beginning on and after April 1, 2010, based
initially on reported reconciled data from the base year two years prior
to  the  payment  year,  adjusted  for  authorized Medicaid rate changes
applicable to the state fiscal year, and further  reconciled  to  actual
reported  data  from  such payment year, and to actual reported data for
each respective succeeding year.  The payments may be added to rates  of
payment  or  made  as  aggregate  payments to an eligible public general
hospital.
  S 2. Section 10 of chapter 649 of  the  laws  of  1996,  amending  the
public  health  law,  the mental hygiene law and the social services law
relating to authorizing the establishment of  special  needs  plans,  as
amended  by  section  20 of part D of chapter 59 of the laws of 2011, is
amended to read as follows:
  S 10. This act shall take effect immediately and shall  be  deemed  to
have  been in full force and effect on and after July 1, 1996; provided,
however, that sections one, two and three of this act shall  expire  and
be  deemed  repealed on March 31, [2016] 2020 provided, however that the
amendments to section 364-j of the social services law made  by  section
four  of  this  act  shall not affect the expiration of such section and
shall be deemed to expire therewith  and  provided,  further,  that  the
provisions  of  subdivisions  8,  9 and 10 of section 4401 of the public
health law, as added by section one of this act; section 4403-d  of  the
public health law as added by section two of this act and the provisions
of  section seven of this act, except for the provisions relating to the
establishment of no more than twelve  comprehensive  HIV  special  needs
plans, shall expire and be deemed repealed on July 1, 2000.
  S  3.  Subdivision 8 of section 84 of part A of chapter 56 of the laws
of 2013, amending the public health  law  and  other  laws  relating  to
general hospital reimbursement for annual rates is REPEALED.

S. 6407--B                         48

  S  4.  Subdivision  (f)  of section 129 of part C of chapter 58 of the
laws of 2009, amending the public health  law  relating  to  payment  by
governmental  agencies  for  general  hospital  inpatient  services,  as
amended by section 1 of part B of chapter 56 of the  laws  of  2013,  is
amended to read as follows:
  (f)  section  twenty-five  of  this  act  shall  expire  and be deemed
repealed April 1, [2016] 2019;
  S 4-a. Section 2806-a of the public health law is amended by adding  a
new subdivision 8 to read as follows:
  8. THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF AN INTENTION
TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH (A) OF SUBDIVISION
TWO OF THIS SECTION, PRIOR TO THE COMMENCEMENT OF THE APPOINTMENT, CAUSE
THE  TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND
THE CHAIRS OF THE SENATE AND THE ASSEMBLY HEALTH COMMITTEES TO BE  NOTI-
FIED  OF  SUCH  APPOINTMENT. SUCH NOTIFICATION SHALL INCLUDE, BUT NOT BE
LIMITED TO, THE NAME OF THE  ESTABLISHED  OPERATOR,  THE  NAMES  OF  ALL
APPOINTED TEMPORARY OPERATORS AND A DETAILED DESCRIPTION OF THE FINDINGS
UNDERLYING THE INTENTION TO APPOINT A TEMPORARY OPERATOR.
  S  5.  Subdivision  (c)  of section 122 of part E of chapter 56 of the
laws of 2013 amending the public health  law  relating  to  the  general
public health work program, is amended to read as follows:
  (c)  section fifty of this act shall take effect immediately and shall
expire [three] SIX years after it becomes law;
  S 5-a. Subdivision 2 of section 3-0317 of the environmental  conserva-
tion law, as added by chapter 77 of the laws of 2010, is amended to read
as follows:
  2.  The  department shall, pursuant to established security protocols,
provide to the department of health the  GPS  coordinates,  category  of
license  or  permit,  facility  identification  number,  and  address on
current environmental facilities that are necessary for  the  department
of  health  to  develop  and maintain cancer incidence and environmental
facility maps required pursuant to section twenty-four hundred one-b  of
the public health law, and shall provide any technical assistance neces-
sary  for  the development of such maps. The department, in consultation
with the department of health, shall update such data [periodically] NOT
LESS THAN ONCE EVERY FIVE YEARS.
  S 5-b. Subdivisions 3 and 9 of section 2401-b  of  the  public  health
law,  as added by chapter 77 of the laws of 2010, are amended to read as
follows:
  3. The technical advisory group shall make recommendations  BIENNIALLY
to the department on the appropriate use and communication of the cancer
incidence  and  environmental  facility maps. Such recommendations shall
consider the scientific strengths and limitations of  such  mapping  and
overlay  methodologies  for  cancer  tracking  and geospatial linking to
significant disease risk factors, and the appropriate means for communi-
cating such strengths and limitation to the public in an easily discern-
ible manner. The department shall consider the  recommendations  of  the
technical  advisory  group when making the maps required by this section
available to the public.
  9. The department shall make available to the public cancer  incidence
and  environmental  facility maps in the manner described in subdivision
four of this section showing cancer clusters by cancer types.  Prior  to
plotting  such data, the department shall use an appropriate statistical
method to detect statistical anomalies for the  purpose  of  identifying
cancer clusters.
  [(a)] The department shall make such maps available [as follows:

S. 6407--B                         49

  (i)  by  June  thirtieth,  two  thousand twelve cancer types listed in
paragraphs (a) through (e) of subdivision five of this section;
  (ii) by December thirty-first, two thousand twelve cancer types listed
in paragraphs (f) through (o) of subdivision five of this section; and
  (iii)  by June thirtieth, two thousand thirteen cancer types listed in
paragraphs (p) through (w) of subdivision five of this section.
  (b) The department] ON ITS PUBLIC WEBSITE, AND SHALL, in  consultation
with  the  department  of environmental conservation, [shall] update the
maps [periodically.
  (c) The department shall post these maps on its public website as soon
as practicable following the dates set forth in paragraph  (a)  of  this
subdivision] NOT LESS THAN ONCE EVERY FIVE YEARS.
  S  5-c. Section 5 of chapter 77 of the laws of 2010 amending the envi-
ronmental conservation law and the public  health  law  relating  to  an
environmental  facility  and cancer incidence map, is amended to read as
follows:
  S 5. This act shall take effect immediately and shall  expire  and  be
deemed repealed March 31, [2016] 2020.
  S  6.  Section  6  of  chapter  465  of the laws of 2012, constituting
Lauren's law, is amended to read as follows:
  S 6. This act shall take effect one year after it shall have become  a
law;  provided  that  the commissioners of health and motor vehicles may
implement sections two, four and five of this act within  their  respec-
tive  jurisdictions  before  that date[; and provided, further, that the
provisions of this act shall expire and be deemed repealed  three  years
after such effective date].
  S  7.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016; provided,
however, that:
  (a) the amendments to section 2806-a of the public health law, made by
section four-a of this act, shall not affect the expiration  and  repeal
of such section, and shall expire and be deemed repealed therewith; and
  (b) the amendments to section 3-0317 of the environmental conservation
law, made by section five-a of this act, shall not affect the expiration
and  repeal  of  such  section,  and shall expire and be deemed repealed
therewith; and provided, further, that the amendments to section  2401-b
of  the public health law, made by section five-b of this act, shall not
affect the expiration and repeal of such section, and shall  expire  and
be deemed repealed therewith.

                                 PART E

                          Intentionally Omitted

                                 PART F

  Section  1.  The  public health law is amended by adding a new section
2825-d to read as follows:
  S 2825-D. HEALTH CARE FACILITY TRANSFORMATION PROGRAM;  STATEWIDE.  1.
A STATEWIDE HEALTH CARE FACILITY TRANSFORMATION PROGRAM IS HEREBY ESTAB-
LISHED UNDER THE JOINT ADMINISTRATION OF THE COMMISSIONER AND THE PRESI-
DENT OF THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK FOR THE PURPOSE
OF STRENGTHENING AND PROTECTING CONTINUED ACCESS TO HEALTH CARE SERVICES
IN  COMMUNITIES.  WITHIN  AMOUNTS APPROPRIATED THE PROGRAM SHALL PROVIDE
FUNDING TO SUPPORT DEBT  RETIREMENT,  CAPITAL  PROJECTS  OR  NON-CAPITAL
PROJECTS  THAT FACILITATE HEALTH CARE TRANSFORMATION, INCLUDING MERGERS,

S. 6407--B                         50

CONSOLIDATIONS, ACQUISITIONS, AND RESTRUCTURING ACTIVITIES THAT ARE PART
OF AN OVERALL TRANSFORMATION  PLAN  INTENDED  TO  CREATE  A  FINANCIALLY
SUSTAINABLE  SYSTEM  OF  CARE. A MINIMUM OF TWENTY-FIVE PERCENT OF TOTAL
AWARDED  FUNDS  SHALL BE MADE TO COMMUNITY BASED PROVIDERS. GRANTS SHALL
NOT BE AVAILABLE TO SUPPORT GENERAL OPERATING EXPENSES. THE ISSUANCE  OF
ANY  BONDS  OR  NOTES  HEREUNDER SHALL BE SUBJECT TO THE APPROVAL OF THE
DIRECTOR OF THE DIVISION OF THE BUDGET, AND ANY PROJECTS FUNDED  THROUGH
THE  ISSUANCE  OF  BONDS OR NOTES HEREUNDER SHALL BE APPROVED BY THE NEW
YORK STATE PUBLIC AUTHORITIES CONTROL BOARD, AS REQUIRED  UNDER  SECTION
FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW.
  2.  THE  COMMISSIONER  AND  THE PRESIDENT OF THE AUTHORITY SHALL ENTER
INTO AN AGREEMENT, SUBJECT TO APPROVAL BY THE DIRECTOR  OF  THE  BUDGET,
AND  SUBJECT  TO SECTION SIXTEEN HUNDRED EIGHTY-R OF THE PUBLIC AUTHORI-
TIES LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND  ADMINISTERING
THE  FUNDS  MADE  AVAILABLE  PURSUANT TO THIS SECTION. SUCH FUNDS MAY BE
DISTRIBUTED BY THE COMMISSIONER AND THE PRESIDENT OF THE  AUTHORITY  FOR
GRANTS  TO  GENERAL HOSPITALS, RESIDENTIAL HEALTH CARE FACILITIES, DIAG-
NOSTIC AND TREATMENT CENTERS AND CLINICS LICENSED PURSUANT TO THIS CHAP-
TER OR THE MENTAL HYGIENE LAW, PRIMARY CARE  PROVIDERS,  AND  HOME  CARE
PROVIDERS  CERTIFIED  OR LICENSED PURSUANT TO ARTICLE THIRTY-SIX OF THIS
CHAPTER, FOR PROJECTS THAT  SUPPORT  THE  PURPOSES  SET  FORTH  IN  THIS
SECTION.  A COPY OF SUCH AGREEMENT, AND ANY AMENDMENTS THERETO, SHALL BE
PROVIDED TO THE CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF  THE
ASSEMBLY  WAYS  AND MEANS COMMITTEE, AND THE DIRECTOR OF THE DIVISION OF
BUDGET NO LATER THAN THIRTY DAYS PRIOR TO THE RELEASE OF A  REQUEST  FOR
APPLICATIONS FOR FUNDING UNDER THIS PROGRAM.  PRIORITY SHALL BE GIVEN TO
PROJECTS  NOT  FUNDED,  IN  WHOLE OR IN PART, UNDER SECTION TWENTY-EIGHT
HUNDRED TWENTY-FIVE, TWENTY-EIGHT  HUNDRED  TWENTY-FIVE-A,  TWENTY-EIGHT
HUNDRED  TWENTY-FIVE-B,  OR  TWENTY-EIGHT  HUNDRED TWENTY-FIVE-C OF THIS
ARTICLE. GRANTS UNDER THIS SECTION SHALL BE AWARDED BY DECEMBER  THIRTY-
FIRST  ANNUALLY.  TO  THE  EXTENT  PRACTICABLE,  FUNDS  SHALL BE AWARDED
REGIONALLY IN PROPORTION TO THE APPLICATIONS RECEIVED.
  3. NOTWITHSTANDING  SECTION  ONE  HUNDRED  SIXTY-THREE  OF  THE  STATE
FINANCE  LAW OR ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, FUNDS
APPROPRIATED FOR THIS PROGRAM SHALL BE AWARDED WITHOUT A COMPETITIVE BID
OR REQUEST FOR PROPOSAL PROCESS FOR  GRANTS  TO  HEALTH  CARE  PROVIDERS
(HEREAFTER  "APPLICANTS").  ELIGIBLE APPLICANTS SHALL BE THOSE DEEMED BY
THE COMMISSIONER TO BE A PROVIDER THAT FULFILLS OR WILL FULFILL A HEALTH
CARE NEED FOR ACUTE INPATIENT, OUTPATIENT, PRIMARY, HOME CARE  OR  RESI-
DENTIAL HEALTH CARE SERVICES IN A COMMUNITY.
  4.  IN  DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER THIS SECTION,
THE COMMISSIONER AND THE  PRESIDENT  OF  THE  AUTHORITY  SHALL  CONSIDER
CRITERIA  INCLUDING,  BUT  NOT  LIMITED  TO: (A) THE EXTENT TO WHICH THE
PROPOSED PROJECT WILL CONTRIBUTE  TO  THE  INTEGRATION  OF  HEALTH  CARE
SERVICES  AND  LONG TERM SUSTAINABILITY OF THE APPLICANT OR PRESERVATION
OF ESSENTIAL HEALTH SERVICES IN THE COMMUNITY OR COMMUNITIES  SERVED  BY
THE  APPLICANT;  (B) THE EXTENT TO WHICH THE PROPOSED PROJECT OR PURPOSE
IS ALIGNED WITH  DELIVERY  SYSTEM  REFORM  INCENTIVE  PAYMENT  ("DSRIP")
PROGRAM  GOALS  AND OBJECTIVES; (C) CONSIDERATION OF GEOGRAPHIC DISTRIB-
UTION OF FUNDS; (D) THE RELATIONSHIP BETWEEN THE  PROPOSED  PROJECT  AND
IDENTIFIED  COMMUNITY  NEED;  (E)  THE EXTENT TO WHICH THE APPLICANT HAS
ACCESS TO ALTERNATIVE  FINANCING;  (F)  THE  EXTENT  THAT  THE  PROPOSED
PROJECT  FURTHERS  THE  DEVELOPMENT OF PRIMARY CARE AND OTHER OUTPATIENT
SERVICES; (G) THE EXTENT TO WHICH THE PROPOSED PROJECT BENEFITS MEDICAID
ENROLLEES AND UNINSURED INDIVIDUALS; (H) THE EXTENT TO WHICH THE  APPLI-
CANT  HAS ENGAGED THE COMMUNITY AFFECTED BY THE PROPOSED PROJECT AND THE

S. 6407--B                         51

MANNER IN WHICH COMMUNITY ENGAGEMENT HAS SHAPED SUCH  PROJECT;  AND  (I)
THE  EXTENT  TO  WHICH  THE PROPOSED PROJECT ADDRESSES POTENTIAL RISK TO
PATIENT SAFETY AND WELFARE.
  5.  DISBURSEMENT  OF  AWARDS  MADE  PURSUANT  TO THIS SECTION SHALL BE
CONDITIONED ON THE AWARDEE ACHIEVING  CERTAIN  PROCESS  AND  PERFORMANCE
METRICS  AND  MILESTONES  AS  DETERMINED  IN  THE SOLE DISCRETION OF THE
COMMISSIONER. SUCH METRICS AND MILESTONES SHALL BE STRUCTURED TO  ENSURE
THAT THE HEALTH CARE TRANSFORMATION AND PROVIDER SUSTAINABILITY GOALS OF
THE  PROJECT  ARE  ACHIEVED,  AND  SUCH  METRICS AND MILESTONES SHALL BE
INCLUDED IN GRANT DISBURSEMENT AGREEMENTS OR OTHER CONTRACTUAL DOCUMENTS
AS REQUIRED BY THE COMMISSIONER.
  6. THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS  TO  THE
CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, SENATE HEALTH AND
ASSEMBLY  HEALTH  COMMITTEES.  SUCH  REPORTS SHALL BE SUBMITTED NO LATER
THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL  INCLUDE,  FOR
EACH  AWARD,  THE NAME OF THE APPLICANT, A DESCRIPTION OF THE PROJECT OR
PURPOSE, THE AMOUNT OF THE  AWARD,  DISBURSEMENT  DATE,  AND  STATUS  OF
ACHIEVEMENT  OF  PROCESS AND PERFORMANCE METRICS AND MILESTONES PURSUANT
TO SUBDIVISION FIVE OF THIS SECTION.
  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, 2016.

                                 PART G

  Section  1.  Section  2801-a  of  the  public health law is amended by
adding a new subdivision 17 to read as follows:
  17. (A) DIAGNOSTIC OR TREATMENT CENTERS ESTABLISHED TO PROVIDE  HEALTH
CARE SERVICES WITHIN THE SPACE OF A RETAIL BUSINESS OPERATION, SUCH AS A
PHARMACY  OR A STORE OPEN TO THE GENERAL PUBLIC, OR WITHIN SPACE USED BY
AN EMPLOYER FOR PROVIDING HEALTH CARE SERVICES TO ITS EMPLOYEES, MAY  BE
OPERATED  BY  LEGAL  ENTITIES  FORMED UNDER THE LAWS OF THE STATE OF NEW
YORK:
  (I) WHOSE STOCKHOLDERS OR MEMBERS,  AS  APPLICABLE,  ARE  NOT  NATURAL
PERSONS;
  (II)  WHOSE  PRINCIPAL  STOCKHOLDERS  AND  MEMBERS, AS APPLICABLE, AND
CONTROLLING PERSONS COMPLY WITH  ALL  APPLICABLE  REQUIREMENTS  OF  THIS
SECTION; AND
  (III)  THAT  DEMONSTRATE, TO THE SATISFACTION OF THE PUBLIC HEALTH AND
HEALTH PLANNING COUNCIL, SUFFICIENT EXPERIENCE AND EXPERTISE IN DELIVER-
ING HIGH QUALITY HEALTH CARE SERVICES, AND FURTHER DEMONSTRATE A COMMIT-
MENT TO OPERATE LIMITED SERVICES CLINICS IN MEDICALLY UNDERSERVED  AREAS
OF THE STATE. SUCH DIAGNOSTIC AND TREATMENT CENTERS SHALL BE REFERRED TO
IN THIS SECTION AS "LIMITED SERVICES CLINICS".
  (B)  FOR  PURPOSES  OF  PARAGRAPH  (A) OF THIS SUBDIVISION, THE PUBLIC
HEALTH AND HEALTH PLANNING COUNCIL SHALL ADOPT AND AMEND RULES AND REGU-
LATIONS, NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION,  TO
ADDRESS  ANY  MATTER  IT DEEMS PERTINENT TO THE ESTABLISHMENT OF LIMITED
SERVICES CLINICS. SUCH RULES AND REGULATIONS SHALL INCLUDE, BUT  NOT  BE
LIMITED TO, PROVISIONS GOVERNING OR RELATING TO:
  (I) ANY DIRECT OR INDIRECT CHANGES OR TRANSFERS OF OWNERSHIP INTERESTS
OR  VOTING  RIGHTS IN SUCH ENTITIES OR THEIR STOCKHOLDERS OR MEMBERS, AS
APPLICABLE;
  (II) PUBLIC HEALTH AND HEALTH PLANNING COUNCIL APPROVAL OF ANY  CHANGE
IN  CONTROLLING  INTERESTS, PRINCIPAL STOCKHOLDERS, CONTROLLING PERSONS,
PARENT COMPANY OR SPONSORS;

S. 6407--B                         52

  (III) OVERSIGHT OF THE OPERATOR AND ITS SHAREHOLDERS  OR  MEMBERS,  AS
APPLICABLE,  INCLUDING LOCAL GOVERNANCE OF THE LIMITED SERVICES CLINICS;
AND
  (IV)  THE  CHARACTER AND COMPETENCE AND QUALIFICATIONS OF, AND CHANGES
RELATING TO, THE DIRECTORS AND OFFICERS OF THE OPERATOR AND ITS  PRINCI-
PAL STOCKHOLDERS, CONTROLLING PERSONS, PARENT COMPANY OR SPONSORS.
  (C) THE FOLLOWING PROVISIONS OF THIS SECTION SHALL NOT APPLY TO LIMIT-
ED SERVICES CLINICS:
  (I) PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION;
  (II)  PARAGRAPH  (B) OF SUBDIVISION THREE OF THIS SECTION, RELATING TO
STOCKHOLDERS AND MEMBERS OTHER THAN PRINCIPAL STOCKHOLDERS AND PRINCIPAL
MEMBERS;
  (III) PARAGRAPH (C) OF SUBDIVISION FOUR OF THIS SECTION,  RELATING  TO
THE DISPOSITION OF STOCK OR VOTING RIGHTS; AND
  (IV)  PARAGRAPH  (E)  OF SUBDIVISION FOUR OF THIS SECTION, RELATING TO
THE OWNERSHIP OF STOCK OR MEMBERSHIP.
  (D) A LIMITED SERVICES CLINIC SHALL BE DEEMED TO  BE  A  "HEALTH  CARE
PROVIDER"  FOR  THE PURPOSES OF TITLE TWO-D OF ARTICLE TWO OF THIS CHAP-
TER. A PRESCRIBER PRACTICING IN A LIMITED SERVICES CLINIC SHALL  NOT  BE
DEEMED TO BE IN THE EMPLOY OF A PHARMACY OR PRACTICING IN A HOSPITAL FOR
PURPOSES  OF SUBDIVISION TWO OF SECTION SIXTY-EIGHT HUNDRED SEVEN OF THE
EDUCATION LAW.
  (E) THE COMMISSIONER SHALL PROMULGATE REGULATIONS SETTING FORTH OPERA-
TIONAL AND PHYSICAL PLANT STANDARDS FOR LIMITED SERVICES CLINICS,  WHICH
MAY BE DIFFERENT FROM THE REGULATIONS OTHERWISE APPLICABLE TO DIAGNOSTIC
OR TREATMENT CENTERS, INCLUDING, BUT NOT LIMITED TO:
  (I)  REQUIRING  THAT  LIMITED  SERVICES  CLINICS  ATTAIN  AND MAINTAIN
ACCREDITATION AND REQUIRING TIMELY REPORTING  TO  THE  DEPARTMENT  IF  A
LIMITED SERVICES CLINIC LOSES ITS ACCREDITATION;
  (II)  DESIGNATING  OR LIMITING THE TREATMENTS AND SERVICES THAT MAY BE
PROVIDED, INCLUDING:
  (A) LIMITING THE SCOPE OF SERVICES TO  THE  FOLLOWING,  PROVIDED  THAT
SUCH  SERVICES  SHALL  NOT  INCLUDE MONITORING OR TREATMENT AND SERVICES
OVER PROLONGED PERIODS:
  (1) THE PROVISION OF TREATMENT AND  SERVICES  TO  PATIENTS  FOR  MINOR
ACUTE EPISODIC ILLNESSES OR CONDITIONS;
  (2)  EPISODIC  PREVENTIVE AND WELLNESS TREATMENTS AND SERVICES SUCH AS
IMMUNIZATIONS; AND
  (3) TREATMENT AND SERVICES FOR MINOR TRAUMAS THAT ARE  NOT  REASONABLY
LIKELY  TO  BE  LIFE  THREATENING OR POTENTIALLY DISABLING IF AMBULATORY
CARE WITHIN THE CAPACITY OF THE LIMITED SERVICES CLINIC IS PROVIDED;
  (B) PROHIBITING THE PROVISION  OF  SERVICES  TO  PATIENTS  TWENTY-FOUR
MONTHS OF AGE OR YOUNGER;
  (C)  THE  PROVISION OF SPECIFIC IMMUNIZATIONS TO PATIENTS YOUNGER THAN
EIGHTEEN YEARS OF AGE;
  (III) REQUIRING LIMITED SERVICES CLINICS TO ACCEPT WALK-INS AND  OFFER
EXTENDED BUSINESS HOURS;
  (IV) SETTING FORTH GUIDELINES FOR ADVERTISING AND SIGNAGE, WHICH SHALL
INCLUDE  SIGNAGE  INDICATING  THAT  PRESCRIPTIONS  AND  OVER-THE-COUNTER
SUPPLIES MAY BE PURCHASED BY A PATIENT FROM ANY BUSINESS AND DO NOT NEED
TO BE PURCHASED ON-SITE;
  (V) SETTING FORTH GUIDELINES FOR DISCLOSURE  OF  OWNERSHIP  INTERESTS,
INFORMED  CONSENT, RECORD KEEPING, REFERRAL FOR TREATMENT AND CONTINUITY
OF CARE, CASE REPORTING TO THE PATIENT'S PRIMARY CARE  OR  OTHER  HEALTH
CARE PROVIDERS, DESIGN, CONSTRUCTION, FIXTURES, AND EQUIPMENT; AND

S. 6407--B                         53

  (VI)  REQUIRING THE OPERATOR TO DIRECTLY EMPLOY A MEDICAL DIRECTOR WHO
IS LICENSED AND CURRENTLY REGISTERED TO PRACTICE MEDICINE IN  THE  STATE
OF NEW YORK.
  (F) SUCH REGULATIONS ALSO SHALL PROMOTE AND STRENGTHEN PRIMARY CARE BY
REQUIRING LIMITED SERVICES CLINICS TO:
  (I)  INQUIRE  OF  EACH  PATIENT  WHETHER  HE OR SHE HAS A PRIMARY CARE
PROVIDER;
  (II) MAINTAIN AND REGULARLY  UPDATE  A  LIST  OF  LOCAL  PRIMARY  CARE
PROVIDERS AND PROVIDE SUCH LIST TO EACH PATIENT WHO INDICATES THAT HE OR
SHE DOES NOT HAVE A PRIMARY CARE PROVIDER;
  (III)  REFER  PATIENTS TO THEIR PRIMARY CARE PROVIDERS OR OTHER HEALTH
CARE PROVIDERS AS APPROPRIATE;
  (IV) TRANSMIT, BY  ELECTRONIC  MEANS  WHENEVER  POSSIBLE,  RECORDS  OF
SERVICES TO PATIENTS' PRIMARY CARE PROVIDERS;
  (V) EXECUTE PARTICIPATION AGREEMENTS WITH HEALTH INFORMATION ORGANIZA-
TIONS,  ALSO  KNOWN  AS  QUALIFIED  ENTITIES,  PURSUANT TO WHICH LIMITED
SERVICES CLINICS AGREE TO PARTICIPATE IN THE STATEWIDE  HEALTH  INFORMA-
TION NETWORK FOR NEW YORK (SHIN-NY); AND
  (VI)  DECLINE  TO  TREAT ANY PATIENT FOR THE SAME CONDITION OR ILLNESS
MORE THAN THREE TIMES IN A YEAR.
  (G) A LIMITED SERVICES CLINIC SHALL PROVIDE TREATMENT WITHOUT DISCRIM-
INATION AS TO SOURCE OF PAYMENT.
  (H) NOTWITHSTANDING THIS SUBDIVISION AND OTHER LAW  OR  REGULATION  TO
THE  CONTRARY  AND  SUBJECT  TO  THE  PROVISIONS OF SECTION TWENTY-EIGHT
HUNDRED TWO OF THIS ARTICLE, A GENERAL HOSPITAL, A DIAGNOSTIC AND TREAT-
MENT CENTER, COMMUNITY  HEALTH  CENTER  OR  FEDERALLY  QUALIFIED  HEALTH
CENTER  MAY OPERATE A LIMITED SERVICES CLINIC WHICH MEETS THE REGULATION
PROMULGATED PURSUANT TO PARAGRAPH  (E)  OF  THIS  SUBDIVISION  REGARDING
OPERATIONAL PHYSICAL PLANT STANDARDS.
  (I)  IN  DETERMINING  WHETHER  TO  APPROVE ADDITIONAL LIMITED SERVICES
CLINIC LOCATIONS, THE DEPARTMENT SHALL CONSIDER WHETHER THE OPERATOR HAS
FULFILLED  ITS  COMMITMENT  TO  OPERATE  LIMITED  SERVICES  CLINICS   IN
MEDICALLY UNDERSERVED AREAS OF THE STATE.
  S 2. This act shall take effect immediately.

                                 PART H

  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, as amended
by section 1 of part JJ of chapter 58 of the laws of 2015, 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,
[2016] 2017; and for programs located within the city of New  York,  the
applicable  fiscal  periods  shall be July 1, 2003 through June 30, 2010
and July 1, 2011 through June 30, [2016] 2017.

S. 6407--B                         54

  S 2. The office  of  mental  health  shall  report  on  the  providers
impacted by section one of this act. This information shall be submitted
to  the  governor, the temporary president of the senate and the speaker
of the assembly no later than December 31, 2016.
  S 3. This act shall take effect immediately.

                                 PART I

  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  K  of
chapter 56 of the laws of 2012, are amended to read as follows:
  S  19. Notwithstanding any other provision of law, the commissioner of
mental health shall, until July 1, [2016] 2020, 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,  [2016]  2020, 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, 2016.

                                 PART J

                          Intentionally Omitted

                                 PART K

                          Intentionally Omitted

                                 PART L

  Section 1. The mental hygiene law is amended by adding a  new  section
16.25 to read as follows:
S 16.25 TEMPORARY OPERATOR.
  (A) FOR THE PURPOSES OF THIS SECTION:
  (1)  "ESTABLISHED  OPERATOR"  SHALL MEAN THE PROVIDER OF SERVICES THAT
HAS BEEN ESTABLISHED AND ISSUED AN  OPERATING  CERTIFICATE  PURSUANT  TO
THIS ARTICLE.
  (2)  "EXTRAORDINARY  FINANCIAL  ASSISTANCE"  SHALL  MEAN  STATE  FUNDS
PROVIDED TO, OR REQUESTED BY, A  PROGRAM  FOR  THE  EXPRESS  PURPOSE  OF
PREVENTING  THE  CLOSURE  OF  THE  PROGRAM  THAT  THE COMMISSIONER FINDS
PROVIDES ESSENTIAL AND NECESSARY SERVICES WITHIN THE COMMUNITY.
  (3) "SERIOUS FINANCIAL INSTABILITY" SHALL INCLUDE BUT NOT  BE  LIMITED
TO  DEFAULTING  OR  VIOLATING  MATERIAL COVENANTS OF BOND ISSUES, MISSED
MORTGAGE PAYMENTS, MISSED RENT PAYMENTS, A PATTERN OF  UNTIMELY  PAYMENT
OF DEBTS, FAILURE TO PAY ITS EMPLOYEES OR VENDORS, INSUFFICIENT FUNDS TO
MEET  THE GENERAL OPERATING EXPENSES OF THE PROGRAM, FAILURE TO MAINTAIN
REQUIRED DEBT SERVICE COVERAGE RATIOS  AND/OR,  AS  APPLICABLE,  FACTORS

S. 6407--B                         55

THAT  HAVE  TRIGGERED A WRITTEN EVENT OF DEFAULT NOTICE TO THE OFFICE BY
THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK.
  (4) "OFFICE" SHALL MEAN THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISA-
BILITIES.
  (5)  "TEMPORARY OPERATOR" SHALL MEAN ANY PROVIDER OF SERVICES THAT HAS
BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE  PURSUANT  TO  THIS
ARTICLE OR WHICH IS DIRECTLY OPERATED BY THE OFFICE, THAT:
  A.  AGREES TO PROVIDE SERVICES CERTIFIED PURSUANT TO THIS ARTICLE ON A
TEMPORARY BASIS IN THE BEST INTERESTS OF ITS INDIVIDUALS SERVED  BY  THE
PROGRAM; AND
  B.  HAS A HISTORY OF COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REGU-
LATIONS AND A RECORD OF PROVIDING CARE OF GOOD QUALITY, AS DETERMINED BY
THE COMMISSIONER; AND
  C. PRIOR TO APPOINTMENT AS TEMPORARY OPERATOR, DEVELOPS A PLAN  DETER-
MINED  TO  BE  SATISFACTORY BY THE COMMISSIONER TO ADDRESS THE PROGRAM'S
DEFICIENCIES.
  (B) (1) IN THE EVENT THAT: (I) THE  ESTABLISHED  OPERATOR  IS  SEEKING
EXTRAORDINARY  FINANCIAL  ASSISTANCE;  (II) OFFICE COLLECTED DATA DEMON-
STRATES THAT THE ESTABLISHED OPERATOR IS EXPERIENCING SERIOUS  FINANCIAL
INSTABILITY  ISSUES;  (III)  OFFICE COLLECTED DATA DEMONSTRATES THAT THE
ESTABLISHED OPERATOR'S BOARD OF DIRECTORS OR ADMINISTRATION IS UNABLE OR
UNWILLING TO ENSURE THE PROPER OPERATION OF THE PROGRAM; OR (IV)  OFFICE
COLLECTED DATA INDICATES THERE ARE CONDITIONS THAT SERIOUSLY ENDANGER OR
JEOPARDIZE  CONTINUED ACCESS TO NECESSARY SERVICES WITHIN THE COMMUNITY,
THE COMMISSIONER SHALL NOTIFY THE ESTABLISHED OPERATOR  OF  HIS  OR  HER
INTENTION  TO APPOINT A TEMPORARY OPERATOR TO ASSUME SOLE RESPONSIBILITY
FOR THE PROVIDER OF SERVICES' OPERATIONS FOR A LIMITED PERIOD  OF  TIME.
THE APPOINTMENT OF A TEMPORARY OPERATOR SHALL BE EFFECTUATED PURSUANT TO
THIS SECTION, AND SHALL BE IN ADDITION TO ANY OTHER REMEDIES PROVIDED BY
LAW.
  (2)  THE ESTABLISHED OPERATOR 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 NECES-
SARY, ENTER INTO AN AGREEMENT WITH  THE  ESTABLISHED  OPERATOR  FOR  THE
APPOINTMENT OF A TEMPORARY OPERATOR TO RESTORE OR MAINTAIN THE PROVISION
OF  QUALITY  CARE  TO THE INDIVIDUALS UNTIL THE ESTABLISHED OPERATOR CAN
RESUME OPERATIONS WITHIN THE DESIGNATED TIME PERIOD OR OTHER  ACTION  IS
TAKEN AS DESCRIBED IN SECTION 16.17 OF THIS ARTICLE.
  (C)  (1) A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION SHALL
USE HIS OR HER BEST EFFORTS TO IMPLEMENT THE PLAN DEEMED SATISFACTORY BY
THE COMMISSIONER TO CORRECT OR ELIMINATE ANY DEFICIENCIES IN THE PROGRAM
AND TO PROMOTE THE QUALITY AND ACCESSIBILITY OF SERVICES IN THE COMMUNI-
TY SERVED BY THE PROVIDER OF SERVICES.
  (2) DURING THE TERM OF APPOINTMENT, THE TEMPORARY OPERATOR SHALL  HAVE
THE  AUTHORITY TO DIRECT THE STAFF OF THE ESTABLISHED OPERATOR AS NECES-
SARY TO APPROPRIATELY PROVIDE SERVICES FOR  INDIVIDUALS.  THE  TEMPORARY
OPERATOR SHALL, DURING THIS PERIOD, PROVIDE SERVICES IN SUCH A MANNER AS
TO  PROMOTE  SAFETY AND THE QUALITY AND ACCESSIBILITY OF SERVICES IN THE
COMMUNITY SERVED BY THE ESTABLISHED OPERATOR  UNTIL  EITHER  THE  ESTAB-
LISHED  OPERATOR  CAN  RESUME OPERATIONS OR UNTIL THE OFFICE REVOKES THE
OPERATING CERTIFICATE FOR THE SERVICES ISSUED UNDER THIS ARTICLE.
  (3) THE ESTABLISHED OPERATOR SHALL GRANT ACCESS TO THE TEMPORARY OPER-
ATOR TO THE ESTABLISHED OPERATOR'S ACCOUNTS  AND  RECORDS  IN  ORDER  TO
ADDRESS  ANY  DEFICIENCIES  RELATED  TO THE PROGRAM EXPERIENCING SERIOUS
FINANCIAL INSTABILITY OR AN ESTABLISHED  OPERATOR  REQUESTING  FINANCIAL
ASSISTANCE IN ACCORDANCE WITH THIS SECTION. THE TEMPORARY OPERATOR SHALL

S. 6407--B                         56

APPROVE  ANY FINANCIAL DECISION RELATED TO AN ESTABLISHED PROVIDER'S DAY
TO DAY OPERATIONS OR  THE  ESTABLISHED  PROVIDER'S  ABILITY  TO  PROVIDE
SERVICES.
  (4) THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE ANY BOND.  NO
SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRISING THE ESTAB-
LISHED  OPERATOR  OR CONTAINED WITHIN THE ESTABLISHED OPERATOR OR IN ANY
FIXTURE OF THE PROGRAM, SHALL BE IMPAIRED OR DIMINISHED IN  PRIORITY  BY
THE  TEMPORARY  OPERATOR.  NEITHER THE TEMPORARY OPERATOR NOR THE OFFICE
SHALL ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION OF  PROPER-
TY.
  (D)  THE  TEMPORARY OPERATOR SHALL BE ENTITLED TO A REASONABLE FEE, AS
DETERMINED BY THE COMMISSIONER AND SUBJECT TO THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, AND NECESSARY EXPENSES INCURRED WHILE
SERVING AS A TEMPORARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE  LIABLE
ONLY  IN  ITS  CAPACITY  AS  TEMPORARY OPERATOR FOR INJURY TO PERSON AND
PROPERTY BY REASON OF ITS OPERATION OF SUCH PROGRAM; NO LIABILITY  SHALL
INCUR  IN  THE  TEMPORARY OPERATOR'S PERSONAL CAPACITY, EXCEPT FOR GROSS
NEGLIGENCE AND INTENTIONAL ACTS.
  (E) (1) THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY  OPERATOR
SHALL  NOT  EXCEED  NINETY  DAYS. AFTER NINETY DAYS, IF THE COMMISSIONER
DETERMINES THAT  TERMINATION  OF  THE  TEMPORARY  OPERATOR  WOULD  CAUSE
SIGNIFICANT  DETERIORATION  OF THE QUALITY OF, OR ACCESS TO, CARE IN THE
COMMUNITY OR THAT REAPPOINTMENT IS NECESSARY TO CORRECT THE DEFICIENCIES
THAT REQUIRED THE APPOINTMENT OF THE TEMPORARY OPERATOR, THE COMMISSION-
ER MAY AUTHORIZE AN ADDITIONAL NINETY-DAY TERM.  HOWEVER, SUCH  AUTHORI-
ZATION  SHALL  INCLUDE THE COMMISSIONER'S REQUIREMENTS FOR CONCLUSION OF
THE TEMPORARY OPERATORSHIP TO BE SATISFIED WITHIN THE ADDITIONAL TERM.
  (2) 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:
  A.  THE ACTIONS TAKEN DURING THE APPOINTMENT TO ADDRESS THE IDENTIFIED
PROGRAM DEFICIENCIES, THE RESUMPTION OF PROGRAM OPERATIONS BY THE ESTAB-
LISHED OPERATOR, OR THE REVOCATION OF AN OPERATING CERTIFICATE ISSUED BY
THE OFFICE;
  B. OBJECTIVES FOR THE CONTINUATION OF THE  TEMPORARY  OPERATORSHIP  IF
NECESSARY AND A SCHEDULE FOR SATISFACTION OF SUCH OBJECTIVES; AND
  C. IF APPLICABLE, THE RECOMMENDED ACTIONS FOR THE ONGOING PROVISION OF
SERVICES SUBSEQUENT TO THE TEMPORARY OPERATORSHIP.
  (3)  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.
  (F) (1) THE COMMISSIONER SHALL, UPON  MAKING  A  DETERMINATION  OF  AN
INTENTION  TO  APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH ONE OF
SUBDIVISION (B) OF THIS SECTION, CAUSE THE ESTABLISHED  OPERATOR  TO  BE
NOTIFIED  OF  THE INTENTION BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO
THE PRINCIPAL OFFICE OF  THE  ESTABLISHED  OPERATOR.  SUCH  NOTIFICATION
SHALL  INCLUDE  A  DETAILED  DESCRIPTION  OF THE FINDINGS UNDERLYING THE
INTENTION TO APPOINT A TEMPORARY OPERATOR, AND THE DATE AND  TIME  OF  A
REQUIRED MEETING WITH THE COMMISSIONER AND/OR HIS OR HER DESIGNEE WITHIN
TEN  BUSINESS  DAYS  OF THE RECEIPT OF SUCH NOTICE. AT SUCH MEETING, THE
ESTABLISHED OPERATOR SHALL HAVE THE OPPORTUNITY TO  REVIEW  AND  DISCUSS
ALL  RELEVANT FINDINGS. AT SUCH MEETING, THE COMMISSIONER AND THE ESTAB-
LISHED OPERATOR SHALL ATTEMPT TO DEVELOP A MUTUALLY SATISFACTORY PLAN OF
CORRECTION AND SCHEDULE FOR IMPLEMENTATION. IN SUCH EVENT,  THE  COMMIS-

S. 6407--B                         57

SIONER  SHALL NOTIFY THE ESTABLISHED OPERATOR THAT THE COMMISSIONER WILL
ABSTAIN FROM APPOINTING A TEMPORARY OPERATOR CONTINGENT UPON THE  ESTAB-
LISHED  OPERATOR  REMEDIATING  THE  IDENTIFIED  DEFICIENCIES  WITHIN THE
AGREED UPON TIMEFRAME.
  (2)  SHOULD THE COMMISSIONER AND THE ESTABLISHED OPERATOR BE UNABLE TO
ESTABLISH A PLAN OF CORRECTION PURSUANT TO PARAGRAPH ONE OF THIS  SUBDI-
VISION,  OR  SHOULD  THE  ESTABLISHED  OPERATOR  FAIL  TO RESPOND TO THE
COMMISSIONER'S INITIAL NOTIFICATION, THERE SHALL  BE  AN  ADMINISTRATIVE
HEARING ON THE COMMISSIONER'S DETERMINATION TO APPOINT A TEMPORARY OPER-
ATOR  TO  BEGIN NO LATER THAN THIRTY DAYS FROM THE DATE OF THE NOTICE TO
THE ESTABLISHED OPERATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED  TO
THE  ISSUE OF WHETHER THE DETERMINATION OF THE COMMISSIONER TO APPOINT A
TEMPORARY OPERATOR IS SUPPORTED BY SUBSTANTIAL EVIDENCE. A COPY  OF  THE
DECISION SHALL BE SENT TO THE ESTABLISHED OPERATOR.
  (3)  IF  THE  DECISION  TO APPOINT A TEMPORARY OPERATOR IS UPHELD SUCH
TEMPORARY OPERATOR SHALL BE APPOINTED AS  SOON  AS  IS  PRACTICABLE  AND
SHALL PROVIDE SERVICES PURSUANT TO THE PROVISIONS OF THIS SECTION.
  (G)  NOTWITHSTANDING  THE  APPOINTMENT  OF  A  TEMPORARY OPERATOR, THE
ESTABLISHED OPERATOR SHALL REMAIN OBLIGATED FOR THE CONTINUED  PROVISION
OF  SERVICES.  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 OF THE PROGRAM HEREUNDER;
NOR SHALL ANYTHING CONTAINED IN THIS SECTION  BE  CONSTRUED  TO  SUSPEND
DURING  THE  TERM  OF  THE  APPOINTMENT OF THE TEMPORARY OPERATOR OF THE
PROGRAM ANY OBLIGATION OF THE ESTABLISHED OPERATOR OR ANY  OTHER  PERSON
FOR  THE  MAINTENANCE  AND  REPAIR OF THE FACILITY, PROVISION OF UTILITY
SERVICES, 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.
  (H)  THE  COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF AN INTEN-
TION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH ONE OF SUBDI-
VISION (B) OF THIS SECTION, PRIOR TO THE COMMENCEMENT  OF  THE  APPOINT-
MENT,  CAUSE  THE  TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, AND THE CHAIRS OF THE SENATE COMMITTEE ON  MENTAL  HEALTH  AND
DEVELOPMENTAL  DISABILITIES  AND THE ASSEMBLY COMMITTEE ON MENTAL HEALTH
TO BE NOTIFIED OF SUCH APPOINTMENT. SUCH NOTIFICATION SHALL INCLUDE  BUT
NOT  BE  LIMITED  TO, THE NAME OF THE ESTABLISHED OPERATOR, THE NAMES OF
ALL APPOINTED TEMPORARY OPERATORS AND  A  DETAILED  DESCRIPTION  OF  THE
FINDINGS UNDERLYING THE INTENTION TO APPOINT A TEMPORARY OPERATOR.
  S  2.  The mental hygiene law is amended by adding a new section 31.20
to read as follows:
S 31.20 TEMPORARY OPERATOR.
  (A) FOR THE PURPOSES OF THIS SECTION:
  (1) "ESTABLISHED OPERATOR" SHALL MEAN THE OPERATOR OF A MENTAL  HEALTH
PROGRAM  THAT  HAS  BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE
PURSUANT TO THIS ARTICLE.
  (2)  "EXTRAORDINARY  FINANCIAL  ASSISTANCE"  SHALL  MEAN  STATE  FUNDS
PROVIDED  TO,  OR  REQUESTED  BY,  A  PROGRAM FOR THE EXPRESS PURPOSE OF
PREVENTING THE CLOSURE  OF  THE  PROGRAM  THAT  THE  COMMISSIONER  FINDS
PROVIDES ESSENTIAL AND NECESSARY SERVICES WITHIN THE COMMUNITY.
  (3)  "MENTAL  HEALTH  PROGRAM"  SHALL  MEAN A PROVIDER OF SERVICES FOR
PERSONS WITH SERIOUS MENTAL  ILLNESS,  AS  SUCH  TERMS  ARE  DEFINED  IN
SECTION  1.03  OF  THIS  CHAPTER,  WHICH  IS LICENSED OR OPERATED BY THE
OFFICE.

S. 6407--B                         58

  (4) "OFFICE" SHALL MEAN THE OFFICE OF MENTAL HEALTH.
  (5)  "SERIOUS  FINANCIAL INSTABILITY" SHALL INCLUDE BUT NOT BE LIMITED
TO DEFAULTING OR VIOLATING MATERIAL COVENANTS  OF  BOND  ISSUES,  MISSED
MORTGAGE  PAYMENTS,  A  PATTERN OF UNTIMELY PAYMENT OF DEBTS, FAILURE TO
PAY ITS EMPLOYEES OR VENDORS, INSUFFICIENT FUNDS  TO  MEET  THE  GENERAL
OPERATING  EXPENSES  OF  THE  PROGRAM, FAILURE TO MAINTAIN REQUIRED DEBT
SERVICE COVERAGE RATIOS AND/OR, AS APPLICABLE, FACTORS THAT  HAVE  TRIG-
GERED  A  WRITTEN EVENT OF DEFAULT NOTICE TO THE OFFICE BY THE DORMITORY
AUTHORITY OF THE STATE OF NEW YORK.
  (6) "TEMPORARY OPERATOR" SHALL MEAN ANY OPERATOR OF  A  MENTAL  HEALTH
PROGRAM  THAT  HAS  BEEN ESTABLISHED AND ISSUED AN OPERATING CERTIFICATE
PURSUANT TO THIS ARTICLE OR WHICH IS DIRECTLY OPERATED BY THE OFFICE  OF
MENTAL HEALTH, THAT:
  A.  AGREES  TO OPERATE A MENTAL HEALTH PROGRAM ON A TEMPORARY BASIS IN
THE BEST INTERESTS OF ITS PATIENTS SERVED BY THE PROGRAM; AND
  B. HAS A HISTORY OF COMPLIANCE WITH APPLICABLE LAWS, RULES, AND  REGU-
LATIONS AND A RECORD OF PROVIDING CARE OF GOOD QUALITY, AS DETERMINED BY
THE COMMISSIONER; AND
  C.  PRIOR TO APPOINTMENT AS TEMPORARY OPERATOR, DEVELOPS A PLAN DETER-
MINED TO BE SATISFACTORY BY THE COMMISSIONER TO  ADDRESS  THE  PROGRAM'S
DEFICIENCIES.
  (B)  (1)  IN  THE  EVENT THAT: (I) THE ESTABLISHED OPERATOR IS SEEKING
EXTRAORDINARY FINANCIAL ASSISTANCE; (II) OFFICE  COLLECTED  DATA  DEMON-
STRATES  THAT THE ESTABLISHED OPERATOR IS EXPERIENCING SERIOUS FINANCIAL
INSTABILITY ISSUES; (III) OFFICE COLLECTED DATA  DEMONSTRATES  THAT  THE
ESTABLISHED OPERATOR'S BOARD OF DIRECTORS OR ADMINISTRATION IS UNABLE OR
UNWILLING  TO ENSURE THE PROPER OPERATION OF THE PROGRAM; OR (IV) OFFICE
COLLECTED DATA INDICATES THERE ARE CONDITIONS THAT SERIOUSLY ENDANGER OR
JEOPARDIZE CONTINUED ACCESS TO NECESSARY MENTAL HEALTH  SERVICES  WITHIN
THE COMMUNITY, THE COMMISSIONER SHALL NOTIFY THE ESTABLISHED OPERATOR OF
HIS  OR  HER  INTENTION  TO  APPOINT A TEMPORARY OPERATOR TO ASSUME SOLE
RESPONSIBILITY FOR THE PROGRAM'S  TREATMENT  OPERATIONS  FOR  A  LIMITED
PERIOD  OF TIME. THE APPOINTMENT OF A TEMPORARY OPERATOR SHALL BE EFFEC-
TUATED PURSUANT TO THIS SECTION, AND SHALL BE IN ADDITION TO  ANY  OTHER
REMEDIES PROVIDED BY LAW.
  (2)  THE ESTABLISHED OPERATOR 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 NECES-
SARY, ENTER INTO AN AGREEMENT WITH  THE  ESTABLISHED  OPERATOR  FOR  THE
APPOINTMENT OF A TEMPORARY OPERATOR TO RESTORE OR MAINTAIN THE PROVISION
OF  QUALITY  CARE  TO  THE  PATIENTS  UNTIL THE ESTABLISHED OPERATOR CAN
RESUME OPERATIONS WITHIN THE DESIGNATED TIME PERIOD; THE PATIENTS MAY BE
TRANSFERRED TO OTHER MENTAL HEALTH PROGRAMS OPERATED OR LICENSED BY  THE
OFFICE;  OR  THE  OPERATIONS  OF  THE  MENTAL  HEALTH  PROGRAM SHOULD BE
COMPLETELY DISCONTINUED.
  (C) (1) A TEMPORARY OPERATOR APPOINTED PURSUANT TO THIS SECTION  SHALL
USE HIS OR HER BEST EFFORTS TO IMPLEMENT THE PLAN DEEMED SATISFACTORY BY
THE  COMMISSIONER TO CORRECT OR ELIMINATE ANY DEFICIENCIES IN THE MENTAL
HEALTH PROGRAM AND TO PROMOTE THE QUALITY AND  ACCESSIBILITY  OF  MENTAL
HEALTH SERVICES IN THE COMMUNITY SERVED BY THE MENTAL HEALTH PROGRAM.
  (2)  IF  THE  IDENTIFIED  DEFICIENCIES CANNOT BE ADDRESSED IN THE TIME
PERIOD DESIGNATED IN THE PLAN, THE  PATIENTS  SHALL  BE  TRANSFERRED  TO
OTHER  APPROPRIATE  MENTAL  HEALTH  PROGRAMS LICENSED OR OPERATED BY THE
OFFICE.
  (3) DURING THE TERM OF APPOINTMENT, THE TEMPORARY OPERATOR SHALL  HAVE
THE  AUTHORITY TO DIRECT THE STAFF OF THE ESTABLISHED OPERATOR AS NECES-

S. 6407--B                         59

SARY TO APPROPRIATELY TREAT AND/OR TRANSFER THE PATIENTS. THE  TEMPORARY
OPERATOR SHALL, DURING THIS PERIOD, OPERATE THE MENTAL HEALTH PROGRAM IN
SUCH  A MANNER AS TO PROMOTE SAFETY AND THE QUALITY AND ACCESSIBILITY OF
MENTAL HEALTH SERVICES IN THE COMMUNITY SERVED BY THE ESTABLISHED OPERA-
TOR  UNTIL EITHER THE ESTABLISHED OPERATOR CAN RESUME PROGRAM OPERATIONS
OR UNTIL THE PATIENTS ARE APPROPRIATELY TRANSFERRED  TO  OTHER  PROGRAMS
LICENSED OR OPERATED BY THE OFFICE.
  (4) THE ESTABLISHED OPERATOR SHALL GRANT ACCESS TO THE TEMPORARY OPER-
ATOR  TO  THE  ESTABLISHED  OPERATOR'S  ACCOUNTS AND RECORDS IN ORDER TO
ADDRESS ANY DEFICIENCIES RELATED TO A MENTAL HEALTH PROGRAM EXPERIENCING
SERIOUS FINANCIAL INSTABILITY  OR  AN  ESTABLISHED  OPERATOR  REQUESTING
FINANCIAL  ASSISTANCE  IN  ACCORDANCE  WITH  THIS SECTION. THE TEMPORARY
OPERATOR SHALL APPROVE ANY FINANCIAL DECISION RELATED TO A PROGRAM'S DAY
TO  DAY  OPERATIONS  OR  PROGRAM'S  ABILITY  TO  PROVIDE  MENTAL  HEALTH
SERVICES.
  (5) THE TEMPORARY OPERATOR SHALL NOT BE REQUIRED TO FILE ANY BOND.  NO
SECURITY INTEREST IN ANY REAL OR PERSONAL PROPERTY COMPRISING THE ESTAB-
LISHED  OPERATOR  OR CONTAINED WITHIN THE ESTABLISHED OPERATOR OR IN ANY
FIXTURE OF THE MENTAL HEALTH PROGRAM, SHALL BE IMPAIRED OR DIMINISHED IN
PRIORITY BY THE TEMPORARY OPERATOR. NEITHER THE TEMPORARY  OPERATOR  NOR
THE  OFFICE SHALL ENGAGE IN ANY ACTIVITY THAT CONSTITUTES A CONFISCATION
OF PROPERTY.
  (D) THE TEMPORARY OPERATOR SHALL BE ENTITLED TO A REASONABLE  FEE,  AS
DETERMINED BY THE COMMISSIONER AND SUBJECT TO THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, AND NECESSARY EXPENSES INCURRED WHILE
SERVING  AS A TEMPORARY OPERATOR. THE TEMPORARY OPERATOR SHALL BE LIABLE
ONLY IN ITS CAPACITY AS TEMPORARY OPERATOR OF THE MENTAL HEALTH  PROGRAM
FOR  INJURY  TO  PERSON  AND PROPERTY BY REASON OF ITS OPERATION OF SUCH
PROGRAM; NO LIABILITY SHALL INCUR IN THE TEMPORARY  OPERATOR'S  PERSONAL
CAPACITY, EXCEPT FOR GROSS NEGLIGENCE AND INTENTIONAL ACTS.
  (E)  (1) THE INITIAL TERM OF THE APPOINTMENT OF THE TEMPORARY OPERATOR
SHALL NOT EXCEED NINETY DAYS. AFTER NINETY  DAYS,  IF  THE  COMMISSIONER
DETERMINES  THAT  TERMINATION  OF  THE  TEMPORARY  OPERATOR  WOULD CAUSE
SIGNIFICANT DETERIORATION OF THE QUALITY OF, OR ACCESS TO, MENTAL HEALTH
CARE IN THE COMMUNITY OR THAT REAPPOINTMENT IS NECESSARY TO CORRECT  THE
DEFICIENCIES  THAT  REQUIRED  THE APPOINTMENT OF THE TEMPORARY OPERATOR,
THE COMMISSIONER MAY AUTHORIZE AN ADDITIONAL NINETY-DAY  TERM.  HOWEVER,
SUCH  AUTHORIZATION  SHALL  INCLUDE  THE COMMISSIONER'S REQUIREMENTS FOR
CONCLUSION OF THE TEMPORARY OPERATORSHIP  TO  BE  SATISFIED  WITHIN  THE
ADDITIONAL TERM.
  (2)  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:
  A. THE ACTIONS TAKEN DURING THE APPOINTMENT TO ADDRESS THE  IDENTIFIED
MENTAL  HEALTH  PROGRAM  DEFICIENCIES,  THE  RESUMPTION OF MENTAL HEALTH
PROGRAM OPERATIONS BY THE ESTABLISHED OPERATOR, OR THE TRANSFER  OF  THE
PATIENTS TO OTHER PROVIDERS LICENSED OR OPERATED BY THE OFFICE;
  B.  OBJECTIVES  FOR  THE CONTINUATION OF THE TEMPORARY OPERATORSHIP IF
NECESSARY AND A SCHEDULE FOR SATISFACTION OF SUCH OBJECTIVES; AND
  C. IF APPLICABLE, THE RECOMMENDED ACTIONS FOR THE ONGOING OPERATION OF
THE MENTAL HEALTH PROGRAM SUBSEQUENT TO THE TEMPORARY OPERATORSHIP.
  (3) 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.

S. 6407--B                         60

  (F)  (1)  THE  COMMISSIONER  SHALL,  UPON MAKING A DETERMINATION OF AN
INTENTION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH  ONE  OF
SUBDIVISION  (B)  OF  THIS  SECTION CAUSE THE ESTABLISHED OPERATOR TO BE
NOTIFIED OF THE INTENTION BY REGISTERED OR CERTIFIED MAIL  ADDRESSED  TO
THE  PRINCIPAL  OFFICE  OF  THE  ESTABLISHED OPERATOR. SUCH NOTIFICATION
SHALL INCLUDE A DETAILED DESCRIPTION  OF  THE  FINDINGS  UNDERLYING  THE
INTENTION  TO  APPOINT  A TEMPORARY OPERATOR, AND THE DATE AND TIME OF A
REQUIRED MEETING WITH THE COMMISSIONER AND/OR HIS OR HER DESIGNEE WITHIN
TEN BUSINESS DAYS OF THE RECEIPT OF SUCH NOTICE. AT  SUCH  MEETING,  THE
ESTABLISHED  OPERATOR  SHALL  HAVE THE OPPORTUNITY TO REVIEW AND DISCUSS
ALL RELEVANT FINDINGS. AT SUCH MEETING, THE COMMISSIONER AND THE  ESTAB-
LISHED OPERATOR SHALL ATTEMPT TO DEVELOP A MUTUALLY SATISFACTORY PLAN OF
CORRECTION  AND  SCHEDULE FOR IMPLEMENTATION. IN SUCH EVENT, THE COMMIS-
SIONER SHALL NOTIFY THE ESTABLISHED OPERATOR THAT THE COMMISSIONER  WILL
ABSTAIN  FROM APPOINTING A TEMPORARY OPERATOR CONTINGENT UPON THE ESTAB-
LISHED OPERATOR  REMEDIATING  THE  IDENTIFIED  DEFICIENCIES  WITHIN  THE
AGREED UPON TIMEFRAME.
  (2)  SHOULD THE COMMISSIONER AND THE ESTABLISHED OPERATOR BE UNABLE TO
ESTABLISH A PLAN OF CORRECTION PURSUANT TO PARAGRAPH ONE OF THIS  SUBDI-
VISION,  OR  SHOULD  THE  ESTABLISHED  OPERATOR  FAIL  TO RESPOND TO THE
COMMISSIONER'S INITIAL NOTIFICATION, THERE SHALL  BE  AN  ADMINISTRATIVE
HEARING ON THE COMMISSIONER'S DETERMINATION TO APPOINT A TEMPORARY OPER-
ATOR  TO  BEGIN NO LATER THAN THIRTY DAYS FROM THE DATE OF THE NOTICE TO
THE ESTABLISHED OPERATOR. ANY SUCH HEARING SHALL BE STRICTLY LIMITED  TO
THE  ISSUE OF WHETHER THE DETERMINATION OF THE COMMISSIONER TO APPOINT A
TEMPORARY OPERATOR IS SUPPORTED BY SUBSTANTIAL EVIDENCE. A COPY  OF  THE
DECISION SHALL BE SENT TO THE ESTABLISHED OPERATOR.
  (3)  IF  THE  DECISION  TO APPOINT A TEMPORARY OPERATOR IS UPHELD SUCH
TEMPORARY OPERATOR SHALL BE APPOINTED AS  SOON  AS  IS  PRACTICABLE  AND
SHALL  OPERATE  THE  MENTAL HEALTH PROGRAM PURSUANT TO THE PROVISIONS OF
THIS SECTION.
  (G) NOTWITHSTANDING THE  APPOINTMENT  OF  A  TEMPORARY  OPERATOR,  THE
ESTABLISHED  OPERATOR SHALL REMAIN OBLIGATED FOR THE CONTINUED OPERATION
OF THE MENTAL HEALTH PROGRAM SO THAT SUCH  PROGRAM  CAN  FUNCTION  IN  A
NORMAL MANNER. 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 OF THE  PROGRAM  HEREUNDER;
NOR  SHALL  ANYTHING  CONTAINED  IN THIS SECTION BE CONSTRUED TO SUSPEND
DURING THE TERM OF THE APPOINTMENT OF  THE  TEMPORARY  OPERATOR  OF  THE
PROGRAM  ANY  OBLIGATION OF THE ESTABLISHED OPERATOR OR ANY OTHER PERSON
FOR THE MAINTENANCE AND REPAIR OF THE  FACILITY,  PROVISION  OF  UTILITY
SERVICES,  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.
  (H) THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF  AN  INTEN-
TION TO APPOINT A TEMPORARY OPERATOR PURSUANT TO PARAGRAPH ONE OF SUBDI-
VISION  (B)  OF  THIS SECTION, PRIOR TO THE COMMENCEMENT OF THE APPOINT-
MENT, CAUSE THE TEMPORARY PRESIDENT OF THE SENATE, THE  SPEAKER  OF  THE
ASSEMBLY,  AND  THE  CHAIRS OF THE SENATE COMMITTEE ON MENTAL HEALTH AND
DEVELOPMENTAL DISABILITIES AND THE ASSEMBLY COMMITTEE ON  MENTAL  HEALTH
TO  BE NOTIFIED OF SUCH APPOINTMENT. SUCH NOTIFICATION SHALL INCLUDE BUT
NOT BE LIMITED TO, THE NAME OF THE ESTABLISHED OPERATOR,  THE  NAMES  OF
ALL  APPOINTED  TEMPORARY  OPERATORS  AND  A DETAILED DESCRIPTION OF THE
FINDINGS UNDERLYING THE INTENTION TO APPOINT A TEMPORARY OPERATOR.

S. 6407--B                         61

  S 3. Intentionally omitted.
  S 4. Intentionally omitted.
  S 5. Intentionally omitted.
  S  5-a. Section 32.20 of the mental hygiene law is amended by adding a
new subdivision 8 to read as follows:
  8. THE COMMISSIONER SHALL, UPON MAKING A DETERMINATION OF AN INTENTION
TO APPOINT TEMPORARY OPERATOR PURSUANT TO PARAGRAPH (A)  OF  SUBDIVISION
TWO OF THIS SECTION, PRIOR TO THE COMMENCEMENT OF THE APPOINTMENT, CAUSE
THE  TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND
THE CHAIRS OF THE SENATE AND ASSEMBLY COMMITTEES ON ALCOHOLISM AND  DRUG
ABUSE  TO  BE  NOTIFIED  OF  SUCH  APPOINTMENT.  SUCH NOTIFICATION SHALL
INCLUDE BUT NOT BE LIMITED TO, THE NAME OF THE ESTABLISHED OPERATOR, THE
NAMES OF ALL APPOINTED TEMPORARY OPERATORS AND A DETAILED DESCRIPTION OF
THE FINDINGS UNDERLYING THE INTENTION TO APPOINT A TEMPORARY OPERATOR.
  S 5-b. Subdivisions (d), (e), (f), (g) and (h) of section 122 of  part
E  of  chapter 56 of the laws of 2013 amending the public health law and
other laws relating to the general public work  program  are  relettered
subdivisions  (e),  (f),  (g), (h) and (i), and a new subdivision (d) is
added to read as follows:
  (D) SECTION FIFTY-ONE OF THIS ACT SHALL TAKE  EFFECT  IMMEDIATELY  AND
SHALL EXPIRE MARCH 31, 2019;
  S  6.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016; provided,
however, that sections one and two of  this  act  shall  expire  and  be
deemed repealed on March 31, 2019; provided, further, that the amendment
to  section  32.20  of the mental hygiene law, made by section five-a of
this act shall not affect the expiration of such section  and  shall  be
deemed to expire therewith.

                                 PART M

  Section 1. Subdivision (d) of section 33.13 of the mental hygiene law,
as amended by section 3 of part E of chapter 111 of the laws of 2010, is
amended to read as follows:
  (d)  Nothing  in  this  section  shall prevent the electronic or other
exchange of information concerning patients or clients, including  iden-
tification,  between  and  among  (i)  facilities  or  others  providing
services for such patients or clients  pursuant  to  an  approved  local
services  plan,  as  defined  in  article  forty-one of this chapter, or
pursuant to agreement with the department, and (ii)  the  department  or
any  of  its  licensed or operated facilities. NEITHER SHALL ANYTHING IN
THIS SECTION PREVENT THE EXCHANGE OF INFORMATION CONCERNING PATIENTS  OR
CLIENTS,  INCLUDING  IDENTIFICATION, BETWEEN FACILITIES AND MANAGED CARE
ORGANIZATIONS, BEHAVIORAL HEALTH ORGANIZATIONS, HEALTH  HOMES  OR  OTHER
ENTITIES  AUTHORIZED  BY  THE  DEPARTMENT OR THE DEPARTMENT OF HEALTH TO
PROVIDE, ARRANGE  FOR  OR  COORDINATE  HEALTH  CARE  SERVICES  FOR  SUCH
PATIENTS  OR CLIENTS WHO ARE ENROLLED IN OR RECEIVING SERVICES FROM SUCH
ORGANIZATIONS OR ENTITIES. Furthermore, subject to the prior approval of
the commissioner of mental health, hospital emergency services  licensed
pursuant  to  article  twenty-eight  of  the  public health law shall be
authorized to exchange information concerning patients or clients  elec-
tronically  or otherwise with other hospital emergency services licensed
pursuant to article twenty-eight of the public health law and/or  hospi-
tals  licensed or operated by the office of mental health; provided that
such exchange of information is consistent with standards, developed  by
the  commissioner  of mental health, which are designed to ensure confi-

S. 6407--B                         62

dentiality of such information. Additionally, information  so  exchanged
shall  be  kept  confidential and any limitations on the release of such
information imposed on the party giving the information shall  apply  to
the party receiving the information.
  S  2.  Subdivision  (d) of section 33.13 of the mental hygiene law, as
amended by section 4 of part E of chapter 111 of the laws  of  2010,  is
amended to read as follows:
  (d)  Nothing in this section shall prevent the exchange of information
concerning patients or clients, including  identification,  between  (i)
facilities  or  others  providing  services for such patients or clients
pursuant to an approved local  services  plan,  as  defined  in  article
forty-one,  or  pursuant  to  agreement with the department and (ii) the
department or any of its facilities.  NEITHER  SHALL  ANYTHING  IN  THIS
SECTION  PREVENT  THE  EXCHANGE  OF  INFORMATION  CONCERNING PATIENTS OR
CLIENTS, INCLUDING IDENTIFICATION, BETWEEN FACILITIES AND  MANAGED  CARE
ORGANIZATIONS,  BEHAVIORAL  HEALTH  ORGANIZATIONS, HEALTH HOMES OR OTHER
ENTITIES AUTHORIZED BY THE DEPARTMENT OR THE  DEPARTMENT  OF  HEALTH  TO
PROVIDE,  ARRANGE  FOR  OR  COORDINATE  HEALTH  CARE  SERVICES  FOR SUCH
PATIENTS OR CLIENTS WHO ARE ENROLLED IN OR RECEIVING SERVICES  FOR  SUCH
ORGANIZATIONS OR ENTITIES. Information so exchanged shall be kept confi-
dential  and  any limitations on the release of such information imposed
on the party giving the information shall apply to the  party  receiving
the information.
  S  3. This act shall take effect immediately; provided that the amend-
ments to subdivision (d) of section 33.13 of the mental hygiene law made
by section one of this act shall be subject to the expiration and rever-
sion of such subdivision pursuant to section 18 of chapter  408  of  the
laws  of 1999, as amended, when upon such date the provisions of section
two of this act shall take effect.

                                 PART N

  Section 1. Subdivision 10 of section 3 of section 1 of chapter 359  of
the  laws  of  1968, constituting the facilities development corporation
act, as amended by chapter 723 of the laws of 1993, is amended  to  read
as follows:
  10. "Mental  hygiene  facility" shall mean a building, a unit within a
building, a laboratory, a classroom, a housing unit, a dining  hall,  an
activities  center, a library, real property of any kind or description,
or any structure on or improvement to real property, or an  interest  in
real  property, of any kind or description, owned by or under the juris-
diction of the corporation, including fixtures and equipment  which  are
an integral part of any such building, unit, structure or improvement, a
walkway,  a  roadway  or a parking lot, and improvements and connections
for water, sewer, gas, electrical, telephone, heating, air  conditioning
and  other  utility  services, or a combination of any of the foregoing,
whether for patient care and treatment or staff, staff family or service
use, located at or related to any psychiatric center, any  developmental
center, or any state psychiatric or research institute or other facility
now  or  hereafter  established  under  the department. A mental hygiene
facility shall also mean and  include  a  residential  care  center  for
adults,  a  "community  mental  health  and  retardation facility" and a
treatment facility for use in the conduct of an alcoholism or  substance
abuse treatment program as defined in the mental hygiene law unless such
residential care center for adults, community mental health and retarda-
tion  facility  or  alcoholism  or substance abuse facility is expressly

S. 6407--B                         63

excepted, or the context clearly requires otherwise, AND SHALL ALSO MEAN
AND INCLUDE ANY TREATMENT FACILITY FOR USE IN THE CONDUCT OF AN ALCOHOL-
ISM OR SUBSTANCE ABUSE TREATMENT PROGRAM THAT IS  ALSO  OPERATED  AS  AN
ASSOCIATED HEALTH CARE FACILITY. The definition contained in this subdi-
vision  shall  not be construed to exclude therefrom a facility owned or
leased by one or more voluntary agencies that is to be  financed,  refi-
nanced, designed, constructed, acquired, reconstructed, rehabilitated or
improved  under  any  lease, sublease, loan or other financing agreement
entered into with such voluntary agencies, and shall not be construed to
exclude therefrom a facility to be made available from  the  corporation
to a voluntary agency at the request of the commissioners of the offices
of  the department having jurisdiction thereof. The definition contained
in this subdivision shall not be construed to exclude therefrom a facil-
ity with respect to which a voluntary agency has an  ownership  interest
in,  and  proprietary lease from, an organization formed for the purpose
of the cooperative ownership of real estate.
  S 2. Section 3 of section 1 of  chapter  359  of  the  laws  of  1968,
constituting  the  facilities development corporation act, is amended by
adding a new subdivision 20 to read as follows:
  20. "ASSOCIATED HEALTH CARE FACILITY" SHALL MEAN A  FACILITY  LICENSED
UNDER  AND  OPERATED  PURSUANT TO ARTICLE 28 OF THE PUBLIC HEALTH LAW OR
ANY HEALTH CARE FACILITY LICENSED UNDER AND OPERATED IN ACCORDANCE  WITH
ANY  OTHER PROVISIONS OF THE PUBLIC HEALTH LAW OR THE MENTAL HYGIENE LAW
THAT PROVIDES HEALTH CARE SERVICES  AND/OR  TREATMENT  TO  ALL  PERSONS,
REGARDLESS  OF  WHETHER  SUCH PERSONS ARE PERSONS RECEIVING TREATMENT OR
SERVICES FOR ALCOHOL, SUBSTANCE ABUSE, OR CHEMICAL DEPENDENCY.
  S 3. This act shall take effect immediately.

                                 PART O

  Section 1. Section 13.17 of the  mental  hygiene  law  is  amended  by
adding two new subdivisions (d) and (e) to read as follows:
  (D) THE COMMISSIONER SHALL NOT UNDERTAKE ANY ACTION DESIGNED TO CLOSE,
CONSOLIDATE,  REDUCE,  TRANSFER  OR  LIMIT  THE CENSUS OF STATE OPERATED
INDIVIDUALIZED RESIDENTIAL ALTERNATIVES (IRA) AS PART OF THE  TWO  THOU-
SAND SIXTEEN-TWO THOUSAND SEVENTEEN FISCAL YEAR PLAN.
  (E)  THE COMMISSIONER SHALL ESTABLISH POLICY AND PROCEDURES TO ADDRESS
THE INDIVIDUALS AWAITING SERVICES AND  EXPAND  STATE  OPERATED  SERVICES
THAT  ARE  COMPATIBLE  WITH THE HEALTH, SAFETY AND PROGRAMMATIC NEEDS OF
PERSONS REQUESTING SERVICES ON SUCH WAITLIST WITHIN  EACH  DEVELOPMENTAL
DISABILITY  SERVICES  OFFICE'S  GEOGRAPHIC  AREA  INCLUDING  RESIDENTIAL
PLACEMENT, RESPITE AND OTHER REQUESTED SERVICES.
  S 2. This act shall take effect immediately.

                                 PART P

  Section 1. Paragraph (f) of subdivision 1 of section 209 of the  elder
law,  as  amended  by  section 41 of part A of chapter 58 of the laws of
2010, is amended to read as follows:
  (f) "Naturally occurring retirement community" shall mean an apartment
building or housing complex which:
  (1) was constructed with government assistance;
  (2) was not originally built for older adults;
  (3) does not restrict admissions solely to older adults;

S. 6407--B                         64

  (4) at least fifty percent of the units have an  occupant  who  is  an
older  adult  or  in which at least twenty-five hundred of the residents
are older adults; and
  (5)  a  majority  of the older adults to be served are low or moderate
income, as defined by the United States Department of Housing and  Urban
Development.
  PROGRAMS  ESTABLISHED AND PROVIDING SERVICES ON MARCH FIRST, TWO THOU-
SAND SIXTEEN SHALL NOT BE SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH FOUR
OF THIS PARAGRAPH REQUIRING THAT AT LEAST FIFTY  PERCENT  OF  THE  UNITS
HAVE  AN  OCCUPANT WHO IS AN OLDER ADULT OR AT LEAST TWENTY-FIVE HUNDRED
OF THE RESIDENTS WHO ARE OLDER ADULTS, UNTIL JUNE THIRTIETH,  TWO  THOU-
SAND SEVENTEEN.
  S 2. Paragraph (a) of subdivision 5-a of section 209 of the elder law,
as amended by section 41 of part A of chapter 58 of the laws of 2010, is
amended to read as follows:
  (a)  the term Neighborhood NORC as used in this subdivision shall mean
and refer to a residential dwelling or group of residential dwellings in
a geographically defined neighborhood of a municipality  containing  not
more  than  two thousand persons who are older adults reside in at least
forty percent of the units and which is made up  of  low-rise  buildings
six  stories  or less in height and/or single and multi-family homes and
which area was not originally developed for older adults, and which does
not restrict admission  strictly  to  older  adults.  HOWEVER,  PROGRAMS
ESTABLISHED  AND PROVIDING SERVICES ON MARCH FIRST, TWO THOUSAND SIXTEEN
SHALL NOT BE SUBJECT TO THE REQUIREMENT THAT NOT MORE THAN TWO  THOUSAND
PERSONS  WHO  ARE  OLDER  ADULTS RESIDE IN AT LEAST FORTY PERCENT OF THE
UNITS, UNTIL JUNE THIRTIETH, TWO THOUSAND SEVENTEEN;
  S 3. Section 209 of the elder law is amended by adding two new  subdi-
visions 9 and 10 to read as follows:
  9.  ON  OR BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, THE DIRECTOR,
AFTER CONSULTATION WITH APPROPRIATE STAKEHOLDERS, SHALL  REPORT  TO  THE
GOVERNOR,  THE  TEMPORARY  PRESIDENT  OF  THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE FINANCE COMMITTEE OF THE SENATE AND  THE  WAYS  AND  MEANS
COMMITTEE  OF  THE  ASSEMBLY CONCERNING THE OVERALL EFFECTIVENESS OF THE
NATURALLY OCCURRING RETIREMENT COMMUNITY  SUPPORTIVE  SERVICES  PROGRAM,
AND THE NEIGHBORHOOD NORCS IN ACHIEVING THE OBJECTIVES SET FORTH BY THIS
SECTION,  WHICH  INCLUDE:  HELPING  TO ADDRESS THE NEEDS OF RESIDENTS IN
SUCH  NATURALLY  OCCURRING  RETIREMENT  COMMUNITIES   AND   NEIGHBORHOOD
NATURALLY OCCURRING RETIREMENT COMMUNITIES; ASSURING ACCESS TO A CONTIN-
UUM  OF  NECESSARY SERVICES; INCREASING PRIVATE, PHILANTHROPIC AND OTHER
PUBLIC FUNDING FOR PROGRAMS; AND  PREVENTING  UNNECESSARY  HOSPITAL  AND
NURSING HOME STAYS.
  THE  REPORT SHALL INCLUDE AN EVALUATION AND RECOMMENDATIONS CONCERNING
THE CONTINUATION, ELIMINATION OR MODIFICATION OF SUCH PROGRAMS. AREAS OF
EVALUATION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
  (A) THE NUMBER, SIZE, TYPE AND LOCATION OF THE PROJECTS DEVELOPED  AND
FUNDED,  INCLUDING  THE  NUMBER,  KINDS  AND  FUNCTIONS OF STAFF IN EACH
PROGRAM;
  (B) INFORMATION REGARDING THE SOURCES AND ADEQUACY OF FUNDING FOR EACH
PROGRAM;
  (C) THE AGE, SEX, INCOME AND OTHER APPROPRIATE DEMOGRAPHIC INFORMATION
CONCERNING THE RESIDENTS SERVED;
  (D) THE SERVICES PROVIDED TO RESIDENTS, REPORTED IN SUCH A  MANNER  AS
TO ALLOW COMPARISON OF SERVICES BY DEMOGRAPHIC GROUP AND REGION;
  (E) A LISTING OF THE SERVICES PROVIDED BY ELIGIBLE APPLICANTS, INCLUD-
ING THE NUMBER, KIND AND INTENSITY OF SUCH SERVICES;

S. 6407--B                         65

  (F)  A  LISTING OF OTHER ORGANIZATIONS PROVIDING SERVICES, THE NUMBER,
KIND AND INTENSITY OF SUCH SERVICES, THE NUMBER  OF  REFERRALS  TO  SUCH
ORGANIZATIONS  AND,  TO  THE  EXTENT  PRACTICABLE,  THE OUTCOMES OF SUCH
REFERRALS;
  (G)  A DESCRIPTION OF THE DEVELOPMENT OF EACH OF THE PROGRAMS OVER THE
PREVIOUS FIVE YEARS;
  (H) A DESCRIPTION OF THE COORDINATION OF SERVICES WITH THE LOCAL  AREA
AGENCY ON AGING; AND
  (I) ANY IDENTIFIED AREAS OF CONCERN RELATED TO SUCH PROGRAMS.
  10.  IN ORDER TO PREVENT THE DESTABILIZATION OF THE NORC AND NEIGHBOR-
HOOD  NORC  PROGRAMS  AND  TO  PREVENT  SENIORS  FROM  LOSING  ESSENTIAL
SERVICES,  ALL  PROGRAMS  THAT ARE PROVIDING SERVICES AS OF MARCH FIRST,
TWO THOUSAND SIXTEEN SHALL HAVE  THEIR  CONTRACTS  EXTENDED  UNTIL  JUNE
THIRTIETH,  TWO THOUSAND SEVENTEEN, UNLESS GOOD CAUSE CAN BE SHOWN AS TO
WHY SUCH CONTRACTS SHOULD NOT BE EXTENDED.
  S 4. Paragraph (b) of subdivision 14 and subdivision 15 of section 202
of the elder law, paragraph (b) of subdivision 14 as amended and  subdi-
vision 15 as added by chapter 263 of the laws of 2011, are amended and a
new subdivision 16 is added to read as follows:
  (b) make recommendations, in consultation with the division of housing
and  community  renewal,  to  the governor and legislature for assisting
mixed-use age-integrated housing  development  or  redevelopment  demon-
stration  projects in urban, suburban and rural areas of the state.  The
director of the office for the aging and secretary of state shall estab-
lish an advisory  committee  for  purposes  of  this  subdivision.  Such
committee  shall  include, but not be limited to, top representatives of
local  government,  senior  citizen  organizations,  developers,  senior
service providers and planners; [and]
  15.  to  periodically,  in  consultation  with  the  state director of
[veteran's] VETERANS' affairs,  review  the  programs  operated  by  the
office  to ensure that the needs of the state's aging veteran population
are being met and to develop  improvements  to  programs  to  meet  such
needs[.]; AND
  16.  TO  THE  EXTENT APPROPRIATIONS ARE AVAILABLE, AND IN CONSULTATION
WITH THE OFFICE OF CHILDREN AND FAMILY SERVICES, CONDUCT A PUBLIC EDUCA-
TION CAMPAIGN THAT  EMPHASIZES  ZERO-TOLERANCE  FOR  ELDER  ABUSE.  SUCH
CAMPAIGN SHALL INCLUDE INFORMATION ABOUT THE SIGNS AND SYMPTOMS OF ELDER
ABUSE,  IDENTIFICATION  OF  POTENTIAL  CAUSES  OF ELDER ABUSE, RESOURCES
AVAILABLE TO ASSIST IN THE PREVENTION OF ELDER  ABUSE,  WHERE  SUSPECTED
ELDER  ABUSE  CAN BE REPORTED, CONTACT INFORMATION FOR PROGRAMS OFFERING
SERVICES TO VICTIMS OF ELDER ABUSE SUCH AS  COUNSELING,  AND  ASSISTANCE
WITH  ARRANGING  PERSONAL  CARE AND SHELTER.  SUCH CAMPAIGN MAY INCLUDE,
BUT NOT BE LIMITED TO: PRINTED EDUCATIONAL AND INFORMATIONAL  MATERIALS;
AUDIO,  VIDEO, ELECTRONIC, OTHER MEDIA; AND PUBLIC SERVICE ANNOUNCEMENTS
OR ADVERTISEMENTS.
  S 5. The public health law is amended by adding a new  article  19  to
read as follows:
                               ARTICLE 19
                 ELDER ABUSE AND MALTREATMENT SCREENING
SECTION 1900. LEGISLATIVE PURPOSE.
        1901. ELDER ABUSE AND MALTREATMENT SCREENING.
  S  1900.  LEGISLATIVE PURPOSE. THE CORRELATION BETWEEN ELDER ABUSE AND
MALTREATMENT WITH INCREASED HOSPITALIZATIONS, ADMISSIONS  AND  MORTALITY
HIGHLIGHTS THE NEED FOR INCREASED MEDICAL INTERVENTIONS, PARTICULARLY AS
NEW  YORK CONTINUES TO IMPLEMENT NATIONAL HEALTHCARE REFORM INITIATIVES.
A SCREENING TOOL, TO BE UTILIZED BY MEDICAL PROFESSIONALS  AT  IMPORTANT

S. 6407--B                         66

JUNCTURES IN THE LIVES OF THOSE SIXTY YEARS OF AGE AND OLDER, PRESENTS A
SIGNIFICANT  OPPORTUNITY  FOR TRUSTED MEDICAL PROVIDERS TO HELP IDENTIFY
HIGH RISK PATIENTS AND HELP TO ENSURE THEIR CONTINUED HEALTH AND SAFETY.
  S  1901.  ELDER  ABUSE AND MALTREATMENT SCREENING. 1. THE COMMISSIONER
SHALL ESTABLISH A SCREENING TOOL TO IDENTIFY ABUSE IN  ELDERLY  INDIVID-
UALS.  PHYSICIANS,  PHYSICIAN ASSISTANTS AND NURSE PRACTITIONERS MAY USE
THE TOOL TO ASSIST IN IDENTIFYING ABUSE OR MALTREATMENT IN THEIR ELDERLY
PATIENTS DURING THE COURSE OF TREATMENT INCLUDING, BUT NOT  LIMITED  TO,
ANNUAL  PHYSICAL EXAMS OR AS PART OF PATIENT SCREENING UNDER THE UNIFORM
ASSESSMENT SYSTEM FOR LONG TERM CARE AS ESTABLISHED BY THE DEPARTMENT.
  2. THE SCREENING TOOL SHALL INCLUDE, BUT NOT BE LIMITED TO:
  A. A UNIFORM INTERVENTION QUESTIONNAIRE WITH A COMMON SCALE  THAT  CAN
BE USED ACROSS HEALTH CARE ENVIRONMENTS AND POPULATIONS TO ASSIST IN THE
IDENTIFICATION OF HIGH RISK PATIENTS;
  B.  QUESTIONS  THAT CAN BE USED FOR BOTH COGNITIVELY INTACT AS WELL AS
COGNITIVELY IMPAIRED INDIVIDUALS;
  C. STANDARDIZED INTERVENTION PROTOCOLS INCLUDING SPECIFIC LANGUAGE AND
UNIFORM DEFINITIONS OF PHYSICAL, SEXUAL,  EMOTIONAL,  AND  PSYCHOLOGICAL
ABUSE,  IN  ADDITION  TO,  NEGLECT,  ABANDONMENT,  FINANCIAL OR MATERIAL
EXPLOITATION, SELF-NEGLECT AND UNWARRANTED CONTROL;
  D. A LIST OF RESOURCES TO ADDRESS THE NEEDS OF PATIENTS IDENTIFIED  AS
BEING VICTIMS OF ABUSE; AND
  E.  DOCUMENTATION IN A REPORTABLE FORMAT THAT MAY BE USED BY THE PRAC-
TITIONER TO REPORT SUSPECTED ELDER ABUSE AND MALTREATMENT CASES  TO  THE
DEPARTMENT FOR THE PURPOSES OF TRACKING PREVALENCE.
  3. THE SCREENING TOOL SHALL BE CULTURALLY AND LINGUISTICALLY APPROPRI-
ATE  IN ACCORDANCE WITH RULES AND REGULATIONS PROMULGATED BY THE COMMIS-
SIONER.
  4. PATIENTS SHALL NOT BE REQUIRED TO BE SUBJECT TO SCREENING  IF  THEY
REFUSE TO PARTICIPATE OR ARE IN AN URGENT OR EMERGENT SITUATION.
  5.  THIS  SECTION SHALL NOT AFFECT THE SCOPE OF PRACTICE OF ANY HEALTH
CARE PRACTITIONER OR DIMINISH ANY AUTHORITY  OR  LEGAL  OR  PROFESSIONAL
OBLIGATIONS OF ANY HEALTH CARE PRACTITIONER.
  6.  THE COMMISSIONER SHALL PROMULGATE ANY RULES AND REGULATIONS NECES-
SARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
  S 6. Subdivision 1 of section 473  of  the  social  services  law,  as
amended  by  chapter  395  of  the  laws  of 1995, is amended to read as
follows:
  1. In addition to  services  provided  by  social  services  officials
pursuant  to  other  provisions  of  this  chapter, such officials shall
provide protective services in accordance with federal and  state  regu-
lations  to or for individuals without regard to income who[, because of
mental  or  physical  impairments,]  are  unable  to  manage  their  own
resources,  carry  out  the activities of daily living, or protect them-
selves from physical  abuse,  sexual  abuse,  emotional  abuse,  active,
passive or self neglect, financial exploitation or other hazardous situ-
ations  without  assistance from others and have no one available who is
willing and  able  to  assist  them  responsibly.  Such  services  shall
include:
  (a) receiving and investigating reports of seriously impaired individ-
uals who may be in need of protection;
  (b)  arranging  for  medical  and psychiatric services to evaluate and
whenever possible to safeguard and improve the  circumstances  of  those
with serious impairments;
  (c)  arranging, when necessary, for commitment, guardianship, or other
protective placement of such  individuals  either  directly  or  through

S. 6407--B                         67

referral  to  another  appropriate agency, provided, however, that where
possible, the least restrictive of  these  measures  shall  be  employed
before more restrictive controls are imposed;
  (d)  providing  services to assist such individuals to move from situ-
ations which are, or are likely to become, hazardous to their health and
well-being;
  (e) cooperating and planning with the courts as necessary on behalf of
individuals with serious mental impairments; and
  (f) other protective services for adults included in  the  regulations
of the department.
  S 7. Section 473 of the social services law is amended by adding a new
subdivision 9 to read as follows:
  9.  (A)  WITHIN  AMOUNTS APPROPRIATED THEREFOR, THE OFFICE OF CHILDREN
AND FAMILY SERVICES, IN CONJUNCTION WITH THE OFFICE FOR THE  AGING,  THE
DEPARTMENT  OF  LAW, THE OFFICE FOR THE PREVENTION OF DOMESTIC VIOLENCE,
THE DIVISION OF CRIMINAL  JUSTICE  SERVICES,  AND  THE  NEW  YORK  STATE
DEPARTMENT  OF  HEALTH, SHALL CREATE AND ESTABLISH AN INTERAGENCY CLEAR-
INGHOUSE FOR THE REPORTING OF CASES  INVOLVING  PHYSICAL  ABUSE,  SEXUAL
ABUSE,  EMOTIONAL  ABUSE,  ACTIVE,  PASSIVE  OR  SELF NEGLECT, FINANCIAL
EXPLOITATION AS DEFINED IN SUBDIVISION SIX OF  THIS  SECTION,  OR  OTHER
HAZARDOUS  SITUATIONS  THAT CAN REASONABLY BE EXPECTED TO JEOPARDIZE THE
HEALTH AND WELFARE OF AN INDIVIDUAL. THE INTERAGENCY CLEARINGHOUSE SHALL
OPERATE AND MAINTAIN A CENTRAL DATABASE TO RECEIVE  REPORTS  OF  ALLEGA-
TIONS  OF  REPORTABLE  INCIDENTS TWENTY-FOUR HOURS PER DAY, SEVEN DAYS A
WEEK. REPORTS OF ALLEGATIONS OF REPORTABLE INCIDENTS SHALL BE SUBMITTED,
BY A STATEWIDE, TOLL-FREE TELEPHONE NUMBER (A "HOTLINE") OR BY ELECTRON-
IC TRANSMISSION, IN A MANNER AND ON FORMS PRESCRIBED BY THE COMMISSIONER
FOR THE OFFICE OF CHILDREN AND FAMILY SERVICES. THE HOTLINE SHALL ACCEPT
ANONYMOUS CALLS.
  (B) WHEN ANY ALLEGATION THAT COULD REASONABLY CONSTITUTE A  REPORTABLE
INCIDENT  IS  RECEIVED  BY  THE  CLEARINGHOUSE,  THE CLEARINGHOUSE SHALL
ACCEPT AND IMMEDIATELY TRANSMIT NOTICE OF THE REPORT  ORALLY  AND  ELEC-
TRONICALLY  TO  ANY  APPROPRIATE STATE AGENCIES OR LOCAL SOCIAL SERVICES
OFFICES. WHENEVER A TELEPHONE CALL OR  ELECTRONIC  TRANSMISSION  TO  THE
CLEARINGHOUSE  ALLEGES  AN  ACT  OR  CIRCUMSTANCES THAT MAY CONSTITUTE A
CRIMINAL OFFENSE OR AN IMMEDIATE THREAT TO AN INDIVIDUAL'S HEALTH, SAFE-
TY OR WELFARE, THE CLEARINGHOUSE SHALL CONVEY,  BY  THE  MOST  EXPEDIENT
MEANS  AVAILABLE, THE INFORMATION CONTAINED IN SUCH CALL OR TRANSMISSION
TO THE APPROPRIATE LAW ENFORCEMENT AGENCY OR DISTRICT ATTORNEY  AND,  TO
THE EXTENT NECESSARY, THE APPROPRIATE EMERGENCY RESPONDER, AND THE RELE-
VANT STATE AGENCY OR LOCAL SOCIAL SERVICES OFFICE.
  (C) THE CLEARINGHOUSE SHALL:
  (1)  UPON ACCEPTANCE OF A REPORT PROMPTLY FORWARD THE COMPLAINT TO THE
APPROPRIATE SOCIAL SERVICES AGENCY OR LAW ENFORCEMENT ENTITY;
  (2) TAKE ALL APPROPRIATE MEASURES TO PROTECT THE LIFE  AND  HEALTH  OF
THE PERSON WHO IS THE ALLEGED VICTIM OF A REPORTABLE INCIDENT, WHICH MAY
INCLUDE  WORKING  WITH  OTHER  STATE AGENCIES, OR IF THERE IS REASONABLE
CAUSE TO BELIEVE THAT THERE IS AN IMMINENT DANGER TO THE ALLEGED  VICTIM
PROMPTLY  FORWARD THE COMPLAINT TO THE DISTRICT ATTORNEY OR LAW ENFORCE-
MENT;
  (3) IF A REPORT OF A REPORTABLE INCIDENT TO THE REGISTRY INVOLVES  THE
DEATH  OF  A  PERSON,  THE CLEARINGHOUSE SHALL GIVE TELEPHONE NOTICE AND
IMMEDIATELY SEND A COPY OF THE REPORT TO THE APPROPRIATE DISTRICT ATTOR-
NEY AND TO THE MEDICAL EXAMINER OR CORONER;
  (4) MAINTAIN AND KEEP UP TO DATE RECORDS OF ALL INCIDENTS REPORTED  TO
THE  CLEARINGHOUSE  WITH  DOCUMENTED  MEASURES  TAKEN  TO FORWARD TO THE

S. 6407--B                         68

APPROPRIATE AUTHORITIES GIVEN THE CIRCUMSTANCES  OF  THE  ALLEGED  CASE.
LOCAL SOCIAL SERVICES ENTITIES SHALL BE REQUIRED TO SUBMIT DOCUMENTATION
TO  THE  CLEARINGHOUSE  UPON  COMPLETION  OF AN INVESTIGATION INDICATING
OFFICIAL  FINDINGS,  MEASURES  TAKEN,  AND  OFFICIAL  DISPOSITION OF THE
REPORT; AND
  (5) WHENEVER A TELEPHONE CALL OR ELECTRONIC TRANSMISSION TO THE CLEAR-
INGHOUSE CANNOT BE ACCEPTED AS A REPORT, BUT  THE  INFORMATION  PROVIDED
ALLEGES  OTHER POTENTIAL WRONGDOING, THE CLEARINGHOUSE SHALL FORWARD THE
REPORT TO THE APPLICABLE STATE OVERSIGHT AGENCY  FOR  INVESTIGATION  AND
PROTECTIVE ACTIONS.
  (D) THE REGISTRY SHALL MAINTAIN AN ELECTRONIC DATABASE OF ALL ACCEPTED
REPORTS.  WHILE  LOCAL  AGENCIES SHALL RETAIN THE PRIMARY RESPONSIBILITY
FOR INVESTIGATION AND THE PROVISION OF SERVICES, THE CLEARINGHOUSE SHALL
MAINTAIN RECORDS DOCUMENTING INITIAL COMPLAINTS AS WELL AS DOCUMENTATION
SUBMITTED BY THE LOCAL SOCIAL SERVICE ENTITIES INDICATING OFFICIAL FIND-
INGS, MEASURES TAKEN, AND THE OFFICIAL DISPOSITION OF THE REPORT.
  (E) THE CLEARINGHOUSE SHALL TAKE REASONABLE STEPS TO  MAINTAIN  CONFI-
DENTIALITY  OF  ALL  REPORTS  INCLUDING, BUT NOT LIMITED TO THE USE OF A
UNIQUE IDENTIFIER ASSIGNED TO EACH REPORT BY THE CLEARINGHOUSE.
  S 8. Article 9-B of the social services law is amended by adding a new
title 4 to read as follows:
                                 TITLE 4
                               ELDER ABUSE
SECTION 473-M. ELDER ABUSE REPORTING.
  S 473-M. ELDER ABUSE REPORTING. 1. WITHIN AMOUNTS APPROPRIATED  THERE-
FOR, THE COMMISSIONER SHALL ESTABLISH A PROGRAM FOR THE DEVELOPMENT OF A
MULTIDISCIPLINARY  INVESTIGATIVE TEAM OR TEAMS FOR THE PURPOSE OF INVES-
TIGATING REPORTS OF SUSPECTED ELDER ABUSE OR MALTREATMENT.
  (A) THE PROGRAM SHALL PROVIDE THAT THE SOCIAL SERVICES DISTRICT  SHALL
HAVE  DISCRETION  WITH REGARD TO THE CATEGORY OR CATEGORIES OF SUSPECTED
ELDER  ABUSE  OR  MALTREATMENT  SUCH  TEAM  OR  TEAMS  MAY  INVESTIGATE,
PROVIDED, HOWEVER, THAT THE SOCIAL SERVICES DISTRICT SHALL PLACE PARTIC-
ULAR EMPHASIS ON CASES INVOLVING PHYSICAL ABUSE, SEXUAL ABUSE, EMOTIONAL
ABUSE,  ACTIVE,  PASSIVE  OR SELF NEGLECT, AND FINANCIAL EXPLOITATION AS
DEFINED IN SUBDIVISION SIX OF SECTION FOUR HUNDRED SEVENTY-THREE OF  THE
SOCIAL SERVICES LAW.
  (B) MEMBERS OF MULTIDISCIPLINARY TEAMS SHALL INCLUDE BUT NOT BE LIMIT-
ED  TO  REPRESENTATIVES  FROM  THE  FOLLOWING AGENCIES: ADULT PROTECTIVE
SERVICES, LAW ENFORCEMENT, THE DISTRICT  ATTORNEY'S  OFFICE,  BANKS  AND
FINANCIAL  INSTITUTIONS,  AS  WELL AS FORENSIC ACCOUNTANTS, PHYSICIAN OR
MEDICAL PROVIDERS TRAINED IN ELDER ABUSE AND MALTREATMENT, MENTAL HEALTH
PROFESSIONALS, AND VICTIM ADVOCACY PERSONNEL. MEMBERS OF THE MULTIDISCI-
PLINARY TEAM PRIMARILY RESPONSIBLE FOR THE INVESTIGATION OF ELDER  ABUSE
AND  MALTREATMENT  REPORTS,  INCLUDING  THOSE REPRESENTATIVES FROM ADULT
PROTECTIVE  SERVICES,  LAW  ENFORCEMENT,  AND  THE  DISTRICT  ATTORNEY'S
OFFICE,  SHALL PARTICIPATE IN JOINT INTERVIEWS AND CONDUCT INVESTIGATIVE
FUNCTIONS CONSISTENT WITH THE MISSION OF THE  PARTICULAR  AGENCY  MEMBER
INVOLVED.  IT  SHALL NOT BE REQUIRED THAT MEMBERS OF A MULTIDISCIPLINARY
TEAM NOT RESPONSIBLE FOR THE INVESTIGATION  OF  REPORTS  PARTICIPATE  IN
EVERY  INVESTIGATION.  SUCH OTHER MEMBERS SHALL PROVIDE VICTIM ADVOCACY,
EMOTIONAL SUPPORT, AND ACCESS TO MEDICAL AND MENTAL HEALTH  CARE,  WHERE
APPLICABLE.
  (C)  ALL MEMBERS, CONSISTENT WITH THEIR RESPECTIVE AGENCY MISSIONS AND
PROFESSIONS, SHALL FACILITATE EFFICIENT DELIVERY OF SERVICES TO  VICTIMS
AND APPROPRIATE DISPOSITION OF CASES THROUGH THE CRIMINAL JUSTICE SYSTEM
IN  A  COLLABORATIVE  MANNER.    HOWEVER, NON-INVESTIGATIVE TEAM MEMBERS

S. 6407--B                         69

SHALL NOTE THEIR SPECIFIC ROLE IN THE TEAM FOR REPORTS COVERED  BY  THIS
SECTION.
  (D)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  LAW  TO THE CONTRARY,
MEMBERS OF A MULTIDISCIPLINARY INVESTIGATIVE TEAM MAY SHARE  WITH  OTHER
TEAM  MEMBERS  CLIENT-IDENTIFIABLE  INFORMATION CONCERNING THE VICTIM OR
THE VICTIM'S FAMILY TO FACILITATE THE INVESTIGATION OF  SUSPECTED  ELDER
ABUSE  OR  MALTREATMENT.  NOTHING IN THIS SUBDIVISION SHALL PRECLUDE THE
CREATION OF MULTIDISCIPLINARY TEAMS WHICH INCLUDE MORE THAN  ONE  SOCIAL
SERVICES DISTRICT. EACH TEAM SHALL DEVELOP A WRITTEN PROTOCOL FOR INVES-
TIGATION  OF  ELDER  ABUSE  AND  MALTREATMENT CASES AND FOR INTERVIEWING
ELDER ABUSE AND MALTREATMENT VICTIMS.
  2. APPROVED PROJECTS SHALL SUBMIT A REPORT  TO  THE  DIRECTOR  OF  THE
STATE OFFICE FOR THE AGING, WHO SHALL MAKE SUCH REPORTS AVAILABLE TO THE
MAJORITY  LEADER  OF  THE  SENATE,  THE SPEAKER OF THE ASSEMBLY, AND THE
CHAIRS OF THE AGING COMMITTEES OF THE SENATE AND ASSEMBLY,  BY  NOVEMBER
FIRST,  TWO THOUSAND SIXTEEN, DOCUMENTING INITIAL FINDINGS OF THE MULTI-
DISCIPLINARY TEAM INVESTIGATIONS, INCLUDING, BUT NOT LIMITED TO:
  (A) FINAL DISPOSITIONS OF CRIMINAL CASES THAT  WERE  INVESTIGATED  AND
ASSISTED BY THE MULTIDISCIPLINARY TEAM, WITH APPROPRIATE CONFIDENTIALITY
MEASURES TAKEN TO PROTECT THE IDENTITIES OF VICTIMS AND THE ACCUSED;
  (B)  PHYSICAL  AND  MENTAL  HEALTH  OUTCOMES  OF  VICTIMS WHO WERE THE
SUBJECTS OF ELDER ABUSE AND MALTREATMENT CASES;
  (C) FINANCIAL JUDGMENTS AND REPAYMENTS MADE AS A RESULT OF THE  INVES-
TIGATION AND INTERVENTION OF THE MULTIDISCIPLINARY TEAM;
  (D)  NECESSARY  MEASURES  TAKEN  TO  ENSURE CROSS-COLLABORATION ACROSS
AGENCIES AND PROVIDERS; AND
  (E) NECESSARY TRAINING THAT EACH  SOCIAL  SERVICES  DISTRICT  TOOK  TO
TRAIN  MEMBERS INCLUDING APPROPRIATE WAYS TO ASSESS RISK, IDENTIFY INDI-
CATORS OF ELDER ABUSE AND MALTREATMENT, AND CONDUCT  APPROPRIATE  INTER-
VIEWS.
  S 9. Section 473 of the social services law is amended by adding a new
subdivision 9 to read as follows:
  9. (A) AS USED IN THIS SUBDIVISION:
  (I) "BANKING INSTITUTION" MEANS ANY STATE OR FEDERALLY CHARTERED BANK,
TRUST  COMPANY,  SAVINGS  BANK,  SAVINGS AND LOAN ASSOCIATION OR, CREDIT
UNION.
  (II) "VULNERABLE ADULT" MEANS AN  INDIVIDUAL  WHO  BECAUSE  OF  MENTAL
AND/OR  PHYSICAL  IMPAIRMENT,  IS  UNABLE  TO  MANAGE  HIS  OR  HER  OWN
RESOURCES, OR PROTECT HIMSELF OR HERSELF FROM FINANCIAL EXPLOITATION.
  (B) IF A BANKING INSTITUTION, SOCIAL SERVICES OFFICIAL OR LAW ENFORCE-
MENT AGENCY REASONABLY BELIEVES THAT FINANCIAL EXPLOITATION OF A VULNER-
ABLE ADULT HAS OCCURRED OR MAY OCCUR, THE BANKING INSTITUTION  MAY,  BUT
SHALL NOT BE REQUIRED TO, REFUSE ANY TRANSACTION REQUIRING THE DISBURSAL
OF MONEYS IN THE ACCOUNT OF:
  (I) A VULNERABLE ADULT;
  (II)  WHICH  A  VULNERABLE ADULT IS A BENEFICIARY, INCLUDING TRUST AND
GUARDIANSHIP ACCOUNTS; AND
  (III) A PERSON WHO IS SUSPECTED OF ENGAGING IN THE FINANCIAL EXPLOITA-
TION OF A VULNERABLE ADULT.
  (C) A BANKING INSTITUTION MAY ALSO REFUSE TO DISBURSE MONEYS  PURSUANT
TO  THIS  SUBDIVISION  IF  A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT
AGENCY PROVIDES INFORMATION TO SUCH INSTITUTION DEMONSTRATING THAT IT IS
REASONABLE TO BELIEVE THAT FINANCIAL EXPLOITATION OF A VULNERABLE  ADULT
HAS OCCURRED OR MAY OCCUR.
  (D)  A BANKING INSTITUTION SHALL NOT BE REQUIRED TO REFUSE TO DISBURSE
FUNDS PURSUANT TO THIS SECTION. SUCH A REFUSAL SHALL BE IN  THE  BANKING

S. 6407--B                         70

INSTITUTION'S  DISCRETION,  BASED  ON  THE INFORMATION AVAILABLE TO SUCH
INSTITUTION.
  (E)  ANY BANKING INSTITUTION WHICH REFUSES TO DISBURSE MONEYS PURSUANT
TO THIS SUBDIVISION SHALL:
  (I) MAKE A REASONABLE EFFORT TO PROVIDE NOTICE, ORALLY OR IN  WRITING,
TO ALL PARTIES AUTHORIZED TO TRANSACT BUSINESS ON THE ACCOUNT FROM WHICH
DISBURSEMENT WAS REFUSED; AND
  (II)  REPORT  THE INCIDENT TO THE SOCIAL SERVICES OFFICIAL RESPONSIBLE
FOR ADMINISTERING ADULT PROTECTIVE SERVICES PURSUANT TO THIS ARTICLE FOR
THE AFFECTED VULNERABLE ADULT.
  (F) THE REFUSAL TO DISBURSE MONEYS PURSUANT TO THIS SUBDIVISION  SHALL
TERMINATE UPON THE EARLIER OF:
  (I)  THE  TIME  AT WHICH THE BANKING INSTITUTION IS SATISFIED THAT THE
DISBURSEMENT WILL NOT RESULT IN THE FINANCIAL EXPLOITATION OF A  VULNER-
ABLE ADULT; OR
  (II)  THE  ISSUANCE  OF AN ORDER BY A COURT OF COMPETENT JURISDICTION,
DIRECTING THE DISBURSAL OF THE MONEYS.
  (G) A BANKING INSTITUTION MAY PROVIDE ACCESS TO OR COPIES  OF  RECORDS
RELEVANT  TO  SUSPECTED  FINANCIAL EXPLOITATION OF A VULNERABLE ADULT TO
LAW ENFORCEMENT AGENCIES AND SOCIAL SERVICES OFFICIALS  RESPONSIBLE  FOR
ADMINISTERING  THE  PROVISIONS OF THIS ARTICLE. SUCH RECORDS MAY INCLUDE
RELEVANT  HISTORICAL  RECORDS  AND  RECENT  TRANSACTIONS   RELATING   TO
SUSPECTED FINANCIAL EXPLOITATION.
  (H)  A BANKING INSTITUTION OR AN EMPLOYEE OF SUCH AN INSTITUTION SHALL
BE IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR  REFUSING
TO  DISBURSE  MONEYS  OR DISBURSING MONEYS PURSUANT TO THIS SUBDIVISION,
AND FOR ACTIONS TAKEN IN FURTHERANCE OF  THAT  DETERMINATION,  INCLUDING
THE  MAKING OF A REPORT OR THE PROVIDING OF ACCESS TO OR COPIES OF RELE-
VANT RECORDS TO A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT AGENCY, IF
SUCH DETERMINATIONS AND ACTIONS WERE MADE IN GOOD FAITH AND  IN  ACCORD-
ANCE WITH THE PROVISIONS OF THIS SUBDIVISION.
  S 10. Section 4 of the banking law is amended by adding a new subdivi-
sion 4 to read as follows:
  4.  A  BANKING INSTITUTION OR AN EMPLOYEE OF SUCH AN INSTITUTION SHALL
BE IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR  REFUSING
TO  DISBURSE MONEYS OR DISBURSING MONEYS PURSUANT TO SUBDIVISION NINE OF
SECTION FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL SERVICES LAW,  AND  FOR
ACTIONS TAKEN IN FURTHERANCE OF THAT DETERMINATION, INCLUDING THE MAKING
OF  A REPORT OR THE PROVIDING OF ACCESS TO OR COPIES OF RELEVANT RECORDS
TO A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT AGENCY, IF SUCH  DETER-
MINATIONS  AND  ACTIONS  WERE  MADE IN GOOD FAITH AND IN ACCORDANCE WITH
SUBDIVISION NINE OF SECTION FOUR HUNDRED  SEVENTY-THREE  OF  THE  SOCIAL
SERVICES LAW. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "BANKING INSTI-
TUTION" SHALL MEAN ANY STATE OR FEDERALLY CHARTERED BANK, TRUST COMPANY,
SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR, CREDIT UNION.
  S  11. This act shall take effect immediately; provided, however, that
sections six and seven of this act shall take effect  on  the  ninetieth
day  after  this act shall have become a law; and provided, further that
sections nine and ten of this act shall take effect on the  one  hundred
eightieth day after this act shall have become a law.

                                 PART Q

  Section   1.  Legislative  intent.  The  legislature  hereby  supports
increasing access to integrated employment settings for individuals with
developmental disabilities. The legislature additionally finds, however,

S. 6407--B                         71

that there is no one-size fits all solution, and people  who  cannot  or
choose  not to participate in community employment should have access to
services and other activities that will offer each individual the chance
to be engaged in his or her community.
  S 2. Section 13.41 of the mental hygiene law, as added by section 1 of
part  E  of  chapter  60 of the laws of 2014, is amended by adding 5 new
subdivisions (d), (e), (f), (g) and (h) to read as follows:
  (D) NO LATER THAN DECEMBER THIRTY-FIRST, TWO  THOUSAND  SEVENTEEN  AND
ANNUALLY THEREAFTER THE OFFICE SHALL REPORT ON THE OVERALL TRANSITION OF
SHELTERED  WORKSHOPS  TO  INTEGRATED  EMPLOYMENT SETTINGS, ITS IMPACT ON
WORKSHOP PROVIDERS, INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES THAT ARE
EMPLOYED IN SUCH WORKSHOPS, THEIR FAMILIES  AND  THE  IMPACT  INTEGRATED
EMPLOYMENT  WILL HAVE ON GOVERNMENT BENEFITS FOR INDIVIDUALS WITH DEVEL-
OPMENTAL DISABILITIES.
  (E) INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES THAT WERE EMPLOYED  IN
SHELTERED  WORKSHOPS  ON  OR AFTER JULY FIRST, TWO THOUSAND THIRTEEN WHO
ARE UNABLE OR NOT INTERESTED IN WORKING IN AN INTEGRATED  PROVIDER-OWNED
BUSINESS,  FORMERLY KNOWN AS A SHELTERED WORKSHOP, OR A PRIVATE BUSINESS
IN THE COMMUNITY, SHALL BE AFFORDED THE OPTION OF RECEIVING OTHER OFFICE
SERVICES, INCLUDING, BUT NOT LIMITED TO PATHWAY TO EMPLOYMENT AND COMMU-
NITY PREVOCATIONAL SERVICES THAT FOCUS ON:
  (1) ASSESSMENT OF THE INDIVIDUAL'S SKILLS, INCLUDING BUT  NOT  LIMITED
TO  HIS OR HER SOCIAL BEHAVIOR, ABILITY TO HANDLE STRESS, WILLINGNESS TO
WORK WITH OTHERS, ETC.; JOB PERFORMANCE AS JUDGED BY ATTENDANCE, PUNCTU-
ALITY, HYGIENE AND GROOMING, ETC.;  COMMUNICATION  SKILLS;  WORK  ETHIC,
TAKING  INTO  ACCOUNT  SUCH  FACTORS  AS, MOTIVATION, INITIATIVE, FOCUS,
ETC.; INTERESTS, LIKES, DISLIKES, WANTS, DREAMS, AND OTHER FACTORS;
  (2) ASSESSMENT OF THE INDIVIDUAL'S SITUATION: INCLUDING BUT NOT LIMIT-
ED TO TRANSPORTATION NEEDS, FAMILY SUPPORTS, PHYSICAL AND MENTAL HEALTH,
SAFETY, ETC.; AND
  (3) CREATION OF  OPPORTUNITIES  TO  EXPLORE  DIFFERENT  COMMUNITY  AND
VOLUNTEER  EXPERIENCES TO OBTAIN INFORMATION THAT WILL BE USED TO CREATE
A PERSON-CENTERED TRANSITION PLAN.
  (F) DAY HABILITATION, COMMUNITY HABILITATION AND SELF-DIRECTION  SHALL
BE AVAILABLE TO ASSIST INDIVIDUALS INTERESTED IN PARTICIPATING IN VOLUN-
TEER, RETIREMENT AND OTHER MEANINGFUL COMMUNITY ACTIVITIES.
  (G)  FOR  PEOPLE  WHO  ARE OLDER AND INTERESTED IN RETIREMENT, CURRENT
RESOURCES SHALL BE USED TO CONNECT THEM  TO  RETIREMENT  RELATED  ACTIV-
ITIES.  PROVIDERS OF SERVICES SHALL HAVE THE OPTION OF USING DAY HABILI-
TATION  OR COMMUNITY HABILITATION FUNDING TO SUPPORT INDIVIDUALS WHO ARE
INTERESTED IN PARTICIPATING IN SENIOR  CENTERS,  COMMUNITY  CENTERS  AND
OTHER LOCAL ACTIVITIES FOR RETIREES.
  (H) THE OFFICE SHALL ANNUALLY REQUIRE THE SERVICE PROVIDER IN CONJUNC-
TION WITH THE INDIVIDUAL AND THEIR PLANNING TEAM TO REVIEW EACH INDIVID-
UAL'S  WORKSHOP TRANSITION PLAN TO ASSESS WHETHER HE OR SHE IS RECEIVING
THE APPROPRIATE SERVICES TO SUPPORT HIS OR HER EMPLOYMENT AND MEANINGFUL
ACTIVITY GOALS AS PART OF THE PERSON-CENTERED PLANNING PROCESS AND INDI-
VIDUALIZED SERVICE PLAN.  ANY NECESSARY CHANGES IN SERVICE AUTHORIZATION
SHALL BE REVIEWED BY THE REGIONAL OFFICE AND APPROVED AS APPROPRIATE.
  S 3. This act shall take effect immediately, provided that subdivision
(d) of section 13.41 of the mental hygiene law as added by  section  two
of this act shall expire and be deemed repealed on January 1, 2020.

                                 PART R

S. 6407--B                         72

  Section  1.  Subdivision  1 of section 206 of the public health law is
amended by adding a new paragraph (v) to read as follows:
  (V)  ESTABLISH AN OFFICE OF ACCOUNTABILITY WITHIN THE DEPARTMENT.  THE
OFFICE OF ACCOUNTABILITY SHALL BE RESPONSIBLE  FOR  ENSURING  ALL  WORK-
GROUPS  REQUIRED  UNDER THIS CHAPTER ARE TIMELY CONVENED AND ALL REPORTS
REQUIRED UNDER THIS CHAPTER ARE TIMELY  DISTRIBUTED.  THE  OFFICE  SHALL
REVIEW  AND  REPORT  TO  THE  LEGISLATURE BY JANUARY FIRST, TWO THOUSAND
SEVENTEEN, AND ANNUALLY THEREAFTER, ON THE FOLLOWING:
  (1) THE DATE EACH STATUTORILY REQUIRED REPORT WAS DISTRIBUTED, AND  TO
WHOM IT WAS DISTRIBUTED;
  (2)  ANY  REPORTS  THAT WERE REQUIRED BY LAW AND NOT PROVIDED, WITH AN
EXPLANATION OF WHY SUCH REPORT WAS NOT PROVIDED;
  (3) RECOMMENDATIONS FOR STREAMLINING REPORTING REQUIREMENTS WHICH  MAY
INCLUDE  RECOMMENDED  STATUTORY  AMENDMENTS TO MAKE REPORT DEADLINES AND
RECIPIENTS MORE CONSISTENT, TO PROVIDE THE REPORTS IN ELECTRONIC FORMAT,
TO CONSOLIDATE ANY RELATED REPORTING REQUIREMENTS, OR TO REPEAL  REPORT-
ING REQUIREMENTS NO LONGER DEEMED NECESSARY;
  (4)  ALL  CURRENTLY  ACTIVE  WORKGROUPS,  AD  HOC WORKGROUPS, ADVISORY
COMMITTEES OR TASKFORCES THE DEPARTMENT IS RUNNING OR ENGAGED IN  EITHER
DIRECTLY  OR  IN  COMBINATION WITH OTHER AGENCIES OR DEPARTMENTS AND THE
STATUS OF EACH SUCH GROUP; AND
  (5) ANY STATUTORILY REQUIRED WORKGROUP THAT HAS  NOT  MET  WITHIN  THE
LAST  YEAR, WITH AN EXPLANATION OF WHY THIS GROUP IS INACTIVE, WHICH MAY
INCLUDE A RECOMMENDATION TO REPEAL THE WORKGROUP IF THE PURPOSE  OF  THE
GROUP HAVE BEEN FULFILLED.
THIS  REPORT MAY BE PROVIDED ELECTRONICALLY AND SHALL BE PROVIDED TO THE
TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE
SENATE STANDING COMMITTEE ON HEALTH,  AND  THE  CHAIR  OF  THE  ASSEMBLY
HEALTH COMMITTEE.
  S  2. The opening paragraph of subdivision 2-b of section 97-yy of the
state finance law, as amended by chapter 453 of the  laws  of  2015,  is
amended to read as follows:
  [On  or  before  the first day of February each year, the] THE commis-
sioner of health shall provide a written report to the temporary  presi-
dent of the senate, speaker of the assembly, chair of the senate finance
committee,  chair of the assembly ways and means committee, chair of the
senate committee on health, chair of the assembly health committee,  the
state  comptroller  and  the  public, PERTAINING TO THE PRIOR YEAR ON OR
BEFORE OCTOBER FIRST ANNUALLY. Such report shall include how the  monies
of  the fund were utilized during the preceding calendar year, and shall
include:
  S 3. The opening paragraph  of  paragraph  (b)  of  subdivision  4  of
section  95-e of the state finance law, as amended by chapter 453 of the
laws of 2015, is amended to read as follows:
  [On or before the first day of February each year,  the]  THE  commis-
sioner  of health shall provide a written report to the temporary presi-
dent of the senate, speaker of the assembly, chair of the senate finance
committee, chair of the assembly ways and means committee, chair of  the
senate  committee on health, chair of the assembly health committee, the
state comptroller and the public, PERTAINING TO THE  PRIOR  YEAR  ON  OR
BEFORE  OCTOBER  FIRST ANNUALLY. Such report shall include how monies of
the fund were utilized during the  preceding  calendar  year  and  shall
include:
  S  4.  The opening paragraph of subdivision 2-b of section 89-e of the
state finance law, as amended by chapter 453 of the  laws  of  2015,  is
amended to read as follows:

S. 6407--B                         73

  [On  or  before  the first day of February each year, the] THE commis-
sioner of health shall provide a written report to the temporary  presi-
dent of the senate, speaker of the assembly, chair of the senate finance
committee,  chair of the assembly ways and means committee, chair of the
senate  committee on health, chair of the assembly health committee, the
state comptroller and the public, PERTAINING TO THE  PRIOR  YEAR  ON  OR
BEFORE  OCTOBER FIRST ANNUALLY. Such report shall include how the monies
of the fund were utilized during the preceding calendar year  and  shall
include:
  S  5.  Subdivision  5  of  section  2815  of the public health law, as
amended by section 11 of part A of chapter 60 of the laws  of  2014,  is
amended to read as follows:
  5.  Loans  from  the  restructuring  pool shall be made pursuant to an
agreement with the participating borrower specifying the terms  thereof,
including  repayment  terms.  The authority shall record and account for
all such repayments, which shall be deposited in the restructuring pool.
The authority shall notify the chair of the  senate  finance  committee,
the  director  of the division of budget, the chair of the assembly ways
and means committee, the chair of the senate committee  on  health,  and
the  chair  of  the  assembly  health  committee, five days prior to the
making of a loan from the restructuring pool. The authority  shall  also
report  [quarterly]  ON  OR BEFORE OCTOBER FIRST ANNUALLY to such chair-
persons on the transactions in the pool, including but  not  limited  to
receipts  or  deposits to the pool, disbursements or loans made from the
pool, investment income, and the balance on hand as of the  end  of  the
month for each such quarter.
  S  6. Subdivision 9 of section 4310 of the public health law, as added
by section 27 of part A of chapter 60 of the laws of 2014, is amended to
read as follows:
  9. An interagency  work  group,  composed  of  the  commissioner,  the
commissioner  of  the department of motor vehicles, a chair of the board
of elections, or their designees, and such other individuals as  may  be
designated  by  the  commissioner, shall be established to meet with the
contractor annually and as needed to review the  status  of  the  donate
life  registry,  to examine the steps that might be taken by state agen-
cies to enhance its performance  and  to  make  recommendations  to  the
contractor AND REPORT SUCH RECOMMENDATIONS TO THE TEMPORARY PRESIDENT OF
THE  SENATE,  SPEAKER  OF  THE  ASSEMBLY,  CHAIR  OF THE SENATE STANDING
COMMITTEE ON HEALTH, AND CHAIR OF THE ASSEMBLY HEALTH COMMITTEE BY OCTO-
BER FIRST ANNUALLY.
  S 7. Section 45-c of part A of chapter 56 of the laws of 2013,  relat-
ing  to  the report on the transition of behavioral health services as a
managed care benefit in the medical assistance program,  as  amended  by
section  16-a of part C of chapter 60 of the laws of 2014, is amended to
read as follows:
  S 45-c. The commissioner of health in consultation  with  the  commis-
sioners  of the office of mental health and the office of alcoholism and
substance abuse services shall prepare a report  on  the  transition  of
behavioral  health  services  as  a  managed care benefit in the medical
assistance program.   Such report shall  examine  (i)  the  adequacy  of
rates;  (ii)  the  ability  of  managed care plans to arrange and manage
covered services for eligible enrollees; (iii) the  ability  of  managed
care plans to provide an adequate network of providers to meet the needs
of  enrollees;  (iv)  the  use  of evidence based tools or guidelines by
managed care plans when determining the appropriate  level  of  care  or
coverage for enrollees; (v) the ability of managed care plans to provide

S. 6407--B                         74

eligible  enrollees  with  both  the  appropriate  amount  and  type  of
services; (vi) the quality assurance mechanisms  used  by  managed  care
plans,  including  processes  to ensure enrollee satisfaction; (vii) the
manner  in  which managed care plans address the cultural and linguistic
needs of enrollees; (viii) any other quality  of  care  criteria  deemed
appropriate by the commissioners to ensure the adequacy of rates, conti-
nuity  of  care and the quality of life, health, and safety of enrollees
during the transition of the behavioral  health  benefit;  (ix)  details
regarding  the  implementation of reinvestment allocation plans pursuant
to reductions of inpatient behavioral health services including, but not
limited, to the location and scope of service reductions resulting  from
the  reduction or closure of programs licensed pursuant to article 31 or
32 of the mental hygiene law and a description of services to be  funded
pursuant to allocation plans; (x) detailed descriptions of the methodol-
ogy  used  to calculate the amount of savings resulting from the transi-
tion of individuals into managed care realized under  subdivision  5  of
section  365-m  of  the social services law, and the manner in which the
reinvestment will address the service needs; (xi) details regarding  the
implementation  of the collaborative care clinical delivery model; (xii)
a description of, and rationale for, any waiver of existing  regulations
or  any promulgation of emergency regulations pursuant to the behavioral
health services transition authorized by sections 10 through 17 of  part
C  of  [a]  chapter 60 of the laws of 2014 [which amended this section],
relating to the implementation of the health and mental hygiene  budget;
(xiii) implementation of infrastructure and organizational modifications
and  investments in health information technology and training and tech-
nical assistance; and (xiv) details regarding the implementation of  the
plan  to transition adult and children's behavioral health providers and
services into managed care.  The report shall be submitted on [an annual
basis] OR BEFORE OCTOBER FIRST ANNUALLY to the governor,  the  temporary
president of the senate, the speaker of the assembly, the minority lead-
er  of  the  senate, the minority leader of the assembly, and the behav-
ioral health subcommittee of the Medicaid redesign team[, no later  than
January first of each year].
  S  8. Subdivision 14 of section 6831 of the education law, as added by
section 12 of part D of chapter 60 of the laws of 2014,  is  amended  to
read as follows:
  14.  Reports.  The commissioner, in consultation with the commissioner
of health, shall prepare and submit a report to  the  governor  and  the
legislature,  due  [eighteen  months  from  the  effective  date of this
section,] ON OR BEFORE OCTOBER FIRST, TWO  THOUSAND  SIXTEEN  evaluating
the  effectiveness  of  the  registration  and  oversight of outsourcing
facilities related to compounding.
  S 9. Subdivision 4 of section 28 of part H of chapter 60 of  the  laws
of  2014,  amending  the  insurance  law,  the public health law and the
financial services law relating to establishing protections  to  prevent
surprise  medical  bills  including network adequacy requirements, claim
submission requirements, access to out-of-network care  and  prohibition
of excessive emergency charges, is amended to read as follows:
  4.  The  workgroup  shall report its findings and make recommendations
for legislation and regulations to the  governor,  the  speaker  of  the
assembly,  the  senate  majority leader, the chairs of the insurance and
health committees in both the assembly and the senate,  and  the  super-
intendent  of  the department of financial services no later than [Janu-
ary] OCTOBER 1, 2016.

S. 6407--B                         75

  S 10. The opening paragraph of subparagraph (i) of  paragraph  (b)  of
subdivision  18-a of section 206 of the public health law, as amended by
section 8 of part A of chapter 57 of the laws of  2015,  is  amended  to
read as follows:
  post on its website by September first, two thousand [fifteen] SIXTEEN
and  quarterly thereafter, information on the uses of funding in support
of the Statewide Health  Information  Network  of  New  York  (SHIN-NY),
including how such funds may be used to:
  S  11. Subparagraph (iii) of paragraph (e) of subdivision 7 of section
367-a of the social services law, as added by section 1  of  part  B  of
chapter 57 of the laws of 2015, is amended to read as follows:
  (iii)  The  commissioner shall submit a report to the temporary presi-
dent of the senate and the speaker of the assembly annually [by December
thirty-first] ON OR BEFORE OCTOBER FIRST.  The report shall analyze  the
adequacy  of  rates  to  managed  care  providers  for drug expenditures
related to the classes under this paragraph.
  S 12. Subdivisions 2 and 9 of section 369-gg of  the  social  services
law, subdivision 2 as amended and subdivision 9 as added by section 28-a
of  part  B  of  chapter  57  of the laws of 2015, is amended to read as
follows:
  2. Authorization. If it is in the financial interest of the  state  to
do  so,  the  commissioner of health is authorized, with the approval of
the director of the budget, to establish a  basic  health  program.  The
commissioner's  authority  pursuant  to  this section is contingent upon
obtaining and maintaining all necessary approvals from the secretary  of
health  and human services to offer a basic health program in accordance
with 42 U.S.C. 18051. The commissioner may  take  any  and  all  actions
necessary  to  obtain  such  approvals.  Notwithstanding  the foregoing,
[within ninety days of the effective date of the chapter of the laws  of
two  thousand  fifteen which amended this subdivision] ON OR BEFORE JUNE
FIRST, TWO THOUSAND SIXTEEN, the commissioner shall submit a  report  to
the  temporary  president  of the senate and the speaker of the assembly
detailing a contingency plan in the event  eligibility  rules  or  regu-
lations  are  modified  or  repealed; or in the event federal payment is
reduced from ninety five percent of the premium tax  credits  and  cost-
sharing  reductions  pursuant  to  the patient protection and affordable
care act (P.L. 111-148). The contingency plan shall be implemented with-
in ninety days of the above stated events or the time  period  specified
in federal law.
  9.  Reporting. The commissioner shall submit a report to the temporary
president of the senate and the speaker of  the  assembly  annually  [by
December  thirty-first]  ON  OR BEFORE OCTOBER FIRST.   The report shall
include, at a minimum, an analysis of the basic health program  and  its
impact  on the financial interest of the state; its impact on the health
benefit exchange including enrollment and premiums; its  impact  on  the
number of uninsured individuals in the state; its impact on the Medicaid
global  cap;  and  the  demographics  of  basic health program enrollees
including age and immigration status.
  S 13. Section 2 of part W of chapter 57 of the laws of 2015, requiring
the commissioner of health to convene a task force to evaluate and  make
recommendations  related to increasing the transparency and accountabil-
ity of the health care reform act resources fund, is amended to read  as
follows:
  S  2.  HCRA modernization task force: the commissioner of health shall
convene a task force to evaluate and make recommendations regarding  the
efficacy  and  transparency of the Health Care Reform Act resources fund

S. 6407--B                         76

(HCRA fund) and to evaluate and modernize the provisions of law  related
to  the  Health Care Reform Acts of 1996 and 2000 (HCRA). The task force
shall consist of the commissioner of health, or  his  or  her  designee,
employees  of  the  department  of  health with expertise in health care
financing, the director of the division of budget, or his or her  desig-
nee,  an  individual  to  be appointed by the temporary president of the
senate, an individual to be appointed by the speaker  of  the  assembly,
and  stakeholders  impacted by charges and disbursements of HCRA and the
HCRA fund, including, but not  limited  to:  representatives  of  health
plans, consumers, managed care plans, hospitals, health care practition-
ers, and other health care providers. The commissioner of health, or his
or her designee, shall chair the task force. The HCRA pool administrator
shall  provide  material support to the task force and submit documenta-
tion and analysis  necessary  for  deliberations  by  such  task  force,
including,  but  not limited to, an accounting of revenues collected and
disbursements made through HCRA and the HCRA fund. The task force  shall
consider  and  evaluate: the purposes for which the HCRA fund was estab-
lished and whether such purposes may be continually served by such fund;
the impact that any reduction or  recalculation  of  indigent  care  and
disproportionate  share payments pursuant to federal law may have on the
HCRA fund, and the cost that such reductions or recalculations will have
to the state; the extent to which provisions of law in the HCRA statutes
have become obsolete; the extent to which the  Balanced  Budget  Act  of
1997, Public Health Law 105-33, mandates a particular form of charges or
assessments  under HCRA and the impact any proposed change would have on
the protections by such law; and any other purpose that would contribute
to the streamlining and modernization of HCRA and  the  HCRA  fund.  The
task  force  shall  convene  no later than June 30, 2015. The task force
shall report to the governor, the temporary president of the senate  and
the  speaker  of the assembly its considerations, evaluations, and find-
ings and make recommendations of changes to any rule, regulation, law or
practice necessary to effectuate its conclusions. Such report  shall  be
submitted  no  later  than [December 31, 2015] OCTOBER 1, 2016, at which
time such task force shall be disbanded and its work completed.
  S 14. Section 47 of part B of chapter 57 of the laws of 2015, amending
the public health law relating to physician profiles, is amended to read
as follows:
  S 47. Young adult  special  populations  demonstration  programs.  The
commissioner  of  health shall establish up to three young adult special
populations demonstration programs to provide cost effective,  necessary
services  and enhanced quality of care for targeted populations in order
to demonstrate the effectiveness of the programs.  Eligible  individuals
shall  have  severe  and chronic medical or health problems, or multiple
disabling conditions which may be combined with developmental  disabili-
ties.  The programs shall provide more appropriate settings and services
for these individuals, help prevent out of state  placements  and  allow
repatriation  back  to  their home communities. Eligible operator appli-
cants shall have demonstrated expertise in caring for the targeted popu-
lation including persons with severe and chronic medical or health prob-
lems or multiple disabling conditions and a record of providing  quality
care.
  Funds  may  include,  but  not  be limited to, start up funds, capital
investments and enhanced rates.
  Of the demonstrations:

S. 6407--B                         77

  (a) at least one shall be designed to serve persons aged twenty-one to
thirty-five years of age who are  aging  out  of  pediatric  acute  care
hospitals or pediatric nursing homes; and
  (b) at least one shall be designed to serve persons aged twenty-one to
thirty-five years of age who have a developmental disability in addition
to their severe and chronic medical or health problems and are aging out
of pediatric acute care hospitals, pediatric nursing homes or children's
residential  homes  operated  under  the  jurisdiction of the office for
persons with developmental disabilities.
  The department of health shall be responsible for monitoring the qual-
ity and appropriateness and effectiveness of the demonstration programs,
and shall report to the legislature no later than  [December  31,  2015]
OCTOBER  1, 2016 on what efforts it has undertaken toward the establish-
ment of these demonstration programs and shall report to the legislature
two years following the establishment of a demonstration program  pursu-
ant to this section.
  S  15. Paragraph (d) of subdivision 13 of section 2995-a of the public
health law, as amended by section 4 of part A of chapter 57 of the  laws
of 2015, is amended to read as follows:
  (d)  Report.  The  department  shall  provide a report of its determi-
nations and recommendations under this subdivision to the  governor  and
legislature,  and  make  such  report  publicly  available, on or before
[January] OCTOBER first, two  thousand  sixteen.  The  department  shall
report  annually  thereafter  to  the  legislature  on the status of the
physician profiles and any recommendations for additions, consolidations
or other changes deemed appropriate.
  S 16. Subdivision 27 of section 2808 of  the  public  health  law,  as
added  by  section  38  of  part B of chapter 57 of the laws of 2015, is
amended to read as follows:
  27. The commissioner is authorized to conduct an energy  audit  and/or
disaster preparedness review of residential health care facilities. Such
audit  or  review  shall  explore  the energy efficiency and/or disaster
preparedness of the real property capital aspects of each  facility  and
develop  a  cost/benefit  analysis  of  potential modifications for each
facility. Such audit or review shall serve as the basis  for  an  energy
efficiency  and/or  disaster preparedness program to be developed by the
department in regulations. Participation in such audit or  review  shall
be  a  condition  to  participation  in  any such program developed as a
result thereof, and shall also be a condition to receipt of any  funding
available  under such program. Such program shall only be implemented if
it is in the best financial interests of the state, as determined by the
commissioner. At least [forty-five] THIRTY days  prior  to  implementing
such  program,  the  department  shall report to the senate and assembly
health committees, the assembly ways and means committee and the  senate
finance  committee the results of the energy audit authorized herein and
the proposed eligibility criteria, funding sources, the manner in  which
savings  may  be  shared  between the state and facilities and any other
information requested by such committees about such program prior to the
transmittal of the report.
  S 17. Paragraph (d) of subdivision 18 of section 364-j of  the  social
services law, as added by section 55 of part B of chapter 57 of the laws
of 2015, is amended to read as follows:
  (d) The department of health shall, ON OR BEFORE OCTOBER FIRST annual-
ly,  provide to the temporary president of the senate and the speaker of
the assembly the annual Medicaid managed care operating reports  submit-

S. 6407--B                         78

ted  to  the  department  from managed care plans that contract with the
state to manage services provided under the Medicaid program.
  S  18.  The  opening paragraph of subdivision 5 of section 3309 of the
public health law, as amended by chapter 42 of  the  laws  of  2014,  is
amended to read as follows:
  The  commissioner  shall publish findings on statewide opioid overdose
data that reviews overdose death rates and other information  to  ascer-
tain  changes  in  the  cause  and  rates of fatal opioid overdoses. The
report [may be part of existing state mortality reports  issued  by  the
department,  and] shall be submitted ON OR BEFORE OCTOBER FIRST annually
to the governor, the temporary president of the senate, the  speaker  of
the  assembly,  and the chairs of the senate and assembly health commit-
tees. The report shall include, at a minimum, the following information:
  S 19. Clause (E) of subparagraph (iv) of paragraph (e-2)  of  subdivi-
sion  4  of section 2807-c of the public health law, as added by section
47 of part C of chapter 60 of the laws of 2014, is amended  to  read  as
follows:
  (E) For facilities subject to the provisions of this subparagraph, the
department  shall examine the feasibility of reimbursing such facilities
for services provided to children eligible for medical assistance  on  a
non-fee-for-service  basis.  For  purposes of this clause, "non-fee-for-
service" shall be defined as an alternative  payment  method  to  bundle
certain  services rendered by such facility, including inpatient, outpa-
tient, specialty outpatient and physician services,  in  amounts  deter-
mined by the commissioner. The department shall examine:
  (a)  what  services could be provided pursuant to the non-fee-for-ser-
vice basis;
  (b) how to ensure, for children enrolled  in  Medicaid  managed  care,
that  their  health  plans can continue to assist in the coordination of
their care, particularly upon discharge from  inpatient,  outpatient  or
specialty outpatient services; and
  (c)  whether  incentives  should  be  incorporated for meeting quality
benchmarks or achieving efficiencies in the delivery and coordination of
care or whether other means should be considered to achieve these objec-
tives.
  The department shall provide a report of its findings and  recommenda-
tions  to  the  governor and legislature no later than [March first, two
thousand fifteen] OCTOBER 1, 2016.
  S 20. This act shall take effect immediately; provided, however, that:
  (a) section nine of this act shall take effect on the same date and in
the same manner as part H of chapter 60  of  the  laws  of  2014,  takes
effect;
  (b) the amendments to section 45-c of part A of chapter 56 of the laws
of 2013 made by section seven of this act shall not affect the repeal of
such section and shall be deemed repealed therewith;
  (c) the amendments to paragraph (b) of subdivision 18-a of section 206
of  the  public  health  law  made  by section ten of this act shall not
affect the expiration and reversion  of  such  paragraph  and  shall  be
deemed to expire therewith;
  (d) the amendments  to paragraph (e) of subdivision 7 of section 367-a
of  the social services law made by section eleven of this act shall not
affect the repeal of such paragraph and shall be deemed repealed  there-
with;
  (e)  the  amendments  to  subdivision 27 of section 2808 of the public
health law made by section sixteen of this  act  shall  not  affect  the
repeal of such subdivision and shall be deemed repealed therewith; and

S. 6407--B                         79

  (f) the amendments to section 364-j of the social services law made by
section  seventeen  of  this  act  shall  not  affect the repeal of such
section and shall be deemed repealed therewith.

                                 PART S

  Section  1.   Section 48-a of part A of chapter 56 of the laws of 2013
amending chapter 59 of the laws of 2011 amending the public  health  law
and  other  laws  relating  to general hospital reimbursement for annual
rates relating to the cap on local Medicaid expenditures, as amended  by
section  1  of  part  C of chapter 57 of the laws of 2015, is amended to
read as follows:
  S 48-a. 1.  Notwithstanding any contrary provision of law, the commis-
sioners of the office of alcoholism and substance abuse services and the
office of mental health are authorized, subject to the approval  of  the
director  of the budget, to transfer to the commissioner of health state
funds to be utilized as the state share for the  purpose  of  increasing
payments  under  the  medicaid  program  to  managed  care organizations
licensed under article 44 of the public health law or under  article  43
of the insurance law. Such managed care organizations shall utilize such
funds  for  the  purpose  of  reimbursing providers licensed pursuant to
article 28 of the public health law or article 31 or 32  of  the  mental
hygiene  law for ambulatory behavioral health services, as determined by
the commissioner of health, in consultation  with  the  commissioner  of
alcoholism  and  substance  abuse  services  and the commissioner of the
office of mental health, provided to medicaid eligible outpatients. Such
reimbursement shall be in the form of fees for such services  which  are
equivalent to the payments established for such services under the ambu-
latory  patient  group (APG) rate-setting methodology as utilized by the
department of health, the  office  of  alcoholism  and  substance  abuse
services,  or  the  office  of  mental health for rate-setting purposes;
provided, however, that the increase to such fees that shall result from
the provisions of this section shall not, in the aggregate and as deter-
mined by the commissioner of health, in consultation  with  the  commis-
sioner  of  alcoholism and substance abuse services and the commissioner
of the office of mental health, be greater than the increased funds made
available pursuant to this section.   The increase  of  such  ambulatory
behavioral  health  fees to providers available under this section shall
be for all rate periods on and after the effective date of section  [13]
1  of part C of chapter [60] 57 of the laws of [2014] 2015 through [June
30, 2017] SEPTEMBER 30, 2021 for patients in the city of New  York,  for
all  rate  periods  on and after the effective date of section [13] 1 of
part C of chapter [60] 57 of the laws of [2014]  2015  through  December
31,  [2017]  2021 for patients outside the city of New York, and for all
rate periods on and after the effective date  of  such  chapter  through
December  31, [2017] 2021 for all services provided to persons under the
age of twenty-one; provided, however, that  managed  care  organizations
and  providers  may  negotiate  different  rates  and methods of payment
during such periods described above, subject  to  the  approval  of  the
department  of  health.  The department of health shall consult with the
office of alcoholism and substance abuse  services  and  the  office  of
mental  health  in  determining  whether such alternative rates shall be
approved. The commissioner of  health  may,  in  consultation  with  the
commissioner  of alcoholism and substance abuse services and the commis-
sioner of the office of mental health, promulgate regulations, including
emergency regulations promulgated prior to October 1, 2015 to  establish

S. 6407--B                         80

rates  for  ambulatory  behavioral  health services, as are necessary to
implement the provisions of this section. Rates promulgated  under  this
section  shall  be included in the report required under section 45-c of
part A of this chapter.
  2.  Notwithstanding  any  contrary  provision of law, the fees paid by
managed care organizations licensed  under  article  44  of  the  public
health  law  or  under  article  43  of  the insurance law, to providers
licensed pursuant to article 28 of the public health law or  article  31
or  32  of  the  mental  hygiene  law,  for ambulatory behavioral health
services provided to patients enrolled in  the  child  health  insurance
program  pursuant to title one-A of article 25 of the public health law,
shall be in the form of fees for such services which are  equivalent  to
the  payments established for such services under the ambulatory patient
group (APG) rate-setting methodology. The commissioner of  health  shall
consult with the commissioner of alcoholism and substance abuse services
and  the commissioner of the office of mental health in determining such
services and establishing such fees. Such ambulatory  behavioral  health
fees  to  providers  available  under this section shall be for all rate
periods on and after the effective date of this chapter through December
31, 2017, provided, however, that managed care organizations and provid-
ers may negotiate different rates and methods  of  payment  during  such
periods  described  above,  subject to the approval of the department of
health.  The department of health shall consult with the office of alco-
holism and substance abuse services and the office of mental  health  in
determining  whether  such  alternative  rates  shall be approved.   The
report required under section 16-a of part C of chapter 60 of  the  laws
of  2014  shall  also include the population of patients enrolled in the
child health insurance program pursuant to title one-A of article 25  of
the public health law in its examination on the transition of behavioral
health services into managed care.
  S  2.  Section 1 of part H of chapter 111 of the laws of 2010 relating
to increasing Medicaid payments to providers through managed care organ-
izations and providing equivalent fees  through  an  ambulatory  patient
group  methodology,  as  amended by section 2 of part C of chapter 57 of
the laws of 2015, is amended to read as follows:
  Section 1. a.   Notwithstanding any contrary  provision  of  law,  the
commissioners  of  mental  health  and  alcoholism  and  substance abuse
services are authorized, subject to the approval of the director of  the
budget,  to  transfer  to  the  commissioner of health state funds to be
utilized as the state share for the purpose of increasing payments under
the medicaid program to managed care organizations licensed under  arti-
cle  44  of  the  public health law or under article 43 of the insurance
law. Such managed care organizations shall utilize such  funds  for  the
purpose  of reimbursing providers licensed pursuant to article 28 of the
public health law, or pursuant to article 31 or article 32 of the mental
hygiene law for ambulatory behavioral health services, as determined  by
the  commissioner  of  health  in  consultation with the commissioner of
mental  health  and  commissioner  of  alcoholism  and  substance  abuse
services,  provided to medicaid eligible outpatients. Such reimbursement
shall be in the form of fees for such services which are  equivalent  to
the  payments established for such services under the ambulatory patient
group (APG) rate-setting methodology as utilized by  the  department  of
health  or  by  the  office of mental health or office of alcoholism and
substance abuse services for rate-setting purposes;  provided,  however,
that  the increase to such fees that shall result from the provisions of
this section shall not, in  the  aggregate  and  as  determined  by  the

S. 6407--B                         81

commissioner  of health in consultation with the commissioners of mental
health and alcoholism and substance abuse services, be greater than  the
increased funds made available pursuant to this section. The increase of
such  behavioral  health  fees to providers available under this section
shall be for all rate periods on and after the effective date of section
[15] 2 of part C of chapter [60] 57 of the laws of [2014]  2015  through
[June 30, 2017] SEPTEMBER 30, 2021 for patients in the city of New York,
for  all  rate periods on and after the effective date of section [15] 2
of part C of chapter [60] 57 of the laws of [2014] 2015 through December
31, [2017] 2021 for patients outside the city of New York, and  for  all
rate periods on and after the effective date of section [15] 2 of part C
of  chapter  [60]  57  of  the  laws of [2014] 2015 through December 31,
[2017] 2021 for all services provided to persons under the age of  twen-
ty-one; provided, however, that managed care organizations and providers
may negotiate different rates and methods of payment during such periods
described,  subject  to  the  approval  of the department of health. The
department of health shall consult with the  office  of  alcoholism  and
substance  abuse services and the office of mental health in determining
whether such alternative rates shall be approved.  The  commissioner  of
health  may, in consultation with the commissioners of mental health and
alcoholism and substance abuse services, promulgate regulations, includ-
ing emergency regulations promulgated prior  to  October  1,  2013  that
establish  rates  for  behavioral  health  services, as are necessary to
implement the provisions of this section. Rates promulgated  under  this
section  shall  be included in the report required under section 45-c of
part A of chapter 56 of the laws of 2013.
  b. Notwithstanding any contrary provision of law,  the  fees  paid  by
managed  care  organizations  licensed  under  article  44 of the public
health law or under article  43  of  the  insurance  law,  to  providers
licensed  pursuant  to article 28 of the public health law or article 31
or 32 of the  mental  hygiene  law,  for  ambulatory  behavioral  health
services  provided  to  patients  enrolled in the child health insurance
program pursuant to title one-A of article 25 of the public health  law,
shall  be  in the form of fees for such services which are equivalent to
the payments established for such services under the ambulatory  patient
group  (APG)  rate-setting methodology. The commissioner of health shall
consult with the commissioner of alcoholism and substance abuse services
and the commissioner of the office of mental health in determining  such
services  and  establishing such fees. Such ambulatory behavioral health
fees to providers available under this section shall  be  for  all  rate
periods on and after the effective date of this chapter through December
31, 2017, provided, however, that managed care organizations and provid-
ers  may  negotiate  different  rates and methods of payment during such
periods described above, subject to the approval of  the  department  of
health.  The department of health shall consult with the office of alco-
holism and substance abuse services and the office of mental  health  in
determining  whether  such  alternative  rates  shall be approved.   The
report required under section 16-a of part C of chapter 60 of  the  laws
of  2014  shall  also include the population of patients enrolled in the
child health insurance program pursuant to title one-A of article 25  of
the public health law in its examination on the transition of behavioral
health services into managed care.
  S  3. 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

S. 6407--B                         82

services  law  shall be deemed to include and also to mean any successor
titles thereto under the federal social security act.
  S  4. 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 5. 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 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 6. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2016. Provided,
however that:
  1.  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;
  2. 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;
  3. the commissioner of health and the superintendent of the department
of financial services and any appropriate council  may  take  any  steps
necessary to implement this act prior to its effective date;
  4. 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 the  department  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;
  5. the provisions of this act shall become  effective  notwithstanding
the  failure  of the commissioner of health or the superintendent of the
department of financial services or any council to  adopt  or  amend  or
promulgate regulations implementing this act; and
  6.  the amendments to section 48-a of part A of chapter 56 of the laws
of 2013 made by section one of this act and the amendments to section  1
of part H of chapter 111 of the laws of 2010 made by section two of this
act shall not affect the expiration of such sections and shall be deemed
to expire therewith.

                                 PART T

  Section  1.  The mental hygiene law is amended by adding a new section
13.43 to read as follows:
S 13.43 DIRECT SUPPORT PROFESSIONAL CREDENTIAL PILOT PROGRAM.
  (A) THE OFFICE SHALL CREATE A DIRECT SUPPORT  PROFESSIONAL  CREDENTIAL
PILOT  PROGRAM  TO ASSIST, ATTRACT AND RETAIN INDIVIDUALS INTO THE FIELD
OF DIRECT SUPPORT, ADVANCE DIRECT SUPPORT AS A CAREER, AND PROFESSIONAL-
IZE THE FIELD TO PROMOTE WORKFORCE RECRUITMENT  AND  RETENTION  EFFORTS,

S. 6407--B                         83

ADVANCE  SKILLS  AND COMPETENCIES, AND FURTHER ENSURE THE HEALTH, SAFETY
AND WELL-BEING OF INDIVIDUALS BEING SERVED.
  (B) THERE IS HEREBY CREATED THE DIRECT SUPPORT PROFESSIONAL CREDENTIAL
PILOT  PROGRAM  WITHIN  THE OFFICE TO ASSIST INDIVIDUALS IN THE FIELD IN
OBTAINING A CREDENTIAL IN THEIR FIELD OF EXPERTISE.
  (1) SUCH PILOT PROGRAM SHALL BE ADMINISTERED BY THE OFFICE  FOR  THREE
YEARS.  THE  PILOT  PROGRAM  SHALL INCLUDE STATE-OPERATED FACILITIES AND
NOT-FOR-PROFIT PROVIDERS LICENSED, CERTIFIED OR FUNDED  BY  THE  OFFICE.
THE  PURPOSE  OF THE PILOT PROGRAM SHALL BE TO ASSESS HOW THE ESTABLISH-
MENT OF A STATE ACCREDITED DIRECT SUPPORT PROFESSIONAL CREDENTIAL:
  (A) PROMOTES RECRUITMENT AND RETENTION EFFORTS  IN  THE  DEVELOPMENTAL
DISABILITIES FIELD, NOTABLY THE DIRECT SUPPORT PROFESSIONAL POSITION;
  (B) ENHANCES COMPETENCE IN THE DEVELOPMENTAL DISABILITIES FIELD;
  (C)  YIELDS QUALITY SUPPORTS AND SERVICES TO INDIVIDUALS WITH DEVELOP-
MENTAL DISABILITIES; AND
  (D) ADVANCES THE HEALTH AND  SAFETY  REQUIREMENTS  SET  FORTH  BY  THE
STATE.
  (2) THE OFFICE, IN ADMINISTERING THE PILOT PROGRAM SHALL CONSIDER, BUT
NOT BE LIMITED TO, THE FOLLOWING:
  (A)  BEST  PRACTICES LEARNING INITIATIVES, INCLUDING THE UNIVERSITY OF
MINNESOTA COLLEGE OF DIRECT SUPPORT AND NEW YORK  STATE  DIRECT  SUPPORT
PROFESSIONAL COMPETENCIES AND CODE OF ETHICS;
  (B) NATIONAL DIRECT SUPPORT PROFESSIONAL COMPETENCIES OR CREDENTIALING
BASED STANDARDS AND TRAININGS;
  (C) FACILITATING DIRECT SUPPORT PROFESSIONALS PORTFOLIO DEVELOPMENT;
  (D) THE ROLE AND VALUE OF SKILL MENTORS;
  (E) CREATING A CAREER LADDER;
  (F)  USING  HYBRID  INSTRUCTIONAL  MODEL  THAT  PROVIDES  FOR LEARNING
CONTENT BOTH ONSITE AND ONLINE; AND
  (G) ALLOWING FOR ADVANCED CREDENTIALING PROGRAMS AFTER YEAR ONE.
  (3) FOR THE PURPOSES OF THIS  SECTION,  "DIRECT  SUPPORT  PROFESSIONAL
CREDENTIAL"  MEANS  A  DOCUMENT  ISSUED TO AN INDIVIDUAL BY A RECOGNIZED
ACCREDITING BODY ATTESTING THAT SUCH INDIVIDUAL HAS MET THE PROFESSIONAL
REQUIREMENTS OF THE CREDENTIALING PROGRAM BY THE OFFICE.
  (4) THE OFFICE, BY DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, SHALL
TRANSMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT  OF  THE  SENATE,  THE
SPEAKER  OF THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE COMMITTEE, AND
THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE  A  REPORT  DETAILING
THE PROGRESS OF SUCH PILOT PROGRAM, INCLUDING, BUT NOT LIMITED TO:
  (A)  THE  RATE OF RECRUITMENT AND RETENTION FOR DIRECT SUPPORT PROFES-
SIONALS OF PROVIDERS PARTICIPATING IN THE PILOT PROGRAM COMPARED TO  THE
RATE  FOR  NON-PARTICIPATING PROVIDERS, INCLUDING BUT NOT LIMITED TO THE
IMPACT ON VACANCIES AND TURNOVER RATES;
  (B) THE NUMBER OF DIRECT SUPPORT PROFESSIONALS CREDENTIALED; AND
  (C) THE ENHANCEMENT OF QUALITY SUPPORTS AND  SERVICES  TO  INDIVIDUALS
WITH DEVELOPMENTAL DISABILITIES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

                                 PART U

  Section  1. The section heading of section 2805-i of the public health
law, as amended by chapter 504 of the laws of 1994, is amended  to  read
as follows:
  Treatment  AND  REPORTING of sexual offense victims and maintenance of
evidence in a sexual offense.

S. 6407--B                         84

  S 2. Subdivision 1 of section 2805-i  of  the  public  health  law  is
amended by adding a new paragraph (d) to read as follows:
  (D) REPORTING QUARTERLY TO THE DEPARTMENT ON THE DISPOSITION OR TRANS-
FER  OF  ALL SEXUAL OFFENSE EVIDENCE KITS. THE REPORT SHALL DETAIL, AT A
MINIMUM, HOW MANY SUCH KITS UNDER THE HOSPITAL'S CARE  WERE  TRANSFERRED
TO  LAW  ENFORCEMENT  OR FORENSIC LABORATORIES, TO WHOM THEY WERE TRANS-
FERRED AND THE DATE UPON WHICH THEY WERE TRANSFERRED.
  S 3. The executive law is amended by adding two new sections 837-s and
837-t to read as follows:
  S 837-S. PROCESSING OF SEXUAL OFFENSE EVIDENCE KITS. 1.  THE FOLLOWING
REQUIREMENTS SHALL APPLY TO ALL SEXUAL OFFENSE EVIDENCE  KITS  COLLECTED
AND  SURRENDERED  TO  POLICE  AGENCIES  PURSUANT TO SECTION TWENTY-EIGHT
HUNDRED FIVE-I OF THE PUBLIC HEALTH LAW:
  (A) ALL SEXUAL OFFENSE EVIDENCE KITS SURRENDERED  TO  POLICE  AGENCIES
SHALL  BE  SUBMITTED TO A FORENSIC LABORATORY DESIGNATED BY THE DIVISION
FOR ANALYSIS WITHIN TEN DAYS OF RECEIPT;
  (B) THE FORENSIC LABORATORY RECEIVING  SEXUAL  OFFENSE  EVIDENCE  KITS
SHALL  DEVELOP  COMBINED DNA INDEX SYSTEM (CODIS) ELIGIBLE PROFILES FROM
THE EVIDENCE RECEIVED AND REPORT THE RESULTS TO  THE  SUBMITTING  POLICE
AGENCY AND LOCAL DISTRICT ATTORNEY WITHIN NINETY DAYS OF RECEIPT;
  (C) ALL SEXUAL OFFENSE EVIDENCE KITS RECEIVED BY POLICE AGENCIES PRIOR
TO  THE  EFFECTIVE DATE OF THIS SECTION SHALL BE SUBMITTED TO A FORENSIC
LABORATORY WITHIN ONE HUNDRED EIGHTY DAYS OF SUCH  EFFECTIVE  DATE,  AND
SUCH LABORATORIES SHALL DEVELOP COMBINED DNA INDEX SYSTEM (CODIS) ELIGI-
BLE  PROFILES  FROM  SUCH  EVIDENCE  WITHIN  ONE  HUNDRED TWENTY DAYS OF
RECEIPT; AND
  (D) ALL POLICE AGENCIES SHALL REPORT TO THE DIVISION QUARTERLY ON  ALL
SEXUAL  OFFENSE  EVIDENCE  KITS  IN  THEIR POSSESSION. THE FIRST REPORT,
WHICH SHALL BE SUBMITTED NO LATER THAN NINETY DAYS AFTER  THE  EFFECTIVE
DATE  OF  THIS  SECTION, AND REPORTS FILED THEREAFTER SHALL INCLUDE AT A
MINIMUM THE DATES  ON  WHICH  THE  SEXUAL  OFFENSE  EVIDENCE  KITS  WERE
RECEIVED  PURSUANT  TO  THE PUBLIC HEALTH LAW, TRANSMITTED TO A FORENSIC
LABORATORY AND THE DATES ON WHICH THE RESULTS WERE REPORTED BY THE LABO-
RATORY FOR EACH OF THE SEXUAL OFFENSE EVIDENCE KITS THEY RECEIVED.
  2. THE FAILURE OF A PUBLIC SERVANT TO FOLLOW SUCH PROCEDURE SHALL  NOT
CONSTITUTE A LEGAL BASIS TO SUPPRESS EVIDENCE.
  3. THE DIVISION SHALL ENSURE THAT ALL POLICE AGENCIES ARE EDUCATED AND
AWARE OF THE REQUIREMENTS ESTABLISHED UNDER THIS SECTION.
  S  837-T.  SECURE TRANSPORT OF SEXUAL OFFENSE EVIDENCE KITS. THE DIVI-
SION, IN CONJUNCTION WITH THE DIVISION OF  STATE  POLICE  AND  MUNICIPAL
POLICE AGENCIES, SHALL DEVELOP A SYSTEM TO COORDINATE THE TRANSPORTATION
OF  SEXUAL OFFENSE EVIDENCE KITS TO AND FROM LABORATORIES ON A REGULARLY
SCHEDULED BASIS, CONSISTENT WITH THE REQUIREMENTS ESTABLISHED IN SECTION
EIGHT HUNDRED THIRTY-SEVEN-S OF THIS ARTICLE, WHICH SHALL REDUCE  DUPLI-
CATION  AND  COSTS  ASSOCIATED  WITH  EACH POLICE AGENCY MAINTAINING THE
CHAIN OF CUSTODY OF EVIDENCE WHILE TRANSPORTING SUCH EVIDENCE KITS IN  A
TIMELY MANNER.
  S 4. This act shall take effect immediately.

                                 PART V

  Section 1. Subdivisions 3, 4 and 5 of section 281 of the public health
law,  subdivision 3 as amended by chapter 13 of the laws of 2015, subdi-
visions 4 and 5 as added by section 2 of part B of chapter  447  of  the
laws  of  2012,  are amended and a new subdivision 7 is added to read as
follows:

S. 6407--B                         85

  3. On or  before  December  thirty-first,  two  thousand  twelve,  the
commissioner  shall  promulgate  regulations,  in  consultation with the
commissioner  of  education,  establishing  standards   for   electronic
prescriptions.  Notwithstanding  any  other provision of this section or
any  other  law to the contrary, effective three years subsequent to the
date on which such regulations are promulgated, no  person  shall  issue
any prescription in this state unless such prescription is made by elec-
tronic  prescription from the person issuing the prescription to a phar-
macy  in  accordance  with  such  regulatory   standards,   except   for
prescriptions:  (a) issued by veterinarians; (b) issued in circumstances
where electronic prescribing is not available due to  temporary  techno-
logical or electrical failure, as set forth in regulation; (c) issued by
practitioners  who  have  received  a  waiver or a renewal thereof for a
specified period determined by the commissioner, not to exceed one year,
from the requirement to use electronic prescribing, pursuant to a  proc-
ess  established in regulation by the commissioner, in consultation with
the commissioner of education, due to economic  hardship,  technological
limitations  that  are  not reasonably within the control of the practi-
tioner, or other exceptional circumstance demonstrated  by  the  practi-
tioner; (d) issued by a practitioner under circumstances where, notwith-
standing  the  practitioner's  present  ability  to  make  an electronic
prescription as required by this subdivision, such practitioner  reason-
ably  determines  that it would be impractical for the patient to obtain
substances prescribed by electronic prescription in a timely manner, and
such delay would  adversely  impact  the  patient's  medical  condition,
provided  that  if  such prescription is for a controlled substance, the
quantity of controlled substances does not exceed a five day  supply  if
the controlled substance were used in accordance with the directions for
use;  [or]  (e)  issued  by a practitioner to be dispensed by a pharmacy
located outside the state, as set forth in regulation; OR (F) ISSUED  BY
A  PRACTITIONER  WHO  HAS  MADE  A CERTIFICATION TO THE DEPARTMENT UNDER
SUBDIVISION SEVEN OF THIS SECTION.
  4. In the case of a prescription for a controlled substance issued  by
a practitioner under paragraph (b) of subdivision three of this section,
the  practitioner  shall  [file  information  about the issuance of such
prescription with the department as soon as practicable, as set forth in
regulation] MAINTAIN INFORMATION IN THEIR RECORDS REGARDING THE ISSUANCE
OF SUCH PRESCRIPTION.
  5. In the case of a prescription for a controlled substance issued  by
a  practitioner  under paragraph (d) or (e) of subdivision three of this
section, the practitioner shall, upon issuing such  prescription,  [file
information  about the issuance of such prescription with the department
by electronic means, as set forth in regulation] MAINTAIN INFORMATION IN
THEIR RECORDS REGARDING THE ISSUANCE OF SUCH PRESCRIPTION.
  7. A PRACTITIONER SHALL NOT BE REQUIRED TO ISSUE  PRESCRIPTIONS  ELEC-
TRONICALLY  AS OTHERWISE REQUIRED BY THIS SECTION IF HE OR SHE CERTIFIES
TO THE DEPARTMENT THAT HE OR SHE WILL NOT ISSUE  MORE  THAN  TWENTY-FIVE
PRESCRIPTIONS  OVER  EACH  SUCCESSIVE  TWELVE MONTH PERIOD FOLLOWING THE
DATE OF THE CERTIFICATION. A PRACTITIONER MAY REVOKE SUCH  CERTIFICATION
AT  ANY TIME IF THEY INTEND TO ISSUE MORE THAN TWENTY-FIVE PRESCRIPTIONS
OVER A TWELVE MONTH PERIOD FOLLOWING THE DATE OF CERTIFICATION.  A PRAC-
TITIONER MAY MAKE A CERTIFICATION UNDER THIS SUBDIVISION  REGARDLESS  OF
WHETHER  HE  OR SHE HAS PREVIOUSLY RECEIVED A WAIVER UNDER PARAGRAPH (C)
OF SUBDIVISION THREE OF THIS SECTION.
  S 2. Subdivisions 10, 11 and 12 of section 6810 of the education  law,
subdivision  10  as  amended by chapter 13 of the laws of 2015, subdivi-

S. 6407--B                         86

sions 11 and 12 as added by section 3 of part B of chapter  447  of  the
laws  of  2012, are amended and a new subdivision 15 is added to read as
follows:
  10.  Notwithstanding  any other provision of this section or any other
law to the contrary, effective three years subsequent  to  the  date  on
which  regulations  establishing  standards for electronic prescriptions
are promulgated by the commissioner of health, in consultation with  the
commissioner pursuant to subdivision three of section two hundred eight-
y-one  of  the  public  health  law,  no  practitioner  shall  issue any
prescription in this state, unless such prescription is  made  by  elec-
tronic  prescription  from  the  practitioner  to a pharmacy, except for
prescriptions: (a) issued by veterinarians; (b) issued or  dispensed  in
circumstances  where  electronic  prescribing  is  not  available due to
temporary technological or electrical failure, as  set  forth  in  regu-
lation;  (c)  issued  by  practitioners  who have received a waiver or a
renewal thereof for a specified period determined by the commissioner of
health, not to exceed one year, from the requirement to  use  electronic
prescribing,  pursuant  to  a  process  established in regulation by the
commissioner of health, in consultation with  the  commissioner  due  to
economic  hardship,  technological  limitations  that are not reasonably
within the control of the practitioner,  or  other  exceptional  circum-
stance  demonstrated  by  the practitioner; (d) issued by a practitioner
under circumstances where, notwithstanding  the  practitioner's  present
ability  to make an electronic prescription as required by this subdivi-
sion, such practitioner reasonably determines that it would be impracti-
cal for the  patient  to  obtain  substances  prescribed  by  electronic
prescription  in  a timely manner, and such delay would adversely impact
the patient's medical condition, provided that if such  prescription  is
for a controlled substance, the quantity that does not exceed a five day
supply  if  the  controlled  substance  was  used in accordance with the
directions for use; [or] (e) issued by a practitioner to be dispensed by
a pharmacy located outside the state, as set forth in regulation; OR (F)
ISSUED AS  AN  ORAL  PRESCRIPTION  UNDER  SUBDIVISION  FIFTEEN  OF  THIS
SECTION.
  11. In the case of a prescription issued by a practitioner under para-
graph  (b) of subdivision ten of this section, the practitioner shall be
required to [file information about the issuance  of  such  prescription
with  the  department  of health as soon as practicable, as set forth in
regulation] MAINTAIN INFORMATION IN THEIR RECORDS REGARDING THE ISSUANCE
OF SUCH PRESCRIPTION.
  12. In the case of a prescription issued by a practitioner under para-
graph (d) or (e) of subdivision ten of this  section,  the  practitioner
shall, upon issuing such prescription, [file information about the issu-
ance  of  such  prescription with the department of health by electronic
means, as set forth in regulation] MAINTAIN INFORMATION IN THEIR RECORDS
REGARDING THE ISSUANCE OF SUCH PRESCRIPTION.
  15. A PRACTITIONER SHALL NOT BE REQUIRED TO ISSUE PRESCRIPTIONS  ELEC-
TRONICALLY  AS OTHERWISE REQUIRED BY THIS SECTION IF HE OR SHE CERTIFIES
TO THE DEPARTMENT THAT HE OR SHE WILL NOT ISSUE  MORE  THAN  TWENTY-FIVE
PRESCRIPTIONS  OVER  EACH  SUCCESSIVE  TWELVE MONTH PERIOD FOLLOWING THE
DATE OF THE CERTIFICATION. A PRACTITIONER MAY REVOKE SUCH  CERTIFICATION
AT  ANY TIME IF THEY INTEND TO ISSUE MORE THAN TWENTY-FIVE PRESCRIPTIONS
OVER A TWELVE MONTH PERIOD FOLLOWING THE DATE OF CERTIFICATION.  A PRAC-
TITIONER MAY MAKE A CERTIFICATION UNDER THIS SUBDIVISION  REGARDLESS  OF
WHETHER  HE  OR SHE HAS PREVIOUSLY RECEIVED A WAIVER UNDER PARAGRAPH (C)
OF SUBDIVISION TEN OF THIS SECTION.

S. 6407--B                         87

  S 3. Paragraphs (d) and (e) of subdivision 3 of  section  281  of  the
public  health  law,  as  amended by chapter 13 of the laws of 2015, are
amended and a new paragraph (f) is added to read as follows:
  (d)  issued by a practitioner under circumstances where, notwithstand-
ing  the  practitioner's  present  ability   to   make   an   electronic
prescription  as required by this subdivision, such practitioner reason-
ably determines that it would be impractical for the patient  to  obtain
substances prescribed by electronic prescription in a timely manner, and
such  delay  would  adversely  impact  the  patient's medical condition,
provided that if such prescription is for a  controlled  substance,  the
quantity  of  controlled substances does not exceed a five day supply if
the controlled substance were used in accordance with the directions for
use; [or]
  (e) issued by a practitioner to be dispensed  by  a  pharmacy  located
outside the state, as set forth in regulation[.]; OR
  (F)  ISSUED AS AN ORAL PRESCRIPTION UNDER PARAGRAPH (B) OF SUBDIVISION
FOUR OF SECTION SIXTY-EIGHT HUNDRED TEN OF THE EDUCATION LAW.
  S 4. Paragraphs (d) and (e) of subdivision 10 of section 6810  of  the
education law, as amended by chapter 13 of the laws of 2015, are amended
and a new paragraph (f) is added to read as follows:
  (d)  issued by a practitioner under circumstances where, notwithstand-
ing  the  practitioner's  present  ability   to   make   an   electronic
prescription  as required by this subdivision, such practitioner reason-
ably determines that it would be impractical for the patient  to  obtain
substances prescribed by electronic prescription in a timely manner, and
such  delay  would  adversely  impact  the  patient's medical condition,
provided that if such prescription is for a  controlled  substance,  the
quantity  that  does  not  exceed  a  five  day supply if the controlled
substance was used in accordance with the directions for use; [or]
  (e) issued by a practitioner to be dispensed  by  a  pharmacy  located
outside the state, as set forth in regulation[.]; OR
  (F)  ISSUED AS AN ORAL PRESCRIPTION UNDER PARAGRAPH (B) OF SUBDIVISION
FOUR OF THIS SECTION.
  S 5. Section 2807-m of the public health law is amended  by  adding  a
new subdivision 12 to read as follows:
  12. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, APPLICATIONS
FOR  PHYSICIAN  LOAN REPAYMENT AND PHYSICIAN PRACTICE SUPPORT, SUBMITTED
PURSUANT TO PARAGRAPHS (D) AND (E) OF SUBDIVISION FIVE-A OF THIS SECTION
AND SUBDIVISION TEN OF THIS SECTION, ON OR AFTER APRIL FIRST, TWO  THOU-
SAND SIXTEEN, SHALL BE SUBJECT TO THE FOLLOWING CHANGES:
  (A)  FOR  THE  PERIOD  APRIL FIRST, TWO THOUSAND SIXTEEN THROUGH MARCH
THIRTY-FIRST, TWO THOUSAND SEVENTEEN, TWELVE MILLION SIXTY-FIVE THOUSAND
DOLLARS SHALL BE SET ASIDE AND RESERVED BY  THE  COMMISSIONER  FROM  THE
REGIONAL  POOLS  ESTABLISHED  IN ACCORDANCE WITH SUBDIVISION TWO OF THIS
SECTION AND SHALL BE AVAILABLE FOR  PURPOSES  OF  BOTH  NEW  AWARDS  FOR
PHYSICIAN  LOAN REPAYMENT AND NEW AWARDS FOR PHYSICIAN PRACTICE SUPPORT,
BASED ON APPLICATIONS SUBMITTED IN  ACCORDANCE  WITH  THIS  SUBDIVISION.
NEITHER  OF  THE  AWARD  PROGRAMS SHALL BE LIMITED TO A SPECIFIC FUNDING
AMOUNT WITHIN THE TOTAL AMOUNT MADE AVAILABLE  PURSUANT  TO  THIS  PARA-
GRAPH.
  (B)  AN  APPLICANT  MAY  APPLY  FOR AN AWARD FOR EITHER PHYSICIAN LOAN
REPAYMENT OR PHYSICIAN PRACTICE SUPPORT, BUT NOT BOTH.
  (C) AN APPLICANT SHALL AGREE TO PRACTICE FOR THREE YEARS IN AN  UNDER-
SERVED AREA AND EACH AWARD SHALL PROVIDE FORTY THOUSAND DOLLARS FOR EACH
OF THE THREE YEARS.

S. 6407--B                         88

  (D)  REFERENCES  IN  PARAGRAPHS  (B) THROUGH (E) OF SUBDIVISION TEN OF
THIS SECTION TO PARAGRAPH (A) OF SUBDIVISION TEN OF THIS  SECTION  SHALL
INSTEAD  BE REFERENCES TO THE THREE YEAR PHYSICIAN LOAN REPAYMENT AWARDS
MADE UNDER THIS SUBDIVISION.
  (E) THE FUNDING ALLOCATION AND DISTRIBUTION PROVIDED FOR IN PARAGRAPHS
(D)  AND  (E)  OF  SUBDIVISION FIVE-A OF THIS SECTION SHALL APPLY TO THE
COMBINED FUNDING AMOUNT PROVIDED FOR IN PARAGRAPH (A) OF  THIS  SUBDIVI-
SION.
  (F)  AWARDS  SHALL  BE  MADE  ANNUALLY  AND TIMED TO BE OF USE FOR JOB
OFFERS MADE TO APPLICANTS.
  S 6. Subdivision 4 of section 461-s of the  social  services  law,  as
added  by  section  6  of  part  A of chapter 57 of the laws of 2015, is
amended to read as follows:
  4. EQUAL program funds shall not be expended for  a  facility's  daily
operating  expenses,  including  employee  salaries or benefits[, or for
expenses incurred retrospectively]. EQUAL PROGRAM FUNDS MAY BE USED  FOR
EXPENSES INCURRED AT ANY TIME DURING THE FISCAL YEAR FOR WHICH THE FUNDS
WERE  APPROPRIATED,  PROVIDED THAT, CONSISTENT WITH SUBDIVISION THREE OF
THIS SECTION, THE RESIDENTS' COUNCIL APPROVES SUCH EXPENDITURE PRIOR  TO
THE  EXPENDITURE  BEING  INCURRED.  EQUAL  program funds may be used for
expenditures related to corrective action as required by  an  inspection
report,  provided  such expenditure is consistent with subdivision three
of this section.
  S 7. Health care  facility  infrastructure  development  demonstration
program. (a) The commissioner of health, in collaboration with the pres-
ident of the dormitory authority of the state of New York, shall examine
the  efficacy  of  establishing public-private partnerships for a health
care facility infrastructure development demonstration program  designed
to  effectuate  capital projects that facilitate health care transforma-
tion, including mergers, consolidations, acquisitions, and restructuring
activities that are part of an overall transformation plan  intended  to
create  a financially sustainable system of care. In gathering data, the
commissioner shall at least examine:
  (i) the availability of qualified private partners;
  (ii) the fiscal viability of such partnerships;
  (iii) willingness of providers to participate;
  (iv) examples of such partnerships within the health care industry  in
general and the outcomes of such partnerships;
  (v) challenges with establishing such partnerships; and
  (vi)  for  the purposes of such a demonstration, the benefits to:  the
state; a municipality in which such  a  project  could  be  established;
quality  of care; and the long term sustainability of the state's health
care system.
  (b) The commissioner of health shall develop recommendations  for  the
state related to establishing such a demonstration and include them in a
report  to  be  issued  to  the governor, the temporary president of the
senate and the speaker of the assembly within  one  year  following  the
effective date of this act.
  S  8.  Section  2801-a of the public health law is amended by adding a
new subdivision 17 to read as follows:
  17. (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH A PILOT PROGRAM TO
ASSIST IN RESTRUCTURING HEALTH CARE DELIVERY  SYSTEMS  BY  ALLOWING  FOR
INCREASED  CAPITAL INVESTMENT. PURSUANT TO THE PILOT PROGRAM, THE PUBLIC
HEALTH AND HEALTH PLANNING COUNCIL SHALL APPROVE THE  ESTABLISHMENT,  IN
ACCORDANCE  WITH  THE  PROVISIONS OF PARAGRAPHS (F), (G) AND (H) OF THIS
SUBDIVISION AND SUBDIVISION THREE OF THIS SECTION, OF NO MORE  THAN  TEN

S. 6407--B                         89

BUSINESS  CORPORATIONS  FORMED  UNDER THE BUSINESS CORPORATION LAW. SUCH
BUSINESS CORPORATIONS SHALL AFFILIATE, THE EXTENT OF THE AFFILIATION  TO
BE  DETERMINED  BY  THE COMMISSIONER, WITH AT LEAST ONE ACADEMIC MEDICAL
INSTITUTION  OR  TEACHING HOSPITAL APPROVED BY THE COMMISSIONER. A BUSI-
NESS CORPORATION SHALL NOT BE ELIGIBLE TO PARTICIPATE IN THIS PROGRAM IF
ANY OF ITS STOCK, OR THAT OF ANY OF ITS DIRECT OR INDIRECT OWNERS, IS OR
WILL BE TRADED ON A PUBLIC STOCK  EXCHANGE  OR  ON  AN  OVER-THE-COUNTER
MARKET.
  (B)  NOTWITHSTANDING  ANY  PROVISION  OF LAW TO THE CONTRARY, BUSINESS
CORPORATIONS ESTABLISHED PURSUANT TO THIS SUBDIVISION  SHALL  BE  DEEMED
ELIGIBLE  TO  PARTICIPATE  IN  DEBT  FINANCING PROVIDED BY THE DORMITORY
AUTHORITY OF THE STATE OF NEW YORK, LOCAL DEVELOPMENT  CORPORATIONS  AND
ECONOMIC DEVELOPMENT CORPORATIONS.
  (C)  THE FOLLOWING PROVISIONS OF THIS CHAPTER SHALL NOT APPLY TO BUSI-
NESS CORPORATIONS ESTABLISHED PURSUANT TO THIS  SUBDIVISION:  (I)  PARA-
GRAPH  (B)  OF SUBDIVISION THREE OF THIS SECTION, RELATING TO STOCKHOLD-
ERS,  OTHER  THAN  PRINCIPAL  STOCKHOLDERS;  (II)   PARAGRAPH   (C)   OF
SUBDIVISION  FOUR  OF THIS SECTION, RELATING TO THE DISPOSITION OF STOCK
OR VOTING RIGHTS; (III) PARAGRAPHS (D) AND (E) OF  SUBDIVISION  FOUR  OF
THIS SECTION, RELATING TO THE OWNERSHIP OF STOCK; AND (IV) PARAGRAPH (A)
OF  SUBDIVISION  THREE  OF  SECTION  FOUR THOUSAND FOUR OF THIS CHAPTER,
RELATING TO THE OWNERSHIP OF STOCK. NOTWITHSTANDING THE  FOREGOING,  THE
PUBLIC  HEALTH AND HEALTH PLANNING COUNCIL MAY REQUIRE THE DISCLOSURE OF
THE IDENTITY OF STOCKHOLDERS.
  (D) THE CORPORATE POWERS AND PURPOSES OF A BUSINESS CORPORATION ESTAB-
LISHED AS AN OPERATOR PURSUANT TO THIS SUBDIVISION SHALL BE  LIMITED  TO
THE  OWNERSHIP  AND  OPERATION, OR OPERATION, OF A HOSPITAL OR HOSPITALS
SPECIFICALLY NAMED AND THE LOCATION OR LOCATIONS OF  WHICH  ARE  SPECIF-
ICALLY DESIGNATED BY STREET ADDRESS, CITY, TOWN, VILLAGE OR LOCALITY AND
COUNTY;  PROVIDED,  HOWEVER,  THAT THE CORPORATE POWERS AND PURPOSES MAY
ALSO INCLUDE THE OWNERSHIP AND OPERATION, OR OPERATION, OF  A  CERTIFIED
HOME  HEALTH AGENCY OR LICENSED HOME CARE SERVICES AGENCY OR AGENCIES AS
DEFINED IN ARTICLE THIRTY-SIX OF THIS CHAPTER OR A HOSPICE  OR  HOSPICES
AS  DEFINED  IN  ARTICLE  FORTY  OF THIS CHAPTER, IF THE CORPORATION HAS
RECEIVED ALL APPROVALS REQUIRED UNDER SUCH LAW TO OWN  AND  OPERATE,  OR
OPERATE,  SUCH  HOME  CARE  SERVICES  AGENCY  OR  AGENCIES OR HOSPICE OR
HOSPICES. SUCH CORPORATE POWERS AND  PURPOSES  SHALL  NOT  BE  MODIFIED,
AMENDED OR DELETED WITHOUT THE PRIOR APPROVAL OF THE COMMISSIONER.
  (E)(1)  IN  DISCHARGING  THE DUTIES OF THEIR RESPECTIVE POSITIONS, THE
BOARD OF DIRECTORS, COMMITTEES OF THE BOARD AND INDIVIDUAL DIRECTORS AND
OFFICERS OF A BUSINESS CORPORATION ESTABLISHED PURSUANT TO THIS SUBDIVI-
SION SHALL CONSIDER THE EFFECTS OF ANY ACTION UPON:
  (A) THE ABILITY OF THE BUSINESS CORPORATION TO ACCOMPLISH ITS PURPOSE;
  (B) THE SHAREHOLDERS OF THE BUSINESS CORPORATION;
  (C) THE EMPLOYEES AND WORKFORCE OF THE HOSPITAL OR HOSPITALS;
  (D) THE INTERESTS OF PATIENTS OF THE HOSPITAL OR HOSPITALS;
  (E) COMMUNITY AND SOCIETAL  CONSIDERATIONS,  INCLUDING  THOSE  OF  ANY
COMMUNITY  IN WHICH FACILITIES OF THE HOSPITAL OR HOSPITALS ARE LOCATED;
AND
  (F) THE SHORT-TERM AND LONG-TERM  INTERESTS  OF  THE  BUSINESS  CORPO-
RATION,  INCLUDING  BENEFITS THAT MAY ACCRUE TO THE BUSINESS CORPORATION
FROM ITS LONG-TERM PLANS.
  (2) THE CONSIDERATION OF INTERESTS AND FACTORS IN THE MANNER  REQUIRED
BY SUBPARAGRAPH ONE OF THIS PARAGRAPH:

S. 6407--B                         90

  (A)  SHALL  NOT  CONSTITUTE  A  VIOLATION OF THE PROVISIONS OF SECTION
SEVEN HUNDRED FIFTEEN OR SEVEN HUNDRED SEVENTEEN OF THE BUSINESS  CORPO-
RATION LAW; AND
  (B)  IS  IN ADDITION TO THE ABILITY OF DIRECTORS TO CONSIDER INTERESTS
AND FACTORS AS PROVIDED IN SECTION SEVEN HUNDRED SEVENTEEN OF THE  BUSI-
NESS CORPORATION LAW.
  (F)  WHILE  ANY  DECISION TO APPROVE A BUSINESS CORPORATION UNDER THIS
SECTION MUST WEIGH AND BALANCE  A  NUMBER  OF  FACTORS,  IN  DETERMINING
WHETHER TO APPROVE A BUSINESS CORPORATION UNDER THIS SECTION, THE PUBLIC
HEALTH AND HEALTH PLANNING COUNCIL, IN CONSULTATION WITH THE COMMISSION-
ER, SHALL CONSIDER THE EXTENT TO WHICH THE BUSINESS CORPORATION:
  (1)  PROVIDES  FOR  EITHER  EQUAL OR MAJORITY GOVERNANCE RIGHTS OF THE
NOT-FOR-PROFIT HOSPITAL PARTNER, REGARDLESS OF  EQUITY  STAKES,  THROUGH
WEIGHTED CLASS VOTING STRUCTURE OR OTHERWISE;
  (2) INCORPORATES A REPRESENTATIVE GOVERNANCE MODEL THAT:
  (A) CLEARLY DELINEATES AUTHORITY AND RESPONSIBILITY FOR THE HOSPITAL'S
OPERATIONS; AND
  (B)  DEFINES  MECHANISMS  FOR  APPROVAL  OF DESIGNATED SHAREHOLDERS OR
INVESTORS;
  (3) IS INCORPORATED AS A BENEFIT CORPORATION UNDER THE BUSINESS CORPO-
RATION LAW;
  (4) COMMITS TO MAINTAINING OR ENHANCING EXISTING LEVELS  OF  SERVICES,
CHARITY CARE AND CORE COMMUNITY BENEFITS;
  (5)  IDENTIFIES  AN  ACTIONABLE  STRATEGY  TO  MONITOR AND MAINTAIN OR
IMPROVE QUALITY OF CARE;
  (6) EXPLAINS THE LEVEL OF CAPITAL  COMMITMENT  AND  THE  MECHANISM  OR
MECHANISMS  FOR  INFUSING CAPITAL INTO THE NOT-FOR-PROFIT HOSPITAL PART-
NER;
  (7) EXPLAINS HOW IT WILL RETAIN THE WORKFORCE, EITHER IN EXISTING JOBS
OR THROUGH RETRAINING, AND ADDRESSES OBLIGATIONS OWED TO EMPLOYEE  BENE-
FIT PLANS AND PENSIONS;
  (8) WILL CREATE A FOUNDATION TO ADDRESS THE PUBLIC HEALTH NEEDS OF THE
COMMUNITY; AND
  (9)  IDENTIFIES  HOW  PROFIT  DISTRIBUTIONS  SHALL BE MADE IN A WAY TO
ENSURE THAT THE COMMUNITY'S ACCESS TO QUALITY CARE  AND  CORE  COMMUNITY
BENEFITS ARE NOT COMPROMISED AND ACCESS TO CAPITAL IS NOT COMPROMISED.
  NONE  OF THE FOREGOING FACTORS SHALL BE DISPOSITIVE IN THE APPROVAL OR
DISAPPROVAL OF THE BUSINESS CORPORATION.
  (G) NO BUSINESS CORPORATION SHALL BE APPROVED UNDER THIS SECTION  THAT
FAILS TO ATTEST THAT IT WILL PROVIDE THE NOT-FOR-PROFIT HOSPITAL PARTNER
WITH  THE  EXCLUSIVE  AUTHORITY  OVER  FUNCTIONS  RELATING TO ITS EXEMPT
STATUS.
  (H) THE BOARD OF  DIRECTORS  OF  A  BUSINESS  CORPORATION  ESTABLISHED
PURSUANT  TO THIS SUBDIVISION SHALL BE DEEMED A "GOVERNING BODY" FOR THE
PURPOSES OF SECTION TWENTY-EIGHT HUNDRED THREE-L  OF  THIS  ARTICLE  AND
SHALL  COMPLY  WITH  THE  PROVISIONS  OF SUCH SECTION, REGARDLESS OF THE
CORPORATION'S PROFIT-MAKING STATUS.
  (I) A SALE, LEASE, CONVEYANCE, EXCHANGE, TRANSFER, OR  OTHER  DISPOSI-
TION  OF  ALL  OR SUBSTANTIALLY ALL OF THE ASSETS OF THE BUSINESS CORPO-
RATION SHALL NOT BE EFFECTIVE UNLESS THE TRANSACTION IS APPROVED BY  THE
COMMISSIONER.
  NO SUCH TRANSACTION MAY OCCUR WITHIN THREE YEARS OF THE COMMISSIONER'S
APPROVAL  OF  THE  BUSINESS  CORPORATION'S  PARTICIPATION  IN THE DEMON-
STRATION PROJECT. IN APPROVING  SUCH  A  TRANSACTION,  THE  COMMISSIONER
SHALL CONSIDER, AMONG OTHER THINGS, WHETHER THE TRANSACTION:

S. 6407--B                         91

  (1) IMPOSES SAFEGUARDS TO PROTECT QUALITY AND ACCESS TO CORE COMMUNITY
SERVICES DURING THE TRANSITION TO THE NEW INVESTOR;
  (2)  REQUIRES  THE  SUBSEQUENT  INVESTOR TO GUARANTEE ALL OBLIGATIONS,
INCLUDING THOSE DESCRIBED IN SUBPARAGRAPH SEVEN OF PARAGRAPH (F) OF THIS
SUBDIVISION;
  (3) WILL MAINTAIN THE HOSPITAL GOVERNANCE STRUCTURE; AND
  (4) IMPOSES MINIMUM CAPITALIZATION CRITERIA POST-TRANSACTION.
  (J) NO LATER THAN THREE YEARS AFTER THE ESTABLISHMENT  OF  A  BUSINESS
CORPORATION  UNDER  THIS SUBDIVISION, THE COMMISSIONER SHALL PROVIDE THE
GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER  OF  THE
ASSEMBLY WITH A WRITTEN EVALUATION OF THE PILOT PROGRAM. SUCH EVALUATION
SHALL  ADDRESS  THE OVERALL EFFECTIVENESS OF THE PROGRAM IN ALLOWING FOR
ACCESS TO CAPITAL INVESTMENT AND THE IMPACT SUCH ACCESS MAY HAVE ON  THE
QUALITY  OF CARE PROVIDED BY HOSPITALS OPERATED BY BUSINESS CORPORATIONS
ESTABLISHED UNDER THIS SUBDIVISION.
  S 9. 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:
  SUCH BUSINESS CORPORATIONS AS ARE ESTABLISHED PURSUANT TO  SUBDIVISION
SEVENTEEN OF SECTION TWENTY-EIGHT HUNDRED ONE-A OF THE PUBLIC HEALTH LAW
FOR  THE  ACQUISITION,  CONSTRUCTION, RECONSTRUCTION, REHABILITATION AND
IMPROVEMENT, OR OTHERWISE  PROVIDING,  FURNISHING  AND  EQUIPPING  OF  A
HOSPITAL OR HOSPITALS.
  S  10.  Subdivision 1 of section 1680 of the public authorities law is
amended by adding a new undesignated paragraph to read as follows:
  SUCH BUSINESS CORPORATIONS AS ARE ESTABLISHED PURSUANT TO  SUBDIVISION
SEVENTEEN OF SECTION TWENTY-EIGHT HUNDRED ONE-A OF THE PUBLIC HEALTH LAW
FOR  THE  ACQUISITION,  CONSTRUCTION, RECONSTRUCTION, REHABILITATION AND
IMPROVEMENT, OR OTHERWISE  PROVIDING,  FURNISHING  AND  EQUIPPING  OF  A
HOSPITAL OR HOSPITALS.
  S  11.  Subdivision  5  of  section  2557  of the public health law is
REPEALED.
  S 12. The public health law is amended by adding a new section  2557-a
to read as follows:
  S  2557-A. COMPTROLLER; FISCAL AGENT. THE COMPTROLLER IS AUTHORIZED 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  COMPTROLLER  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.  IN THE EVENT THAT THE COMPTROLLER DOES NOT ACT AS THE
FISCAL AGENT, THE DEPARTMENT SHALL ACT AS THE FISCAL AGENT WITH  RESPECT
TO FISCAL MANAGEMENT AND PAYMENT OF EARLY INTERVENTION CLAIMS.
  S  13. Section 605 of the public health law is amended by adding a new
subdivision 4 to read as follows:
  4. UPON RECEIPT OF THE FINAL CLAIM FROM ALL MUNICIPALITIES,  OR  AFTER
JUNE  FIFTEENTH  IMMEDIATELY  FOLLOWING CONCLUSION OF THE STATE'S FISCAL
YEAR, THE COMMISSIONER SHALL  CALCULATE  THE  AMOUNTS  CLAIMED  BY  EACH
CLAIMANT  DURING  THE  ENTIRE  CALENDAR  YEAR  AND  SHALL DISTRIBUTE ANY
BALANCE REMAINING IN THE TOTAL ALLOCATED FOR PAYMENT OF  STATE  AID  FOR
PUBLIC  HEALTH  WORK IN PROPORTION TO THE RELATIONSHIP WHICH EACH CLAIM-
ANT'S TOTAL EXPENDITURES BEARS TO THE TOTAL  OF  ALL  CLAIMANTS,  EXCEPT

S. 6407--B                         92

THAT  NO  CLAIMANT  SHALL  RECEIVE  MORE THAN FIFTY PERCENT OF ITS TOTAL
REIMBURSABLE EXPENSE.
  S  14. Section 616 of the public health law is amended by adding a new
subdivision 3 to read as follows:
  3. ADMINISTRATIVE LIMITATIONS ON STATE AID IMPOSED BY  THE  DEPARTMENT
SHALL  NOT  BE IMPLEMENTED WITHOUT ONE YEAR OF ADVANCE NOTICE TO MUNICI-
PALITIES.
  S 15. Section 621 of the public health law, as amended by chapter  469
of the laws of 2012, is amended to read as follows:
  S 621. State aid; public health emergencies. If the state commissioner
or  a  county  health  department or part-county department of health or
municipality, with the approval of the  state  commissioner,  determines
that  there is an imminent threat to public health, the department shall
reimburse counties or municipalities at ONE HUNDRED PER CENTUM  FOR  THE
FIRST  YEAR'S  COST AND AT fifty per centum IN SUBSEQUENT YEARS THAT THE
EMERGENCY DECLARATION REMAINS IN FORCE for the cost of  emergency  meas-
ures  as  approved  by the department and subject to the approval of the
director of the budget[, except  that  aerial].    AERIAL  spraying  for
mosquitoes  on state land shall be reimbursed at one hundred per centum,
within amounts appropriated IN THE CURRENT OR  SUBSEQUENT  FISCAL  YEAR.
Such  funds  shall  be made available from funds appropriated for public
health emergencies, only to those counties or municipalities, which have
expended all other state aid which may be available for  related  activ-
ities  and  have developed measures to adequately address the emergency.
Reimbursement is conditioned upon availability of appropriated funds, IN
THE CURRENT OR SUBSEQUENT FISCAL YEAR.   For purposes of  this  section,
"municipality"  means  a health department of a city that is not located
in a county or part-county health district or  a  county  in  which  the
legislature  has  the powers and duties of a board of health of a county
or part-county health district and cities with a population of over  one
million persons.
  S  16. This act shall take effect immediately; provided, however, that
if this act becomes a law after March 27, 2016, section three  and  four
of this act shall be deemed to have been in full force and effect on and
after such date.

                                 PART W

  Section  1. The state comptroller is hereby authorized and directed to
loan money in accordance with the provisions set forth in subdivision  5
of  section  4  of  the  state finance law to the following funds and/or
accounts:
  1. Proprietary vocational school supervision account (20452).
  2. Local government records management account (20501).
  3. Child health plus program account (20810).
  4. EPIC premium account (20818).
  5. Education - New (20901).
  6. VLT - Sound basic education fund (20904).
  7.  Sewage  treatment  program  management  and  administration   fund
(21000).
  8. Hazardous bulk storage account (21061).
  9. Federal grants indirect cost recovery account (21065).
  10. Low level radioactive waste account (21066).
  11. Recreation account (21067).
  12. Public safety recovery account (21077).
  13. Environmental regulatory account (21081).

S. 6407--B                         93

  14. Natural resource account (21082).
  15. Mined land reclamation program account (21084).
  16. Great lakes restoration initiative account (21087).
  17. Environmental protection and oil spill compensation fund (21200).
  18. Public transportation systems account (21401).
  19. Metropolitan mass transportation (21402).
  20. Operating permit program account (21451).
  21. Mobile source account (21452).
  22.   Statewide  planning  and  research  cooperative  system  account
(21902).
  23. Mental hygiene program fund account (21907).
  24. Mental hygiene patient income account (21909).
  25. Financial control board account (21911).
  26. Regulation of racing account (21912).
  27. New York Metropolitan Transportation Council account (21913).
  28. State university dormitory income reimbursable account (21937).
  29. Criminal justice improvement account (21945).
  30. Environmental laboratory reference fee account (21959).
  31. Clinical laboratory reference system assessment account (21962).
  32. Indirect cost recovery account (21978).
  33. High school equivalency program account (21979).
  34. Multi-agency training account (21989).
  35.  Interstate  reciprocity  for  post-secondary  distance  education
account.
  36. Bell jar collection account (22003).
  37. Industry and utility service account (22004).
  38. Real property disposition account (22006).
  39. Parking account (22007).
  40. Asbestos safety training program account (22009).
  41. Batavia school for the blind account (22032).
  42. Investment services account (22034).
  43. Surplus property account (22036).
  44. Financial oversight account (22039).
  45. Regulation of Indian gaming account (22046).
  46. Rome school for the deaf account (22053).
  47. Seized assets account (22054).
  48. Administrative adjudication account (22055).
  49. Federal salary sharing account (22056).
  50. New York City assessment account (22062).
  51. Cultural education account (22063).
  52. Local services account (22078).
  53. DHCR mortgage servicing account (22085).
  54. Department of motor vehicles compulsory insurance account (22087).
  55. Housing indirect cost recovery account (22090).
  56. DHCR-HCA application fee account (22100).
  57. Low income housing monitoring account (22130).
  58. Corporation administration account (22135).
  59. Montrose veteran's home account (22144).
  60. Deferred compensation administration account (22151).
  61. Rent revenue other New York City account (22156).
  62. Rent revenue account (22158).
  63. Tax revenue arrearage account (22168).
  64. Highway use tax administration account.
  65. State university general income offset account (22654).
  66. Lake George park trust fund account (22751).
  67. State police motor vehicle law enforcement account (22802).

S. 6407--B                         94

  68. Highway safety program account (23001).
  69. EFC drinking water program account (23101).
  70. DOH drinking water program account (23102).
  71. NYCCC operating offset account (23151).
  72. Commercial gaming revenue account (23701).
  73. Commercial gaming regulation account (23702).
  74. Highway and bridge capital account (30051).
  75. State university residence hall rehabilitation fund (30100).
  76. State parks infrastructure account (30351).
  77. Clean water/clean air implementation fund (30500).
  78. Hazardous waste remedial cleanup account (31506).
  79. Youth facilities improvement account (31701).
  80. Housing assistance fund (31800).
  81. Housing program fund (31850).
  82. Highway facility purpose account (31951).
  83. Information technology capital financing account (32215).
  84. New York racing account (32213).
  85. Mental hygiene facilities capital improvement fund (32300).
  86. Correctional facilities capital improvement fund (32350).
  87. New York State Storm Recovery Capital Fund (33000).
  88. OGS convention center account (50318).
  89. Empire Plaza Gift Shop (50327)
  90. Centralized services fund (55000).
  91. Archives records management account (55052).
  92. Federal single audit account (55053).
  93. Civil service EHS occupational health program account (55056).
  94. Banking services account (55057).
  95. Cultural resources survey account (55058).
  96. Automation & printing chargeback account (55060).
  97. OFT NYT account (55061).
  98. Data center account (55062).
  99. Intrusion detection account (55066).
  100. Domestic violence grant account (55067).
  101. Centralized technology services account (55069).
  102. Labor contact center account (55071).
  103. Human services contact center account (55072).
  104. Tax contact center account (55073).
  105. Policing the NYS thruway account.
  106. Executive direction internal audit account (55251).
  107. CIO Information technology centralized services account (55252).
  108. Health insurance internal service account (55300).
  109.  Civil  service employee benefits division administrative account
(55301).
  110. Correctional industries revolving fund (55350).
  111. Employees health insurance account (60201).
  112. Medicaid management information system escrow fund (60900).
  S 1-a. The state comptroller is hereby authorized and directed to loan
money in accordance with the provisions set forth in  subdivision  5  of
section  4  of the state finance law to any account within the following
federal funds, provided the comptroller has made  a  determination  that
sufficient  federal grant award authority is available to reimburse such
loans:
  1. Federal USDA-food and nutrition services fund (25000).
  2. Federal health and human services fund (25100).
  3. Federal education fund (25200).
  4. Federal block grant fund (25250).

S. 6407--B                         95

  5. Federal miscellaneous operating grants fund (25300).
  6. Federal unemployment insurance administration fund (25900).
  7. Federal unemployment insurance occupational training fund (25950).
  8. Federal emergency employment act fund (26000).
  9. Federal capital projects fund (31350).
  S  2.  Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, on
or before March 31, 2017, and with respect to item 5 under the miscella-
neous category set forth in this section, up  to  and  after  March  31,
2017, up to the unencumbered balance or the following amounts:
  Economic Development and Public Authorities:
  1.  $175,000  from the miscellaneous special revenue fund, underground
facilities safety training account (22172), to the general fund.
  2. An amount up to the unencumbered  balance  from  the  miscellaneous
special  revenue  fund, business and licensing services account (21977),
to the general fund.
  3. $14,810,000 from  the  miscellaneous  special  revenue  fund,  code
enforcement account (21904), to the general fund.
  4.  $3,000,000  from  the  general  fund  to the miscellaneous special
revenue fund, tax revenue arrearage account (22168).
  Education:
  1. $2,320,000,000 from the general fund to  the  state  lottery  fund,
education  account (20901), as reimbursement for disbursements made from
such fund for supplemental aid to education pursuant to section 92-c  of
the  state  finance  law  that are in excess of the amounts deposited in
such fund for such purposes pursuant to section 1612 of the tax law.
  2. $986,000,000 from the general fund to the state lottery  fund,  VLT
education  account (20904), as reimbursement for disbursements made from
such fund for supplemental aid to education pursuant to section 92-c  of
the  state  finance  law  that are in excess of the amounts deposited in
such fund for such purposes pursuant to section 1612 of the tax law.
  3. Moneys from the state lottery fund up to  an  amount  deposited  in
such  fund  pursuant  to  section  1612  of the tax law in excess of the
current year appropriation for supplemental aid to education pursuant to
section 92-c of the state finance law.
  4. Up to $137,700,000 from the moneys deposited in  commercial  gaming
revenue  account  (23701)  to  the  general  fund  as  reimbursement for
disbursements made from the general fund for supplemental aid to  educa-
tion during the prior fiscal year due to the unencumbered balance of the
commercial  gaming  revenue  account  during the prior fiscal year being
less than required to fully fund payments of general support for  public
schools, pursuant to Chapter 61 of the laws of 2015.
  5.  $300,000  from the local government records management improvement
fund (20500) to the archives partnership trust fund (20350).
  6. $900,000 from the general fund to the miscellaneous special revenue
fund, Batavia school for the blind account (22032).
  7. $900,000 from the general fund to the miscellaneous special revenue
fund, Rome school for the deaf account (22053).
  8. $343,400,000  from  the  state  university  dormitory  income  fund
(40350)  to  the  miscellaneous  special  revenue fund, state university
dormitory income reimbursable account (21937).
  9. $24,000,000 from any of  the  state  education  department  special
revenue  and internal service funds to the miscellaneous special revenue
fund, indirect cost recovery account (21978).

S. 6407--B                         96

  10. $8,318,000 from the general fund to the  state  university  income
fund,  state  university  income offset account (22654), for the state's
share of repayment of the STIP loan.
  11. $40,000,000 from the state university income fund, state universi-
ty hospitals income reimbursable account (22656) to the general fund for
hospital  debt  service  for  the period April 1, 2015 through March 31,
2016.
  12. An amount up to $14,251,000 from the general  fund  to  the  state
university   income  fund,  state  university  general  revenue  account
(22653).
  Environmental Affairs:
  1. $16,000,000 from any of the department of  environmental  conserva-
tion's  special  revenue federal funds to the environmental conservation
special revenue fund, federal indirect recovery account (21065).
  2. $2,000,000 from any of the department  of  environmental  conserva-
tion's  special revenue federal funds to the conservation fund as neces-
sary to avoid diversion of conservation funds.
  3. $3,000,000 from any of the office of parks, recreation and historic
preservation capital projects federal funds and special revenue  federal
funds  to the miscellaneous special revenue fund, federal grant indirect
cost recovery account (22188).
  4. $1,000,000 from any of the office of parks, recreation and historic
preservation special revenue federal funds to the miscellaneous  special
revenue fund, I love NY water account (21930).
  5.  $146,000,000 from the general fund to the environmental protection
fund, environmental protection fund transfer account (30451).
  6. $9,700,000 from the general fund to the  hazardous  waste  remedial
fund, hazardous waste oversight and assistance account (31505).
  Family Assistance:
  1. $10,000,000 from any of the office of children and family services,
office  of  temporary and disability assistance, or department of health
special revenue federal funds and the general fund, in  accordance  with
agreements  with social services districts, to the miscellaneous special
revenue fund, office of human resources development state match  account
(21967).
  2.  $4,000,000  from any of the office of children and family services
or office of temporary and disability assistance special revenue federal
funds to the miscellaneous special revenue fund, family preservation and
support services and family violence services account (22082).
  3. $18,670,000 from any of the office of children and family services,
office of temporary and disability assistance, or department  of  health
special  revenue  federal  funds  and  any  other miscellaneous revenues
generated from the operation of office of children and  family  services
programs to the general fund.
  4.  $140,000,000  from  any  of the office of temporary and disability
assistance or department of health special revenue funds to the  general
fund.
  5.  $2,500,000  from  any  of  the  office of temporary and disability
assistance special revenue federal funds to  the  miscellaneous  special
revenue  fund,  office  of  temporary  and disability assistance program
account (21980).
  6. $21,000,000 from any of the office of children and family services,
office of temporary and disability assistance, department of labor,  and
department  of  health  special  revenue  federal funds to the office of
children and family services miscellaneous special revenue fund,  multi-
agency training contract account (21989).

S. 6407--B                         97

  7.  $65,000,000  from  the  miscellaneous  special revenue fund, youth
facility per diem account (22186), to the general fund.
  8.  $621,850  from the general fund to the combined gifts, grants, and
bequests fund, WB Hoyt Memorial account (20128).
  9. $3,100,000 from  the  miscellaneous  special  revenue  fund,  state
central registry (22028), to the general fund.
  10.  $1,000,000  from  the  general  fund  to the housing program fund
(31850).
  General Government:
  1. $1,566,000 from the miscellaneous special revenue fund, examination
and miscellaneous revenue account (22065) to the general fund.
  2. $12,500,000 from the general fund to the health insurance revolving
fund (55300).
  3. $192,400,000  from  the  health  insurance  reserve  receipts  fund
(60550) to the general fund.
  4. $150,000 from the general fund to the not-for-profit revolving loan
fund (20650).
  5. $150,000 from the not-for-profit revolving loan fund (20650) to the
general fund.
  6.  $3,000,000  from  the  miscellaneous special revenue fund, surplus
property account (22036), to the general fund.
  7. $19,000,000 from the miscellaneous special  revenue  fund,  revenue
arrearage account (22024), to the general fund.
  8.  $1,826,000  from  the  miscellaneous special revenue fund, revenue
arrearage account (22024), to the miscellaneous  special  revenue  fund,
authority budget office account (22138).
  9.  $1,000,000  from  the  miscellaneous special revenue fund, parking
services account (22007), to the general fund, for the purpose of  reim-
bursing the costs of debt service related to state parking facilities.
  10.  $21,789,000  from  the  general  fund to the centralized services
fund, COPS account (55013).
  11. $2,360,000 from the general fund to the agencies internal  service
fund,  central  technology  services account (55069), for the purpose of
enterprise technology projects.
  12. $15,000,000 from the miscellaneous special revenue fund,  workers'
compensation  account  (21995),  to  the  miscellaneous capital projects
fund, workers' compensation board IT business process design fund.
  Health:
  1. $33,710,000 from the miscellaneous special revenue fund, quality of
care account (21915), to the general fund.
  2. A transfer from the general fund to the combined gifts, grants  and
bequests  fund, breast cancer research and education account (20155), up
to an amount equal to the  monies  collected  and  deposited  into  that
account in the previous fiscal year.
  3.  A transfer from the general fund to the combined gifts, grants and
bequests  fund,  prostate  cancer  research,  detection,  and  education
account  (20183),  up  to  an  amount  equal to the moneys collected and
deposited into that account in the previous fiscal year.
  4. A transfer from the general fund to the combined gifts, grants  and
bequests  fund,  Alzheimer's  disease  research  and  assistance account
(20143), up to an amount equal to the  moneys  collected  and  deposited
into that account in the previous fiscal year.
  5.  $30,295,000  from the HCRA resources fund (20800) to the miscella-
neous special revenue fund, empire state stem cell  trust  fund  account
(22161).

S. 6407--B                         98

  6. $7,000,000 from the miscellaneous special revenue fund, certificate
of  need  account  (21920),  to the miscellaneous capital projects fund,
healthcare IT capital subfund (32216).
  7.  $1,000,000  from  the miscellaneous special revenue fund, adminis-
tration program account (21982), to the miscellaneous  capital  projects
fund, healthcare IT capital account (32216).
  8.  $1,000,000  from  the  miscellaneous  special  revenue fund, vital
records account (22103), to the  miscellaneous  capital  projects  fund,
healthcare IT capital account (32216).
  9.  $55,500,000  from  the  HCRA resources fund (20800) to the capital
projects fund (30000).
  10. $3,700,000 from the miscellaneous  New  York  state  agency  fund,
medical assistance account to the general fund.
  11.  $4,886,000  from  the general fund to the medical marihuana trust
fund, health operation and oversight account (23755).
  12. $1,086,000 from the miscellaneous special  revenue  fund,  certif-
icate of need account (21920), to the general fund.
  13.  $1,000,000  from  the miscellaneous special revenue fund, profes-
sional medical conduct account (22088),  to  the  miscellaneous  capital
projects fund, healthcare IT capital account (32216).
  Labor:
  1.  $400,000  from the miscellaneous special revenue fund, DOL fee and
penalty account (21923), to the child performer's protection fund, child
performer protection account (20401).
  2. $8,400,000 from the miscellaneous special revenue fund, DOL fee and
penalty account (21923), to the general fund.
  3. $3,300,000 from the unemployment  insurance  interest  and  penalty
fund,  unemployment  insurance  special  interest  and  penalty  account
(23601), to the general fund.
  Mental Hygiene:
  1. $10,000,000 from the miscellaneous  special  revenue  fund,  mental
hygiene  patient  income  account  (21909), to the miscellaneous special
revenue fund, federal salary sharing account (22056).
  2. $1,936,681,000 from the general fund to the  miscellaneous  special
revenue fund, mental hygiene patient income account (21909).
  3.  $1,563,769,000  from the general fund to the miscellaneous special
revenue fund, mental hygiene program fund account (21907).
  4. $100,000,000 from the miscellaneous special  revenue  fund,  mental
hygiene program fund account (21907), to the general fund.
  5.  $100,000,000  from  the miscellaneous special revenue fund, mental
hygiene patient income account (21909), to the general fund.
  6. $5,000,000 from the chemical  dependence  service  fund,  substance
abuse  services  fund  account  (22700),  to  the  miscellaneous capital
projects fund, chemical dependence service capital account.
  Public Protection:
  1. $1,350,000 from the miscellaneous special revenue  fund,  emergency
management account (21944), to the general fund.
  2.  $3,300,000  from  the  general  fund  to the miscellaneous special
revenue fund, recruitment incentive account (22171).
  3. $10,500,000 from the general fund to  the  correctional  industries
revolving   fund,   correctional  industries  internal  service  account
(55350).
  4. $3,000,000 from the federal miscellaneous  operating  grants  fund,
DMNA damage account (25324), to the general fund.
  5.  $6,300,000  from  the  general  fund  to the miscellaneous special
revenue fund, crimes against revenue program account (22015).

S. 6407--B                         99

  6. $8,600,000 from the miscellaneous special  revenue  fund,  criminal
justice improvement account (21945), to the general fund.
  7.  $106,000,000  from  the state police motor vehicle law enforcement
and motor vehicle theft  and  insurance  fraud  prevention  fund,  state
police  motor  vehicle  enforcement account (22802), to the general fund
for state operation expenses of the division of state police.
  8. $53,500,000 from the general fund to  the  correctional  facilities
capital improvement fund (32350).
  9.  $5,000,000  from  the  general  fund  to the dedicated highway and
bridge trust fund (30050) for the purpose of work zone safety activities
provided by the division of state police for the department of transpor-
tation.
  10. $10,000,000 from the miscellaneous special revenue fund, statewide
public safety communications account (22123), to  the  capital  projects
fund (30000).
  11.  $2,900,000  from  the  miscellaneous  special revenue fund, legal
services assistance account (22096), to the general fund.
  12. $300,000 from the state police motor vehicle law  enforcement  and
motor  vehicle  theft and insurance fraud prevention fund, motor vehicle
theft and insurance fraud account (22801), to the general fund.
  13. $1,000,000 from the general fund to the agencies internal  service
fund, center for employment opportunities NWP account.
  Transportation:
  1. $17,672,000 from the federal miscellaneous operating grants fund to
the  miscellaneous special revenue fund, New York Metropolitan Transpor-
tation Council account (21913).
  2. $20,147,000 from the federal capital projects fund to the miscella-
neous special revenue fund, New York Metropolitan Transportation Council
account (21913).
  3. $1,240,000 from the miscellaneous special revenue fund,  compulsory
insurance  account  (22087),  to  the dedicated highway and bridge trust
fund (30050).
  4. $15,046,384 from the general fund to the mass transportation  oper-
ating  assistance  fund, public transportation systems operating assist-
ance account (21401), of which $12,000,000 constitutes the base need for
operations.
  5. $810,000,000 from the general fund to  the  dedicated  highway  and
bridge trust fund (30050).
  6.  $936,000  from  the  miscellaneous  special revenue fund, accident
prevention course program account (22094), to the dedicated highway  and
bridge trust fund (30050).
  7.  $1,234,000 from the miscellaneous special revenue fund, motorcycle
safety account (21976), to the dedicated highway and bridge  trust  fund
(30050).
  8.  $309,250,000 from the general fund to the MTA financial assistance
fund, mobility tax trust account (23651).
  9. $5,000,000 from the miscellaneous special revenue fund, transporta-
tion regulation account (22067) to  the  dedicated  highway  and  bridge
trust  fund  (30050),  for  disbursements  made from such fund for motor
carrier safety that are in excess of the amounts deposited in the  dedi-
cated highway and bridge trust fund (30050) for such purpose pursuant to
section 94 of the transportation law.
  10. $34,000 from the miscellaneous special revenue fund, seized assets
account (21906), to the dedicated highway and bridge trust fund (30050).
  Miscellaneous:

S. 6407--B                         100

  1. $250,000,000 from the general fund to any funds or accounts for the
purpose of reimbursing certain outstanding accounts receivable balances.
  2.  $500,000,000  from  the general fund to the debt reduction reserve
fund (40000).
  3. $450,000,000 from the New York state storm  recovery  capital  fund
(33000) to the revenue bond tax fund (40152).
  4.  $15,500,000  from  the general fund, community projects account GG
(10256), to the general fund, state purposes account (10050).
  5. $1,820,000,000 from the general fund to the  dedicated  infrastruc-
ture investment fund.
  S  3.  Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, on or before March 31, 2017:
  1. Upon request of the commissioner of environmental conservation,  up
to  $11,410,000 from revenues credited to any of the department of envi-
ronmental conservation special revenue funds, including $3,293,400  from
the  environmental  protection  and oil spill compensation fund (21200),
and $1,783,600 from the conservation fund (21150), to the  environmental
conservation special revenue fund, indirect charges account (21060).
  2.  Upon request of the commissioner of agriculture and markets, up to
$3,000,000 from any special revenue fund or enterprise fund  within  the
department of agriculture and markets to the general fund, to pay appro-
priate administrative expenses.
  3.  Upon request of the commissioner of agriculture and markets, up to
$2,000,000 from the state exposition special fund, state  fair  receipts
account  (50051)  to the miscellaneous capital projects fund, state fair
capital improvement account (32208).
  4. Upon request of the commissioner of the  division  of  housing  and
community  renewal, up to $6,221,000 from revenues credited to any divi-
sion of housing and community renewal federal or  miscellaneous  special
revenue fund to the miscellaneous special revenue fund, housing indirect
cost recovery account (22090).
  5.  Upon  request  of  the commissioner of the division of housing and
community renewal, up to $5,500,000 may be transferred from any  miscel-
laneous  special  revenue  fund  account,  to  any miscellaneous special
revenue fund.
  6. Upon request of the commissioner of health up  to  $5,000,000  from
revenues  credited  to any of the department of health's special revenue
funds, to the miscellaneous special revenue fund, administration account
(21982).
  S 4. On or before March 31, 2017, the comptroller is hereby authorized
and directed to deposit earnings that  would  otherwise  accrue  to  the
general  fund  that are attributable to the operation of section 98-a of
the state finance law, to the agencies internal  service  fund,  banking
services  account  (55057),  for  the purpose of meeting direct payments
from such account.
  S 5. Notwithstanding any law to the contrary, upon  the  direction  of
the  director of the budget and upon requisition by the state university
of New York, the dormitory  authority  of  the  state  of  New  York  is
directed  to  transfer, up to $22,000,000 in revenues generated from the
sale of notes or  bonds,  to  the  state  university  of  New  York  for
reimbursement  of bondable equipment for further transfer to the state's
general fund.
  S 6. Notwithstanding any law to the contrary, and in  accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget and

S. 6407--B                         101

upon  consultation  with  the  state university chancellor or his or her
designee, on or before March 31, 2017, up to $16,000,000 from the  state
university  income  fund  general  revenue  account (22653) to the state
general  fund for debt service costs related to campus supported capital
project costs for the  NY-SUNY  2020  challenge  grant  program  at  the
University at Buffalo.
  S  7.  Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget and
upon consultation with the state university chancellor  or  his  or  her
designee,  on  or before March 31, 2017, up to $6,500,000 from the state
university income fund general revenue  account  (22653)  to  the  state
general  fund for debt service costs related to campus supported capital
project costs for the  NY-SUNY  2020  challenge  grant  program  at  the
University at Albany.
  S  8.  Notwithstanding  any  law to the contrary, the state university
chancellor or his or her designee is authorized and directed to transfer
estimated tuition revenue balances from the state university  collection
fund  (61000)  to  the  state  university  income fund, state university
general revenue offset account (22655) on or before March 31, 2017.
  S 9. Notwithstanding any law to the contrary, and in  accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, up
to  $87,764,000  from  the  general  fund to the state university income
fund, state university hospitals  income  reimbursable  account  (22656)
during  the period July 1, 2016 through June 30, 2017 to reflect ongoing
state subsidy of SUNY hospitals and to pay  costs  attributable  to  the
SUNY hospitals' state agency status.
  S  10. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, up
to $1,059,428,300 from the general fund to the state  university  income
fund, state university general revenue offset account (22655) during the
period  of  July  1, 2016 through June 30, 2017 to support operations at
the state university.
  S 11. Notwithstanding any law to the contrary, and in accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and  directed to transfer, upon request of the state university chancel-
lor or his or her designee, up to $55,000,000 from the state  university
income  fund,  state  university  hospitals  income reimbursable account
(22656), for services and expenses of hospital  operations  and  capital
expenditures at the state university hospitals; and the state university
income  fund,  Long  Island  veterans' home account (22652) to the state
university capital projects fund (32400) on or before June 30, 2017.
  S 12. Notwithstanding any law to the contrary, and in accordance  with
section  4 of the state finance law, the comptroller, after consultation
with the state university chancellor or his or her designee,  is  hereby
authorized  and directed to transfer moneys, in the first instance, from
the state university collection fund, Stony  Brook  hospital  collection
account (61006), Brooklyn hospital collection account (61007), and Syra-
cuse  hospital collection account (61008) to the state university income
fund, state university hospitals income reimbursable account (22656)  in
the  event  insufficient  funds  are  available  in the state university
income fund, state  university  hospitals  income  reimbursable  account
(22656)  to  permit the full transfer of moneys authorized for transfer,
to the general fund for payment of debt  service  related  to  the  SUNY

S. 6407--B                         102

hospitals.  Notwithstanding  any law to the contrary, the comptroller is
also hereby authorized and directed, after consultation with  the  state
university  chancellor  or  his or her designee, to transfer moneys from
the  state  university  income fund to the state university income fund,
state university hospitals income reimbursable account  (22656)  in  the
event  insufficient  funds  are available in the state university income
fund, state university hospitals income reimbursable account (22656)  to
pay  hospital  operating  costs or to permit the full transfer of moneys
authorized for transfer, to the general fund for payment of debt service
related to the SUNY hospitals on or before March 31, 2017.
  S 13. Notwithstanding any law to the contrary, upon the  direction  of
the director of the budget and the chancellor of the state university of
New York or his or her designee, and in accordance with section 4 of the
state  finance law, the comptroller is hereby authorized and directed to
transfer monies from the state university dormitory income fund  (40350)
to  the state university residence hall rehabilitation fund (30100), and
from the state university residence hall rehabilitation fund (30100)  to
the  state university dormitory income fund (40350), in a net amount not
to exceed $80 million.
  S 14. Notwithstanding any law to the contrary, and in accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and  directed  to  transfer  monies, upon request of the director of the
budget, on or before March 31, 2017, from and to any  of  the  following
accounts: the miscellaneous special revenue fund, patient income account
(21909),  the miscellaneous special revenue fund, mental hygiene program
fund account (21907), the miscellaneous special  revenue  fund,  federal
salary  sharing account (22056), or the general fund in any combination,
the aggregate of which shall not exceed $350 million.
  S 15. Notwithstanding any law to the contrary, and in accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and  directed to transfer, at the request of the director of the budget,
up to $750 million from the unencumbered balance of any special  revenue
fund  or  account,  agency  fund  or  account,  internal service fund or
account, enterprise fund or account, or any combination  of  such  funds
and  accounts,  to the general fund. The amounts transferred pursuant to
this authorization shall be in addition to any other transfers expressly
authorized in the 2016-17 budget. Transfers  from  federal  funds,  debt
service  funds,  capital projects funds, the community projects fund, or
funds that would result in the loss of eligibility for federal  benefits
or federal funds pursuant to federal law, rule, or regulation as assent-
ed  to in chapter 683 of the laws of 1938 and chapter 700 of the laws of
1951 are not permitted pursuant to this authorization.
  S 16. Notwithstanding any law to the contrary, and in accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and  directed to transfer, at the request of the director of the budget,
up to $100 million from any non-general fund or account, or  combination
of  funds and accounts, to the miscellaneous special revenue fund, tech-
nology financing account (22207) or the miscellaneous  capital  projects
fund,  information technology capital financing account (32215), for the
purpose  of  consolidating  technology  procurement  and  services.  The
amounts transferred to the miscellaneous special revenue fund, technolo-
gy  financing  account  (22207)  pursuant to this authorization shall be
equal to or less than the amount of  such  monies  intended  to  support
information  technology  costs  which  are  attributable, according to a
plan, to such account made in pursuance  to  an  appropriation  by  law.
Transfers  to  the  technology financing account shall be completed from

S. 6407--B                         103

amounts collected by non-general funds or accounts pursuant  to  a  fund
deposit  schedule  or permanent statute, and shall be transferred to the
technology financing account pursuant to a schedule agreed upon  by  the
affected  agency commissioner. Transfers from funds that would result in
the loss of eligibility for federal benefits or federal  funds  pursuant
to federal law, rule, or regulation as assented to in chapter 683 of the
laws  of  1938  and  chapter  700  of the laws of 1951 are not permitted
pursuant to this authorization.
  S 16-a. Notwithstanding any law to the  contrary,  and  in  accordance
with  section  4  of  the  state  finance law, the comptroller is hereby
authorized and directed to transfer, at the request of the  director  of
the budget, up to 27 million dollars ($27,000,000) from the unencumbered
balance  of any special revenue fund or account, or combination of funds
and accounts, to the community projects fund.  The  amounts  transferred
pursuant  to this authorization shall be in addition to any other trans-
fers expressly authorized in the 2014-15 budget. Transfers from  federal
funds,  debt services funds, capital projects funds, or funds that would
result in the loss of eligibility for federal benefits or federal  funds
pursuant  to  federal law, rule, or regulation as assented to in chapter
683 of the laws of 1938 and chapter 700 of the  laws  of  1951  are  not
permitted  pursuant  to  this  authorization. The director of the budget
shall (a) have received a request in writing from one or both houses  of
the  legislature, and (b) notify both houses of the legislature in writ-
ing prior to initiating transfers pursuant to this authorization.    The
comptroller  shall  provide the director of the budget, the chair of the
senate finance committee, and the chair of the assembly ways  and  means
committee  with  an accurate accounting and report of any transfers that
occur pursuant to this section on or before the  fifteenth  day  of  the
following month in which such transfers occur.
  S  17. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, at the request of the director of the  budget,
up  to $350 million from any non-general fund or account, or combination
of funds and accounts, to the general fund for the  purpose  of  consol-
idating  technology  procurement  and  services. The amounts transferred
pursuant to this authorization shall be equal to or less than the amount
of such monies intended to support information  technology  costs  which
are attributable, according to a plan, to such account made in pursuance
to  an  appropriation  by  law.  Transfers  to the general fund shall be
completed from amounts collected by non-general funds or accounts pursu-
ant to a fund deposit schedule.  Transfers from funds that would  result
in  the loss of eligibility for federal benefits or federal funds pursu-
ant to federal law, rule, or regulation as assented to in chapter 683 of
the laws of 1938 and chapter 700 of the laws of 1951 are  not  permitted
pursuant to this authorization.
  S  18. Notwithstanding any provision of law to the contrary, as deemed
feasible and advisable by its trustees, the power authority of the state
of New York is authorized and directed to transfer to the state treasury
to the credit of the general fund $90,000,000 for the state fiscal  year
commencing  April  1,  2016,  the  proceeds of which will be utilized to
support energy-related state activities.
  S 19. Notwithstanding any provision of law, rule or regulation to  the
contrary,  the  New York State energy research and development authority
is authorized and directed to make a contribution to the state  treasury
to  the  credit  of  the  general fund in the amount of $23,000,000 from
proceeds collected by the authority from the auction or sale  of  carbon

S. 6407--B                         104

dioxide emission allowances allocated by the department of environmental
conservation on or before March 31, 2017.
  S  20. Notwithstanding any provision of law, rule or regulation to the
contrary, the New York state energy research and  development  authority
is  authorized  and  directed to transfer to the state university income
fund general revenue  account  (22653),  in  an  amount  not  to  exceed
$15,000,000  for the state fiscal year commencing April 1, 2016 from the
proceeds collected by the authority from the auction or sale  of  carbon
dioxide emission allowances allocated by the department of environmental
conservation, which amount shall be utilized to support the Clean Energy
Workforce Opportunity Program, to expand and develop clean energy educa-
tion  and  workforce  training  programs;  provided  further, that up to
$5,000,000 of such amount shall be available  to  support  Clean  Energy
Workforce  Opportunity  Program  initiatives  at state university of New
York community colleges.
  S 21. Subdivision 5 of section 97-rrr of the  state  finance  law,  as
amended  by  section  21 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
  5. Notwithstanding the provisions of section one hundred seventy-one-a
of the tax law, as separately amended by chapters four  hundred  eighty-
one  and four hundred eighty-four of the laws of nineteen hundred eight-
y-one, and notwithstanding the provisions of chapter ninety-four of  the
laws  of  two  thousand  eleven,  or  any other provisions of law to the
contrary, during the fiscal year beginning  April  first,  two  thousand
[fifteen]  SIXTEEN,  the  state  comptroller  is  hereby  authorized and
directed to deposit to the fund created pursuant to  this  section  from
amounts  collected  pursuant  to  article  twenty-two of the tax law and
pursuant to a schedule submitted by the director of the  budget,  up  to
[$3,382,279,000] $3,381,844,000, as may be certified in such schedule as
necessary  to  meet the purposes of such fund for the fiscal year begin-
ning April first, two thousand [fifteen] SIXTEEN.
  S 22. Intentionally Omitted.
  S 23. The opening paragraph of section 2 and section 47 of part  I  of
chapter  60  of  the  laws  of 2015, providing for the administration of
certain funds and accounts related to the 2015-16 budget, are amended to
read as follows:
  Notwithstanding any law  to  the  contrary,  and  in  accordance  with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, on
or before March 31, 2016, AND WITH RESPECT TO ITEM 5 UNDER THE MISCELLA-
NEOUS  CATEGORY  SET  FORTH  IN  THIS SECTION, UP TO AND AFTER MARCH 31,
2016, up to the unencumbered balance or the following amounts:
  S 47. This act shall take effect immediately and shall  be  deemed  to
have been in full force and effect on and after April 1, 2015; provided,
however,  [that] WITH THE EXCEPTION OF ITEM 5 OF THE MISCELLANEOUS CATE-
GORY SET FORTH WITHIN  SECTION  TWO  OF  THIS  ACT,  the  provisions  of
sections  one through eight and sections thirteen through twenty of this
act shall expire March 31, 2016, when upon such date the  provisions  of
such sections shall be deemed repealed.
  S  24. Subdivision 6 of section 4 of the state finance law, as amended
by section 22 of part I of chapter 55 of the laws of 2014, is amended to
read as follows:
  6. Notwithstanding any law to the contrary, at the  beginning  of  the
state  fiscal  year,  the  state  comptroller  is  hereby authorized and
directed to receive for deposit to  the  credit  of  a  fund  and/or  an
account  such  monies as are identified by the director of the budget as

S. 6407--B                         105

having been intended for such deposit to support disbursements from such
fund and/or account made in pursuance of an  appropriation  by  law.  As
soon  as  practicable  upon enactment of the budget, the director of the
budget  shall,  but  not  less  than  three  days  following preliminary
submission to the chairs of the senate finance committee and the  assem-
bly  ways  and means committee, file with the state comptroller an iden-
tification of specific monies to be so deposited. Any subsequent  change
regarding  the  monies to be so deposited shall be filed by the director
of the budget, as soon as practicable, but  not  less  than  three  days
following  preliminary  submission  to  the chairs of the senate finance
committee and the assembly ways and means committee.
  All monies identified by the director of the budget to be deposited to
the credit of a fund and/or account shall be consistent with the  intent
of  the  budget for the then current state fiscal year as enacted by the
legislature.
  [The provisions of this subdivision  shall  expire  on  March  thirty-
first, two thousand sixteen.]
  S 25. Subdivision 4 of section 40 of the state finance law, as amended
by section 23 of part I of chapter 55 of the laws of 2014, is amended to
read as follows:
  4.  Every appropriation made from a fund or account to a department or
agency shall be available for the payment of prior years' liabilities in
such fund or account for fringe benefits, indirect costs, and telecommu-
nications expenses and expenses  for  other  centralized  services  fund
programs  without limit. Every appropriation shall also be available for
the payment of prior  years'  liabilities  other  than  those  indicated
above,  but  only  to the extent of one-half of one percent of the total
amount appropriated to a department or agency in such fund or account.
  [The provisions of this subdivision shall expire  March  thirty-first,
two thousand sixteen.]
  S  26.  Subparagraph  (i) of paragraph (a) of subdivision 3 of section
92-cc of the state finance law, as added by chapter 1  of  the  laws  of
2007, is amended to read as follows:
  (i)  Economic  downturn. The commissioner of labor shall calculate and
publish, on or before the fifteenth day of each month, a composite index
of business cycle indicators.  Such  index  shall  be  calculated  using
monthly  data on New York state PRIVATE SECTOR employment, [total] AVER-
AGE WEEKLY HOURS OF manufacturing [hours worked] WORKERS, and THE  unem-
ployment RATE prepared by the department of labor or its successor agen-
cy,  and  total  sales  tax  [collected  net of law changes] COLLECTIONS
ADJUSTED FOR INFLATION, prepared  by  the  department  of  taxation  and
finance  or  its  successor  agency. Such index shall be [constructed in
accordance with the procedures for calculating composite indexes  issued
by the conference board or its successor organization, and] adjusted for
seasonal  variations  in  accordance  with  the procedures issued by the
[census bureau of the] United States  [department  of  commerce]  CENSUS
BUREAU or its successor agency. If the composite index declines for five
consecutive months, the commissioner of labor shall notify the governor,
the  speaker of the assembly, the temporary president of the senate, and
the minority leaders of the assembly and the senate. Upon such notifica-
tion, the director of the budget may  authorize  and  direct  the  comp-
troller  to transfer from the rainy day reserve fund to the general fund
such amounts as the director of the budget deems necessary to  meet  the
requirements  of  the  state  financial  plan. The authority to transfer
funds under the provisions of this  subdivision  shall  lapse  when  the
composite  index  shall  have  increased  for five consecutive months or

S. 6407--B                         106

twelve months from the original  notification  of  the  commissioner  of
labor, whichever occurs earlier. Provided, however, that for every addi-
tional and consecutive monthly decline succeeding the five month decline
so noted by the commissioner of labor, the twelve month lapse date shall
be extended by one additional month; or
  S  27.  Paragraph  (a)  of  subdivision 3 of section 93-b of the state
finance law, as added by section 1 of part H of chapter 60 of  the  laws
of 2015, is amended to read as follows:
  (a)  Economic  downturn.  Notwithstanding any law to the contrary, for
the purpose of this section, the commissioner of labor  shall  calculate
and  publish,  on or before the fifteenth day of each month, a composite
index of business cycle indicators. Such index shall be calculated using
monthly data on New York state PRIVATE SECTOR employment, [total]  AVER-
AGE  WEEKLY HOURS OF manufacturing [hours worked] WORKERS, and THE unem-
ployment RATE prepared by the department of labor or its successor agen-
cy, and total sales tax  [collected  net  of  law  changes]  COLLECTIONS
ADJUSTED  FOR  INFLATION,  prepared  by  the  department of taxation and
finance or its successor agency. Such index  shall  be  [constructed  in
accordance  with the procedures for calculating composite indexes issued
by the conference board or its successor organization, and] adjusted for
seasonal variations in accordance with  the  procedures  issued  by  the
[census  bureau  of  the]  United States [department of commerce] CENSUS
BUREAU or its successor agency. If the composite index declines for five
consecutive months, the commissioner of labor shall notify the governor,
the speaker of the assembly, the temporary president of the senate,  and
the minority leaders of the assembly and the senate. Upon such notifica-
tion,  the  director  of  the  budget may authorize and direct the comp-
troller to transfer from the dedicated infrastructure investment fund to
the general fund such amounts as the director of the budget deems neces-
sary to meet the requirements of the state financial plan. The authority
to transfer funds under the provisions of  this  paragraph  shall  lapse
when  the  composite  index  shall  have  increased for five consecutive
months or twelve months from the original notification  of  the  commis-
sioner  of  labor, whichever occurs earlier. Provided, however, that for
every additional and consecutive monthly  decline  succeeding  the  five
month  decline  so  noted by the commissioner of labor, the twelve month
lapse date shall be extended by one additional month.
  S 28. Notwithstanding any  other  law,  rule,  or  regulation  to  the
contrary, the state comptroller is hereby authorized and directed to use
any  balance  remaining  in the mental health services fund debt service
appropriation, after payment by the state comptroller of all obligations
required pursuant to any lease, sublease, or other financing arrangement
between the dormitory authority of the state of New York as successor to
the New York state medical  care  facilities  finance  agency,  and  the
facilities development corporation pursuant to chapter 83 of the laws of
1995  and  the  department  of  mental hygiene for the purpose of making
payments to the dormitory authority of the state of  New  York  for  the
amount  of  the  earnings  for the investment of monies deposited in the
mental health services fund that such agency determines will or may have
to be rebated to the federal government pursuant to  the  provisions  of
the  internal  revenue code of 1986, as amended, in order to enable such
agency to maintain the exemption from federal  income  taxation  on  the
interest paid to the holders of such agency's mental services facilities
improvement  revenue  bonds.  Annually on or before each June 30th, such
agency shall certify to the state comptroller its determination  of  the
amounts  received  in the mental health services fund as a result of the

S. 6407--B                         107

investment of monies deposited therein that  will  or  may  have  to  be
rebated  to  the  federal  government  pursuant to the provisions of the
internal revenue code of 1986, as amended.
  S  29.  Subdivision 1 of section 47 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration act, as amended by section 25 of part I of chapter 60 of the laws
of 2015, is amended to read as follows:
  1.  Notwithstanding  the  provisions of any other law to the contrary,
the dormitory authority and the corporation  are  hereby  authorized  to
issue  bonds  or  notes in one or more series for the purpose of funding
project costs for the office of information technology services, depart-
ment of  law,  and  other  state  costs  associated  with  such  capital
projects.  The  aggregate  principal  amount  of  bonds authorized to be
issued pursuant to this section shall not  exceed  [two]  THREE  hundred
[sixty-nine]  SIXTY-FOUR  million  [one]  EIGHT  hundred  forty thousand
dollars, excluding bonds issued to fund one or more debt service reserve
funds, to pay costs of issuance of such bonds, and bonds or notes issued
to refund or otherwise repay such bonds or notes previously issued. Such
bonds and notes of the dormitory authority and the corporation shall not
be a debt of the state, and the state shall not be liable  thereon,  nor
shall  they be payable out of any funds other than those appropriated by
the state to the dormitory authority and the corporation for  principal,
interest,  and  related expenses pursuant to a service contract and such
bonds and notes shall contain on the face thereof a  statement  to  such
effect. 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.
  S 30. Subdivision 1 of section 16 of part D of chapter 389 of the laws
of 1997, relating  to  the  financing  of  the  correctional  facilities
improvement  fund and the youth facility improvement fund, as amended by
section 27 of part I of chapter 60 of the laws of 2015,  is  amended  to
read as follows:
  1.  Subject  to  the provisions of chapter 59 of the laws of 2000, but
notwithstanding the provisions of section 18 of section 1 of chapter 174
of the laws of 1968, the New York state urban development corporation is
hereby authorized to issue bonds, notes  and  other  obligations  in  an
aggregate  principal  amount  not  to  exceed  seven  billion [one] FOUR
hundred [sixty-three] TWENTY-FOUR million [three] NINE  hundred  [sixty-
nine]  NINETY-NINE thousand dollars [$7,163,369,000] $7,424,999,000, and
shall include all bonds, notes and other obligations issued pursuant  to
chapter 56 of the laws of 1983, as amended or supplemented. The proceeds
of  such  bonds,  notes or other obligations shall be paid to the state,
for deposit in the correctional facilities capital improvement  fund  to
pay  for  all  or any portion of the amount or amounts paid by the state
from appropriations  or  reappropriations  made  to  the  department  of
corrections  and  community supervision from the correctional facilities
capital improvement fund for capital projects. The aggregate  amount  of
bonds,  notes  or  other obligations authorized to be issued pursuant to
this section shall exclude bonds, notes or other obligations  issued  to
refund  or otherwise repay bonds, notes or other obligations theretofore
issued, the proceeds of which were paid  to  the  state  for  all  or  a
portion  of  the  amounts  expended  by the state from appropriations or
reappropriations made to the department  of  corrections  and  community
supervision;  provided,  however, that upon any such refunding or repay-
ment the total aggregate principal amount of outstanding bonds, notes or
other obligations may be greater than seven billion [one]  FOUR  hundred

S. 6407--B                         108

[sixty-three]  TWENTY-FOUR  million  [three]  NINE  hundred [sixty-nine]
NINETY-NINE thousand dollars [$7,163,369,000]  $7,424,999,000,  only  if
the  present  value  of  the  aggregate debt service of the refunding or
repayment  bonds,  notes  or  other  obligations  to be issued shall not
exceed the present value of the aggregate debt  service  of  the  bonds,
notes or other obligations so to be refunded or repaid. For the purposes
hereof, the present value of the aggregate debt service of the refunding
or repayment bonds, notes or other obligations and of the aggregate debt
service  of the bonds, notes or other obligations so refunded or repaid,
shall be calculated by utilizing the  effective  interest  rate  of  the
refunding or repayment bonds, notes or other obligations, which shall be
that   rate  arrived  at  by  doubling  the  semi-annual  interest  rate
(compounded  semi-annually)  necessary  to  discount  the  debt  service
payments on the refunding or repayment bonds, notes or other obligations
from  the payment dates thereof to the date of issue of the refunding or
repayment bonds, notes or other obligations and to the price bid includ-
ing estimated accrued interest or proceeds received by  the  corporation
including estimated accrued interest from the sale thereof.
  S  31.  Paragraph  (a) of subdivision 2 of section 47-e of the private
housing finance law, as amended by section 28 of part I of chapter 60 of
the laws of 2015, is amended to read as follows:
  (a) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, in order to enhance and encourage  the  promotion  of  housing
programs  and thereby achieve the stated purposes and objectives of such
housing programs, the agency shall have the power and is hereby  author-
ized  from  time  to  time to issue negotiable housing program bonds and
notes in such principal amount as shall be necessary to  provide  suffi-
cient  funds  for the repayment of amounts disbursed (and not previously
reimbursed) pursuant to law or any prior year making  capital  appropri-
ations  or  reappropriations  for  the  purposes of the housing program;
provided, however, that the agency may issue such bonds and notes in  an
aggregate  principal amount not exceeding [three] FOUR billion [one] SIX
hundred [fifty-three] NINETY-SEVEN million [seven] FOUR  hundred  [nine-
ty-nine] SEVENTY-FOUR thousand dollars, plus a principal amount of bonds
issued to fund the debt service reserve fund in accordance with the debt
service  reserve  fund requirement established by the agency and to fund
any other reserves that the agency reasonably deems  necessary  for  the
security  or  marketability of such bonds and to provide for the payment
of  fees  and  other  charges  and  expenses,  including   underwriters'
discount,  trustee  and  rating  agency  fees,  bond  insurance,  credit
enhancement and liquidity enhancement related to the  issuance  of  such
bonds  and  notes.  No  reserve  fund securing the housing program bonds
shall be entitled or eligible to  receive  state  funds  apportioned  or
appropriated to maintain or restore such reserve fund at or to a partic-
ular level, except to the extent of any deficiency resulting directly or
indirectly  from a failure of the state to appropriate or pay the agreed
amount under any of the contracts provided for in  subdivision  four  of
this section.
  S  32.  Subdivision  (b)  of  section 11 of chapter 329 of the laws of
1991, amending the state finance law and  other  laws  relating  to  the
establishment of the dedicated highway and bridge trust fund, as amended
by section 29 of part I of chapter 60 of the laws of 2015, is amended to
read as follows:
  (b) Any service contract or contracts for projects authorized pursuant
to  sections  10-c,  10-f,  10-g and 80-b of the highway law and section
14-k of the transportation law, and entered into pursuant to subdivision

S. 6407--B                         109

(a) of this section, shall provide  for  state  commitments  to  provide
annually  to  the  thruway  authority a sum or sums, upon such terms and
conditions as shall be deemed appropriate by the director of the budget,
to fund, or fund the debt service requirements of any bonds or any obli-
gations  of  the  thruway  authority  issued to fund or to reimburse the
state for  funding  such  projects  having  a  cost  not  in  excess  of
[$8,658,881,000]  $9,147,234,000  cumulatively by the end of fiscal year
[2015-16] 2016-17.
  S 33. Subdivision 1 of section 1689-i of the public  authorities  law,
as amended by section 30 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
  1.  The  dormitory  authority  is  authorized  to  issue bonds, at the
request of the commissioner of education, to  finance  eligible  library
construction projects pursuant to section two hundred seventy-three-a of
the  education  law,  in  amounts  certified by such commissioner not to
exceed a total  principal  amount  of  one  hundred  [forty]  SIXTY-FOUR
million dollars.
  S  34.  Subdivision  (a)  of section 27 of part Y of chapter 61 of the
laws of 2005, providing for the  administration  of  certain  funds  and
accounts  related  to  the 2005-2006 budget, as amended by section 31 of
part I of chapter 60 of the laws of 2015, is amended to read as follows:
  (a) Subject to the provisions of chapter 59 of the laws of  2000,  but
notwithstanding  any provisions of law to the contrary, the urban devel-
opment corporation is hereby authorized to issue bonds or notes  in  one
or   more  series  in  an  aggregate  principal  amount  not  to  exceed
[$155,600,000] $167,600,000, excluding bonds issued to  finance  one  or
more debt service reserve funds, to pay costs of issuance of such bonds,
and  bonds  or  notes  issued to refund or otherwise repay such bonds or
notes previously issued, for the purpose of financing  capital  projects
including  IT initiatives for the division of state police, debt service
and leases; and to reimburse the state general  fund  for  disbursements
made  therefor. Such bonds and notes of such authorized issuer shall not
be a debt of the state, and the state shall not be liable  thereon,  nor
shall  they be payable out of any funds other than those appropriated by
the state to  such  authorized  issuer  for  debt  service  and  related
expenses  pursuant to any service contract executed pursuant to subdivi-
sion (b) of this section and such bonds and notes shall contain  on  the
face  thereof a statement to such effect. Except for purposes of comply-
ing with the internal revenue code, any interest income earned  on  bond
proceeds shall only be used to pay debt service on such bonds.
  S  35.  Section  44  of  section 1 of chapter 174 of the laws of 1968,
constituting the New York state urban development  corporation  act,  as
amended  by  section  32 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
  S 44. Issuance of certain  bonds  or  notes.  1.  Notwithstanding  the
provisions of any other law to the contrary, the dormitory authority and
the  corporation are hereby authorized to issue bonds or notes in one or
more series for the purpose of funding project costs  for  the  regional
economic  development  council  initiative,  the economic transformation
program, state university of New York college for nanoscale and  science
engineering,  projects  within  the city of Buffalo or surrounding envi-
rons, the New York works economic development  fund,  projects  for  the
retention of professional football in western New York, the empire state
economic  development  fund,  the  clarkson-trudeau partnership, the New
York genome center, the cornell university college of  veterinary  medi-
cine,  the  olympic  regional  development  authority, a project at nano

S. 6407--B                         110

Utica, onondaga county revitalization  projects,  Binghamton  university
school of pharmacy, New York power electronics manufacturing consortium,
regional infrastructure projects, A COMMERCIALIZATION CENTER IN CHAUTAU-
QUA  COUNTY,  AN  INDUSTRIAL  SCALE RESEARCH AND DEVELOPMENT FACILITY IN
CLINTON COUNTY, UPSTATE REVITALIZATION INITIATIVE PROJECTS,  MARKET  NEW
YORK  PROJECTS, and other state costs associated with such projects. The
aggregate principal amount of bonds authorized to be issued pursuant  to
this  section  shall not exceed [two] THREE billion [eight] NINE hundred
[eighty-eight] TWENTY-FOUR  million  two  hundred  fifty-seven  thousand
dollars, excluding bonds issued to fund one or more debt service reserve
funds, to pay costs of issuance of such bonds, and bonds or notes issued
to refund or otherwise repay such bonds or notes previously issued. Such
bonds and notes of the dormitory authority and the corporation shall not
be  a  debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated  by
the  state to the dormitory authority and the corporation for principal,
interest, and related expenses pursuant to a service contract  and  such
bonds  and  notes  shall contain on the face thereof a statement to such
effect. 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.
  2.  Notwithstanding  any  other  provision  of law to the contrary, in
order to assist the dormitory authority and the corporation in undertak-
ing the financing for project costs for the regional  economic  develop-
ment  council  initiative,  the  economic  transformation program, state
university of New York college for nanoscale  and  science  engineering,
projects  within  the  city  of Buffalo or surrounding environs, the New
York works economic development fund,  projects  for  the  retention  of
professional  football  in  western  New York, the empire state economic
development fund, the clarkson-trudeau partnership, the New York  genome
center, the cornell university college of veterinary medicine, the olym-
pic  regional  development  authority, a project at nano Utica, onondaga
county revitalization projects, Binghamton university school of  pharma-
cy,  New  York  power  electronics  manufacturing  consortium,  regional
infrastructure projects, A COMMERCIALIZATION CENTER IN CHAUTAUQUA  COUN-
TY,  AN  INDUSTRIAL  SCALE  RESEARCH AND DEVELOPMENT FACILITY IN CLINTON
COUNTY, UPSTATE REVITALIZATION  INITIATIVE  PROJECTS,  MARKET  NEW  YORK
PROJECTS,  and  other  state  costs  associated  with such projects, the
director of the budget is hereby authorized to enter into  one  or  more
service contracts with the dormitory authority and the corporation, none
of  which  shall  exceed  thirty  years in duration, upon such terms and
conditions as the director of the budget and the dormitory authority and
the corporation agree, so  as  to  annually  provide  to  the  dormitory
authority and the corporation, in the aggregate, a sum not to exceed the
principal,  interest,  and  related expenses required for such bonds and
notes. Any service contract entered into pursuant to this section  shall
provide  that  the  obligation  of  the  state to pay the amount therein
provided shall not constitute a debt of the state within the meaning  of
any  constitutional or statutory provision and shall be deemed executory
only to the extent of monies available and that no  liability  shall  be
incurred  by  the  state  beyond  the monies available for such purpose,
subject to annual appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned  and  pledged
by the dormitory authority and the corporation as security for its bonds
and notes, as authorized by this section.

S. 6407--B                         111

  S  36.  Subdivision 3 of section 1285-p of the public authorities law,
as amended by section 33 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
  3.  The  maximum amount of bonds that may be issued for the purpose of
financing  environmental  infrastructure  projects  authorized  by  this
section  shall  be  [one]  TWO  billion [seven hundred seventy-five] ONE
HUNDRED FIFTEEN million seven hundred sixty thousand dollars,  exclusive
of  bonds  issued  to  fund any debt service reserve funds, pay costs of
issuance of such bonds, and bonds or notes issued to refund or otherwise
repay bonds or notes previously issued. Such  bonds  and  notes  of  the
corporation shall not be a debt of the state, and the state shall not be
liable  thereon,  nor  shall they be payable out of any funds other than
those appropriated by the state to the corporation for debt service  and
related  expenses pursuant to any service contracts executed pursuant to
subdivision one of this section, and such bonds and notes shall  contain
on the face thereof a statement to such effect.
  S  37.  Subdivision 1 of section 45 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration act, as amended by section 34 of part I of chapter 60 of the laws
of 2015, is amended to read as follows:
  1.  Notwithstanding  the  provisions of any other law to the contrary,
the urban development corporation of the state of  New  York  is  hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the implementation of a NY-SUNY and NY-CUNY
2020  challenge  grant  program subject to the approval of a NY-SUNY and
NY-CUNY 2020 plan or plans by the governor and either the chancellor  of
the state university of New York or the chancellor of the city universi-
ty  of  New York, as applicable. The aggregate principal amount of bonds
authorized to be issued  pursuant  to  this  section  shall  not  exceed
[$440,000,000]  $550,000,000, excluding bonds issued to fund one or more
debt service reserve funds, to pay costs of issuance of such bonds,  and
bonds  or  notes issued to refund or otherwise repay such bonds or notes
previously issued. Such bonds and notes of the corporation shall not  be
a  debt  of  the  state,  and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated  by
the  state  to  the  corporation  for  principal,  interest, and related
expenses pursuant to a service contract and such bonds and  notes  shall
contain  on  the  face  thereof  a  statement to such effect. 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.
  S  38.  Subdivision  (a)  of section 48 of part K of chapter 81 of the
laws of 2002, providing for the  administration  of  certain  funds  and
accounts  related  to  the 2002-2003 budget, as amended by section 35 of
part I of chapter 60 of the laws of 2015, is amended to read as follows:
  (a) Subject to the provisions of chapter 59 of the laws  of  2000  but
notwithstanding  the  provisions  of section 18 of the urban development
corporation act, the corporation is hereby authorized to issue bonds  or
notes  in  one  or  more  series in an aggregate principal amount not to
exceed $197,000,000 excluding bonds issued to  fund  one  or  more  debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or  notes issued to refund or otherwise repay such bonds or notes previ-
ously issued, for the purpose of  financing  capital  costs  related  to
homeland  security  and  training  facilities  for the division of state
police, the division of military and naval affairs, and any other  state
agency,  including  the reimbursement of any disbursements made from the

S. 6407--B                         112

state capital projects fund, and is hereby authorized to issue bonds  or
notes  in  one  or  more  series in an aggregate principal amount not to
exceed [$469,800,000] $509,600,000, excluding bonds issued to  fund  one
or  more  debt  service  reserve funds, to pay costs of issuance of such
bonds, and bonds or notes issued to refund or otherwise repay such bonds
or notes previously issued, for the purpose of financing improvements to
State office buildings and other facilities located statewide, including
the reimbursement of any  disbursements  made  from  the  state  capital
projects  fund.  Such  bonds and notes of the corporation shall not be a
debt of the state, and the state shall not be liable thereon, nor  shall
they  be  payable  out of any funds other than those appropriated by the
state to the corporation for debt service and related expenses  pursuant
to  any  service  contracts executed pursuant to subdivision (b) of this
section, and such bonds and notes shall contain on the  face  thereof  a
statement to such effect.
  S 39. Subdivision 1 of section 386-b of the public authorities law, as
amended  by  section  36 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
  1. Notwithstanding any other provision of law  to  the  contrary,  the
authority, the dormitory authority and the urban development corporation
are  hereby authorized to issue bonds or notes in one or more series for
the purpose of financing peace bridge  projects  and  capital  costs  of
state and local highways, parkways, bridges, the New York state thruway,
Indian reservation roads, and facilities, and transportation infrastruc-
ture   projects   including  aviation  projects,  non-MTA  mass  transit
projects, and rail service preservation projects, including work  appur-
tenant  and  ancillary  thereto. The aggregate principal amount of bonds
authorized to be issued pursuant to this section shall not exceed  [one]
TWO  billion  [six  hundred  ninety]  SEVEN  HUNDRED TWENTY-FIVE million
dollars [$1,690,000,000] $2,725,000,000, excluding bonds issued to  fund
one or more debt service reserve funds, to pay costs of issuance of such
bonds,  and  to refund or otherwise repay such bonds or notes previously
issued. Such bonds and notes of the authority, the  dormitory  authority
and  the urban development corporation shall not be a debt of the state,
and the state shall not be liable thereon, nor shall they be payable out
of any funds other than those appropriated by the state to the  authori-
ty,  the  dormitory  authority and the urban development corporation for
principal, interest, and related expenses pursuant to a service contract
and such bonds and notes shall contain on the face thereof  a  statement
to  such  effect.  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.
  S  40.  Paragraph  (c) of subdivision 19 of section 1680 of the public
authorities law, as amended by section 37 of part I of chapter 60 of the
laws of 2015, is amended to read as follows:
  (c) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, the dormitory authority shall not issue any  bonds  for  state
university  educational  facilities  purposes if the principal amount of
bonds to be issued when added to the aggregate principal amount of bonds
issued by the dormitory authority on  and  after  July  first,  nineteen
hundred  eighty-eight  for  state university educational facilities will
exceed eleven billion [two] EIGHT hundred  [twenty-eight]  FIVE  million
SEVEN HUNDRED EIGHTY-FOUR THOUSAND FIVE HUNDRED FORTY dollars; provided,
however,  that  bonds issued or to be issued shall be excluded from such
limitation if: (1) such bonds are  issued  to  refund  state  university
construction  bonds  and  state university construction notes previously

S. 6407--B                         113

issued by the housing finance agency; or (2) such bonds  are  issued  to
refund  bonds  of  the  authority  or other obligations issued for state
university educational facilities purposes and the present value of  the
aggregate  debt service on the refunding bonds does not exceed the pres-
ent value of the aggregate debt service on the bonds  refunded  thereby;
provided,  further that upon certification by the director of the budget
that the issuance of refunding bonds or other obligations issued between
April first, nineteen hundred ninety-two and March  thirty-first,  nine-
teen  hundred  ninety-three will generate long term economic benefits to
the state, as assessed on a present value basis, such issuance  will  be
deemed  to  have met the present value test noted above. For purposes of
this subdivision, the present value of the aggregate debt service of the
refunding bonds and the aggregate debt service of  the  bonds  refunded,
shall be calculated by utilizing the true interest cost of the refunding
bonds,  which  shall be that rate arrived at by doubling the semi-annual
interest rate (compounded semi-annually) necessary to discount the  debt
service  payments  on the refunding bonds from the payment dates thereof
to the date of issue of the refunding bonds to the purchase price of the
refunding bonds, including interest accrued thereon prior to  the  issu-
ance  thereof.  The  maturity  of such bonds, other than bonds issued to
refund outstanding bonds, shall not exceed the weighted average economic
life, as certified by the state university  construction  fund,  of  the
facilities  in  connection  with  which the bonds are issued, and in any
case not later than the earlier of thirty years or the expiration of the
term of  any  lease,  sublease  or  other  agreement  relating  thereto;
provided  that  no  note, including renewals thereof, shall mature later
than five years after the date of issuance of such note. The legislature
reserves the right to amend or repeal such limit, and the state  of  New
York, the dormitory authority, the state university of New York, and the
state  university  construction  fund are prohibited from covenanting or
making any other agreements with or for the benefit of bondholders which
might in any way affect such right.
  S 41. Paragraph (c) of subdivision 14 of section 1680  of  the  public
authorities law, as amended by section 38 of part I of chapter 60 of the
laws of 2015, is amended to read as follows:
  (c) Subject to the provisions of chapter fifty-nine of the laws of two
thousand,  (i)  the  dormitory  authority  shall not deliver a series of
bonds for city university community college facilities, except to refund
or to be substituted for or in lieu of other bonds in relation  to  city
university  community college facilities pursuant to a resolution of the
dormitory authority adopted before July first, nineteen hundred  eighty-
five  or any resolution supplemental thereto, if the principal amount of
bonds so to be issued when added  to  all  principal  amounts  of  bonds
previously  issued by the dormitory authority for city university commu-
nity college facilities, except to refund or to be substituted  in  lieu
of  other bonds in relation to city university community college facili-
ties will exceed the sum of four hundred twenty-five million dollars and
(ii) the dormitory authority shall not deliver a series of bonds  issued
for  city university facilities, including community college facilities,
pursuant to a resolution of the dormitory authority adopted on or  after
July  first,  nineteen  hundred  eighty-five,  except to refund or to be
substituted for or in lieu of other bonds in relation to city university
facilities and except for bonds issued pursuant to a resolution  supple-
mental  to a resolution of the dormitory authority adopted prior to July
first, nineteen hundred eighty-five, if the principal amount of bonds so
to be issued when added to the  principal  amount  of  bonds  previously

S. 6407--B                         114

issued pursuant to any such resolution, except bonds issued to refund or
to  be  substituted  for  or  in lieu of other bonds in relation to city
university facilities, will exceed seven  billion  [three]  SIX  hundred
[ninety-two]  SIXTEEN  million [seven] FOUR hundred [fifty-three] ELEVEN
thousand dollars. The legislature reserves the right to amend or  repeal
such limit, and the state of New York, the dormitory authority, the city
university,  and  the fund are prohibited from covenanting or making any
other agreements with or for the benefit of bondholders which  might  in
any way affect such right.
  S  42. Subdivision 10-a of section 1680 of the public authorities law,
as amended by section 39 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
  10-a. Subject to the provisions of chapter fifty-nine of the  laws  of
two  thousand, but notwithstanding any other provision of the law to the
contrary, the maximum amount of bonds and notes to be issued after March
thirty-first, two thousand two, on behalf of the state, in  relation  to
any  locally  sponsored community college, shall be eight hundred [thir-
ty-eight] SIXTY-ONE million four hundred [fifty-eight] FIFTY-FOUR  thou-
sand  dollars.  Such amount shall be exclusive of bonds and notes issued
to fund any reserve fund or funds, costs of issuance and to  refund  any
outstanding  bonds and notes, issued on behalf of the state, relating to
a locally sponsored community college.
  S 43. Subdivision 1 of section 17 of part D of chapter 389 of the laws
of 1997, relating  to  the  financing  of  the  correctional  facilities
improvement  fund and the youth facility improvement fund, as amended by
section 41 of part I of chapter 60 of the laws of 2015,  is  amended  to
read as follows:
  1.  Subject  to  the provisions of chapter 59 of the laws of 2000, but
notwithstanding the provisions of section 18 of section 1 of chapter 174
of the laws of 1968, the New York state urban development corporation is
hereby authorized to issue bonds, notes  and  other  obligations  in  an
aggregate principal amount not to exceed six hundred [eleven] FORTY-SEV-
EN   million   [two   hundred   fifteen]   SIXTY-FIVE  thousand  dollars
[($611,215,000)]  ($647,065,000),  which  authorization  increases   the
aggregate principal amount of bonds, notes and other obligations author-
ized by section 40 of chapter 309 of the laws of 1996, and shall include
all bonds, notes and other obligations issued pursuant to chapter 211 of
the  laws  of  1990,  as  amended  or supplemented. The proceeds of such
bonds, notes or other obligations shall be paid to the state, for depos-
it in the youth facilities improvement fund,  to  pay  for  all  or  any
portion  of  the amount or amounts paid by the state from appropriations
or reappropriations made to the office of children and  family  services
from  the  youth  facilities  improvement fund for capital projects. The
aggregate amount of bonds, notes and other obligations authorized to  be
issued  pursuant  to  this  section  shall exclude bonds, notes or other
obligations issued to refund or otherwise repay bonds,  notes  or  other
obligations  theretofore  issued, the proceeds of which were paid to the
state for all or a portion of the amounts expended  by  the  state  from
appropriations  or  reappropriations  made to the office of children and
family services; provided, however, that  upon  any  such  refunding  or
repayment  the  total  aggregate  principal amount of outstanding bonds,
notes or other obligations may be  greater  than  six  hundred  [eleven]
FORTY-SEVEN  million  [two  hundred fifteen] SIXTY-FIVE thousand dollars
[($611,215,000)] ($647,065,000), only if the present value of the aggre-
gate debt service of the refunding or repayment bonds,  notes  or  other
obligations  to  be  issued  shall  not  exceed the present value of the

S. 6407--B                         115

aggregate debt service of the bonds, notes or other obligations so to be
refunded or repaid. For the purposes hereof, the present  value  of  the
aggregate  debt  service  of  the refunding or repayment bonds, notes or
other  obligations and of the aggregate debt service of the bonds, notes
or other obligations so refunded  or  repaid,  shall  be  calculated  by
utilizing  the  effective  interest  rate  of the refunding or repayment
bonds, notes or other obligations, which shall be that rate  arrived  at
by  doubling  the  semi-annual  interest rate (compounded semi-annually)
necessary to discount the debt service  payments  on  the  refunding  or
repayment bonds, notes or other obligations from the payment dates ther-
eof  to  the date of issue of the refunding or repayment bonds, notes or
other obligations and to  the  price  bid  including  estimated  accrued
interest  or  proceeds  received  by the corporation including estimated
accrued interest from the sale thereof.
  S 44. Paragraph b of subdivision 2 of section  9-a  of  section  1  of
chapter 392 of the laws of 1973, constituting the New York state medical
care  facilities  finance agency act, as amended by section 42 of part I
of chapter 60 of the laws of 2015, is amended to read as follows:
  b. The agency shall have power and is hereby authorized from  time  to
time  to  issue negotiable bonds and notes in conformity with applicable
provisions of the uniform commercial code in such principal  amount  as,
in  the  opinion  of  the  agency, shall be necessary, after taking into
account other moneys which may be available for the purpose, to  provide
sufficient  funds  to  the  facilities  development  corporation, or any
successor agency, for the financing or refinancing of or for the design,
construction, acquisition, reconstruction, rehabilitation or improvement
of mental health services facilities pursuant to  paragraph  a  of  this
subdivision,  the payment of interest on mental health services improve-
ment bonds and mental health services improvement notes issued for  such
purposes,  the establishment of reserves to secure such bonds and notes,
the cost or premium of bond insurance or  the  costs  of  any  financial
mechanisms  which  may  be used to reduce the debt service that would be
payable by the agency on its mental health services facilities  improve-
ment  bonds  and notes and all other expenditures of the agency incident
to and necessary or convenient to providing the  facilities  development
corporation,  or  any  successor agency, with funds for the financing or
refinancing of or for any such design, construction, acquisition, recon-
struction, rehabilitation or improvement and for the refunding of mental
hygiene improvement bonds issued pursuant to section 47-b of the private
housing finance law; provided, however, that the agency shall not  issue
mental  health  services  facilities improvement bonds and mental health
services facilities improvement notes in an aggregate  principal  amount
exceeding  [seven]  EIGHT  billion [seven hundred twenty-two] TWENTY-ONE
million eight hundred fifteen thousand dollars, excluding mental  health
services facilities improvement bonds and mental health services facili-
ties  improvement  notes  issued  to  refund  outstanding  mental health
services facilities improvement bonds and mental health services facili-
ties improvement notes; provided, however, that upon any such  refunding
or  repayment  of  mental  health  services facilities improvement bonds
and/or mental health services facilities  improvement  notes  the  total
aggregate principal amount of outstanding mental health services facili-
ties  improvement  bonds  and mental health facilities improvement notes
may be greater than [seven] EIGHT  billion  [seven  hundred  twenty-two]
TWENTY-ONE  million  eight  hundred  fifteen  thousand  dollars only if,
except as hereinafter provided with respect to  mental  health  services
facilities  bonds  and mental health services facilities notes issued to

S. 6407--B                         116

refund mental hygiene improvement bonds authorized to be issued pursuant
to the provisions of section 47-b of the private  housing  finance  law,
the  present  value  of  the  aggregate debt service of the refunding or
repayment  bonds  to be issued shall not exceed the present value of the
aggregate debt service of the  bonds  to  be  refunded  or  repaid.  For
purposes hereof, the present values of the aggregate debt service of the
refunding  or  repayment  bonds,  notes  or other obligations and of the
aggregate debt service of the  bonds,  notes  or  other  obligations  so
refunded  or  repaid,  shall  be  calculated  by utilizing the effective
interest rate of the refunding or repayment bonds, notes or other  obli-
gations, which shall be that rate arrived at by doubling the semi-annual
interest  rate (compounded semi-annually) necessary to discount the debt
service payments on the refunding or repayment  bonds,  notes  or  other
obligations  from  the payment dates thereof to the date of issue of the
refunding or repayment bonds, notes or  other  obligations  and  to  the
price  bid  including estimated accrued interest or proceeds received by
the authority including estimated accrued interest from the sale  there-
of.  Such  bonds,  other  than bonds issued to refund outstanding bonds,
shall be scheduled to mature over a  term  not  to  exceed  the  average
useful  life, as certified by the facilities development corporation, of
the projects for which the bonds are issued, and in any case  shall  not
exceed  thirty  years  and the maximum maturity of notes or any renewals
thereof shall not exceed five years from the date of the original  issue
of such notes. Notwithstanding the provisions of this section, the agen-
cy  shall have the power and is hereby authorized to issue mental health
services facilities improvement  bonds  and/or  mental  health  services
facilities  improvement  notes  to  refund  outstanding  mental  hygiene
improvement bonds authorized to be issued pursuant to the provisions  of
section  47-b of the private housing finance law and the amount of bonds
issued or outstanding for  such  purposes  shall  not  be  included  for
purposes  of  determining  the  amount  of bonds issued pursuant to this
section. The director of the budget shall allocate the aggregate princi-
pal authorized to be issued by the agency among  the  office  of  mental
health,  office  for  people  with  developmental  disabilities, and the
office of alcoholism and substance abuse services, in consultation  with
their respective commissioners to finance bondable appropriations previ-
ously approved by the legislature.
  S  45.  Paragraph  (b) of subdivision 3 of section 1 and clause (B) of
subparagraph (iii) of paragraph (j) of subdivision 4  of  section  1  of
part D of chapter 63 of the laws of 2005 relating to the composition and
responsibilities of the New York state higher education capital matching
grant  board,  as  amended  by section 43 of part I of chapter 60 of the
laws of 2015, is amended to read as follows:
  (b) Within amounts appropriated therefor, the board is hereby  author-
ized  and  directed  to award matching capital grants totaling [210] 240
million dollars. Each college shall be eligible for a grant award amount
as determined by the calculations pursuant to subdivision five  of  this
section.  In  addition,  such  colleges shall be eligible to compete for
additional funds pursuant to paragraph (h) of subdivision four  of  this
section.
  (B)  The  dormitory authority shall not issue any bonds or notes in an
amount in excess of [210] 240 million dollars for the purposes  of  this
section;  excluding  bonds  or  notes  issued  to  fund one or more debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or notes issued to refund or otherwise repay such bonds or notes  previ-
ously issued. Except for purposes of complying with the internal revenue

S. 6407--B                         117

code,  any  interest  on  bond  proceeds  shall only be used to pay debt
service on such bonds.
  S 45-a. Subdivision 1 of section 1680-r of the public authorities law,
as amended by section 40 of part I of chapter 60 of the laws of 2015, is
amended to read as follows:
  1.  Notwithstanding  the  provisions of any other law to the contrary,
the dormitory authority and the urban development corporation are hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the capital restructuring financing program
for health care and related facilities licensed pursuant to  the  public
health  law  or  the mental hygiene law and other state costs associated
with such capital projects and the health care  facility  transformation
program. The aggregate principal amount of bonds authorized to be issued
pursuant to this section shall not exceed two billion [two] FIVE hundred
million dollars, excluding bonds issued to fund one or more debt service
reserve  funds,  to  pay  costs  of issuance of such bonds, and bonds or
notes issued to refund or otherwise repay such bonds or notes previously
issued. Such bonds and notes of the dormitory authority  and  the  urban
development  corporation shall not be a debt of the state, and the state
shall not be liable thereon, nor shall they be payable out of any  funds
other  than  those  appropriated by the state to the dormitory authority
and the urban  development  corporation  for  principal,  interest,  and
related expenses pursuant to a service contract and such bonds and notes
shall contain on the face thereof a statement to such effect. 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.
  S 46. Notwithstanding any other provision of law to the contrary, from
the taxes, interest and penalties collected or received by  the  commis-
sioner of taxation and finance in respect of the tax imposed by the city
of  New  York  pursuant  to the authority of section 1210, 1211, 1212 or
1212-A of the tax law,the comptroller shall pay, as directed in  writing
by  the  director of the budget, the sum of $16,666,667 on or before the
twelfth day of each  month  from  such  taxes,  penalties  and  interest
collected  or received by such commissioner during the previous month to
(i) any issuers of state-related debt for the purposes of paying princi-
pal, interest, and related expenses, or for retiring or defeasing  bonds
previously  issued,  including  any  accrued  interest or other expenses
related thereto, for any state-related bonding program or  programs,  or
to  (ii)  a  governmental fund or funds of the state treasury. The comp-
troller shall make the first payment to issuers of state-related debt or
the government funds on the twelfth day of May,  2016  from  the  taxes,
penalties  and  interest collected or received during April 2016 and the
last payment on or before the twelfth day of April, 2019 from the taxes,
penalties  and  interest  collected  or  received  during  March   2019.
Provided,   however,  that  in  no  event  shall  such  payments  exceed
$200,000,000 in any state fiscal year; and provided  further  that  such
payments  shall  not  reduce  the  reasonable costs of such commissioner
under paragraph (b) of section 1261 of the tax law.
  S 47. The civil practice law and rules is  amended  by  adding  a  new
section 5519-a to read as follows:
  S  5519-A.  STAY  OF ENFORCEMENT FOR TOBACCO PRODUCT MASTER SETTLEMENT
AGREEMENT PARTICIPATING  OR  NON-PARTICIPATING  MANUFACTURERS  OR  THEIR
SUCCESSORS OR AFFILIATES. (A) IN CIVIL LITIGATION UNDER ANY LEGAL THEORY
INVOLVING  A  PARTICIPATING MANUFACTURER OR A NON-PARTICIPATING MANUFAC-
TURER, AS THOSE TERMS ARE DEFINED IN THE MASTER SETTLEMENT AGREEMENT, OR

S. 6407--B                         118

ANY OF THEIR SUCCESSORS OR AFFILIATES, THE UNDERTAKING  REQUIRED  DURING
THE  PENDENCY  OF  ALL APPEALS OR DISCRETIONARY REVIEWS BY ANY APPELLATE
COURTS IN ORDER TO STAY THE EXECUTION OF ANY JUDGMENT OR ORDER  GRANTING
LEGAL,  EQUITABLE  OR OTHER RELIEF DURING THE ENTIRE COURSE OF APPELLATE
REVIEW, INCLUDING REVIEW BY THE UNITED STATES SUPREME  COURT,  SHALL  BE
SET  PURSUANT  TO  THE  APPLICABLE  PROVISIONS  OF  LAW  OR COURT RULES;
PROVIDED, HOWEVER THAT THE TOTAL UNDERTAKING REQUIRED OF ALL  APPELLANTS
COLLECTIVELY SHALL NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS, REGARD-
LESS OF THE VALUE OF THE JUDGMENT APPEALED.
  (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
UPON  PROOF  BY A PREPONDERANCE OF THE EVIDENCE, BY AN APPELLEE, THAT AN
APPELLANT IS DISSIPATING ASSETS OUTSIDE THE COURSE OF ORDINARY  BUSINESS
TO  AVOID  PAYMENT  OF  A JUDGMENT, A COURT MAY REQUIRE THE APPELLANT TO
POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT OF THE JUDGMENT.
  S 48. Notwithstanding any provision of law, rule or regulation to  the
contrary,  the  New York state energy research and development authority
is authorized and directed to expend an amount not to exceed one hundred
million dollars from proceeds  collected  by  such  authority  from  the
auction  at  sale of carbon dioxide emission allowances allocated by the
department of environmental conservation on or before March 31, 2017 for
the state fiscal year commencing April 1, 2016, which  amount  shall  be
utilized  to  effectuate an expedited program, pending a final order and
determination by the public service commission in case  15-E-0302,  that
would  provide  financial support for the benefit of the electric system
to maintain the viability of  certain  nuclear  power  plants  that  can
demonstrate  the lack of financial viability absent additional financial
support.
  S 49. This act shall take effect immediately and shall  be  deemed  to
have been in full force and effect on and after April 1, 2016; provided,
however,  with the exception of item 5 of the miscellaneous category set
forth within section two of this act:   (a) the provisions  of  sections
one  through eight, and sections twelve through twenty of this act shall
expire March 31, 2017, when  upon  such  date  the  provisions  of  such
sections  shall be deemed repealed; (b) the provisions of section forty-
six of this act shall expire upon the last payment  made  by  the  comp-
troller  pursuant  to  section forty-six of this act when upon such date
the provisions of such section shall be deemed repealed;  provided  that
the state comptroller shall notify the legislative bill drafting commis-
sion  upon  the  occurrence  of the last payment provided for in section
forty-six of this act in order that the commission may maintain an accu-
rate and timely effective database of the official text of the  laws  of
the  state  of New York in furtherance of effectuating the provisions of
section 44 of the legislative law and section 70-b of the  public  offi-
cers  law;  and (c) section forty-seven of this act shall take effect on
the thirtieth day after it shall have become a law, and shall  apply  to
any cause of action pending on or filed on or after such effective date.
  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. 6407--B                         119

  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through W of this act shall be
as specifically set forth in the last section of such Parts.