S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 2007                                                  A. 3007
 
                       S E N A T E - A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
   cle seven of the Constitution -- read twice and ordered  printed,  and
   when printed to be committed to the Committee on Finance
 
 IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
   article seven of the Constitution -- read once  and  referred  to  the
   Committee on Ways and Means

 AN ACT to amend the insurance law and the public health law, in relation
   to  the early intervention program for infants and toddlers with disa-
   bilities and their families (Part A); to amend the public health  law,
   in  relation  to  the  general public health work program (Part B); to
   amend the social services law, in relation to requiring monthly premi-
   um payments for the Essential Plan  (Part  C);  to  amend  the  public
   health  law,  in relation to high cost drugs; to amend the tax law, in
   relation to surcharges on high priced drugs; to amend the tax law,  in
   relation  to  secrecy  provisions;  to amend the state finance law, in
   relation to the high priced drug  reimbursement  fund;  to  amend  the
   social services law, in relation to the drug utilization review board;
   to  amend  the social services law, in relation to Medicaid reimburse-
   ment of covered outpatient drugs; to authorize  the  suspension  of  a
   provider's   Medicaid  enrollment  for  inappropriate  prescribing  of
   opioids; to amend the social services law, in relation to  refills  of
   controlled  substances;  to amend the public health law and the social
   services law, in relation to eliminating prescriber prevails with  the
   exception  of  mental  health  medications; to amend the public health
   law, in relation to authorizing for comprehensive  medication  manage-
   ment  by pharmacists; to amend the social services law, in relation to
   reducing Medicaid coverage and increasing copayments for non-prescrip-
   tion drugs, to aligning pharmacy copayment requirements  with  federal
   regulations,  and  to  adjusting  consumer  price  index penalties for
   generic drugs; and to repeal subdivision 25-a of section 364-j of  the
   social  services  law,  relating  to the coverage of certain medically
   necessary prescription drugs by managed care providers  (Part  D);  to
   amend  the public health law, in relation to restricting enrollment in
   the medicaid managed long term care program to individuals who require
   a nursing home level of care and  to  eliminate  payments  to  nursing
   homes for bed hold days; to amend the social services law, in relation
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12571-01-7

 S. 2007                             2                            A. 3007
 
   to  conforming  with federal law with regard to spousal contributions;
   to amend the social services law,  in  relation  to  hospice  services
   covered  under  title XVIII of the federal social security act; and to
   repeal  subdivision 25 of section 2808 of the public health law relat-
   ing to reserved bed days (Part E); to amend the social  services  law,
   in  relation  to carving out transportation from the managed long term
   care benefit; to repeal subdivision 5 of section 365-h of  the  social
   services  law,  relating to rural transit assistance payments to coun-
   ties; and to repeal section 367-s of the social services law, relating
   to emergency medical transportation services (Part F); to amend 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, in  relation  to  extending  the  Medicaid
   global cap; to create an avenue for contract staff and student assist-
   ants in the department of health's office of health insurance programs
   to  qualify  for  open competitive positions and to establish a health
   care service career internship program; and to amend part C of chapter
   58 of the laws of 2005, authorizing  reimbursements  for  expenditures
   made  by or on behalf of social services districts for medical assist-
   ance for needy persons and the administration thereof, in relation  to
   an  administrative cap on such program (Part G); to amend the New York
   Health Care Reform Act of  1996,  in  relation  to  extending  certain
   provisions  relating thereto; to amend the New York Health Care Reform
   Act of 2000, in relation to extending the effectiveness of  provisions
   thereof;  to  amend the public health law, in relation to the distrib-
   ution of pool allocations and graduate medical education; to amend the
   public health law, in relation to health care initiative pool distrib-
   utions; to amend the social services law,  in  relation  to  extending
   payment  provisions  for  general  hospitals;  and to amend the public
   health law, in relation to the assessments on covered lives (Part  H);
   to  amend  chapter 884 of the laws of 1990, amending the public health
   law relating to authorizing bad debt and charity care  allowances  for
   certified home health agencies, in relation to the effectiveness ther-
   eof;  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 the effectiveness
   thereof; to amend the public health law, in relation to extending  the
   nursing  home  cash  assessment;  to  amend chapter 474 of the laws of
   1996, amending the education law and other laws relating to rates  for
   residential  health  care facilities, in relation to the effectiveness
   thereof; to amend chapter 58 of the laws of 2007, amending the  social
   services  law and other laws relating to enacting the major components
   of legislation necessary to implement the health  and  mental  hygiene
   budget  for  the  2007-2008 state fiscal year, in relation to delay of
   certain administrative cost; to amend chapter 81 of the laws of  1995,
   amending  the  public  health  law  and other laws relating to medical
   reimbursement and welfare reform, in  relation  to  the  effectiveness
   thereof; to amend chapter 109 of the laws of 2010, amending the social
   services  law  relating  to  transportation  costs, in relation to the
   effectiveness thereof; to amend chapter 56 of the laws of 2013  amend-
   ing 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 the
   effectiveness  thereof; to amend chapter 2 of the laws of 1998, amend-
   ing the public health law and other laws  relating  to  expanding  the
   child health insurance plan, in relation to the effectiveness thereof;

 S. 2007                             3                            A. 3007
 
   to  amend chapter 19 of the laws of 1998, amending the social services
   law relating to limiting the method of payment for prescription  drugs
   under the medical assistance program, in relation to the effectiveness
   thereof;  to  amend  the  public health law, in relation to continuing
   nursing home upper payment limit payments; to amend chapter 904 of the
   laws of 1984, amending the public health law and the  social  services
   law relating to encouraging comprehensive health services, in relation
   to the effectiveness thereof; to amend chapter 62 of the laws of 2003,
   amending  the  public  health  law relating to allowing for the use of
   funds of the office of professional medical conduct for activities  of
   the patient health information and quality improvement act of 2000, in
   relation  to  extending the provisions thereof; to amend chapter 59 of
   the laws of 2011, amending the  public  health  law  relating  to  the
   statewide  health  information  network  of New York and the statewide
   planning and  research  cooperative  system  and  general  powers  and
   duties, in relation to the effectiveness thereof; and to amend chapter
   58 of the laws of 2008, amending the elder law and other laws relating
   to reimbursement to participating provider pharmacies and prescription
   drug  coverage,  in  relation  to  extending the expiration of certain
   provisions thereof (Part I); to amend the insurance law,  in  relation
   to pharmacy benefit managers (Part J); to amend the public health law,
   in  relation  to the health care facility transformation program (Part
   K); to amend the public health law,  in  relation  to  establishing  a
   health  care  regulation  modernization  team within the department of
   health (Part L); to amend the public health law, in relation to creat-
   ing the "Emerging Contaminant Monitoring Act" (Part M); to  amend  the
   public  health  law,  the  real  property  law,  and the environmental
   conservation law, in relation to creating the "residential well  test-
   ing act" (Part N); to amend the criminal procedure law, in relation to
   authorizing  restorations  to  competency within correctional facility
   based residential settings; and  providing  for  the  repeal  of  such
   provisions  upon  expiration  thereof (Part O); to amend 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 extending government rates for behavioral
   services  and  adding  a value based payment requirement; 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 extending government rates  for  behavioral  services  and
   adding  a value based payment requirement (Part P); and to amend chap-
   ter 57 of the laws of 2006, relating to establishing a cost of  living
   adjustment  for  designated  human  services  programs, in relation to
   forgoing such adjustment during the 2017-2018 state  fiscal  year  and
   the effectiveness thereof (Part Q)
 
   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 2017-2018
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through Q. The effective date for each  particular
 provision contained within such Part is set forth in the last section of

 S. 2007                             4                            A. 3007
 
 such Part. Any provision in any section contained within a Part, includ-
 ing the effective date of the Part, which makes a reference to a section
 "of  this  act", when used in connection with that particular component,
 shall  be  deemed  to mean and refer to the corresponding section of the
 Part in which it is found. Section three of  this  act  sets  forth  the
 general effective date of this act.
 
                                  PART A
 
   Section  1.  Paragraph  2  of  subsection (d) of section 3224-a of the
 insurance law, as amended by section 57-b of part A of chapter 56 of the
 laws of 2013, is amended to read as follows:
   (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.
   § 2. 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:
   §  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.  WHEN SUCH POLICY OF  ACCI-
 DENT AND HEALTH INSURANCE, INCLUDING A CONTRACT ISSUED PURSUANT TO ARTI-
 CLE  FORTY-THREE  OF  THIS  CHAPTER, PROVIDES COVERAGE FOR SERVICES THAT
 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, OR PROVIDES COVERAGE FOR AUTISM SPECTRUM  DISORDER  PURSUANT
 TO PARAGRAPH TWENTY-FIVE OF SUBSECTION (I) OF SECTION THIRTY-TWO HUNDRED
 SIXTEEN,  PARAGRAPH  SEVENTEEN  OF  SUBSECTION (L) OF SECTION THIRTY-TWO
 HUNDRED TWENTY-ONE, OR SUBSECTION (EE) OF  SECTION  FORTY-THREE  HUNDRED
 THREE  OF  THIS  CHAPTER, THE INSURER SHALL PAY FOR SUCH SERVICES TO THE
 EXTENT THAT THE SERVICES ARE A COVERED BENEFIT  UNDER  THE  POLICY.  ANY
 DOCUMENTATION  OBTAINED  PURSUANT  TO  CLAUSE  (II)  OF PARAGRAPH (A) OF
 SUBDIVISION THREE OF  SECTION  TWENTY-FIVE  HUNDRED  FIFTY-NINE  OF  THE
 PUBLIC  HEALTH  LAW  AND SUBMITTED TO THE INSURER SHALL BE SUFFICIENT TO
 MEET  PRECERTIFICATION,  PREAUTHORIZATION   AND/OR   MEDICAL   NECESSITY
 REQUIREMENTS IMPOSED UNDER SUCH POLICY OF ACCIDENT AND HEALTH INSURANCE,
 INCLUDING  A  CONTRACT  ISSUED  PURSUANT  TO ARTICLE FORTY-THREE OF THIS

 S. 2007                             5                            A. 3007

 CHAPTER. Visit limitations and other terms and conditions of the  policy
 will  continue  to  apply  to  early intervention services. However, any
 visits used for early intervention program services shall not reduce the
 number  of  visits  otherwise available under the policy or contract for
 such services.
   (c) A POLICY OF ACCIDENT AND HEALTH INSURANCE,  INCLUDING  A  CONTRACT
 ISSUED  PURSUANT  TO ARTICLE FORTY-THREE OF THIS CHAPTER, SHALL NOT DENY
 COVERAGE BASED UPON THE FOLLOWING:
   (I) THE LOCATION WHERE SERVICES ARE PROVIDED; OR
   (II) THE DURATION OF THE CHILD'S CONDITION  AND/OR  THAT  THE  CHILD'S
 CONDITION  IS  NOT AMENDABLE TO SIGNIFICANT IMPROVEMENT WITHIN A CERTAIN
 PERIOD OF TIME AS SPECIFIED IN THE POLICY.
   (D) 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.  [The]
 AN INSURER SHALL, WITHIN FIFTEEN BUSINESS DAYS OF RECEIPT OF A NOTICE OF
 RIGHT OF SUBROGATION, NOTIFY THE PROVIDER, IN A FORMAT DETERMINED BY THE
 DEPARTMENT OF HEALTH, THROUGH  THE  DEPARTMENT  OF  HEALTH'S  DESIGNATED
 FISCAL AGENT, WHETHER THE POLICY IS FULLY INSURED OR WHETHER THE INSURER
 IS ACTING AS A THIRD PARTY ADMINISTRATOR.
   (E)  UPON  RECEIPT OF WRITTEN REQUEST AND NOTICE FROM THE MUNICIPALITY
 AND SERVICE COORDINATOR THE insurer shall  provide  [the]  SUCH  munici-
 pality  and  service coordinator with information on the extent of bene-
 fits available to the covered person under such policy, INCLUDING WHETH-
 ER THE POLICY IS FULLY INSURED OR WHETHER THE INSURER  IS  ACTING  AS  A
 THIRD  PARTY ADMINISTRATOR, within fifteen days of the insurer's receipt
 of written 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.
   § 3. Subdivision 3 of section 2543 of the public health law, as  added
 by section 2 of part B3 of chapter 62 of the laws of 2003, is amended to
 read as follows:
   3.  [The]  IN A FORMAT PRESCRIBED BY THE DEPARTMENT, THE parent of the
 eligible child  shall  provide  and  the  early  intervention  official,
 SERVICE  COORDINATOR, AND PROVIDER shall collect such information and or
 documentation as is necessary and sufficient to determine  the  eligible
 child's  third  party  payor coverage and to seek payment from all third
 party payors including the medical assistance program and other  govern-
 mental agency payors.
   §  4.  Subdivision  3-a  of  section 2557 of the public health law, as
 added by section 3 of part L1 of chapter 63 of  the  laws  of  2003,  is
 amended to read as follows:
   3-a.  Each  municipality  may perform an audit, which may include site
 visitation, of evaluators and providers  of  such  services  within  its

 S. 2007                             6                            A. 3007
 
 municipality in accordance with standards established by the commission-
 er.  The  municipality shall submit the results of any such audit to the
 commissioner for review and, if  warranted,  adjustments  in  state  aid
 reimbursement pursuant to subdivision three of this section[, as well as
 for]. THE RESULTS SHALL ALSO INCLUDE ANY recovery by the municipality of
 its share of any disallowances identified in such audit.
   §  5.  Paragraph  (a)  of  subdivision 3 of section 2559 of the public
 health law, as amended by section 11 of part A of chapter 56 of the laws
 of 2012, is amended to read as follows:
   (a) Providers of evaluations and early intervention services,  herein-
 after  collectively  referred  to  in  this subdivision as "provider" or
 "providers", shall in the first  instance  and  where  applicable,  seek
 payment  from  all  third  party  payors including governmental agencies
 prior to claiming payment from  a  given  municipality  for  evaluations
 conducted  under the program and for services rendered to eligible chil-
 dren, provided that, the obligation to seek payment shall not apply to a
 payment from a third party payor who is  not  prohibited  from  applying
 such  payment,  and  will  apply  such payment, to an annual or lifetime
 limit specified in the insured's policy.
   (i) [Parents] IN A FORM PRESCRIBED BY THE  DEPARTMENT,  PARENTS  shall
 provide  the municipality [and], service coordinator AND PROVIDER infor-
 mation on any insurance policy, plan or contract under which an eligible
 child has coverage.
   (ii) [Parents] IN A TIMELINE AND FORMAT AS PRESCRIBED BY  THE  DEPART-
 MENT,  THE  MUNICIPALITY  SHALL  REQUEST FROM THE PARENT, AND THE PARENT
 shall provide the municipality [and the service coordinator], WHO  SHALL
 PROVIDE  SUCH  DOCUMENTATION  TO  THE  SERVICE COORDINATOR AND PROVIDER,
 with: (A) a written ORDER, referral [from a] OR  RECOMMENDATION,  SIGNED
 BY  THE  CHILD'S PRIMARY HEALTH CARE PROVIDER, FOR THE MEDICAL NECESSITY
 OF EARLY INTERVENTION EVALUATION SERVICES TO DETERMINE PROGRAM ELIGIBIL-
 ITY OR EARLY INTERVENTION SERVICES;
   (B) A COPY OF AN INDIVIDUALIZED FAMILY SERVICE PLAN AGREED UPON PURSU-
 ANT TO  SECTION  TWENTY-FIVE  HUNDRED  FORTY-FIVE  OF  THIS  TITLE  THAT
 CONTAINS DOCUMENTATION, SIGNED BY THE CHILD'S primary [care] HEALTH CARE
 provider  [as  documentation,  for eligible children, of] ON the medical
 necessity of early intervention services INCLUDED IN THE  INDIVIDUALIZED
 FAMILY SERVICES PLAN;
   (C) WRITTEN CONSENT TO CONTACT THE CHILD'S PRIMARY HEALTH CARE PROVID-
 ER FOR PURPOSES OF OBTAINING A SIGNED WRITTEN ORDER, REFERRAL, OR RECOM-
 MENDATION  AS  DOCUMENTATION  FOR  THE MEDICAL NECESSITY OF EARLY INTER-
 VENTION EVALUATION SERVICES TO DETERMINE PROGRAM  ELIGIBILITY  OR  EARLY
 INTERVENTION SERVICES; OR
   (D) WRITTEN CONSENT TO CONTACT THE CHILD'S PRIMARY HEALTH CARE PROVID-
 ER  FOR  PURPOSES  OF  OBTAINING  A  SIGNED DOCUMENTATION OF THE MEDICAL
 NECESSITY OF EARLY INTERVENTION SERVICES CONTAINED WITHIN  THE  INDIVID-
 UALIZED  FAMILY SERVICE PLAN AGREED UPON PURSUANT TO SECTION TWENTY-FIVE
 HUNDRED FORTY-FIVE OF THIS TITLE.
   (iii) providers shall utilize the department's fiscal agent  and  data
 system  for claiming payment for evaluations and services rendered under
 the early intervention program.
   (IV) IN ACCORDANCE WITH CRITERIA ESTABLISHED BY THE DEPARTMENT,  WHICH
 MAY  INCLUDE,  BUT NOT BE LIMITED TO, MEDICAL NECESSITY, COORDINATION OF
 BENEFITS, OR UTILIZATION REVIEW, FOR PURSUIT OF APPEALS BY A PROVIDER TO
 AN INSURER WHEN A CLAIM HAS BEEN DENIED BY SUCH INSURER, THE  DEPARTMENT
 OR  THE  DEPARTMENT'S  FISCAL  AGENT  MAY  REQUEST THE PROVIDER APPEAL A
 DENIAL FOR PAYMENT BY A THIRD PARTY PAYOR PRIOR TO CLAIMING  PAYMENT  TO

 S. 2007                             7                            A. 3007
 
 THE  MUNICIPALITY  FOR  THE SERVICES PROVIDED IN ACCORDANCE WITH SECTION
 TWENTY-FIVE HUNDRED FIFTY-SEVEN OF THIS  TITLE.    PROVIDERS  SHALL  NOT
 DISCONTINUE  OR  DELAY  SERVICES TO ELIGIBLE CHILDREN PENDING PAYMENT OF
 THE CLAIM OR DETERMINATIONS OF ANY APPEAL DENIALS.
   §  6.  Paragraph  (d)  of  subdivision 3 of section 2559 of the public
 health law, as amended by section 11 of part A of chapter 56 of the laws
 of 2012, is amended to read as follows:
   (d) A municipality, or its designee, and a provider shall be subrogat-
 ed, to the extent of the expenditures by such municipality or for  early
 intervention  services  furnished to persons eligible for benefits under
 this title, to any rights such person may have or be  entitled  to  from
 third  party  reimbursement. The provider SHALL SUBMIT ANY DOCUMENTATION
 OBTAINED PURSUANT TO CLAUSE (II) OF PARAGRAPH (A)  OF  THIS  SUBDIVISION
 AND  shall  submit notice to the insurer or plan administrator of his or
 her exercise of such right of subrogation upon the provider's assignment
 as the early intervention service provider for the child. The  right  of
 subrogation  does  not  attach  to  benefits  paid or provided under any
 health insurance policy or health benefits  plan  prior  to  receipt  of
 written  notice  of the exercise of subrogation rights by the insurer or
 plan administrator providing such benefits.
   § 7. This act shall take effect immediately and  shall  be  deemed  to
 have  been  in full force and effect on or after April 1, 2017; provided
 however, that the amendments to section 3224-a of the insurance  law  as
 made  by section one of this act and the amendments to section 3235-a of
 the insurance law as made by section two of this act shall apply only to
 policies and contracts issued, renewed, modified, altered or amended  on
 or after such date.
 
                                  PART B
 
   Section  1.  Subdivision 2 of section 605 of the public health law, as
 amended by section 20 of part E of chapter 56 of the laws  of  2013,  is
 amended to read as follows:
   2.  State  aid  reimbursement for public health services provided by a
 municipality under this title, shall be  made  if  the  municipality  is
 providing  some  or all of the core public health services identified in
 section six hundred two of this title, pursuant to an approved  applica-
 tion  for  state  aid,  at a rate of no less than thirty-six per centum,
 EXCEPT FOR A CITY WITH A POPULATION OF  ONE  MILLION  OR  MORE  PERSONS,
 WHICH  SHALL RECEIVE NO LESS THAN TWENTY-NINE PER CENTUM, of the differ-
 ence between the amount of  moneys  expended  by  the  municipality  for
 public health services required by section six hundred two of this title
 during  the fiscal year and the base grant provided pursuant to subdivi-
 sion one of this section. No such reimbursement shall  be  provided  for
 services that are not eligible for state aid pursuant to this article.
   § 2. Subdivision 1 of section 616 of the public health law, as amended
 by section 27 of part E of chapter 56 of the laws of 2013, is amended to
 read as follows:
   1.  The  total  amount  of state aid provided pursuant to this article
 shall be limited to the amount of the annual appropriation made  by  the
 legislature.  In no event, however, shall such state aid be less than an
 amount to provide the full base grant  and,  as  otherwise  provided  by
 [paragraph  (a)  of] subdivision two of section six hundred five of this
 article, at least thirty-six per centum, EXCEPT FOR A CITY WITH A  POPU-
 LATION  OF ONE MILLION OR MORE PERSONS, WHICH SHALL RECEIVE NO LESS THAN
 TWENTY-NINE PER CENTUM, of the difference between the amount  of  moneys

 S. 2007                             8                            A. 3007
 
 expended  by the municipality for eligible public health services pursu-
 ant to an approved application for state aid during the fiscal year  and
 the  base  grant  provided  pursuant  to  subdivision one of section six
 hundred five of this article.
   § 3. This act shall take effect July 1, 2017.
 
                                  PART C
 
   Section 1. Subdivision 5 of section 369-gg of the social services law,
 as  added  by section 51 of part C of chapter 60 of the laws of 2014, is
 amended to read as follows:
   5. Premiums and cost sharing. (a) Subject  to  federal  approval,  the
 commissioner  shall  establish  premium  payments enrollees shall pay to
 approved organizations for coverage of health care services pursuant  to
 this  title. Such premium payments shall be established in the following
 manner:
   (i) up to twenty dollars monthly for an individual  with  a  household
 income above one hundred and [fifty] THIRTY-EIGHT percent of the federal
 poverty  line but at or below two hundred percent of the federal poverty
 line defined and annually revised by the  United  States  department  of
 health and human services for a household of the same size; BEGINNING IN
 TWO  THOUSAND  EIGHTEEN  AND  ANNUALLY  THEREAFTER, SUCH AMOUNT SHALL BE
 INCREASED BASED ON THE PERCENTAGE INCREASE IN THE MEDICAL CONSUMER PRICE
 INDEX, ROUNDED UP TO THE NEAREST DOLLAR; and
   (ii) no payment is required for individuals with a household income at
 or below one hundred and [fifty] THIRTY-EIGHT  percent  of  the  federal
 poverty  line  defined and annually revised by the United States depart-
 ment of health and human services for a household of the same size.
   (b) The commissioner shall  establish  cost  sharing  obligations  for
 enrollees, subject to federal approval.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after January 1, 2018.
 
                                  PART D
 
   Section 1.  The public health law is amended by adding a  new  section
 280 to read as follows:
   §  280.  HIGH  COST  DRUGS.  1.  LEGISLATIVE  PURPOSE. THERE IS HEREBY
 DECLARED TO BE A SIGNIFICANT PUBLIC INTEREST IN THE TRANSPARENCY OF  THE
 COSTS  AND  PRICES  OF  DRUGS,  AND IN BEING ABLE TO REVIEW THE ECONOMIC
 VALUE OF CERTAIN DRUGS TO THE PUBLIC. THIS WOULD BENEFIT THE CITIZENS OF
 THE STATE WHO HAVE A MEDICAL NEED FOR SUCH DRUGS AND WHOSE  TAX  DOLLARS
 CONTRIBUTE  TO  MAKING  SUCH DRUGS AVAILABLE TO THE RECIPIENTS OF PUBLIC
 HEALTH INSURANCE PROGRAMS. IT IS THEREFORE INTENDED THAT THE  DEPARTMENT
 COLLECT  INFORMATION  RELATED  TO  DRUG  COSTS  AND PRICES, AND WITH THE
 ASSISTANCE OF THE DRUG UTILIZATION REVIEW BOARD ESTABLISHED  BY  SECTION
 THREE  HUNDRED  SIXTY-NINE-BB  OF THE SOCIAL SERVICES LAW, IDENTIFY HIGH
 PRICED DRUGS FOR WHICH A PER-UNIT BENCHMARK  PRICE  CAN  BE  DETERMINED.
 SUCH  DRUGS  WILL BE SUBJECT TO THE REBATE PROVISIONS OF SUBDIVISION SIX
 OF THIS SECTION IF THE DRUGS ARE PAID FOR BY THE MEDICAID  PROGRAM,  AND
 TO  A SURCHARGE IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE TWENTY-C OF
 THE TAX LAW.
   2. HIGH PRICED DRUGS. (A) THE DEPARTMENT  MAY  IDENTIFY,  FOR  REVIEW,
 DRUGS WHICH:
   (I)  WHEN  FIRST INTRODUCED ON THE MARKET, ARE PROHIBITIVELY EXPENSIVE
 FOR PATIENTS WHO COULD BENEFIT FROM THE DRUG; OR

 S. 2007                             9                            A. 3007
 
   (II) SUDDENLY OR OVER A RELATIVELY BRIEF PERIOD OF TIME  EXPERIENCE  A
 LARGE PRICE INCREASE AND SUCH INCREASE IS NOT EXPLAINED BY A SIGNIFICANT
 INCREASE IN INGREDIENT COSTS OR BY SOME OTHER RELEVANT FACTOR; OR
   (III) ARE PRICED DISPROPORTIONALLY GIVEN THAT THEY OFFER LIMITED THER-
 APEUTIC BENEFITS.
   (B) DRUGS IDENTIFIED BY THE DEPARTMENT FOR REVIEW MAY INCLUDE:
   (I) BRAND NAME OR GENERIC DRUGS;
   (II)  DRUGS PRODUCED BY MULTIPLE MANUFACTURERS OR BY A SINGLE MANUFAC-
 TURER;
   (III) DRUGS REIMBURSED BY COMMERCIAL AND/OR PUBLIC PAYERS; AND
   (IV) PRESCRIPTION AND NON-PRESCRIPTION DRUGS.
   3. REPORTING REQUIREMENTS. (A) DRUG MANUFACTURERS  SHALL  PROVIDE  THE
 DEPARTMENT,  UPON  REQUEST,  THE  FOLLOWING  INFORMATION WITH RESPECT TO
 DRUGS IDENTIFIED BY THE DEPARTMENT FOR REVIEW:
   (I) THE ACTUAL COST OF DEVELOPING, MANUFACTURING, PRODUCING (INCLUDING
 THE COST PER DOSE OF PRODUCTION), AND DISTRIBUTING THE DRUG;
   (II) RESEARCH AND DEVELOPMENT COSTS OF THE DRUG, INCLUDING PAYMENTS TO
 PREDECESSOR  ENTITIES  CONDUCTING  RESEARCH  AND  DEVELOPMENT,  SUCH  AS
 BIOTECHNOLOGY  COMPANIES,  UNIVERSITIES AND MEDICAL SCHOOLS, AND PRIVATE
 RESEARCH INSTITUTIONS;
   (III) 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-CONSUM-
 ER MARKETING;
   (IV) THE EXTENT OF UTILIZATION OF THE DRUG;
   (V)  PRICES  FOR  THE  DRUG THAT ARE CHARGED TO PURCHASERS OUTSIDE THE
 UNITED STATES;
   (VI) PRICES CHARGED TO TYPICAL PURCHASERS IN THE STATE, INCLUDING  BUT
 NOT  LIMITED  TO  PHARMACIES,  PHARMACY CHAINS, PHARMACY WHOLESALERS, OR
 OTHER DIRECT PURCHASERS;
   (VII) THE AVERAGE REBATES AND DISCOUNTS PROVIDED PER PAYER TYPE; AND
   (VIII) THE AVERAGE PROFIT MARGIN OF EACH DRUG OVER THE PRIOR FIVE-YEAR
 PERIOD AND THE PROJECTED PROFIT MARGIN ANTICIPATED FOR SUCH DRUG.
   (B) THE DEPARTMENT SHALL DEVELOP A STANDARD REPORTING FORM THAT SATIS-
 FIES THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION.
   (C) ALL INFORMATION DISCLOSED PURSUANT TO PARAGRAPH (A) OF THIS SUBDI-
 VISION SHALL BE CONSIDERED CONFIDENTIAL AND SHALL NOT  BE  DISCLOSED  BY
 THE  DEPARTMENT  IN  A  FORM  THAT IDENTIFIES A SPECIFIC MANUFACTURER OR
 PRICES CHARGED FOR DRUGS BY SUCH MANUFACTURER, EXCEPT AS THE COMMISSION-
 ER DETERMINES IS NECESSARY TO CARRY OUT 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.
   4.  REVIEW OF DRUG COST AND PRICING. THE DEPARTMENT MAY REFER COST AND
 PRICING INFORMATION COLLECTED PURSUANT  TO  SUBDIVISION  THREE  OF  THIS
 SECTION WITH RESPECT TO A PARTICULAR DRUG TO THE DRUG UTILIZATION REVIEW
 BOARD, AND REQUEST THE BOARD TO RECOMMEND A VALUE-BASED, PER-UNIT BENCH-
 MARK PRICE FOR THE DRUG, TAKING INTO CONSIDERATION SUCH COST AND PRICING
 INFORMATION AS WELL AS OTHER FACTORS, INCLUDING BUT NOT LIMITED TO:
   (A) THE SERIOUSNESS AND PREVALENCE OF THE DISEASE OR CONDITION THAT IS
 TREATED BY THE DRUG;
   (B) THE EXTENT OF UTILIZATION OF THE DRUG;

 S. 2007                            10                            A. 3007
 
   (C) THE EFFECTIVENESS OF THE DRUG IN TREATING THE CONDITIONS FOR WHICH
 IT IS PRESCRIBED;
   (D) THE LIKELIHOOD THAT USE OF THE DRUG WILL REDUCE THE NEED FOR OTHER
 MEDICAL CARE, INCLUDING HOSPITALIZATION;
   (E) THE AVERAGE WHOLESALE PRICE AND RETAIL PRICE OF THE DRUG;
   (F)  THE NUMBER OF PHARMACEUTICAL MANUFACTURERS THAT PRODUCE THE DRUG;
 AND
   (G) WHETHER THERE ARE PHARMACEUTICAL EQUIVALENTS TO THE DRUG.
   5. DESIGNATION OF HIGH PRICED DRUGS. IF THE PRICE AT WHICH A  DRUG  IS
 BEING  SOLD  BY  A MANUFACTURER EXCEEDS THE BENCHMARK PRICE FOR THE DRUG
 DETERMINED BY THE DEPARTMENT PURSUANT TO THIS SECTION, THE  COMMISSIONER
 SHALL  DESIGNATE  SUCH  DRUG  A HIGH PRICED DRUG. THE COMMISSIONER SHALL
 PUBLISH ON THE DEPARTMENT WEBSITE A LIST OF  DRUGS  DESIGNATED  AS  HIGH
 PRICED  DRUGS PURSUANT TO THIS SUBDIVISION, ALONG WITH THE DATE ON WHICH
 EACH DRUG FIRST APPEARED ON SUCH LIST AND THE BENCHMARK PRICE  FOR  SUCH
 DRUG DETERMINED BY THE DEPARTMENT.
   6.  REBATES.  (A)  THE COMMISSIONER MAY REQUIRE A DRUG MANUFACTURER TO
 PROVIDE REBATES TO THE DEPARTMENT FOR A DRUG DETERMINED  TO  BE  A  HIGH
 PRICED  DRUG PURSUANT TO SUBDIVISION FOUR OF THIS SECTION WHEN SUCH DRUG
 IS PAID FOR UNDER THE MEDICAID PROGRAM. IN DETERMINING THE AMOUNT OF ANY
 SUCH REBATE, THE COMMISSIONER MAY CONSIDER INFORMATION PROVIDED  BY  THE
 DRUG  MANUFACTURER  WITH RESPECT TO SURCHARGES PAID BY THE MANUFACTURER,
 OR DECREASES IN THE PRICE OF THE DRUG AS A RESULT OF SURCHARGES PAID  BY
 OTHERS, PURSUANT TO ARTICLE TWENTY-C OF THE TAX LAW.
   (B)  REBATES  REQUIRED  BY  THIS  SECTION  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 DRUGS DISPENSED TO ENROLLEES OF MANAGED
 CARE PROVIDERS PURSUANT TO SECTION THREE  HUNDRED  SIXTY-FOUR-J  OF  THE
 SOCIAL  SERVICES  LAW  AND TO DRUGS DISPENSED TO MEDICAID RECIPIENTS WHO
 ARE NOT ENROLLEES OF SUCH PROVIDERS.
   § 2. The tax law is amended by adding a new article 20-C  to  read  as
 follows:
                                ARTICLE 20-C
                      SURCHARGE ON HIGH PRICED DRUGS
 SECTION 492. DEFINITIONS.
         493. IMPOSITION OF SURCHARGE.
         494. RETURNS TO BE SECRET.
   §  492.  DEFINITIONS.  1. THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS WHEN USED IN THIS SECTION.
   (A) "HIGH PRICED DRUG" SHALL MEAN A  DRUG  DETERMINED  TO  BE  A  HIGH
 PRICED  DRUG PURSUANT TO SECTION TWO HUNDRED EIGHTY OF THE PUBLIC HEALTH
 LAW, BUT NOT UNTIL THE FIFTEENTH  DAY  AFTER  THE  DAY  THE  DRUG  FIRST
 APPEARED  ON  A LIST OF SUCH DRUGS TO BE MAINTAINED BY THE STATE DEPART-
 MENT OF HEALTH ON ITS WEBSITE PURSUANT TO SUBDIVISION SEVEN  OF  SECTION
 FOUR HUNDRED NINETY-THREE OF THIS ARTICLE.
   (B)  "GROSS RECEIPT" SHALL MEAN THE AMOUNT RECEIVED IN OR BY REASON OF
 ANY SALE OF A HIGH PRICED DRUG, CONDITIONAL OR OTHERWISE, OR  IN  OR  BY
 REASON  OF  THE  FURNISHING  OF  SUCH HIGH PRICED DRUG. GROSS RECEIPT IS
 EXPRESSED IN MONEY, WHETHER PAID IN CASH, CREDIT OR PROPERTY OF ANY KIND
 OR NATURE, AND SHALL BE DETERMINED WITHOUT ANY  DEDUCTION  THEREFROM  ON
 ACCOUNT  OF THE COST OF THE SERVICE SOLD OR THE COST OF MATERIALS, LABOR
 OR SERVICES USED OR OTHER COSTS, INTEREST OR DISCOUNT PAID, OR ANY OTHER
 EXPENSES WHATSOEVER. "AMOUNT RECEIVED" FOR THE PURPOSE OF THE DEFINITION
 OF GROSS RECEIPT, AS USED THROUGHOUT  THIS  ARTICLE,  MEANS  THE  AMOUNT
 CHARGED FOR THE SALE OR PROVISION OF A HIGH PRICED DRUG.

 S. 2007                            11                            A. 3007
 
   (C)  "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSO-
 CIATION REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT
 TO SECTION SIX THOUSAND EIGHT HUNDRED  EIGHT  OR  SECTION  SIX  THOUSAND
 EIGHT  HUNDRED EIGHT-B OF THE EDUCATION LAW AND ANY PERSON, FIRM, CORPO-
 RATION  OR  ASSOCIATION THAT WOULD BE REQUIRED TO BE REGISTERED WITH THE
 EDUCATION DEPARTMENT PURSUANT TO  SECTION  SIX  THOUSAND  EIGHT  HUNDRED
 EIGHT-B OF THE EDUCATION LAW BUT FOR THE EXCEPTION IN SUBDIVISION TWO OF
 SUCH SECTION.
   (D) "EXCESS CHARGE AMOUNT OF THE GROSS RECEIPT" SHALL MEAN THE DIFFER-
 ENCE  BETWEEN  THE  PRICE  CHARGED BY AN ESTABLISHMENT FOR A HIGH PRICED
 DRUG AND THE BENCHMARK PRICE FOR SUCH DRUG AS DETERMINED BY THE  DEPART-
 MENT  OF  HEALTH  PURSUANT  TO  SECTION TWO HUNDRED EIGHTY OF THE PUBLIC
 HEALTH LAW.
   (E) "INVOICE" SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF  SALE,
 OR OTHER DOCUMENT EVIDENCING A SALE OF A HIGH PRICED DRUG.
   § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE
 ON  THE EXCESS CHARGE AMOUNT OF THE GROSS RECEIPT FROM THE FIRST SALE IN
 THE STATE OF A HIGH PRICED DRUG BY AN ESTABLISHMENT AT THE RATE OF SIXTY
 PERCENT. THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL BE CHARGED  AGAINST
 AND BE PAID BY THE ESTABLISHMENT MAKING SUCH FIRST SALE AND SHALL NOT BE
 ADDED  AS  A  SEPARATE  CHARGE  OR LINE ITEM ON ANY INVOICE GIVEN TO THE
 CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER.  HOWEVER,  AN  ESTAB-
 LISHMENT  LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL CLEARLY
 NOTE ON THE INVOICE FOR THE FIRST SALE OF SUCH HIGH PRICED DRUG  IN  THE
 STATE  ITS  LIABILITY  FOR  THE  SURCHARGE  IMPOSED BY THIS ARTICLE WITH
 REGARD TO SUCH SALE, ALONG WITH ITS NAME, ADDRESS,  AND  TAXPAYER  IDEN-
 TIFICATION NUMBER. ANY SALE OF A HIGH PRICED DRUG IN THIS STATE SHALL BE
 PRESUMED TO BE THE FIRST SALE OF SUCH DRUG IN THE STATE UNLESS THE SELL-
 ER WITH REGARD TO SUCH SALE CAN PROVE THAT THE SURCHARGE IMPOSED BY THIS
 ARTICLE  IS DUE FROM ANOTHER ESTABLISHMENT IN THE CHAIN OF TITLE OF SUCH
 DRUG, WHICH BURDEN CAN BE SATISFIED, AMONG OTHER WAYS, BY  PRODUCING  AN
 INVOICE FROM THE ESTABLISHMENT OWING SUCH SURCHARGE IN WHICH SUCH ESTAB-
 LISHMENT HAS NOTED ITS LIABILITY FOR SUCH SURCHARGE.
   2.  EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTI-
 CLE SHALL, ON OR BEFORE THE TWENTIETH DATE OF EACH MONTH, FILE WITH  THE
 COMMISSIONER  A  RETURN,  ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER,
 SHOWING THE TOTAL EXCESS CHARGE AMOUNT OF ITS  GROSS  RECEIPT  FROM  THE
 FIRST SALE IN THE STATE OF HIGH PRICED DRUGS DURING THE PRECEDING CALEN-
 DAR  MONTH  AND  THE AMOUNT OF SURCHARGE DUE THEREON. SUCH RETURNS SHALL
 CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.  EVERY
 ESTABLISHMENT REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE
 TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT  OF
 SURCHARGE  DUE  ON  SUCH FIRST SALES OF HIGH PRICED DRUGS FOR THE PERIOD
 COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, THE SURCHARGE
 SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED.
   3. ESTABLISHMENTS MAKING SALES OF HIGH  PRICED  DRUGS  IN  THIS  STATE
 SHALL  MAINTAIN  ALL  INVOICES  PERTAINING TO SUCH SALES FOR THREE YEARS
 AFTER SUCH SALES  UNLESS  THE  COMMISSIONER  PROVIDES  FOR  A  DIFFERENT
 RETENTION  PERIOD BY RULE OR REGULATION. THE ESTABLISHMENT SHALL PRODUCE
 SUCH RECORDS UPON DEMAND BY THE DEPARTMENT.
   4. WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS  RECEIVED
 UNDER  THE  PROVISIONS  OF THIS ARTICLE WERE PAID IN ERROR, HE MAY CAUSE
 THE SAME TO BE REFUNDED, WITH INTEREST, IN ACCORDANCE  WITH  SUCH  RULES
 AND  REGULATIONS  AS  HE  OR  SHE MAY PRESCRIBE, EXCEPT THAT NO INTEREST
 SHALL BE ALLOWED OR PAID IF THE AMOUNT THEREOF WOULD BE  LESS  THAN  ONE
 DOLLAR.  SUCH  INTEREST  SHALL  BE  AT  THE  OVERPAYMENT RATE SET BY THE

 S. 2007                            12                            A. 3007
 
 COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED
 SEVENTY-ONE OF THIS CHAPTER, OR IF NO RATE IS SET, AT THE  RATE  OF  SIX
 PERCENT PER ANNUM, FROM THE DATE WHEN THE SURCHARGE, PENALTY OR INTEREST
 TO BE REFUNDED WAS PAID TO A DATE PRECEDING THE DATE OF THE REFUND CHECK
 BY  NOT MORE THAN THIRTY DAYS.  PROVIDED, HOWEVER, THAT FOR THE PURPOSES
 OF THIS SUBDIVISION, ANY SURCHARGE PAID BEFORE THE LAST  DAY  PRESCRIBED
 FOR ITS PAYMENT SHALL BE DEEMED TO HAVE BEEN PAID ON SUCH LAST DAY. SUCH
 MONEYS  RECEIVED  UNDER  THE PROVISIONS OF THIS ARTICLE THAT THE COMMIS-
 SIONER SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF  FUNDS
 IN  THE  CUSTODY  OF  THE  COMPTROLLER  TO THE CREDIT OF SUCH SURCHARGES
 PROVIDED AN APPLICATION THEREFOR IS FILED WITH THE  COMMISSIONER  WITHIN
 TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE.
   5.  THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE
 SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR-
 PORATED IN FULL INTO THIS SECTION AND  HAD  EXPRESSLY  REFERRED  TO  THE
 SURCHARGE  IMPOSED  BY  THIS  ARTICLE,  EXCEPT  TO  THE  EXTENT THAT ANY
 PROVISION OF SUCH ARTICLE IS EITHER INCONSISTENT  WITH  A  PROVISION  OF
 THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
   6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE
 AND  COLLECTED  OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY
 WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES,  AS  MAY
 BE DESIGNATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES, TO THE CREDIT
 OF  THE  HIGH  PRICED  DRUG  REIMBURSEMENT  FUND ESTABLISHED PURSUANT TO
 SECTION EIGHTY-NINE-J OF THE STATE FINANCE LAW. AN ACCOUNT MAY BE ESTAB-
 LISHED IN ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL  BE  KEPT
 SEPARATE  AND APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE SUPER-
 INTENDENT  OF  FINANCIAL  SERVICES.  THE  SUPERINTENDENT  OF   FINANCIAL
 SERVICES  SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES. OF
 THE TOTAL REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE,  THE  SUPER-
 INTENDENT  OF FINANCIAL SERVICES SHALL RETAIN SUCH AMOUNT AS THE COMMIS-
 SIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS ARTICLE. THE
 COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM  THE  AMOUNTS  IT
 RECEIVES  UNDER  THIS  ARTICLE,  BEFORE  DEPOSIT INTO THE TRUST ACCOUNTS
 DESIGNATED BY THE SUPERINTENDENT OF  FINANCIAL  SERVICES,  A  REASONABLE
 AMOUNT  NECESSARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPART-
 MENT TO REIMBURSE THE DEPARTMENT FOR THE COSTS INCURRED  TO  ADMINISTER,
 COLLECT AND DISTRIBUTE THE SURCHARGES IMPOSED BY THIS ARTICLE.
   (B)  ON  OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF EACH SUCCEEDING
 MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND  DEDUCTING  SUCH
 AMOUNTS  FOR  SUCH  COSTS,  AS  PROVIDED  FOR  IN  PARAGRAPH (A) OF THIS
 SUBSECTION, THE COMMISSIONER SHALL  CERTIFY  TO  THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  THE  AMOUNT  OF ALL REVENUES SO RECEIVED DURING THE
 PRIOR MONTH AS A RESULT OF THE SURCHARGES,  INTEREST  AND  PENALTIES  SO
 IMPOSED.  THE  AMOUNT OF REVENUES SO CERTIFIED SHALL BE PAID OVER BY THE
 FIFTEENTH AND THE FINAL BUSINESS DAY OF EACH SUCCEEDING MONTH FROM  SUCH
 ACCOUNT  INTO THE HIGH PRICED DRUG REIMBURSEMENT FUND ESTABLISHED PURSU-
 ANT TO SECTION EIGHTY-NINE-J OF THE STATE FINANCE LAW.
   7. THE STATE DEPARTMENT OF HEALTH SHALL MAINTAIN AND  PUBLISH  ON  ITS
 WEBSITE  A  LIST  OF  DRUGS  DETERMINED, PURSUANT TO SECTION TWO HUNDRED
 EIGHTY OF THE PUBLIC HEALTH LAW, TO BE HIGH PRICED DRUGS, ALONG WITH THE
 DATE ON WHICH EACH DRUG FIRST APPEARED ON THAT LIST  AND  THE  BENCHMARK
 PRICE FOR SUCH DRUG DETERMINED PURSUANT TO SECTION TWO HUNDRED EIGHTY OF
 THE  PUBLIC  HEALTH  LAW  BY  THE DEPARTMENT OF HEALTH.   PROMPTLY AFTER
 INCLUDING A HIGH PRICED DRUG ON  SUCH  LIST,  THE  STATE  DEPARTMENT  OF

 S. 2007                            13                            A. 3007
 
 HEALTH  SHALL  NOTIFY  THE  MANUFACTURER OF SUCH DRUG AND THE DEPARTMENT
 THAT THE DRUG HAS BEEN DETERMINED TO BE A HIGH PRICED DRUG.
   8.  THE  STATE  DEPARTMENT  OF  EDUCATION  AND THE STATE DEPARTMENT OF
 HEALTH  SHALL  COOPERATE  WITH  THE  DEPARTMENT  IN  ADMINISTERING  THIS
 SURCHARGE,  INCLUDING  SHARING WITH THE DEPARTMENT PERTINENT INFORMATION
 ABOUT ESTABLISHMENTS UPON THE REQUEST OF THE COMMISSIONER.
   9. THE COMMISSIONER MAY MAKE,  ADOPT  AND  AMEND  RULES,  REGULATIONS,
 PROCEDURES  AND  FORMS  NECESSARY  FOR THE PROPER ADMINISTRATION OF THIS
 ARTICLE.
   § 494. RETURNS TO BE SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER JUDI-
 CIAL ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT  SHALL
 BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART-
 MENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMIT-
 TED  TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT OR A
 PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFORMATION
 CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON ENGAGED OR
 RETAINED BY SUCH DEPARTMENT ON AN  INDEPENDENT  CONTRACT  BASIS  OR  ANY
 PERSON  WHO  IN  ANY  MANNER  MAY ACQUIRE KNOWLEDGE OF THE CONTENTS OF A
 RETURN OR REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN
 IN ANY MANNER THE CONTENTS OR ANY  OTHER  INFORMATION  RELATING  TO  THE
 BUSINESS  OF AN ESTABLISHMENT CONTAINED IN ANY RETURN OR REPORT REQUIRED
 UNDER THIS ARTICLE. THE  OFFICERS  CHARGED  WITH  THE  CUSTODY  OF  SUCH
 RETURNS  OR  REPORTS  SHALL  NOT  BE  REQUIRED TO PRODUCE ANY OF THEM OR
 EVIDENCE OF ANYTHING CONTAINED IN THEM IN ANY ACTION  OR  PROCEEDING  IN
 ANY  COURT,  EXCEPT  ON  BEHALF  OF  THE  STATE, THE STATE DEPARTMENT OF
 HEALTH, THE STATE DEPARTMENT OF EDUCATION  OR  THE  COMMISSIONER  IN  AN
 ACTION  OR  PROCEEDING UNDER THE PROVISIONS OF THIS CHAPTER OR ON BEHALF
 OF THE STATE OR THE COMMISSIONER  IN  ANY  OTHER  ACTION  OR  PROCEEDING
 INVOLVING  THE  COLLECTION  OF A TAX DUE UNDER THIS CHAPTER TO WHICH THE
 STATE OR THE COMMISSIONER IS A PARTY OR A CLAIMANT OR ON BEHALF  OF  ANY
 PARTY  TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS ARTICLE,
 WHEN THE RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY ARE  DIRECTLY
 INVOLVED  IN  SUCH  ACTION  OR PROCEEDING, OR IN AN ACTION OR PROCEEDING
 RELATING TO THE REGULATION OR SURCHARGE OF HIGH PRICED DRUGS  ON  BEHALF
 OF  OFFICERS TO WHOM INFORMATION SHALL HAVE BEEN SUPPLIED AS PROVIDED IN
 SUBSECTION TWO OF THIS SECTION, IN ANY OF WHICH  EVENTS  THE  COURT  MAY
 REQUIRE  THE  PRODUCTION  OF,  AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID
 RETURNS OR REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE
 ACTION OR PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE  CONSTRUED  TO
 PROHIBIT  THE  COMMISSIONER, IN HIS OR HER DISCRETION, FROM ALLOWING THE
 INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED
 UNDER THIS ARTICLE OR OF ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR
 REPORT BY OR TO A DULY AUTHORIZED  OFFICER  OR  EMPLOYEE  OF  THE  STATE
 DEPARTMENT  OF  HEALTH OR THE STATE DEPARTMENT OF EDUCATION; OR BY OR TO
 THE ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF THE STATE WHEN AN
 ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER
 IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
 INVOLVED; OR THE INSPECTION OF THE RETURNS  OR  REPORTS  REQUIRED  UNDER
 THIS  ARTICLE  BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE
 OF THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE  AUDIT
 OF  A  REFUND  OF ANY SURCHARGE PAID BY AN ESTABLISHMENT OR OTHER PERSON
 UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISHMENT, OR
 A DULY AUTHORIZED REPRESENTATIVE OF SUCH ESTABLISHMENT, A CERTIFIED COPY
 OF ANY RETURN OR REPORT FILED BY SUCH  ESTABLISHMENT  PURSUANT  TO  THIS
 ARTICLE,  NOR TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS

 S. 2007                            14                            A. 3007
 
 TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS  AND  THE
 ITEMS THEREOF.
   2.  THE  COMMISSIONER,  IN  HIS OR HER DISCRETION AND PURSUANT TO SUCH
 RULES AND REGULATIONS AS HE OR SHE MAY ADOPT, MAY PERMIT THE COMMISSION-
 ER OF INTERNAL REVENUE OF THE UNITED STATES, OR THE APPROPRIATE OFFICERS
 OF ANY OTHER STATE WHICH REGULATES OR SURCHARGES HIGH PRICED  DRUGS,  OR
 THE  DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY SUCH
 OFFICERS, TO INSPECT RETURNS OR REPORTS MADE PURSUANT TO  THIS  ARTICLE,
 OR  MAY  FURNISH TO SUCH COMMISSIONER OR OTHER OFFICERS, OR DULY AUTHOR-
 IZED REPRESENTATIVES, A COPY OF ANY SUCH RETURN OR REPORT OR AN ABSTRACT
 OF THE INFORMATION THEREIN CONTAINED, OR ANY  PORTION  THEREOF,  OR  MAY
 SUPPLY  SUCH  COMMISSIONER  OR ANY SUCH OFFICERS OR SUCH REPRESENTATIVES
 WITH INFORMATION RELATING TO THE BUSINESS  OF  AN  ESTABLISHMENT  MAKING
 RETURNS  OR  REPORTS  HEREUNDER.  THE  COMMISSIONER MAY REFUSE TO SUPPLY
 INFORMATION PURSUANT TO THIS SUBSECTION TO THE COMMISSIONER OF  INTERNAL
 REVENUE  OF  THE  UNITED STATES OR TO THE OFFICERS OF ANY OTHER STATE IF
 THE STATUTES OF THE UNITED STATES, OR OF THE STATE REPRESENTED  BY  SUCH
 OFFICERS,  DO  NOT GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE COMMIS-
 SIONER, BUT SUCH REFUSAL SHALL NOT BE MANDATORY. INFORMATION  SHALL  NOT
 BE SUPPLIED TO THE COMMISSIONER OF INTERNAL REVENUE OF THE UNITED STATES
 OR  THE  APPROPRIATE  OFFICERS  OF  ANY  OTHER  STATE WHICH REGULATES OR
 SURCHARGES HIGH PRICED DRUGS, OR THE DULY AUTHORIZED REPRESENTATIVES  OF
 SUCH  COMMISSIONER OR OF ANY OF SUCH OFFICERS, UNLESS SUCH COMMISSIONER,
 OFFICER OR OTHER REPRESENTATIVES SHALL AGREE  NOT  TO  DIVULGE  OR  MAKE
 KNOWN  IN  ANY MANNER THE INFORMATION SO SUPPLIED, BUT SUCH OFFICERS MAY
 TRANSMIT SUCH INFORMATION TO THEIR EMPLOYEES  OR  LEGAL  REPRESENTATIVES
 WHEN NECESSARY, WHO IN TURN SHALL BE SUBJECT TO THE SAME RESTRICTIONS AS
 THOSE  HEREBY IMPOSED UPON SUCH COMMISSIONER, OFFICER OR OTHER REPRESEN-
 TATIVES.
   3. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS OF SUBSECTION ONE OR TWO OF THIS SECTION SHALL  BE  DISMISSED
 FROM  OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE
 FOR A PERIOD OF FIVE YEARS THEREAFTER.
   (B) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE  THIRTY-SEVEN
 OF THIS CHAPTER.
   §  3.  Section 1825 of the tax law, as amended by section 89 of part A
 of chapter 59 of the laws of 2014, is amended to read as follows:
   § 1825. Violation of secrecy provisions of the  tax  law.--Any  person
 who  violates  the  provisions of subdivision (b) of section twenty-one,
 subdivision one of section two hundred two, subdivision eight of section
 two hundred eleven, subdivision (a) of section three  hundred  fourteen,
 subdivision  one  or  two  of section four hundred thirty-seven, section
 four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision
 one or two of section five hundred fourteen, subsection (e)  of  section
 six  hundred  ninety-seven, subsection (a) of section nine hundred nine-
 ty-four, subdivision (a) of section eleven  hundred  forty-six,  section
 twelve hundred eighty-seven, subdivision (a) of section fourteen hundred
 eighteen,  subdivision (a) of section fifteen hundred eighteen, subdivi-
 sion (a) of section fifteen hundred  fifty-five  of  this  chapter,  and
 subdivision  (e)  of  section  11-1797 of the administrative code of the
 city of New York shall be guilty of a misdemeanor.
   § 4.  The state finance law is amended by adding a new section 89-j to
 read as follows:
   § 89-J. HIGH PRICED DRUG REIMBURSEMENT  FUND.    1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  SOLE  CUSTODY  OF  THE SUPERINTENDENT OF FINANCIAL

 S. 2007                            15                            A. 3007
 
 SERVICES AN AGENCY FUND, TO BE KNOWN AS THE "HIGH PRICED DRUG REIMBURSE-
 MENT FUND."
   2.  SUCH  FUND SHALL CONSIST OF REVENUES DERIVED FROM THE SURCHARGE ON
 HIGH PRICED DRUGS IMPOSED BY ARTICLE TWENTY-C OF THE  TAX  LAW  AND  ALL
 OTHER  MONEYS  CREDITED  OR  TRANSFERRED  THERETO FROM ANY OTHER FUND OR
 SOURCE PURSUANT TO LAW.
   3. ALL MONEYS RETAINED IN SUCH FUND SHALL BE HELD ON BEHALF OF  HEALTH
 INSURERS  AND  THE NEW YORK MEDICAID PROGRAM, AND PAID OUT BY THE SUPER-
 INTENDENT OF FINANCIAL SERVICES TO HEALTH  INSURERS  AND  THE  NEW  YORK
 MEDICAID  PROGRAM  IN  PROPORTION  TO  HEALTH INSURERS' AND THE NEW YORK
 MEDICAID PROGRAM'S RESPECTIVE COSTS ATTRIBUTABLE TO EACH  PHARMACEUTICAL
 PRODUCT  FOR  WHICH  THE  SURCHARGE ON HIGH PRICE DRUGS WAS IMPOSED. THE
 SUPERINTENDENT OF FINANCIAL  SERVICES  SHALL  ESTABLISH  REGULATIONS  TO
 APPORTION  SUCH REVENUES DERIVED TO REFLECT HEALTH INSURERS' AND THE NEW
 YORK MEDICAID PROGRAM'S RESPECTIVE COSTS FOR SUCH DRUGS.
   4. ALL MONEYS DISTRIBUTED FROM THE HIGH PRICED DRUG REIMBURSEMENT FUND
 TO A HEALTH INSURER SHALL BE, AT THE DISCRETION OF THE SUPERINTENDENT OF
 FINANCIAL SERVICES, EITHER (1) CREDITED TO THE PREMIUMS CHARGED BY  SUCH
 HEALTH INSURER FOR THE NEXT POLICY PERIOD OR (2) CREDITED TO POLICYHOLD-
 ERS PURSUANT TO PROCEDURES THAT THE SUPERINTENDENT OF FINANCIAL SERVICES
 SHALL ESTABLISH BY REGULATIONS.
   5.  FOR  PURPOSES  OF THIS SECTION: (A) "HEALTH INSURER" SHALL MEAN AN
 INSURANCE COMPANY AUTHORIZED IN THIS STATE TO WRITE ACCIDENT AND  HEALTH
 INSURANCE,  A  COMPANY  ORGANIZED PURSUANT TO ARTICLE FORTY-THREE OF THE
 INSURANCE LAW, A MUNICIPAL COOPERATIVE HEALTH BENEFIT  PLAN  ESTABLISHED
 PURSUANT  TO  ARTICLE FORTY-SEVEN OF THE INSURANCE LAW, A HEALTH MAINTE-
 NANCE ORGANIZATION CERTIFIED  PURSUANT  TO  ARTICLE  FORTY-FOUR  OF  THE
 PUBLIC HEALTH LAW, AN INSTITUTION OF HIGHER EDUCATION CERTIFIED PURSUANT
 TO  SECTION  ONE  THOUSAND ONE HUNDRED TWENTY-FOUR OF THE INSURANCE LAW,
 THE NEW YORK STATE HEALTH INSURANCE PLAN ESTABLISHED UNDER ARTICLE ELEV-
 EN OF THE CIVIL SERVICE LAW, OR AN EMPLOYER  WITH  AN  EMPLOYEE  BENEFIT
 PLAN,  AS DEFINED BY THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT
 OF 1974, PROVIDED THAT THE EMPLOYER VOLUNTARILY ELECTS;
   (B) "NEW YORK MEDICAID PROGRAM"  SHALL  MEAN  THE  MEDICAL  ASSISTANCE
 PROGRAM  FOR NEEDY PERSONS ESTABLISHED PURSUANT TO TITLE ELEVEN OF ARTI-
 CLE FIVE OF THE SOCIAL SERVICES LAW.
   6. THE SUPERINTENDENT OF FINANCIAL SERVICES MAY ISSUE SUCH  RULES  AND
 REGULATIONS  AS HE OR SHE SHALL DEEM NECESSARY TO IMPLEMENT THIS SECTION
 AND ADMINISTER THE HIGH PRICED DRUG REIMBURSEMENT FUND.
   7. THE FUNDS SO  RECEIVED  AND  DEPOSITED  IN  THE  HIGH  PRICED  DRUG
 REIMBURSEMENT FUND SHALL NOT BE DEEMED TO BE STATE FUNDS.
   8.  MONEYS DISTRIBUTED FROM THE FUND SHALL NOT BE SUBJECT TO APPROPRI-
 ATION.
   9. NO AMOUNTS MAY BE PAID OUT OF THIS FUND PRIOR TO APRIL  FIRST,  TWO
 THOUSAND EIGHTEEN.
   §  5. Subdivision 1 and paragraph (f) of subdivision 2 of section 369-
 bb of the social services law, subdivision 1 as  amended  and  paragraph
 (f)  of  subdivision 2 as added by section 20 of part A of chapter 56 of
 the laws of 2013, are amended and two new paragraphs  (g)  and  (h)  are
 added to subdivision 2 to read as follows:
   1.  A  [nineteen-member]  TWENTY-THREE  MEMBER drug utilization review
 board is hereby created in the department. The board is responsible  for
 the  establishment  and implementation of medical standards and criteria
 for the retrospective and prospective DUR program.
   (f)(I) The commissioner shall designate a person from  the  department
 to serve as chairperson of the board.

 S. 2007                            16                            A. 3007

   (II) TWO PERSONS WHO ARE HEALTH CARE ECONOMISTS.
   (G) ONE PERSON WHO IS AN ACTUARY.
   (H) ONE PERSON REPRESENTING THE DEPARTMENT OF FINANCIAL SERVICES.
   § 6. Paragraphs (g), (h) and (i) of subdivision 8 of section 369-bb of
 the social services law are relettered paragraphs (h), (i) and (j) and a
 new paragraph (g) is added to read as follows:
   (G)  THE REVIEW OF THE DRUG COST AND PRICING OF SPECIFIC DRUGS SUBMIT-
 TED TO THE BOARD PURSUANT TO SECTION TWO HUNDRED EIGHTY  OF  THE  PUBLIC
 HEALTH  LAW, AND THE FORMULATION OF RECOMMENDATIONS AS TO A VALUE-BASED,
 PER-UNIT  BENCHMARK  PRICE  FOR  SUCH  DRUGS,  IN  ACCORDANCE  WITH  THE
 PROVISIONS OF SUCH SECTION.
   § 7. The opening paragraph and subparagraphs (i) and (ii) of paragraph
 (b)  and  paragraph  (d) of subdivision 9 of section 367-a of the social
 services law, the opening paragraph and  paragraph  (d)  as  amended  by
 chapter  19 of the laws of 1998, subparagraphs (i) and (ii) of paragraph
 (b) as amended by section 2 of part C of chapter 60 of the laws of 2014,
 subparagraph (i) of paragraph (d) as amended by section 10-a of  part  H
 of chapter 59 of the laws of 2011 and subparagraph (ii) of paragraph (d)
 as  amended  by  section 48 of part C of chapter 58 of the laws of 2009,
 are amended to read as follows:
   Notwithstanding any inconsistent provision of law or regulation to the
 contrary,  for  those  drugs  which  may  not  be  dispensed  without  a
 prescription  as  required  by  section  sixty-eight  hundred ten of the
 education law and for which payment is authorized pursuant to  paragraph
 (g)  of  subdivision  two  of section three hundred sixty-five-a of this
 title, AND FOR THOSE DRUGS THAT ARE AVAILABLE WITHOUT A PRESCRIPTION  AS
 REQUIRED BY SECTION SIXTY-EIGHT HUNDRED TEN OF THE EDUCATION LAW BUT ARE
 REIMBURSED  AS  ITEMS OF MEDICAL ASSISTANCE PURSUANT TO PARAGRAPH (A) OF
 SUBDIVISION FOUR OF SECTION THREE HUNDRED SIXTY-FIVE-A  OF  THIS  TITLE,
 payments under this title shall be made at the following amounts:
   (i)  [if the drug dispensed is a multiple source prescription drug for
 which an upper limit has been set by the federal  centers  for  medicare
 and medicaid services, the lower of: (A) an amount equal to the specific
 upper  limit  set  by  such  federal  agency  for  the  multiple  source
 prescription drug; (B) the estimated acquisition cost of  such  drug  to
 pharmacies  which,  for  purposes  of  this subparagraph, shall mean the
 average wholesale price of a prescription drug based on the package size
 dispensed from, as reported by the  prescription  drug  pricing  service
 used  by the department, less twenty-five percent thereof; (C) the maxi-
 mum acquisition cost, if any, established pursuant to paragraph  (e)  of
 this  subdivision,  provided that the methodology used by the department
 to establish a maximum acquisition cost shall not include average acqui-
 sition cost as determined by department surveys; or (D)  the  dispensing
 pharmacy's usual and customary price charged to the general public; and]
 IF  THE DRUG DISPENSED IS A GENERIC PRESCRIPTION DRUG, OR IS A DRUG THAT
 IS AVAILABLE WITHOUT A PRESCRIPTION AS REQUIRED BY  SECTION  SIXTY-EIGHT
 HUNDRED TEN OF THE EDUCATION LAW BUT IS REIMBURSED AS AN ITEM OF MEDICAL
 ASSISTANCE  PURSUANT  TO  PARAGRAPH  (A)  OF SUBDIVISION FOUR OF SECTION
 THREE HUNDRED SIXTY-FIVE-A OF THIS TITLE, THE LOWER OF:  (A)  AN  AMOUNT
 EQUAL  TO  THE NATIONAL AVERAGE DRUG ACQUISITION COST SET BY THE FEDERAL
 CENTERS FOR MEDICARE AND MEDICAID SERVICES FOR THE DRUG, IF ANY,  OR  IF
 SUCH AMOUNT IF NOT AVAILABLE, THE WHOLESALE ACQUISITION COST OF THE DRUG
 BASED   ON   THE  PACKAGE  SIZE  DISPENSED  FROM,  AS  REPORTED  BY  THE
 PRESCRIPTION DRUG PRICING SERVICE USED BY THE DEPARTMENT, LESS SEVENTEEN
 AND ONE-HALF PERCENT THEREOF; (B)  THE  FEDERAL  UPPER  LIMIT,  IF  ANY,
 ESTABLISHED  BY  THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID SERVICES;

 S. 2007                            17                            A. 3007
 
 (C) THE STATE MAXIMUM ACQUISITION COST, IF ANY, ESTABLISHED PURSUANT  TO
 PARAGRAPH  (E)  OF  THIS  SUBDIVISION;  OR (D) THE DISPENSING PHARMACY'S
 USUAL AND CUSTOMARY PRICE CHARGED TO THE GENERAL PUBLIC;
   (ii) if the drug dispensed is [a multiple source prescription drug or]
 a  brand-name  prescription  drug [for which no specific upper limit has
 been set by such federal agency], the lower of [the  estimated  acquisi-
 tion  cost of such drug to pharmacies or the dispensing pharmacy's usual
 and customary price charged to the general public. For sole and multiple
 source brand name drugs, estimated acquisition cost  means  the  average
 wholesale  price  of  a  prescription  drug  based upon the package size
 dispensed from, as reported by the  prescription  drug  pricing  service
 used  by the department, less seventeen percent thereof or the wholesale
 acquisition  cost  of  a  prescription  drug  based  upon  package  size
 dispensed  from,  as  reported  by the prescription drug pricing service
 used by the department, minus  zero  and  forty-one  hundredths  percent
 thereof,  and  updated  monthly  by  the department. For multiple source
 generic drugs, estimated acquisition cost means the lower of the average
 wholesale price of  a  prescription  drug  based  on  the  package  size
 dispensed  from,  as  reported  by the prescription drug pricing service
 used by the department, less twenty-five percent thereof, or the maximum
 acquisition cost, if any, established pursuant to paragraph (e) of  this
 subdivision,  provided  that  the  methodology used by the department to
 establish a maximum acquisition cost shall not include average  acquisi-
 tion cost as determined by department surveys.]:
   (A)  AN AMOUNT EQUAL TO THE NATIONAL AVERAGE DRUG ACQUISITION COST SET
 BY THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID SERVICES FOR THE  DRUG,
 IF  ANY,  OR  IF SUCH AMOUNT IS NOT AVAILABLE, THE WHOLESALE ACQUISITION
 COST OF THE DRUG BASED ON THE PACKAGE SIZE DISPENSED FROM,  AS  REPORTED
 BY  THE  PRESCRIPTION  DRUG PRICING SERVICE USED BY THE DEPARTMENT, LESS
 THREE AND THREE-TENTHS PERCENT THEREOF; OR (B) THE DISPENSING PHARMACY'S
 USUAL AND CUSTOMARY PRICE CHARGED TO THE GENERAL PUBLIC; AND
   (d) In addition to the amounts paid pursuant to paragraph (b) of  this
 subdivision  [to  pharmacies  for those drugs which may not be dispensed
 without a prescription, as required by section sixty-eight  hundred  ten
 of  the  education  law  and for which payment is authorized pursuant to
 paragraph (g) of subdivision two of section three  hundred  sixty-five-a
 of  this  title],  the  department  shall  pay  a  PROFESSIONAL pharmacy
 dispensing fee for  each  such  [prescription]  drug  dispensed[,  which
 dispensing fee shall not be less than the following amounts:
   (i)  for prescription drugs categorized as generic by the prescription
 drug pricing service used by the department,  three  dollars  and  fifty
 cents per prescription; and
   (ii)  for  prescription  drugs  categorized as brand-name prescription
 drugs by the prescription drug pricing service used by  the  department,
 three  dollars and fifty cents per prescription, provided, however, that
 for brand name prescription drugs reimbursed  pursuant  to  subparagraph
 (ii)  of  paragraph  (a-1)  of subdivision four of section three hundred
 sixty-five-a of this title, the dispensing fee shall be four dollars and
 fifty  cents  per  prescription]  IN  THE  AMOUNT  OF  TEN  DOLLARS  PER
 PRESCRIPTION  OR WRITTEN ORDER OF A PRACTITIONER; PROVIDED, HOWEVER THAT
 THIS PROFESSIONAL DISPENSING FEE WILL NOT APPLY TO DRUGS THAT ARE AVAIL-
 ABLE WITHOUT A PRESCRIPTION AS REQUIRED BY SECTION  SIXTY-EIGHT  HUNDRED
 TEN  OF  THE  EDUCATION  LAW BUT DO NOT MEET THE DEFINITION OF A COVERED
 OUTPATIENT DRUG PURSUANT TO SECTION 1927K OF THE SOCIAL SECURITY ACT.
   § 8. It shall be an unacceptable  practice  in  the  Medicaid  program
 established pursuant to title 11 of article 5 of the social services law

 S. 2007                            18                            A. 3007

 for  a provider to prescribe opioids in violation of the requirements of
 paragraph (g-1) of subdivision 2  of  section  365-a  of  such  law,  in
 violation  of  any  other  applicable  law  limiting  or restricting the
 prescribing of opioids, and/or contrary to recommendations issued by the
 drug  utilization  review  board  established  by  section 369-bb of the
 social services law, and such practice may result in the provider  being
 excluded from participation in the Medicaid program.
   §  9.  Paragraph (g-1) of subdivision 2 of section 365-a of the social
 services law, as amended by section 5 of part C of  chapter  60  of  the
 laws of 2014, is amended to read as follows:
   (g-1)  drugs provided on an in-patient basis, those drugs contained on
 the list established by regulation of the commissioner of health  pursu-
 ant  to  subdivision four of this section, and those drugs which may not
 be dispensed without a prescription as required by  section  sixty-eight
 hundred  ten  of  the education law and which the commissioner of health
 shall determine to be reimbursable based upon such factors as the avail-
 ability of such drugs or alternatives at low  cost  if  purchased  by  a
 medicaid  recipient,  or the essential nature of such drugs as described
 by such commissioner in regulations, provided, however, that such drugs,
 exclusive of long-term maintenance drugs, shall be dispensed in  quanti-
 ties no greater than a thirty day supply or one hundred doses, whichever
 is  greater; provided further that the commissioner of health is author-
 ized to require prior authorization for any  refill  of  a  prescription
 when  more  than  a  ten  day  supply of the previously dispensed amount
 should remain were the product used as normally  indicated,  OR  IN  THE
 CASE  OF  A  CONTROLLED  SUBSTANCE,  AS  DEFINED IN SECTION THIRTY-THREE
 HUNDRED TWO OF THE PUBLIC HEALTH LAW, WHEN MORE THAN A SEVEN DAY  SUPPLY
 OF  THE  PREVIOUSLY DISPENSED AMOUNT SHOULD REMAIN WERE THE PRODUCT USED
 AS NORMALLY INDICATED; provided further that the commissioner of  health
 is  authorized to require prior authorization of prescriptions of opioid
 analgesics in excess of four prescriptions in  a  thirty-day  period  in
 accordance  with  section two hundred seventy-three of the public health
 law; medical assistance shall not include any  drug  provided  on  other
 than  an in-patient basis for which a recipient is charged or a claim is
 made in the case of a prescription drug, in excess of the maximum  reim-
 bursable  amounts to be established by department regulations in accord-
 ance with standards established by the secretary of  the  United  States
 department  of  health and human services, or, in the case of a drug not
 requiring a prescription, in excess of the maximum  reimbursable  amount
 established  by  the commissioner of health pursuant to paragraph (a) of
 subdivision four of this section;
   § 10. 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 SHALL 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

 S. 2007                            19                            A. 3007
 
 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.
   § 11. 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.
   § 12. Subdivision 25-a of section 364-j of the social services law  is
 REPEALED.
   §  13.  The public health law is amended by adding a new section 280-c
 to read as follows:
   § 280-C. COMPREHENSIVE MEDICATION MANAGEMENT.  1.    DEFINITIONS.  FOR
 PURPOSES OF THIS SECTION:
   (A)  "QUALIFIED PHARMACIST" MEANS A PHARMACIST WHO MAINTAINS A CURRENT
 UNRESTRICTED LICENSE PURSUANT TO ARTICLE ONE HUNDRED THIRTY-SEVEN OF THE
 EDUCATION LAW AND WHO HAS COMPLETED ONE OR MORE PROGRAMS, ACCREDITED  BY
 THE  ACCREDITATION  COUNCIL  FOR  PHARMACY EDUCATION, FOR THE MEDICATION
 MANAGEMENT OF A CHRONIC DISEASE OR DISEASES;
   (B) "COMPREHENSIVE MEDICATION MANAGEMENT" MEANS A PROGRAM THAT ENSURES
 A PATIENT'S MEDICATIONS, WHETHER PRESCRIPTION  OR  NONPRESCRIPTION,  ARE
 INDIVIDUALLY  ASSESSED  TO DETERMINE THAT EACH MEDICATION IS APPROPRIATE
 FOR THE PATIENT, EFFECTIVE FOR THE MEDICAL CONDITION, SAFE GIVEN  COMOR-
 BIDITIES  AND OTHER MEDICATIONS BEING TAKEN, AND ABLE TO BE TAKEN BY THE
 PATIENT AS INTENDED;
   (C) "COMPREHENSIVE MEDICATION MANAGEMENT  PROTOCOL"  MEANS  A  WRITTEN
 DOCUMENT PURSUANT TO AND CONSISTENT WITH ANY APPLICABLE STATE AND FEDER-
 AL  REQUIREMENTS, THAT IS ENTERED INTO VOLUNTARILY BY EITHER A PHYSICIAN
 LICENSED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE OF THE EDUCATION LAW
 OR A NURSE PRACTITIONER CERTIFIED PURSUANT TO SECTION SIXTY-NINE HUNDRED
 TEN OF THE EDUCATION LAW, AND A QUALIFIED PHARMACIST WHICH  ADDRESSES  A
 CHRONIC  DISEASE  OR DISEASES AND THAT DESCRIBES THE NATURE AND SCOPE OF
 THE COMPREHENSIVE MEDICATION MANAGEMENT SERVICES TO BE PERFORMED BY  THE
 QUALIFIED PHARMACIST, IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION;
 COMPREHENSIVE  MEDICATION  MANAGEMENT  PROTOCOLS  BETWEEN  PHYSICIANS OR
 NURSE PRACTITIONERS AND QUALIFIED PHARMACISTS SHALL BE MADE AVAILABLE TO
 THE DEPARTMENT FOR REVIEW AND TO ENSURE COMPLIANCE  WITH  THIS  ARTICLE,
 UPON REQUEST.
   2.  A PHYSICIAN LICENSED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE OF
 THE EDUCATION LAW OR A NURSE PRACTITIONER CERTIFIED PURSUANT TO  SECTION
 SIXTY-NINE  HUNDRED  TEN  OF  THE  EDUCATION  LAW SHALL BE AUTHORIZED TO
 VOLUNTARILY ESTABLISH A  COMPREHENSIVE  MEDICATION  MANAGEMENT  PROTOCOL
 WITH  A QUALIFIED PHARMACIST TO PROVIDE COMPREHENSIVE MEDICATION MANAGE-
 MENT SERVICES FOR A PATIENT WHO HAS NOT MET CLINICAL GOALS  OF  THERAPY,
 IS AT RISK FOR HOSPITALIZATION, OR FOR WHOM THE PHYSICIAN OR NURSE PRAC-
 TITIONER  DEEMS  IT  IS  NECESSARY  TO  RECEIVE COMPREHENSIVE MEDICATION
 MANAGEMENT SERVICES. PARTICIPATION BY THE PATIENT IN COMPREHENSIVE MEDI-
 CATION MANAGEMENT SERVICES SHALL BE VOLUNTARY.

 S. 2007                            20                            A. 3007
 
   3. UNDER A COMPREHENSIVE MEDICATION MANAGEMENT PROTOCOL,  A  QUALIFIED
 PHARMACIST SHALL BE PERMITTED TO:
   (A)  ADJUST OR MANAGE A DRUG REGIMEN OF THE PATIENT, WHICH MAY INCLUDE
 ADJUSTING DRUG STRENGTH, FREQUENCY OF ADMINISTRATION OR ROUTE OF  ADMIN-
 ISTRATION,  DISCONTINUANCE  OF  THERAPY  OR  INITIATION  OF A DRUG WHICH
 DIFFERS FROM THAT INITIALLY PRESCRIBED BY  THE  PATIENT'S  PHYSICIAN  OR
 NURSE PRACTITIONER;
   (B)  EVALUATE  AND  ONLY TO THE NEXT EXTENT NECESSARY TO DISCHARGE THE
 RESPONSIBILITY SET FORTH IN  THIS  SECTION,  ORDER  OR  PERFORM  ROUTINE
 PATIENT  MONITORING  FUNCTIONS OR DISEASE STATE LABORATORY TESTS RELATED
 TO COMPREHENSIVE MEDICATION MANAGEMENT FOR THE SPECIFIC CHRONIC  DISEASE
 OR  DISEASES,  SPECIFIED  WITHIN THE COMPREHENSIVE MEDICATION MANAGEMENT
 PROTOCOL;
   (C) ACCESS THE COMPLETE  PATIENT  MEDICAL  RECORD  MAINTAINED  BY  THE
 PHYSICIAN  OR  NURSE PRACTITIONER WITH WHOM HE OR SHE HAS THE COMPREHEN-
 SIVE MEDICATION MANAGEMENT PROTOCOL AND SHALL DOCUMENT  ANY  ADJUSTMENTS
 MADE  PURSUANT TO THE PROTOCOL IN THE PATIENT'S MEDICAL RECORD AND SHALL
 NOTIFY THE PATIENT'S TREATING PHYSICIAN OR NURSE PRACTITIONER IN A TIME-
 LY MANNER ELECTRONICALLY OR BY  OTHER  MEANS.  UNDER  NO  CIRCUMSTANCES,
 SHALL  THE  QUALIFIED  PHARMACIST BE PERMITTED TO DELEGATE COMPREHENSIVE
 MEDICATION MANAGEMENT SERVICES TO ANY OTHER LICENSED PHARMACIST OR OTHER
 PHARMACY PERSONNEL.
   4. ANY MEDICATION ADJUSTMENTS MADE BY THE QUALIFIED PHARMACIST  PURSU-
 ANT  TO  THE  COMPREHENSIVE  MEDICATION  MANAGEMENT  PROTOCOL, INCLUDING
 ADJUSTMENTS IN DRUG STRENGTH, FREQUENCY OR ROUTE OF  ADMINISTRATION,  OR
 INITIATION OF A DRUG WHICH DIFFERS FROM THAT INITIALLY PRESCRIBED AND AS
 DOCUMENTED  IN  THE  PATIENT  MEDICAL  RECORD,  SHALL  BE DEEMED AN ORAL
 PRESCRIPTION AUTHORIZED BY AN AGENT OF THE PATIENT'S TREATING  PHYSICIAN
 OR  NURSE  PRACTITIONER  AND  SHALL BE DISPENSED CONSISTENT WITH SECTION
 SIXTY-EIGHT HUNDRED TEN OF THE EDUCATION LAW.
   5. A PHYSICIAN LICENSED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE  OF
 THE  EDUCATION LAW OR A NURSE PRACTITIONER CERTIFIED PURSUANT TO SECTION
 SIXTY-NINE HUNDRED TEN OF THE EDUCATION LAW, WHO HAS RESPONSIBILITY  FOR
 THE  TREATMENT  AND  CARE OF A PATIENT FOR A CHRONIC DISEASE OR DISEASES
 MAY REFER THE PATIENT TO A QUALIFIED PHARMACIST FOR COMPREHENSIVE  MEDI-
 CATION  MANAGEMENT  SERVICES,  PURSUANT  TO THE COMPREHENSIVE MEDICATION
 MANAGEMENT PROTOCOL THAT THE PHYSICIAN OR NURSE PRACTITIONER HAS  ESTAB-
 LISHED  WITH THE QUALIFIED PHARMACIST. SUCH REFERRAL SHALL BE DOCUMENTED
 IN THE PATIENT'S MEDICAL RECORD. PARTICIPATION BY THE PATIENT IN COMPRE-
 HENSIVE MEDICATION MANAGEMENT SERVICES SHALL BE VOLUNTARY.
   § 14. Paragraph (a) of subdivision 4 of section 365-a  of  the  social
 services  law, as amended by chapter 493 of the laws of 2010, is amended
 to read as follows:
   (a) drugs which may be dispensed without a prescription as required by
 section sixty-eight hundred ten of the education law; provided, however,
 that the state commissioner of health may by regulation specify  certain
 of  such  drugs which may be reimbursed as an item of medical assistance
 in accordance with the price schedule established by such  commissioner.
 Notwithstanding any other provision of law, [additions] MODIFICATIONS to
 the  list  of  drugs  reimbursable  under this paragraph may be filed as
 regulations by the commissioner  of  health  without  prior  notice  and
 comment;
   §  15.  Paragraph  (c) of subdivision 6 of section 367-a of the social
 services law is amended by adding a new  subparagraph  (v)  to  read  as
 follows:

 S. 2007                            21                            A. 3007
 
   (V) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, CO-PAYMENTS
 CHARGED  FOR  DRUGS  DISPENSED  WITHOUT  A  PRESCRIPTION  AS REQUIRED BY
 SECTION SIXTY-EIGHT HUNDRED TEN OF THE EDUCATION LAW BUT WHICH ARE REIM-
 BURSED AS AN ITEM OF MEDICAL ASSISTANCE PURSUANT  TO  PARAGRAPH  (A)  OF
 SUBDIVISION  FOUR  OF  SECTION  THREE HUNDRED SIXTY-FIVE-A OF THIS TITLE
 SHALL BE ONE DOLLAR.
   § 16. Subparagraph (iii) of paragraph (c) of subdivision 6 of  section
 367-a  of  the social services law, as amended by section 9 of part C of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (iii) Notwithstanding any other provision of this  paragraph,  co-pay-
 ments  charged for each generic prescription drug dispensed shall be one
 dollar and for each brand name  prescription  drug  dispensed  shall  be
 [three dollars] TWO DOLLARS AND FIFTY CENTS; provided, however, that the
 co-payments  charged  for  [each  brand  name  prescription  drug on the
 preferred drug list established pursuant to section two  hundred  seven-
 ty-two of the public health law or, for managed care providers operating
 pursuant  to  section three hundred sixty-four-j of this title, for each
 brand name prescription drug on a managed care provider's formulary that
 such provider has designated as a preferred drug,  and  the  co-payments
 charged  for]  each  brand name prescription drug reimbursed pursuant to
 subparagraph (ii) of paragraph (a-1)  of  subdivision  four  of  section
 three hundred sixty-five-a of this title shall be one dollar.
   §  17.  Subparagraphs  1  and  5  of paragraph (f) of subdivision 7 of
 section 367-a of the social services law, as added by section 11 of part
 B of chapter 59 of the laws of 2016, are amended to read as follows:
   (1) The department 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. § 1396r-8(k), to provide rebates to the depart-
 ment for any drug that has increased more than three hundred percent  of
 its  state  maximum  acquisition  cost  (SMAC)[, on or after] DURING THE
 PERIOD April 1, 2016 THROUGH MARCH 31, 2017, OR THAT HAS INCREASED  MORE
 THAN  SEVENTY-FIVE  PERCENT  OF  ITS  SMAC ON OR AFTER APRIL 1, 2017, in
 comparison to its SMAC at any time during the course  of  the  preceding
 twelve  months.  The  required  rebate shall be limited to the amount by
 which the current SMAC for the drug exceeds [three hundred percent]  THE
 APPLICABLE  PERCENTAGE  of the SMAC for the same drug at any time during
 the course of the preceding twelve months.  Such  rebates  shall  be  in
 addition  to any rebates payable to the department pursuant to any other
 provision of federal or state  law.  Nothing  herein  shall  affect  the
 department's obligation to reimburse for covered outpatient drugs pursu-
 ant to paragraph (d) of this subdivision.
   (5)  Beginning in two thousand seventeen, the department shall provide
 an annual report to the legislature no later than February first setting
 forth:
   (i) The number of drugs that exceeded the ceiling price established in
 this paragraph during the preceding year in comparison to the number  of
 drugs  that  experienced at least a three hundred percent price increase
 during two thousand fourteen and two thousand fifteen,  OR  AT  LEAST  A
 SEVENTY-FIVE  PERCENT PRICE INCREASE DURING TWO THOUSAND FIFTEEN AND TWO
 THOUSAND SIXTEEN;
   (ii) The average percent amount above the ceiling price of drugs  that
 exceeded  the  ceiling  price in the preceding year in comparison to the
 number of drugs that  experienced  a  price  increase  more  than  three
 hundred  percent  during two thousand fourteen and two thousand fifteen,
 OR AT LEAST A SEVENTY-FIVE PERCENT PRICE INCREASE  DURING  TWO  THOUSAND
 FIFTEEN AND TWO THOUSAND SIXTEEN;

 S. 2007                            22                            A. 3007
 
   (iii)  The  number of generic drugs available to enrollees in Medicaid
 fee for service or Medicaid managed care,  by  fiscal  quarter,  in  the
 preceding  year in comparison to the drugs available, by fiscal quarter,
 during two thousand fourteen [and], two thousand fifteen, AND TWO  THOU-
 SAND SIXTEEN; and
   (iv)  The  total drug spend on generic drugs for the preceding year in
 comparison to the total drug spend on generic drugs during two  thousand
 fourteen [and], two thousand fifteen, AND TWO THOUSAND SIXTEEN.
   §  18.   Severability. If any clause, sentence, paragraph, or subdivi-
 sion of this section shall be adjudged by any court of competent  juris-
 diction to be invalid, such judgment shall not affect, impair, or inval-
 idate  the  remainder thereof, but shall be confined in its operation to
 the clause, sentence, paragraph, or subdivision directly involved in the
 controversy in which such judgment shall have been rendered. It is here-
 by declared to be the intent of the legislature that this section  would
 have  been enacted even if such invalid provisions had not been included
 herein.
   § 19. This act shall take effect immediately and shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017; provided,
 however,  that  sections nine, fourteen, fifteen, sixteen, and seventeen
 of this act shall take effect July 1, 2017; provided, further, that  the
 amendments  to  section 364-j of the social services law made by section
 eleven of this act shall not affect the repeal of such section and shall
 be deemed repealed therewith; provided, further, that the amendments  to
 paragraph  (c)  of subdivision 6 of section 367-a of the social services
 law made by sections fifteen and sixteen of this act  shall  not  affect
 the  repeal  of  such  paragraph and shall be deemed repealed therewith;
 provided, further, that the amendments to paragraph (f) of subdivision 7
 of section 367-a of the social services law made by section seventeen of
 this act shall not affect the repeal of  such  paragraph  and  shall  be
 deemed repealed therewith; and provided, further, that the amendments to
 subdivision  9  of  section  367-a  of  the  social services law made by
 section seven of this act shall not affect the expiration of such subdi-
 vision and shall be deemed to expire therewith.
 
                                  PART E
 
   Section 1. 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 A CONTINUOUS PERIOD
 OF more than one hundred and twenty days FROM  DATE  OF  ENROLLMENT,  to

 S. 2007                            23                            A. 3007
 
 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 ON OR AFTER OCTOBER FIRST, TWO THOUSAND SEVEN-
 TEEN, THE COMMISSIONER MAY, THROUGH SUCH  AN  APPROVED  WAIVER,  FURTHER
 LIMIT  ELIGIBILITY  TO AVAILABLE PLANS TO ENROLLEES THAT REQUIRE NURSING
 FACILITY LEVEL OF CARE. NOTWITHSTANDING THE FOREGOING,  MEDICAL  ASSIST-
 ANCE  RECIPIENTS  ENROLLED  IN  A MANAGED LONG TERM CARE PLAN ON OCTOBER
 FIRST, TWO THOUSAND SEVENTEEN MAY  CONTINUE  TO  BE  ELIGIBLE  FOR  SUCH
 PLANS, IRRESPECTIVE OF WHETHER THE ENROLLEE MEETS ANY APPLICABLE NURSING
 FACILITY  LEVEL  OF CARE REQUIREMENTS, PROVIDED, HOWEVER, THAT ONCE SUCH
 RECIPIENTS ARE DISENROLLED FROM THEIR MANAGED LONG TERM CARE  PLAN,  ANY
 APPLICABLE  NURSING  FACILITY  LEVEL OF CARE REQUIREMENTS 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 appli-
 cations 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.
   §  2.  Subdivision  25  of  section  2808  of the public health law is
 REPEALED.
   § 3. Paragraph (b) of subdivision 5 of section 2801-e  of  the  public
 health law, as amended by chapter 257 of the laws of 2005, is amended to
 read as follows:
   (b) Notwithstanding any inconsistent provision of law or regulation to
 the contrary, for purposes of determining medical assistance payments by
 government  agencies  for  residential  health  care  facility  services
 provided pursuant to title eleven of article five of the social services
 law for facilities that have temporarily decertified beds:
   (i) the facility's capital cost reimbursement  shall  be  adjusted  to
 appropriately  take  into  account the new bed capacity of the facility;
 AND
   (ii) the facility's peer group assignment for indirect cost reimburse-
 ment shall be based on its total certified beds less the number of  beds
 that have been temporarily decertified[; and
   (iii)  the facility's vacancy rate shall be calculated on the basis of
 its total certified beds less the number of beds that have  been  tempo-
 rarily  decertified for purposes of determining eligibility for payments
 for reserved bed days for residents of residential health  care  facili-
 ties,  provided,  however,  that such payments for reserved bed days for
 facilities that have temporarily decertified beds shall be in an  amount
 that  is  fifty  percent  of the otherwise applicable payment amount for
 such beds].
   § 4. Subdivision 2-c of section 2808  of  the  public  health  law  is
 amended by adding a new paragraph (f) to read as follows:
   (F) THE COMMISSIONER SHALL ESTABLISH A PROSPECTIVE PER DIEM ADJUSTMENT
 FOR  ALL  NURSING  HOMES,  OTHER  THAN  NURSING HOMES PROVIDING SERVICES
 PRIMARILY TO CHILDREN UNDER  THE  AGE  OF  TWENTY-ONE,  BEGINNING  APRIL
 FIRST,  TWO  THOUSAND  SEVENTEEN  AND EACH YEAR THEREAFTER SUFFICIENT TO
 ACHIEVE EIGHTEEN MILLION DOLLARS IN SAVINGS IN EACH STATE FISCAL YEAR.

 S. 2007                            24                            A. 3007

   § 5. 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.
   §  6.  Paragraph  (m)  of subdivision 2 of section 365-a of the social
 services law, as amended by chapter 725 of the laws of 1989, is  amended
 to read as follows:
   (m) hospice services provided by a hospice certified pursuant to arti-
 cle forty of the public health law, to the extent that federal financial
 participation  is  available  AND  THAT  SUCH SERVICES ARE COVERED UNDER
 TITLE XVIII OF THE FEDERAL SOCIAL  SECURITY  ACT,  and,  notwithstanding
 federal  financial  participation,  COVERAGE  UNDER  TITLE  XVIII OF THE
 FEDERAL SOCIAL SECURITY ACT, and any provision of law or  regulation  to
 the  contrary,  for  hospice  services  provided pursuant to the hospice
 supplemental financial assistance program for persons with special needs
 as provided for in article forty of the public health law.
   § 7. This act shall take effect immediately and  shall  be  deemed  to
 have  been in full force and effect on and after April 1, 2017; provided
 however, that the amendments to section 4403-f of the public health  law
 made  by  section  one  of  this  act shall take effect October 1, 2017;
 provided further, that the amendments to paragraph  (m)  of  subdivision
 two  of  section 365-a of the social services law made by section six of
 this act shall take effect June 1, 2017;  provided,  further,  that  the
 amendments  to  subparagraph  (i)  of  paragraph (b) of subdivision 7 of
 section 4403-f of the public health law made by section one of this  act
 shall not affect the repeal of such section and shall be deemed repealed
 therewith;  and  provided,  further, that the amendments to subparagraph
 (i) of paragraph (b) of subdivision 7 of section 4403-f  of  the  public
 health  law made by section one of this act shall not affect the expira-
 tion of such paragraph and shall be deemed to expire therewith.
 
                                  PART F
 
   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

 S. 2007                            25                            A. 3007

 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.
   §  2.  Subdivision  5  of  section 365-h of the social services law is
 REPEALED.
   § 3. Section 367-s of the social services law, as amended  by  section
 43-a of part C of chapter 109 of the laws of 2006, is REPEALED.
   §  4.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017;  provided
 however,  that  the  amendments to subdivision 4 of section 365-h of the
 social services law made by section one of this act  shall  take  effect
 October 1, 2017; provided, further, that the amendments to section 365-h
 of  the  social  services  law made by section one of this act shall not
 affect the repeal of such section and shall be  deemed  repealed  there-
 with.

                                  PART G
 
   Section 1.  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  expendi-
 tures,  as  separately amended by section 1 of part JJ of chapter 54 and
 section 18 of part B of chapter 59 of the laws of 2016,  is  amended  to
 read as follows:
   1.  For  state  fiscal  years  2011-12  through [2017-18] 2018-19, the
 director of the budget, in consultation with the commissioner of  health
 referenced  as "commissioner" for purposes of this section, shall assess
 on a monthly basis, as reflected in monthly reports pursuant to subdivi-
 sion five of this section known and projected department of health state
 funds medicaid expenditures by category of  service  and  by  geographic
 regions,  as  defined  by  the  commissioner, and if the director of the
 budget determines that such expenditures are expected to cause  medicaid
 disbursements  for  such  period  to  exceed the projected department of
 health medicaid state funds disbursements in the enacted  budget  finan-
 cial  plan  pursuant to subdivision 3 of section 23 of the state finance
 law, the commissioner of health, in consultation with  the  director  of
 the  budget,  shall  develop a medicaid savings allocation plan to limit
 such spending to the aggregate limit  level  specified  in  the  enacted
 budget  financial  plan,  provided,  however,  such  projections  may be
 adjusted by the director of the budget to account for any changes in the
 New York state federal medical assistance percentage amount  established

 S. 2007                            26                            A. 3007
 
 pursuant to the federal social security act, CHANGES TO THE AVAILABILITY
 OF  FEDERAL  FINANCIAL PARTICIPATION IN MEDICAID EXPENDITURES, OR CHANGE
 IN FEDERAL MEDICAID ELIGIBILITY CRITERIA, changes in provider  revenues,
 reductions to local social services district medical assistance adminis-
 tration,  minimum wage increases, and beginning April 1, 2012 the opera-
 tional 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 expe-
 dited department of health state funds medicaid expenditures as a result
 of a natural or other type of disaster, including a governmental  decla-
 ration of emergency.
   §  2.  Notwithstanding sections 61, 63, 70, 78, 79, 81 and 81-a of the
 civil service law or any provisions to the  contrary  contained  in  any
 general, special, or local laws:
   1.  staff contracted by the office of health insurance programs within
 the department of health to assist with health insurance program  initi-
 atives,  including  under  a  contract  authorized  by subdivision 29 of
 section 364-j of the social services law, who meet the open  competitive
 qualifications for positions established to perform these functions will
 be  eligible for appointment to appropriate positions, designated by the
 office of health insurance programs in the department, that are  classi-
 fied to perform such functions without further examination or qualifica-
 tion; and, upon such appointment and satisfactory completion of a proba-
 tionary  period,  will  have  all  the  rights  and  privileges  of  the
 jurisdictional classification to which such positions are  allocated  in
 the classified service of the state;
   2.  student assistants working in the department of health's office of
 health insurance  programs  through  the  department  of  civil  service
 student  assistant  classification  who meet the open competitive quali-
 fications for traineeship classifications  in  titles  approved  by  the
 department  of  civil  service  will be eligible for appointment to such
 appropriate traineeship positions, designated by the  office  of  health
 insurance programs in the department of health, without further examina-
 tion  or  qualification;  and,  upon  such  appointment and satisfactory
 completion of a probationary period, will have all the rights and privi-
 leges of the jurisdictional classification  to  which  such  traineeship
 positions are allocated in the classified service of the state; and
   3.  within  90 days of the effective date of this section, the depart-
 ment of civil service, in consultation with the  department  of  health,
 shall  establish  a  health care service career internship program. This
 program will be designed to prepare individuals with master's degrees in
 public administration or a related  health  care  field  for  management
 positions  within  the department of health's office of health insurance
 programs.  The program will offer career tracks in the health  insurance
 program  management  areas of budget and finance, long term care, health
 homes, outpatient patient care, and health care public policy. During  a
 two-year  internship,  interns  will  serve in a variety of professional
 positions within the department of health's office of  health  insurance
 programs  and  be provided specialized training, rotational assignments,
 and mentoring. After satisfactory completion of the internship,  interns
 will  advance  to a permanent competitive class grade 18 position in the
 various titles utilized within the  department  of  health's  office  of
 health  insurance programs for health insurance program management with-
 out further examination or qualification; and, upon such appointment and
 satisfactory completion of a probationary  period,  will  have  all  the

 S. 2007                            27                            A. 3007
 
 rights and privileges of the jurisdictional classification to which such
 positions are allocated in the classified service of the state.
   §  3. Section 4-a of part C of chapter 58 of the laws of 2005, author-
 izing reimbursements for expenditures made by or  on  behalf  of  social
 services  districts  for  medical  assistance  for needy persons and the
 administration thereof, is amended by adding a new  subdivision  (e)  to
 read as follows:
   (E)  BEGINNING  WITH  STATE  FISCAL YEAR 2017-18, THE AMOUNT DUE TO BE
 REIMBURSED UNDER SUBDIVISION (A) OF THIS SECTION TO  A  SOCIAL  SERVICES
 DISTRICT  WHICH  INCLUDES  A  CITY  WITH  A POPULATION OF MORE THAN FIVE
 MILLION SHALL BE REDUCED ANNUALLY BY 50 MILLION DOLLARS UNLESS:
   (I) BY JUNE 30, 2017, SUCH DISTRICT HAS A  SHARED  SAVINGS  ALLOCATION
 PLAN  APPROVED  BY THE COMMISSIONER OF HEALTH TO INCREASE BY 100 MILLION
 DOLLARS THE CURRENT ANNUAL DOLLAR AMOUNT OF THE CITY'S FINALLY SUBMITTED
 AND PAYABLE MEDICAID CLAIMS FOR PRESCHOOL AND SCHOOL  SUPPORTIVE  HEALTH
 SERVICES ELIGIBLE FOR FEDERAL FINANCIAL PARTICIPATION; THE DEPARTMENT OF
 HEALTH  WILL PROVIDE TECHNICAL ASSISTANCE AS NEEDED TO ASSIST THE SOCIAL
 SERVICES DISTRICT IN IMPLEMENTING THE PLAN, WHICH MUST DETAIL:  HOW  THE
 CITY  WILL IDENTIFY PRESCHOOL AND SCHOOL-AGED CHILDREN WHO ARE RECEIVING
 PRESCHOOL AND SCHOOL SUPPORTIVE HEALTH SERVICES REIMBURSABLE  UNDER  THE
 CURRENT MEDICAID STATE PLAN AND SUBMIT CLAIMS FOR REIMBURSEMENT; AND HOW
 THE  PLAN  WILL  GENERATE  FIFTY MILLION DOLLARS IN STATE SAVINGS TO THE
 MEDICAID PROGRAM.  SUCH PLAN MAY BE REVISED, SUBJECT TO THE  REVIEW  AND
 APPROVAL  OF  THE  COMMISSIONER  OF HEALTH, AS NECESSARY TO MAINTAIN THE
 INCREASED LEVEL OF CLAIMING AND TO GENERATE THE REQUIRED MEDICAID  STATE
 SAVINGS IN SUBSEQUENT FISCAL YEARS; AND
   (II)  ON  OCTOBER 1, 2017 AND ANNUALLY THEREAFTER, THE COMMISSIONER OF
 HEALTH DETERMINES THAT ONGOING  ACTIVITIES  UNDER  THE  APPROVED  SHARED
 SAVINGS  ALLOCATION  PLAN  APPROVED PURSUANT TO SUBPARAGRAPH (I) OF THIS
 PARAGRAPH ARE LIKELY TO ACHIEVE THE TARGETED DOLLAR  AMOUNT  OF  PAYABLE
 MEDICAID  CLAIMS FOR PRESCHOOL AND SCHOOL SUPPORTIVE HEALTH SERVICES FOR
 THE APPLICABLE FISCAL YEAR; THE SOCIAL SERVICES DISTRICT AND CITY  SHALL
 PROVIDE SUCH INFORMATION AND DOCUMENTATION AS THE COMMISSIONER OF HEALTH
 MAY REQUIRE IN ORDER TO MAKE SUCH DETERMINATION.
   (III)  THE NON-FEDERAL SHARE OF THE COSTS OF SERVICES FOR WHICH CLAIMS
 ARE SUBMITTED AS A RESULT OF THE IMPLEMENTATION OF  THE  SHARED  SAVINGS
 ALLOCATION  PLAN  ESTABLISHED  PURSUANT  TO  THIS PARAGRAPH SHALL BE THE
 RESPONSIBILITY OF THE SOCIAL SERVICES DISTRICT.
   (IV) ANY REDUCTION IN THE AMOUNT DUE TO BE REIMBURSED  UNDER  SUBDIVI-
 SION  (A)  OF THIS SECTION AS A RESULT OF THE OPERATION OF THIS SUBDIVI-
 SION SHALL BE IN ADDITION TO ANY REDUCTION IMPOSED PURSUANT TO  SUBDIVI-
 SION  (C) OF THIS SECTION OR AUTHORIZED PURSUANT TO ANY OTHER APPLICABLE
 LAW.
   § 4. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART H

   Section  1. Subdivision 5 of section 168 of chapter 639 of the laws of
 1996, constituting the New York Health  Care  Reform  Act  of  1996,  as
 amended  by  section  1  of part B of chapter 60 of the laws of 2014, is
 amended to read as follows:
   5. sections 2807-c, 2807-j, 2807-s and 2807-t  of  the  public  health
 law,  as  amended  or as added by this act, shall expire on December 31,
 [2017] 2020, and shall be thereafter effective only in  respect  to  any
 act  done  on or before such date or action or proceeding arising out of

 S. 2007                            28                            A. 3007
 
 such act including continued collections of funds from  assessments  and
 allowances  and  surcharges  established  pursuant  to  sections 2807-c,
 2807-j, 2807-s and 2807-t of the public health law,  and  administration
 and  distributions  of funds from pools established pursuant to sections
 2807-c, 2807-j, 2807-k, 2807-l, 2807-m, 2807-s and 2807-t of the  public
 health  law  related  to  patient  services provided before December 31,
 [2017] 2020, and continued expenditure of funds authorized for  programs
 and grants until the exhaustion of funds therefor;
   §  2.  Subdivision  1 of section 138 of chapter 1 of the laws of 1999,
 constituting the New York Health Care Reform Act of 2000, as amended  by
 section  2  of  part  B of chapter 60 of the laws of 2014, is amended to
 read as follows:
   1. sections 2807-c, 2807-j, 2807-s, and 2807-t of  the  public  health
 law,  as  amended by this act, shall expire on December 31, [2017] 2020,
 and shall be thereafter effective only in respect to any act done before
 such date or action or proceeding arising  out  of  such  act  including
 continued  collections  of  funds  from  assessments  and allowances and
 surcharges established pursuant to sections 2807-c, 2807-j,  2807-s  and
 2807-t of the public health law, and administration and distributions of
 funds  from  pools  established  pursuant  to  sections  2807-c, 2807-j,
 2807-k, 2807-l, 2807-m, 2807-s, 2807-t, 2807-v and 2807-w of the  public
 health law, as amended or added by this act, related to patient services
 provided  before  December 31, [2017] 2020, and continued expenditure of
 funds authorized for programs and grants until the exhaustion  of  funds
 therefor;
   §  3.  Subparagraph  (xv) of paragraph (a) of subdivision 6 of section
 2807-s of the public health law, as amended by section 3 of  part  B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xv) A gross annual statewide amount for the period January first, two
 thousand fifteen through December thirty-first, two thousand [seventeen]
 TWENTY, shall be one billion forty-five million dollars.
   §  4. Subparagraph (xiii) of paragraph (a) of subdivision 7 of section
 2807-s of the public health law, as amended by section 4 of  part  B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xiii)  twenty-three million eight hundred thirty-six thousand dollars
 each state fiscal year for the period April first, two  thousand  twelve
 through March thirty-first, two thousand [seventeen] TWENTY;
   §  5.  Subparagraphs (iv) and (v) of paragraph (a) of subdivision 9 of
 section 2807-j of the public health law, as amended by section 5 of part
 B of chapter 60 of the laws of 2014, are amended to read as follows:
   (iv) seven hundred sixty-five million dollars annually  of  the  funds
 accumulated for the periods January first, two thousand through December
 thirty-first, two thousand [sixteen] NINETEEN, and
   (v)  one hundred ninety-one million two hundred fifty thousand dollars
 of the funds accumulated for the  period  January  first,  two  thousand
 [seventeen]  TWENTY through March thirty-first, two thousand [seventeen]
 TWENTY.
   § 6. Subdivisions 5-a and 7 of section 2807-m  of  the  public  health
 law,  as  amended  by  section  9 of part B of chapter 60 of the laws of
 2014, subparagraphs (iv), (v) and (vi) of paragraph (d)  of  subdivision
 5-a  as  added by section 4 of part W of chapter 57 of the laws of 2015,
 are amended to read as follows:
   5-a. Graduate medical education  innovations  pool.  (a)  Supplemental
 distributions.  (i)  Thirty-one  million  dollars for the period January
 first, two thousand eight through December  thirty-first,  two  thousand
 eight,  shall  be  set  aside  and reserved by the commissioner from the

 S. 2007                            29                            A. 3007
 
 regional pools established pursuant to subdivision two of  this  section
 and shall be available for distributions pursuant to subdivision five of
 this  section  and in accordance with section 86-1.89 of title 10 of the
 codes,  rules  and  regulations of the state of New York as in effect on
 January first, two thousand eight; provided, however,  for  purposes  of
 funding  the  empire  clinical research investigation program (ECRIP) in
 accordance with paragraph eight of subdivision (e) and paragraph two  of
 subdivision  (f)  of section 86-1.89 of title 10 of the codes, rules and
 regulations of the state of New York, distributions shall be made  using
 two  regions  defined as New York city and the rest of the state and the
 dollar amount set forth in subparagraph (i) of paragraph two of subdivi-
 sion (f) of section 86-1.89 of title 10 of the codes,  rules  and  regu-
 lations  of the state of New York shall be increased from sixty thousand
 dollars to seventy-five thousand dollars.
   (ii) For periods on  and  after  January  first,  two  thousand  nine,
 supplemental  distributions pursuant to subdivision five of this section
 and in accordance with section 86-1.89 of title 10 of the  codes,  rules
 and regulations of the state of New York shall no longer be made and the
 provisions  of section 86-1.89 of title 10 of the codes, rules and regu-
 lations of the state of New York shall be null and void.
   (b)  Empire  clinical  research  investigator  program  (ECRIP).  Nine
 million  one  hundred  twenty  thousand  dollars annually for the period
 January first, two thousand  nine  through  December  thirty-first,  two
 thousand  ten,  and  two million two hundred eighty thousand dollars for
 the period January first, two thousand  eleven,  through  March  thirty-
 first,  two  thousand  eleven,  nine million one hundred twenty thousand
 dollars each state fiscal year for the period April first, two  thousand
 eleven  through  March  thirty-first, two thousand fourteen, [and] up to
 eight million six hundred twelve thousand dollars each state fiscal year
 for the period April first, two thousand fourteen through March  thirty-
 first,  two thousand seventeen, AND WITHIN AMOUNTS APPROPRIATED FOR EACH
 STATE FISCAL YEAR FOR PERIODS ON AND AFTER  APRIL  FIRST,  TWO  THOUSAND
 SEVENTEEN,  shall be set aside and reserved by the commissioner from the
 regional pools established pursuant to subdivision two of  this  section
 to  be  allocated  regionally  with  two-thirds of the available funding
 going to New York city and one-third of the available funding  going  to
 the  rest  of  the  state  and  shall  be  available for distribution as
 follows:
   Distributions shall first be made to consortia  and  teaching  general
 hospitals  for the empire clinical research investigator program (ECRIP)
 to help secure federal funding for biomedical research,  train  clinical
 researchers,  recruit national leaders as faculty to act as mentors, and
 train residents and fellows  in  biomedical  research  skills  based  on
 hospital-specific  data  submitted  to the commissioner by consortia and
 teaching general hospitals in accordance with clause (G) of this subpar-
 agraph. Such distributions shall be made in accordance with the  follow-
 ing methodology:
   (A)  The  greatest  number  of clinical research positions for which a
 consortium or teaching general hospital may be funded pursuant  to  this
 subparagraph  shall  be  one  percent  of  the total number of residents
 training at the consortium or teaching general hospital on  July  first,
 two  thousand  eight  for  the  period  January first, two thousand nine
 through December thirty-first, two thousand nine rounded up to the near-
 est one position.
   (B) Distributions made to a consortium or  teaching  general  hospital
 shall  equal  the product of the total number of clinical research posi-

 S. 2007                            30                            A. 3007
 
 tions submitted  by  a  consortium  or  teaching  general  hospital  and
 accepted  by the commissioner as meeting the criteria set forth in para-
 graph (b) of subdivision one of this section, subject to  the  reduction
 calculation  set  forth  in  clause  (C) of this subparagraph, times one
 hundred ten thousand dollars.
   (C) If the dollar amount for the total  number  of  clinical  research
 positions  in  the  region  calculated  pursuant  to  clause (B) of this
 subparagraph exceeds the total amount appropriated for purposes of  this
 paragraph,  including clinical research positions that continue from and
 were funded in prior distribution periods, the commissioner shall elimi-
 nate one-half of the  clinical  research  positions  submitted  by  each
 consortium  or teaching general hospital rounded down to the nearest one
 position. Such reduction shall be repeated until the dollar  amount  for
 the  total  number of clinical research positions in the region does not
 exceed the total amount appropriated for purposes of this paragraph.  If
 the  repeated  reduction  of the total number of clinical research posi-
 tions in the region by one-half does not render a total  funding  amount
 that  is equal to or less than the total amount reserved for that region
 within the appropriation, the funding for each clinical  research  posi-
 tion  in  that  region  shall  be reduced proportionally in one thousand
 dollar increments until the total dollar amount for the total number  of
 clinical  research  positions  in  that region does not exceed the total
 amount reserved for that region within the appropriation. Any  reduction
 in  funding will be effective for the duration of the award. No clinical
 research positions that continue from and were funded in prior  distrib-
 ution periods shall be eliminated or reduced by such methodology.
   (D)  Each  consortium  or  teaching general hospital shall receive its
 annual distribution amount in accordance with the following:
   (I) Each consortium or teaching general hospital with a one-year ECRIP
 award  shall  receive  its  annual  distribution  amount  in  full  upon
 completion of the requirements set forth in items (I) and (II) of clause
 (G)  of  this subparagraph. The requirements set forth in items (IV) and
 (V) of clause (G) of this subparagraph must be completed by the  consor-
 tium  or teaching general hospital in order for the consortium or teach-
 ing general hospital to be eligible to apply for ECRIP  funding  in  any
 subsequent funding cycle.
   (II)  Each  consortium  or  teaching  general hospital with a two-year
 ECRIP award shall receive its first annual distribution amount  in  full
 upon  completion  of the requirements set forth in items (I) and (II) of
 clause (G) of this subparagraph. Each  consortium  or  teaching  general
 hospital will receive its second annual distribution amount in full upon
 completion  of the requirements set forth in item (III) of clause (G) of
 this subparagraph. The requirements set forth in items (IV) and  (V)  of
 clause  (G)  of this subparagraph must be completed by the consortium or
 teaching general hospital in order for the consortium or teaching gener-
 al hospital to be eligible to apply for ECRIP funding in any  subsequent
 funding cycle.
   (E)  Each  consortium  or teaching general hospital receiving distrib-
 utions pursuant to this subparagraph shall reserve seventy-five thousand
 dollars to primarily fund salary and fringe  benefits  of  the  clinical
 research  position  with  the remainder going to fund the development of
 faculty who are involved in biomedical research, training  and  clinical
 care.
   (F)  Undistributed  or  returned  funds  available  to  fund  clinical
 research positions pursuant to this paragraph for a distribution  period

 S. 2007                            31                            A. 3007
 
 shall  be  available to fund clinical research positions in a subsequent
 distribution period.
   (G) In order to be eligible for distributions pursuant to this subpar-
 agraph,  each  consortium and teaching general hospital shall provide to
 the commissioner by July first of each distribution period, the  follow-
 ing  data  and  information  on a hospital-specific basis. Such data and
 information shall be certified as to accuracy and  completeness  by  the
 chief executive officer, chief financial officer or chair of the consor-
 tium  governing body of each consortium or teaching general hospital and
 shall be maintained by each consortium and teaching general hospital for
 five years from the date of submission:
   (I) For each clinical research  position,  information  on  the  type,
 scope,  training  objectives,  institutional  support, clinical research
 experience of the sponsor-mentor, plans for submitting research outcomes
 to peer reviewed journals and at scientific meetings, including a  meet-
 ing  sponsored by the department, the name of a principal contact person
 responsible for tracking the career development of researchers placed in
 clinical research positions, as defined in paragraph (c) of  subdivision
 one of this section, and who is authorized to certify to the commission-
 er  that  all  the requirements of the clinical research training objec-
 tives set forth in this subparagraph shall be  met.  Such  certification
 shall be provided by July first of each distribution period;
   (II)  For  each  clinical  research position, information on the name,
 citizenship status, medical education and training, and medical  license
 number  of  the researcher, if applicable, shall be provided by December
 thirty-first of the calendar year following the distribution period;
   (III) Information on the status of the clinical research plan,  accom-
 plishments, changes in research activities, progress, and performance of
 the  researcher  shall  be  provided  upon completion of one-half of the
 award term;
   (IV) A final report detailing training  experiences,  accomplishments,
 activities  and  performance of the clinical researcher, and data, meth-
 ods, results and  analyses  of  the  clinical  research  plan  shall  be
 provided three months after the clinical research position ends; and
   (V)  Tracking  information  concerning past researchers, including but
 not limited to (A) background information, (B) employment  history,  (C)
 research  status,  (D) current research activities, (E) publications and
 presentations, (F) research  support,  and  (G)  any  other  information
 necessary to track the researcher; and
   (VI)  Any  other  data  or information required by the commissioner to
 implement this subparagraph.
   (H) Notwithstanding any inconsistent provision  of  this  subdivision,
 for periods on and after April first, two thousand thirteen, ECRIP grant
 awards shall be made in accordance with rules and regulations promulgat-
 ed by the commissioner. Such regulations shall, at a minimum:
   (1)  provide  that ECRIP grant awards shall be made with the objective
 of securing federal funding for biomedical research,  training  clinical
 researchers,  recruiting  national leaders as faculty to act as mentors,
 and training residents and fellows in biomedical research skills;
   (2) provide that ECRIP grant applicants may include  interdisciplinary
 research teams comprised of teaching general hospitals acting in collab-
 oration  with  entities  including  but  not limited to medical centers,
 hospitals, universities and local health departments;
   (3) provide that applications for ECRIP grant awards shall be based on
 such information requested by the commissioner, which shall include  but
 not be limited to hospital-specific data;

 S. 2007                            32                            A. 3007
 
   (4)  establish  the  qualifications  for investigators and other staff
 required for grant projects eligible for ECRIP grant awards; and
   (5)  establish a methodology for the distribution of funds under ECRIP
 grant awards.
   (c) Ambulatory care  training.  Four  million  nine  hundred  thousand
 dollars  for the period January first, two thousand eight through Decem-
 ber thirty-first, two thousand eight, four million nine hundred thousand
 dollars for the period January first, two thousand nine through December
 thirty-first, two thousand nine,  four  million  nine  hundred  thousand
 dollars  for the period January first, two thousand ten through December
 thirty-first, two thousand ten,  one  million  two  hundred  twenty-five
 thousand  dollars  for  the  period  January  first, two thousand eleven
 through March thirty-first, two  thousand  eleven,  four  million  three
 hundred  thousand  dollars  each  state fiscal year for the period April
 first, two thousand eleven  through  March  thirty-first,  two  thousand
 fourteen,  [and]  up  to  four million sixty thousand dollars each state
 fiscal year for the period April first, two  thousand  fourteen  through
 March thirty-first, two thousand seventeen, AND WITHIN AMOUNTS APPROPRI-
 ATED  FOR  EACH  STATE FISCAL YEAR FOR PERIODS ON AND AFTER APRIL FIRST,
 TWO THOUSAND SEVENTEEN, shall be set aside and reserved by  the  commis-
 sioner  from  the regional pools established pursuant to subdivision two
 of this section and shall be available for distributions  to  sponsoring
 institutions  to  be  directed  to  support clinical training of medical
 students  and  residents  in  free-standing  ambulatory  care  settings,
 including  community  health centers and private practices. Such funding
 shall be allocated regionally with two-thirds of the  available  funding
 going  to  New York city and one-third of the available funding going to
 the rest of the state and shall  be  distributed  to  sponsoring  insti-
 tutions  in each region pursuant to a request for application or request
 for proposal process with preference being given  to  sponsoring  insti-
 tutions  which provide training in sites located in underserved rural or
 inner-city areas and those that include medical students in such  train-
 ing.
   (d)  Physician  loan repayment program. One million nine hundred sixty
 thousand dollars for  the  period  January  first,  two  thousand  eight
 through  December  thirty-first,  two  thousand  eight, one million nine
 hundred sixty thousand dollars for the period January first,  two  thou-
 sand  nine through December thirty-first, two thousand nine, one million
 nine hundred sixty thousand dollars for the period  January  first,  two
 thousand  ten  through  December  thirty-first,  two  thousand ten, four
 hundred ninety thousand dollars for the period January first, two  thou-
 sand eleven through March thirty-first, two thousand eleven, one million
 seven  hundred  thousand  dollars  each state fiscal year for the period
 April first, two thousand eleven through March thirty-first,  two  thou-
 sand  fourteen,  [and]  up  to  one  million seven hundred five thousand
 dollars each state fiscal year for the period April first, two  thousand
 fourteen  through March thirty-first, two thousand seventeen, AND WITHIN
 AMOUNTS APPROPRIATED FOR EACH STATE FISCAL YEAR FOR PERIODS ON AND AFTER
 APRIL FIRST, TWO THOUSAND SEVENTEEN, shall be set aside and reserved  by
 the  commissioner from the regional pools established pursuant to subdi-
 vision two of this section and shall be available for purposes of physi-
 cian loan repayment in accordance with subdivision ten of this  section.
 Notwithstanding  any  contrary  provision  of this section, sections one
 hundred twelve and one hundred sixty-three of the state finance law,  or
 any  other  contrary  provision  of law, such funding shall be allocated
 regionally with one-third of available funds going to New York city  and

 S. 2007                            33                            A. 3007

 two-thirds  of  available funds going to the rest of the state and shall
 be distributed in a manner to be determined by the commissioner  without
 a competitive bid or request for proposal process as follows:
   (i) Funding shall first be awarded to repay loans of up to twenty-five
 physicians  who  train  in  primary care or specialty tracks in teaching
 general hospitals, and who enter and remain in primary care or specialty
 practices in underserved communities, as determined by the commissioner.
   (ii) After distributions in accordance with subparagraph (i)  of  this
 paragraph, all remaining funds shall be awarded to repay loans of physi-
 cians  who  enter  and  remain in primary care or specialty practices in
 underserved communities, as determined by  the  commissioner,  including
 but  not  limited  to  physicians working in general hospitals, or other
 health care facilities.
   (iii) In no case shall less than fifty percent of the funds  available
 pursuant  to  this  paragraph be distributed in accordance with subpara-
 graphs (i) and (ii) of this paragraph to physicians identified by gener-
 al hospitals.
   (iv) In addition to the funds allocated under this paragraph, for  the
 period April first, two thousand fifteen through March thirty-first, two
 thousand  sixteen,  two  million  dollars  shall  be  available  for the
 purposes described in subdivision ten of this section;
   (v) In addition to the funds allocated under this paragraph,  for  the
 period April first, two thousand sixteen through March thirty-first, two
 thousand  seventeen,  two  million  dollars  shall  be available for the
 purposes described in subdivision ten of this section;
   (vi) Notwithstanding any provision of law to the contrary, and subject
 to the extension of the Health Care Reform Act of 1996, sufficient funds
 shall be available for the purposes described in subdivision ten of this
 section in amounts necessary to fund the remaining year commitments  for
 awards made pursuant to subparagraphs (iv) and (v) of this paragraph.
   (e)  Physician  practice  support.  Four million nine hundred thousand
 dollars for the period January first, two thousand eight through  Decem-
 ber thirty-first, two thousand eight, four million nine hundred thousand
 dollars annually for the period January first, two thousand nine through
 December  thirty-first,  two thousand ten, one million two hundred twen-
 ty-five thousand dollars for the  period  January  first,  two  thousand
 eleven  through  March  thirty-first,  two thousand eleven, four million
 three hundred thousand dollars each state fiscal  year  for  the  period
 April  first,  two thousand eleven through March thirty-first, two thou-
 sand fourteen, [and] up to four million  three  hundred  sixty  thousand
 dollars  each state fiscal year for the period April first, two thousand
 fourteen through March thirty-first, two thousand seventeen, AND  WITHIN
 AMOUNTS APPROPRIATED FOR EACH STATE FISCAL YEAR FOR PERIODS ON AND AFTER
 APRIL  FIRST, TWO THOUSAND SEVENTEEN, shall be set aside and reserved by
 the commissioner from the regional pools established pursuant to  subdi-
 vision two of this section and shall be available for purposes of physi-
 cian  practice  support.  Notwithstanding any contrary provision of this
 section, sections one hundred twelve and one hundred sixty-three of  the
 state  finance law, or any other contrary provision of law, such funding
 shall be allocated regionally with one-third of available funds going to
 New York city and two-thirds of available funds going to the rest of the
 state and shall be distributed in a  manner  to  be  determined  by  the
 commissioner  without  a competitive bid or request for proposal process
 as follows:
   (i) Preference in funding shall first be accorded to teaching  general
 hospitals  for  up  to  twenty-five awards, to support costs incurred by

 S. 2007                            34                            A. 3007
 
 physicians trained in primary or specialty tracks who thereafter  estab-
 lish  or join practices in underserved communities, as determined by the
 commissioner.
   (ii)  After  distributions in accordance with subparagraph (i) of this
 paragraph, all remaining funds shall be awarded to physicians to support
 the cost of establishing or joining practices  in  underserved  communi-
 ties,  as  determined  by  the  commissioner, and to hospitals and other
 health care providers to recruit new physicians to provide  services  in
 underserved communities, as determined by the commissioner.
   (iii)  In no case shall less than fifty percent of the funds available
 pursuant to this  paragraph  be  distributed  to  general  hospitals  in
 accordance with subparagraphs (i) and (ii) of this paragraph.
   (e-1) Work group. For funding available pursuant to paragraphs (d) and
 (e) of this subdivision:
   (i)  The  department  shall  appoint a work group from recommendations
 made by associations  representing  physicians,  general  hospitals  and
 other  health care facilities to develop a streamlined application proc-
 ess by June first, two thousand twelve.
   (ii) Subject to available funding, applications shall be accepted on a
 continuous basis. The department shall provide technical  assistance  to
 applicants  to facilitate their completion of applications. An applicant
 shall be notified in writing  by  the  department  within  ten  days  of
 receipt  of an application as to whether the application is complete and
 if the application is incomplete, what information is  outstanding.  The
 department  shall act on an application within thirty days of receipt of
 a complete application.
   (f) Study on physician workforce. Five hundred ninety thousand dollars
 annually for the period January first, two thousand eight through Decem-
 ber thirty-first, two thousand ten,  one  hundred  forty-eight  thousand
 dollars  for the period January first, two thousand eleven through March
 thirty-first, two thousand eleven, five hundred sixteen thousand dollars
 each state fiscal year for the period April first, two  thousand  eleven
 through  March  thirty-first,  two  thousand  fourteen, [and] up to four
 hundred eighty-seven thousand dollars each state  fiscal  year  for  the
 period  April  first,  two thousand fourteen through March thirty-first,
 two thousand seventeen, AND WITHIN AMOUNTS APPROPRIATED FOR  EACH  STATE
 FISCAL  YEAR  FOR  PERIODS  ON  AND  AFTER  APRIL  FIRST,  TWO  THOUSAND
 SEVENTEEN, shall be set aside and reserved by the commissioner from  the
 regional  pools  established pursuant to subdivision two of this section
 and shall be available to fund a study of physician workforce needs  and
 solutions  including,  but  not  limited  to,  an  analysis of residency
 programs and projected physician  workforce  and  community  needs.  The
 commissioner  shall enter into agreements with one or more organizations
 to conduct such study based on a request for proposal process.
   (g) Diversity in medicine/post-baccalaureate program.  Notwithstanding
 any  inconsistent provision of section one hundred twelve or one hundred
 sixty-three of the state finance law or any other law, one million  nine
 hundred  sixty  thousand  dollars annually for the period January first,
 two thousand eight through December thirty-first, two thousand ten, four
 hundred ninety thousand dollars for the period January first, two  thou-
 sand eleven through March thirty-first, two thousand eleven, one million
 seven  hundred  thousand  dollars  each state fiscal year for the period
 April first, two thousand eleven through March thirty-first,  two  thou-
 sand fourteen, [and] up to one million six hundred five thousand dollars
 each state fiscal year for the period April first, two thousand fourteen
 through  March  thirty-first, two thousand seventeen, AND WITHIN AMOUNTS

 S. 2007                            35                            A. 3007
 
 APPROPRIATED FOR EACH STATE FISCAL YEAR FOR PERIODS ON AND  AFTER  APRIL
 FIRST,  TWO  THOUSAND  SEVENTEEN, shall be set aside and reserved by the
 commissioner from the regional pools established pursuant to subdivision
 two  of  this  section  and  shall be available for distributions to the
 Associated Medical Schools of New York to  fund  its  diversity  program
 including  existing and new post-baccalaureate programs for minority and
 economically disadvantaged students and encourage participation from all
 medical schools in New York. The associated medical schools of New  York
 shall report to the commissioner on an annual basis regarding the use of
 funds  for  such  purpose  in  such  form and manner as specified by the
 commissioner.
   (h) In the event there are undistributed  funds  within  amounts  made
 available for distributions pursuant to this subdivision, such funds may
 be  reallocated  and  distributed  in current or subsequent distribution
 periods in a manner determined by the commissioner for any  purpose  set
 forth in this subdivision.
   7.  Notwithstanding  any inconsistent provision of section one hundred
 twelve or one hundred sixty-three of the state finance law or any  other
 law,  up  to one million dollars for the period January first, two thou-
 sand through  December  thirty-first,  two  thousand,  one  million  six
 hundred  thousand  dollars  annually  for the periods January first, two
 thousand one through December  thirty-first,  two  thousand  eight,  one
 million  five  hundred thousand dollars annually for the periods January
 first, two thousand nine through  December  thirty-first,  two  thousand
 ten,  three hundred seventy-five thousand dollars for the period January
 first, two thousand eleven  through  March  thirty-first,  two  thousand
 eleven,  one  million  three  hundred twenty thousand dollars each state
 fiscal year for the period April  first,  two  thousand  eleven  through
 March  thirty-first,  two  thousand  fourteen,  [and]  up to two million
 seventy-seven thousand dollars each state fiscal  year  for  the  period
 April first, two thousand fourteen through March thirty-first, two thou-
 sand  seventeen,  AND  WITHIN AMOUNTS APPROPRIATED FOR EACH STATE FISCAL
 YEAR FOR PERIODS ON AND AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN, shall
 be set aside and reserved by the commissioner from  the  regional  pools
 established  pursuant  to  subdivision  two of this section and shall be
 available for distributions to the New York state area health  education
 center  program for the purpose of expanding community-based training of
 medical students. In addition, one  million  dollars  annually  for  the
 period  January first, two thousand eight through December thirty-first,
 two thousand ten, two hundred fifty  thousand  dollars  for  the  period
 January first, two thousand eleven through March thirty-first, two thou-
 sand eleven, and eight hundred eighty thousand dollars each state fiscal
 year for the period April first, two thousand eleven through March thir-
 ty-first,  two thousand fourteen, shall be set aside and reserved by the
 commissioner from the regional pools established pursuant to subdivision
 two of this section and shall be available for distributions to the  New
 York state area health education center program for the purpose of post-
 secondary training of health care professionals who will achieve specif-
 ic  program  outcomes  within  the  New York state area health education
 center program.  The New York state area health education center program
 shall report to the commissioner on an annual basis regarding the use of
 funds for each purpose in such form  and  manner  as  specified  by  the
 commissioner.
   §  7.  Paragraph  (a) of subdivision 12 of section 367-b of the social
 services law, as amended by section 10 of part B of chapter  60  of  the
 laws of 2014, is amended to read as follows:

 S. 2007                            36                            A. 3007
 
   (a) For the purpose of regulating cash flow for general hospitals, the
 department  shall develop and implement a payment methodology to provide
 for timely payments for inpatient hospital services  eligible  for  case
 based  payments per discharge based on diagnosis-related groups provided
 during  the  period January first, nineteen hundred eighty-eight through
 March thirty-first two thousand [seventeen] TWENTY,  by  such  hospitals
 which elect to participate in the system.
   §  8.  Subdivision  6  of  section 2807-t of the public health law, as
 amended by section 15 of part B of chapter 60 of the laws  of  2014,  is
 amended to read as follows:
   6. Prospective adjustments. (a) The commissioner shall annually recon-
 cile  the  sum  of  the  actual payments made to the commissioner or the
 commissioner's designee for each region pursuant to section twenty-eight
 hundred seven-s of this article and pursuant to  this  section  for  the
 prior  year  with  the regional allocation of the gross annual statewide
 amount specified in subdivision  six  of  section  twenty-eight  hundred
 seven-s  of this article for such prior year. The difference between the
 actual amount raised for a region and the  regional  allocation  of  the
 specified  gross annual amount for such prior year shall be applied as a
 prospective adjustment to the regional allocation of the specified gross
 annual payment amount for such region for the year  next  following  the
 calculation  of  the  reconciliation. The authorized dollar value of the
 adjustments shall be the same as if calculated retrospectively.
   (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
 sion,  for  covered  lives  assessment rate periods on and after January
 first, two thousand fifteen through December thirty-first, two  thousand
 [seventeen]  TWENTY, for amounts collected in the aggregate in excess of
 one billion forty-five million dollars on an annual  basis,  prospective
 adjustments  shall be suspended if the annual reconciliation calculation
 from the prior year would otherwise result in a decrease to the regional
 allocation of the specified gross annual payment amount for that region,
 provided, however, that such suspension shall be lifted upon a  determi-
 nation  by  the  commissioner,  in consultation with the director of the
 budget, that sixty-five million dollars in aggregate collections  on  an
 annual basis over and above one billion forty-five million dollars on an
 annual  basis  have  been reserved and set aside for deposit in the HCRA
 resources fund. Any amounts collected in the aggregate at or  below  one
 billion  forty-five million dollars on an annual basis, shall be subject
 to regional adjustments reconciling any decreases or  increases  to  the
 regional  allocation  in  accordance with paragraph (a) of this subdivi-
 sion.
   § 9. This act shall take effect immediately; provided, however, that:
   (a) the amendments made to sections 2807-s and 2807-j  of  the  public
 health  law  made by sections three, four and five of this act shall not
 affect the expiration of such sections and shall expire therewith; and
   (b) the amendments to subdivision 6 of section 2807-t  of  the  public
 health  law made by section eight of this act shall not affect the expi-
 ration of such section and shall be deemed to expire therewith.

                                  PART I
 
   Section 1. Section 11 of chapter 884 of the laws of 1990, amending the
 public health law relating to authorizing  bad  debt  and  charity  care
 allowances  for  certified home health agencies, as amended by section 1
 of part D of chapter 57 of the laws of  2015,  is  amended  to  read  as
 follows:

 S. 2007                            37                            A. 3007
 
   § 11. This act shall take effect immediately and:
   (a) sections one and three shall expire on December 31, 1996,
   (b)  sections  four  through ten shall expire on June 30, [2017] 2020,
 and
   (c) provided that the amendment to section 2807-b of the public health
 law by section two of this act shall not affect the expiration  of  such
 section  2807-b  as  otherwise  provided  by  law and shall be deemed to
 expire therewith.
   § 2. Subdivision 4-a of section 71 of part C of chapter 60 of the laws
 of 2014 amending the social services law relating to  eliminating  pres-
 criber prevails for brand name drugs with generic equivalent, as amended
 by  section 6 of part D of chapter 59 of the laws of 2016, is amended to
 read as follows:
   4-a. section twenty-two of this act shall take effect April  1,  2014,
 and shall be deemed expired January 1, [2018] 2020;
   §  3.  Subparagraph  (vi) of paragraph (b) of subdivision 2 of section
 2807-d of the public health law, as amended by section 3 of  part  D  of
 chapter 57 of the laws of 2015, is amended to read as follows:
   (vi)  Notwithstanding  any contrary provision of this paragraph or any
 other provision of law or regulation to the  contrary,  for  residential
 health care facilities the assessment shall be six percent of each resi-
 dential  health care facility's gross receipts received from all patient
 care services and other operating income on a cash basis for the  period
 April  first,  two thousand two through March thirty-first, two thousand
 three for hospital  or  health-related  services,  including  adult  day
 services;  provided,  however,  that residential health care facilities'
 gross receipts attributable to payments received pursuant to title XVIII
 of the federal social security act (medicare) shall be excluded from the
 assessment; provided, however, that for all such gross receipts received
 on or after April first, two thousand three through March  thirty-first,
 two  thousand  five,  such assessment shall be five percent, and further
 provided that for all such gross receipts received  on  or  after  April
 first,  two thousand five through March thirty-first, two thousand nine,
 and on or after April first, two thousand  nine  through  March  thirty-
 first,  two  thousand  eleven  such assessment shall be six percent, and
 further provided that for all such gross receipts received on  or  after
 April  first,  two thousand eleven through March thirty-first, two thou-
 sand thirteen such assessment shall be six percent, and further provided
 that for all such gross receipts received on or after April  first,  two
 thousand  thirteen through March thirty-first, two thousand fifteen such
 assessment shall be six percent, and further provided that for all  such
 gross  receipts  received  on or after April first, two thousand fifteen
 through March thirty-first, two thousand seventeen such assessment shall
 be six percent, AND FURTHER PROVIDED THAT FOR ALL  SUCH  GROSS  RECEIPTS
 RECEIVED  ON  OR AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN THROUGH MARCH
 THIRTY-FIRST, TWO THOUSAND TWENTY SUCH ASSESSMENT SHALL BE SIX PERCENT.
   § 4. Subdivision 1 of section 194 of chapter 474 of the laws of  1996,
 amending the education law and other laws relating to rates for residen-
 tial  health care facilities, as amended by section 5 of part D of chap-
 ter 57 of the laws of 2015, is amended to read as follows:
   1. Notwithstanding any inconsistent provision of  law  or  regulation,
 the  trend  factors  used to project reimbursable operating costs to the
 rate period for purposes of determining rates  of  payment  pursuant  to
 article  28 of the public health law for residential health care facili-
 ties for reimbursement of inpatient services provided to patients eligi-
 ble for payments made by state governmental agencies on and after  April

 S. 2007                            38                            A. 3007
 
 1,  1996  through March 31, 1999 and for payments made on and after July
 1, 1999 through March 31, 2000 and on and after April  1,  2000  through
 March 31, 2003 and on and after April 1, 2003 through March 31, 2007 and
 on and after April 1, 2007 through March 31, 2009 and on and after April
 1,  2009  through  March 31, 2011 and on and after April 1, 2011 through
 March 31, 2013 and on and after April 1, 2013 through  March  31,  2015,
 and  on and after April 1, 2015 through March 31, 2017, AND ON AND AFTER
 APRIL 1, 2017 THROUGH MARCH 31,  2020  shall  reflect  no  trend  factor
 projections  or  adjustments for the period April 1, 1996, through March
 31, 1997.
   § 5. Subdivision 1 of section 89-a of part C of chapter 58 of the laws
 of 2007, amending the social services law and  other  laws  relating  to
 enacting  the major components of legislation necessary to implement the
 health and mental hygiene budget for the 2007-2008 state fiscal year, as
 amended by section 6 of part D of chapter 57 of the  laws  of  2015,  is
 amended to read as follows:
   1.  Notwithstanding  paragraph (c) of subdivision 10 of section 2807-c
 of the public health law and section 21 of chapter  1  of  the  laws  of
 1999,  as  amended, and any other inconsistent provision of law or regu-
 lation to the contrary,  in  determining  rates  of  payments  by  state
 governmental agencies effective for services provided beginning April 1,
 2006,  through  March  31,  2009, and on and after April 1, 2009 through
 March 31, 2011, and on and after April 1, 2011 through March  31,  2013,
 and  on and after April 1, 2013 through March 31, 2015, and on and after
 April 1, 2015 through March 31, 2017, AND ON AND  AFTER  APRIL  1,  2017
 THROUGH MARCH 31, 2020 for inpatient and outpatient services provided by
 general  hospitals  and  for inpatient services and outpatient adult day
 health care services provided  by  residential  health  care  facilities
 pursuant  to  article  28  of the public health law, the commissioner of
 health shall apply a trend factor  projection  of  two  and  twenty-five
 hundredths  percent  attributable  to the period January 1, 2006 through
 December 31, 2006, and on and after January 1, 2007, provided,  however,
 that  on  reconciliation  of such trend factor for the period January 1,
 2006 through December 31, 2006 pursuant to paragraph (c) of  subdivision
 10  of  section 2807-c of the public health law, such trend factor shall
 be the final US Consumer Price Index (CPI) for all urban  consumers,  as
 published by the US Department of Labor, Bureau of Labor Statistics less
 twenty-five hundredths of a percentage point.
   § 6. Subdivision 5-a of section 246 of chapter 81 of the laws of 1995,
 amending  the  public  health  law  and  other  laws relating to medical
 reimbursement and welfare reform, as amended by section 11 of part D  of
 chapter 57 of the laws of 2015, is amended to read as follows:
   5-a.  Section sixty-four-a of this act shall be deemed to have been in
 full force and effect on and after April 1, 1995 through March 31,  1999
 and  on  and  after July 1, 1999 through March 31, 2000 and on and after
 April 1, 2000 through March 31, 2003 and on  and  after  April  1,  2003
 through March 31, 2007, and on and after April 1, 2007 through March 31,
 2009,  and on and after April 1, 2009 through March 31, 2011, and on and
 after April 1, 2011 through March 31, 2013, and on and  after  April  1,
 2013  through  March  31,  2015,  and on and after April 1, 2015 through
 March 31, 2017 AND ON AND AFTER APRIL 1, 2017 THROUGH MARCH 31, 2020;
   § 7. Section 64-b of chapter 81 of the  laws  of  1995,  amending  the
 public  health  law and other laws relating to medical reimbursement and
 welfare reform, as amended by section 12 of part D of chapter 57 of  the
 laws of 2015, is amended to read as follows:

 S. 2007                            39                            A. 3007

   §  64-b.  Notwithstanding  any  inconsistent  provision  of  law,  the
 provisions of subdivision 7 of section 3614 of the public health law, as
 amended, shall remain and be in full force and effect on April  1,  1995
 through March 31, 1999 and on July 1, 1999 through March 31, 2000 and on
 and after April 1, 2000 through March 31, 2003 and on and after April 1,
 2003  through  March  31,  2007,  and on and after April 1, 2007 through
 March 31, 2009, and on and after April 1, 2009 through March  31,  2011,
 and  on and after April 1, 2011 through March 31, 2013, and on and after
 April 1, 2013 through March 31, 2015, and on and  after  April  1,  2015
 through  March 31, 2017 AND ON AND AFTER APRIL 1, 2017 THROUGH MARCH 31,
 2020.
   § 8. Subdivision (a) of section 40 of part B of  chapter  109  of  the
 laws  of  2010, amending the social services law relating to transporta-
 tion costs, as amended by section 23 of part D of chapter 57 of the laws
 of 2015, is amended to read as follows:
   (a) sections two, three, three-a, three-b, three-c,  three-d,  three-e
 and  twenty-one  of  this  act  shall take effect July 1, 2010; sections
 fifteen, sixteen, seventeen, eighteen and nineteen  of  this  act  shall
 take effect January 1, 2011; and provided further that section twenty of
 this  act  shall  be deemed repealed [six] NINE years after the date the
 contract entered into pursuant to section 365-h of the  social  services
 law,  as  amended  by  section twenty of this act, is executed; provided
 that the commissioner of health shall notify the legislative bill draft-
 ing commission upon the execution of the contract entered into  pursuant
 to section 367-h of the social services law in order that the commission
 may  maintain an accurate and timely effective data base 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 officers law;
   §  9. Section 4-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 relat-
 ing to the cap on local Medicaid expenditures, as amended by section  29
 of  part  D  of  chapter  57  of the laws of 2015, is amended to read as
 follows:
   § 4-a. Notwithstanding paragraph (c)  of  subdivision  10  of  section
 2807-c  of the public health law, section 21 of chapter 1 of the laws of
 1999, or any other contrary provision of law, in  determining  rates  of
 payments  by state governmental agencies effective for services provided
 on and after January 1, [2017] 2020 through March 31, [2017]  2020,  for
 inpatient  and  outpatient  services  provided by general hospitals, for
 inpatient  services  and  adult  day  health  care  outpatient  services
 provided by residential health care facilities pursuant to article 28 of
 the  public health law, except for residential health care facilities or
 units of such facilities providing services primarily to children  under
 twenty-one years of age, for home health care services provided pursuant
 to  article  36  of the public health law by certified home health agen-
 cies, long term home health care programs and AIDS home  care  programs,
 and for personal care services provided pursuant to section 365-a of the
 social  services  law, the commissioner of health shall apply no greater
 than zero trend factors attributable to the [2017] 2020 calendar year in
 accordance with paragraph (c) of subdivision 10 of section 2807-c of the
 public health law, provided, however, that such  no  greater  than  zero
 trend  factors attributable to such [2017] 2020 calendar year shall also
 be applied to rates of payment provided on and after January  1,  [2017]
 2020  through  March 31, [2017] 2020 for personal care services provided

 S. 2007                            40                            A. 3007
 
 in those local social services districts, including New York city, whose
 rates of payment for such services are established by such local  social
 services  districts  pursuant  to a rate-setting exemption issued by the
 commissioner  of  health  to  such  local  social  services districts in
 accordance with applicable regulations, and provided  further,  however,
 that  for rates of payment for assisted living program services provided
 on and after January 1, [2017] 2020 through March 31, [2017] 2020,  such
 trend  factors  attributable  to  the [2017] 2020 calendar year shall be
 established at no greater than zero percent.
   § 10. Subdivisions 3 and 5 of section 47 of chapter 2 of the  laws  of
 1998,  amending the public health law and other laws relating to expand-
 ing the child health insurance plan, as amended by section 61 of part  C
 of chapter 60 of the laws of 2014, are amended to read as follows:
   3.  section  six  of  this  act  shall  take  effect  January 1, 1999;
 provided, however, that subparagraph (iii) of paragraph (c) of  subdivi-
 sion  9  of section 2510 of the public health law, as added by this act,
 shall expire on July 1, [2017] 2020;
   5. section twelve of this act  shall  take  effect  January  1,  1999;
 provided,  however,  paragraphs  (g) and (h) of subdivision 2 of section
 2511 of the public health law, as added by such section, shall expire on
 July 1, [2017] 2020;
   § 11. Section 4 of chapter 19 of the laws of 1998, amending the social
 services law relating to limiting the method of payment for prescription
 drugs under the medical assistance program, as amended by section 65  of
 part C of chapter 60 of the laws of 2014, is amended to read as follows:
   §  4. This act shall take effect 120 days after it shall have become a
 law and shall expire and be deemed repealed March 31, [2017] 2020.
   § 12. Paragraph (e-1) of subdivision 12 of section 2808 of the  public
 health law, as amended by section 66 of part C of chapter 60 of the laws
 of 2014, is amended to read as follows:
   (e-1) Notwithstanding any inconsistent provision of law or regulation,
 the  commissioner  shall  provide,  in  addition to payments established
 pursuant to this article prior to application  of  this  section,  addi-
 tional  payments  under the medical assistance program pursuant to title
 eleven of article five of the social services law for non-state operated
 public residential health care facilities, including public  residential
 health  care  facilities  located in the county of Nassau, the county of
 Westchester and the county of Erie,  but  excluding  public  residential
 health  care  facilities  operated by a town or city within a county, in
 aggregate annual amounts of up to one hundred fifty million  dollars  in
 additional payments for the state fiscal year beginning April first, two
 thousand  six  and  for the state fiscal year beginning April first, two
 thousand seven and for the state fiscal year beginning April first,  two
 thousand eight and of up to three hundred million dollars in such aggre-
 gate  annual  additional  payments  for  the state fiscal year beginning
 April first, two thousand nine, and for the state fiscal year  beginning
 April  first,  two  thousand ten and for the state fiscal year beginning
 April first, two thousand eleven, and for the state fiscal years  begin-
 ning  April  first,  two  thousand  twelve and April first, two thousand
 thirteen, and of up to five hundred million dollars  in  such  aggregate
 annual  additional  payments  for the state fiscal years beginning April
 first, two thousand fourteen, April  first,  two  thousand  fifteen  and
 April  first,  two  thousand  sixteen  AND OF UP TO FIVE HUNDRED MILLION
 DOLLARS IN SUCH AGGREGATE  ANNUAL  ADDITIONAL  PAYMENTS  FOR  THE  STATE
 FISCAL YEARS BEGINNING APRIL FIRST, TWO THOUSAND SEVENTEEN, APRIL FIRST,
 TWO  THOUSAND  EIGHTEEN,  AND  APRIL  FIRST,  TWO THOUSAND NINETEEN. The

 S. 2007                            41                            A. 3007
 
 amount allocated to each eligible public residential health care facili-
 ty for this period shall be computed in accordance with  the  provisions
 of  paragraph  (f)  of this subdivision, provided, however, that patient
 days  shall  be utilized for such computation reflecting actual reported
 data for two thousand three and each representative succeeding  year  as
 applicable,  and  provided  further, however, that, in consultation with
 impacted providers, of the funds allocated for distribution in the state
 fiscal year beginning April first, two thousand thirteen, up to  thirty-
 two  million dollars may be allocated in accordance with paragraph (f-1)
 of this subdivision.
   § 13. Section 18 of chapter 904 of the  laws  of  1984,  amending  the
 public  health  law  and the social services law relating to encouraging
 comprehensive health services, as amended by section 67-c of part  C  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   §  18.  This  act  shall take effect immediately, except that sections
 six, nine, ten and eleven of this act shall take effect on the  sixtieth
 day  after  it  shall  have become a law, [sections two, three, four and
 nine of this act shall expire and be of no further force or effect on or
 after March 31, 2017,] section two of this  act  shall  take  effect  on
 April  1,  1985  or  seventy-five  days  following the submission of the
 report required by section one of this  act,  whichever  is  later,  and
 sections  eleven  and  thirteen  of  this  act shall expire and be of no
 further force or effect on or after March 31, 1988.
   § 14. Section 4 of part X2 of chapter 62 of the laws of 2003, amending
 the public health law relating to allowing for the use of funds  of  the
 office  of  professional  medical  conduct for activities of the patient
 health information and quality improvement act of 2000,  as  amended  by
 section  4-b  of part A of chapter 57 of the laws of 2015, is amended to
 read as follows:
   § 4. This  act  shall  take  effect  immediately;  provided  that  the
 provisions  of  section  one of this act shall be deemed to have been in
 full force and effect on and after April 1, 2003, and shall expire March
 31, [2017] 2020 when upon such date the provisions of such section shall
 be deemed repealed.
   § 15.  Subdivision (o) of section 111 of part H of chapter 59  of  the
 laws  of  2011, amending the public health law relating to the statewide
 health information network of New York and the  statewide  planning  and
 research cooperative system and general powers and duties, as amended by
 section  28  of  part D of chapter 57 of the laws of 2015, is amended to
 read as follows:
   (o) sections thirty-eight and thirty-eight-a of this act shall  expire
 and be deemed repealed March 31, [2017] 2020;
   § 16. Section 32 of part A of chapter 58 of the laws of 2008, amending
 the  elder law and other laws relating to reimbursement to participating
 provider pharmacies  and  prescription  drug  coverage,  as  amended  by
 section  13  of  part A of chapter 57 of the laws of 2015, is amended to
 read as follows:
   § 32. This act shall take effect immediately and shall  be  deemed  to
 have  been in full force and effect on and after April 1, 2008; provided
 however, that sections one, six-a, nineteen,  twenty,  twenty-four,  and
 twenty-five of this act shall take effect July 1, 2008; provided however
 that  sections  sixteen, seventeen and eighteen of this act shall expire
 April 1, [2017] 2020; provided, however, that  the  amendments  made  by
 section  twenty-eight  of this act shall take effect on the same date as
 section 1 of chapter 281 of the laws  of  2007  takes  effect;  provided
 further,  that  sections twenty-nine, thirty, and thirty-one of this act

 S. 2007                            42                            A. 3007
 
 shall take effect October 1, 2008; provided further, that section  twen-
 ty-seven  of  this  act  shall take effect January 1, 2009; and provided
 further, that section twenty-seven of  this  act  shall  expire  and  be
 deemed  repealed  March 31, [2017] 2020; and provided, further, however,
 that the amendments to subdivision 1 of section 241 of the education law
 made by section twenty-nine of this act shall not affect the  expiration
 of such subdivision and shall be deemed to expire therewith and provided
 that  the  amendments  to  section  272 of the public health law made by
 section thirty of this act shall not affect the repeal of  such  section
 and shall be deemed repealed therewith.
   §  17.  This  act shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART J
 
   Section 1. The insurance law is amended by adding a new article 29  to
 read as follows:
                                ARTICLE 29
                         PHARMACY BENEFIT MANAGERS
 SECTION 2901. DEFINITIONS.
         2902. ACTING WITHOUT A REGISTRATION.
         2903. REGISTRATION REQUIREMENTS FOR PHARMACY BENEFIT MANAGERS.
         2904. REPORTING REQUIREMENTS FOR PHARMACY BENEFIT MANAGERS.
         2905. ACTING WITHOUT A LICENSE.
         2906. LICENSING OF A PHARMACY BENEFIT MANAGER.
         2907. REVOCATION OR SUSPENSION OF A REGISTRATION OR LICENSE OF A
                 PHARMACY BENEFIT MANAGER.
         2908. PENALTIES FOR VIOLATIONS.
         2909. STAY OR SUSPENSION OF SUPERINTENDENT'S DETERMINATION.
         2910. REVOKED REGISTRATIONS.
         2911. CHANGE OF ADDRESS.
         2912. ASSESSMENT.
         2913. APPLICABILITY OF OTHER LAWS.
   § 2901. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   (A)  "CONTROLLING  PERSON"  IS ANY PERSON OR OTHER ENTITY WHO OR WHICH
 DIRECTLY OR INDIRECTLY HAS THE POWER TO DIRECT OR CAUSE TO  BE  DIRECTED
 THE MANAGEMENT, CONTROL OR ACTIVITIES OF A PHARMACY BENEFIT MANAGER.
   (B)  "HEALTH  INSURER"  MEANS  AN INSURANCE COMPANY AUTHORIZED IN THIS
 STATE TO WRITE ACCIDENT AND HEALTH INSURANCE, A COMPANY ORGANIZED PURSU-
 ANT TO ARTICLE FORTY-THREE OF  THIS  CHAPTER,  A  MUNICIPAL  COOPERATIVE
 HEALTH  BENEFIT PLAN ESTABLISHED PURSUANT TO ARTICLE FORTY-SEVEN OF THIS
 CHAPTER, A HEALTH MAINTENANCE ORGANIZATION CERTIFIED PURSUANT TO ARTICLE
 FORTY-FOUR OF THE PUBLIC HEALTH LAW, AN INSTITUTION OF HIGHER  EDUCATION
 CERTIFIED  PURSUANT  TO  SECTION ONE THOUSAND ONE HUNDRED TWENTY-FOUR OF
 THIS CHAPTER, OR THE NEW YORK STATE HEALTH  INSURANCE  PLAN  ESTABLISHED
 UNDER ARTICLE ELEVEN OF THE CIVIL SERVICE LAW.
   (C)  "PHARMACY  BENEFIT MANAGEMENT SERVICES" MEANS DIRECTLY OR THROUGH
 AN INTERMEDIARY, MANAGING THE PRESCRIPTION DRUG COVERAGE PROVIDED  BY  A
 HEALTH  INSURER  UNDER A POLICY DELIVERED OR ISSUED FOR DELIVERY IN THIS
 STATE OR AN EMPLOYER THAT HAS ITS PRINCIPAL PLACE OF  BUSINESS  IN  THIS
 STATE,  INCLUDING  THE PROCESSING AND PAYMENT OF CLAIMS FOR PRESCRIPTION
 DRUGS, THE PERFORMANCE OF DRUG UTILIZATION  REVIEW,  THE  PROCESSING  OF
 DRUG PRIOR AUTHORIZATION REQUESTS, THE ADJUDICATION OF APPEALS OR GRIEV-
 ANCES  RELATED  TO  PRESCRIPTION DRUG COVERAGE, CONTRACTING WITH NETWORK
 PHARMACIES, AND CONTROLLING THE COST OF COVERED PRESCRIPTION DRUGS.  THE
 TERM  "PHARMACY  BENEFIT MANAGEMENT SERVICES" SHALL NOT INCLUDE SERVICES

 S. 2007                            43                            A. 3007
 
 PROVIDED TO A PLAN SUBJECT TO SECTION THREE HUNDRED SIXTY-FOUR-J OF  THE
 SOCIAL SERVICES LAW.
   (D)  "PHARMACY  BENEFIT  MANAGER"  MEANS  A PERSON, FIRM, ASSOCIATION,
 CORPORATION OR OTHER ENTITY THAT, PURSUANT TO A CONTRACT WITH  A  HEALTH
 INSURER  OR AN EMPLOYER THAT HAS ITS PRINCIPAL PLACE OF BUSINESS IN THIS
 STATE AND ESTABLISHES OR MAINTAINS AN EMPLOYEE BENEFIT PLAN, AS  DEFINED
 BY THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, PROVIDES
 PHARMACY  BENEFIT  MANAGEMENT  SERVICES,  EXCEPT  THAT  TERM  SHALL  NOT
 INCLUDE:
   (1) AN OFFICER OR EMPLOYEE OF A REGISTERED OR LICENSED PHARMACY  BENE-
 FIT MANAGER;
   (2) A HEALTH INSURER, OR ANY MANAGER THEREOF, INDIVIDUAL OR CORPORATE,
 OR ANY OFFICER, DIRECTOR OR REGULAR SALARIED EMPLOYEE THEREOF, PROVIDING
 PHARMACY  BENEFIT  MANAGEMENT SERVICES UNDER A POLICY OR CONTRACT ISSUED
 BY THE HEALTH INSURER; OR
   (3) AN EMPLOYER OR ITS EMPLOYEES WITH RESPECT TO THE EMPLOYEE  BENEFIT
 PLAN,  AS DEFINED BY THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT
 OF 1974, ESTABLISHED OR MAINTAINED BY THE EMPLOYER.
   (E) "PRINCIPAL PLACE OF BUSINESS" MEANS THE STATE OR COUNTRY WHERE  AN
 EMPLOYER  MAINTAINS ITS HEADQUARTERS AND WHERE THE EMPLOYER'S HIGH-LEVEL
 OFFICERS  DIRECT,  CONTROL,  AND  COORDINATE  THE  BUSINESS  ACTIVITIES;
 PROVIDED,  HOWEVER,  THAT  IF THE EMPLOYER'S HIGH-LEVEL OFFICERS DIRECT,
 CONTROL, AND COORDINATE THE BUSINESS ACTIVITIES IN MORE THAN  ONE  STATE
 OR  COUNTRY,  THEN  THE  STATE  OR  COUNTRY WHERE THE GREATEST NUMBER OF
 EMPLOYEES ARE LOCATED.
   § 2902. ACTING WITHOUT A REGISTRATION.  (A) NO PERSON,  FIRM,  ASSOCI-
 ATION, CORPORATION OR OTHER ENTITY MAY ACT AS A PHARMACY BENEFITS MANAG-
 ER  PRIOR TO JANUARY FIRST, TWO THOUSAND NINETEEN WITHOUT HAVING A VALID
 REGISTRATION AS A PHARMACY BENEFIT MANAGER FILED WITH THE SUPERINTENDENT
 IN ACCORDANCE WITH THIS ARTICLE AND ANY REGULATIONS  PROMULGATED  THERE-
 UNDER.
   (B)  PRIOR  TO JANUARY FIRST, TWO THOUSAND NINETEEN, NO HEALTH INSURER
 MAY PAY ANY FEE OR OTHER COMPENSATION TO ANY PERSON, FIRM,  ASSOCIATION,
 CORPORATION  OR  OTHER ENTITY FOR PERFORMING PHARMACY BENEFIT MANAGEMENT
 SERVICES UNLESS THE PERSON,  FIRM,  ASSOCIATION,  CORPORATION  OR  OTHER
 ENTITY  IS  REGISTERED  AS A PHARMACY BENEFIT MANAGER IN ACCORDANCE WITH
 THIS ARTICLE.
   (C) ANY PERSON, FIRM, ASSOCIATION, CORPORATION OR  OTHER  ENTITY  THAT
 VIOLATES  THIS  SECTION SHALL, IN ADDITION TO ANY OTHER PENALTY PROVIDED
 BY LAW, BE SUBJECT TO A PENALTY OF THE  GREATER  OF:  (1)  ONE  THOUSAND
 DOLLARS  FOR  THE  FIRST VIOLATION AND TWO THOUSAND FIVE HUNDRED DOLLARS
 FOR EACH SUBSEQUENT VIOLATION;  OR  (2)  THE  AGGREGATE  GROSS  RECEIPTS
 ATTRIBUTABLE TO ALL VIOLATIONS.
   §  2903. REGISTRATION REQUIREMENTS FOR PHARMACY BENEFIT MANAGERS.  (A)
 EVERY PHARMACY BENEFIT MANAGER THAT PERFORMS PHARMACY BENEFIT MANAGEMENT
 SERVICES PRIOR TO JANUARY FIRST, TWO THOUSAND  NINETEEN  SHALL  REGISTER
 WITH  THE  SUPERINTENDENT  IN A MANNER ACCEPTABLE TO THE SUPERINTENDENT,
 AND SHALL PAY A FEE OF ONE THOUSAND DOLLARS FOR EACH YEAR OR FRACTION OF
 A YEAR IN WHICH THE REGISTRATION SHALL BE VALID. EVERY REGISTRATION WILL
 EXPIRE ON DECEMBER THIRTY-FIRST, TWO  THOUSAND  EIGHTEEN  REGARDLESS  OF
 WHEN REGISTRATION WAS FIRST MADE.
   (B)  EVERY  PHARMACY  BENEFIT  MANAGER  THAT PERFORMS PHARMACY BENEFIT
 MANAGEMENT SERVICES AT ANY TIME  BETWEEN  JANUARY  FIRST,  TWO  THOUSAND
 SEVENTEEN  AND JUNE FIRST, TWO THOUSAND SEVENTEEN, SHALL MAKE THE REGIS-
 TRATION AND FEE PAYMENT REQUIRED BY SUBSECTION (A) OF THIS SECTION ON OR
 BEFORE JUNE FIRST, TWO THOUSAND SEVENTEEN.

 S. 2007                            44                            A. 3007
 
   (C) EVERY PHARMACY BENEFIT MANAGER NOT SUBJECT TO  SUBSECTION  (B)  OF
 THIS  SECTION  SHALL  MAKE  THE REGISTRATION AND FEE PAYMENT REQUIRED BY
 SUBSECTION (A) OF THIS SECTION  PRIOR  TO  PERFORMING  PHARMACY  BENEFIT
 MANAGEMENT SERVICES.
   (D)  EACH  PHARMACY  BENEFIT  MANAGER SHALL RENEW ITS REGISTRATION AND
 MAKE THE REQUIRED FEE PAYMENT BY FEBRUARY FIRST, TWO  THOUSAND  EIGHTEEN
 FOR THE TWO THOUSAND EIGHTEEN CALENDAR YEAR.
   §  2904. REPORTING REQUIREMENTS FOR PHARMACY BENEFIT MANAGERS.  (A)(1)
 ON OR BEFORE JULY FIRST OF EACH YEAR, BEGINNING IN TWO  THOUSAND  SEVEN-
 TEEN, EVERY PHARMACY BENEFIT MANAGER SHALL REPORT TO THE SUPERINTENDENT,
 IN A STATEMENT SUBSCRIBED AND AFFIRMED AS TRUE UNDER PENALTIES OF PERJU-
 RY,  THE  INFORMATION REQUESTED BY THE SUPERINTENDENT.  SUCH INFORMATION
 MAY INCLUDE, WITHOUT LIMITATION, DISCLOSURE OF ANY  FINANCIAL  INCENTIVE
 OR  BENEFIT  FOR  PROMOTING THE USE OF CERTAIN DRUGS AND OTHER FINANCIAL
 ARRANGEMENTS  AFFECTING  HEALTH  INSURERS  OR  THEIR  POLICYHOLDERS   OR
 INSUREDS.
   (2) THE SUPERINTENDENT ALSO MAY ADDRESS TO ANY PHARMACY BENEFIT MANAG-
 ER  OR ITS OFFICERS ANY INQUIRY IN RELATION TO ITS PROVISION OF PHARMACY
 BENEFIT MANAGEMENT SERVICES OR ANY  MATTER  CONNECTED  THEREWITH.  EVERY
 PHARMACY  BENEFIT  MANAGER OR PERSON SO ADDRESSED SHALL REPLY IN WRITING
 TO SUCH INQUIRY PROMPTLY AND TRUTHFULLY, AND SUCH  REPLY  SHALL  BE,  IF
 REQUIRED  BY  THE  SUPERINTENDENT,  SUBSCRIBED BY SUCH INDIVIDUAL, OR BY
 SUCH OFFICER OR OFFICERS OF THE PHARMACY BENEFIT MANAGER, AS THE  SUPER-
 INTENDENT SHALL DESIGNATE, AND AFFIRMED BY THEM AS TRUE UNDER THE PENAL-
 TIES OF PERJURY.
   (3)  IN ADDITION TO THE OTHER REPORTS REQUIRED BY THIS SUBSECTION, THE
 SUPERINTENDENT ALSO MAY REQUIRE THE FILING OF QUARTERLY OR OTHER  STATE-
 MENTS, WHICH SHALL BE IN SUCH FORM AND SHALL CONTAIN SUCH MATTERS AS THE
 SUPERINTENDENT SHALL PRESCRIBE.
   (B)  IN  THE  EVENT  ANY  PHARMACY  BENEFIT MANAGER OR PERSON DOES NOT
 SUBMIT THE REPORT REQUIRED BY PARAGRAPH ONE OR THREE OF  SUBSECTION  (A)
 OF  THIS SECTION OR DOES NOT PROVIDE A GOOD FAITH RESPONSE TO AN INQUIRY
 FROM THE SUPERINTENDENT PURSUANT TO PARAGRAPH TWO OF SUBSECTION  (A)  OF
 THIS SECTION WITHIN A TIME PERIOD SPECIFIED BY THE SUPERINTENDENT OF NOT
 LESS  THAN  FIFTEEN  BUSINESS  DAYS, THE SUPERINTENDENT IS AUTHORIZED TO
 LEVY A CIVIL PENALTY, AFTER NOTICE AND HEARING,  AGAINST  SUCH  PHARMACY
 BENEFIT MANAGER OR PERSON NOT TO EXCEED FIVE HUNDRED DOLLARS PER DAY FOR
 EACH  DAY BEYOND THE DATE THE REPORT IS DUE OR THE DATE SPECIFIED BY THE
 SUPERINTENDENT FOR RESPONSE TO THE INQUIRY.
   (C) ALL INFORMATION DISCLOSED BY A PHARMACY BENEFIT MANAGER  SHALL  BE
 DEEMED CONFIDENTIAL AND NOT SUBJECT TO DISCLOSURE UNLESS THE SUPERINTEN-
 DENT  DETERMINES  THAT  SUCH DISCLOSURE IS IN THE PUBLIC INTEREST, OR IS
 NECESSARY TO CARRY OUT THIS  CHAPTER  OR  TO  ALLOW  THE  DEPARTMENT  TO
 PERFORM EXAMINATIONS OR INVESTIGATIONS AUTHORIZED BY LAW.
   §  2905.  ACTING WITHOUT A LICENSE.  (A) NO PERSON, FIRM, ASSOCIATION,
 CORPORATION OR OTHER ENTITY MAY ACT AS A PHARMACY BENEFIT MANAGER ON  OR
 AFTER  JANUARY  FIRST, TWO THOUSAND NINETEEN WITHOUT HAVING AUTHORITY TO
 DO SO BY VIRTUE OF A LICENSE ISSUED IN FORCE PURSUANT TO THE  PROVISIONS
 OF THIS CHAPTER.
   (B)  NO  HEALTH  INSURER  MAY PAY ANY FEE OR OTHER COMPENSATION TO ANY
 PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER  ENTITY  FOR  PERFORMING
 PHARMACY  BENEFIT  MANAGEMENT  SERVICES UNLESS THE PERSON, FIRM, ASSOCI-
 ATION, CORPORATION OR OTHER ENTITY IS LICENSED  AS  A  PHARMACY  BENEFIT
 MANAGER IN ACCORDANCE WITH THIS ARTICLE.
   (C)  ANY  PERSON,  FIRM, ASSOCIATION, CORPORATION OR OTHER ENTITY THAT
 VIOLATES THIS SECTION SHALL, IN ADDITION TO ANY OTHER  PENALTY  PROVIDED

 S. 2007                            45                            A. 3007
 
 BY  LAW,  BE  SUBJECT  TO  A PENALTY OF THE GREATER OF: (1) ONE THOUSAND
 DOLLARS FOR THE FIRST VIOLATION AND TWO THOUSAND  FIVE  HUNDRED  DOLLARS
 FOR  EACH  SUBSEQUENT  VIOLATION;  OR  (2)  THE AGGREGATE GROSS RECEIPTS
 ATTRIBUTABLE TO ALL VIOLATIONS.
   §  2906. LICENSING OF A PHARMACY BENEFIT MANAGER.  (A) THE SUPERINTEN-
 DENT MAY ISSUE A PHARMACY BENEFIT MANAGER'S LICENSE TO ANY PERSON, FIRM,
 ASSOCIATION OR CORPORATION WHO OR THAT HAS COMPLIED  WITH  THE  REQUIRE-
 MENTS  OF  THIS CHAPTER, INCLUDING REGULATIONS PROMULGATED BY THE SUPER-
 INTENDENT. THE SUPERINTENDENT  MAY  ESTABLISH,  BY  REGULATION,  MINIMUM
 STANDARDS FOR THE ISSUANCE OF A LICENSE TO A PHARMACY BENEFIT MANAGER.
   (B) THE SUPERINTENDENT MAY ESTABLISH, BY REGULATION, MINIMUM STANDARDS
 FOR  THE  DELIVERY  OF PHARMACY BENEFIT MANAGEMENT SERVICES. THE MINIMUM
 STANDARDS ESTABLISHED UNDER THIS SUBSECTION MAY ADDRESS:
   (1) THE ELIMINATION OF CONFLICTS OF INTEREST BETWEEN PHARMACY  BENEFIT
 MANAGERS  AND  HEALTH  INSURERS OR EMPLOYEE BENEFIT PLANS, AS DEFINED BY
 THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT OF  1974,  FOR  WHOM
 THEY PERFORM PHARMACY BENEFIT MANAGEMENT SERVICES;
   (2)  THE  ELIMINATION  OF  DECEPTIVE  PRACTICES IN CONNECTION WITH THE
 PERFORMANCE OF PHARMACY BENEFIT MANAGEMENT SERVICES;
   (3) THE ELIMINATION OF ANTI-COMPETITIVE PRACTICES IN  CONNECTION  WITH
 THE PERFORMANCE OF PHARMACY BENEFIT MANAGEMENT SERVICES; AND
   (4)  THE ELIMINATION OF UNFAIR CLAIMS PRACTICES IN CONNECTION WITH THE
 PERFORMANCE OF PHARMACY BENEFIT MANAGEMENT SERVICES.
   (C)(1) ANY SUCH LICENSE ISSUED TO A FIRM OR ASSOCIATION SHALL  AUTHOR-
 IZE  ALL  OF  THE  MEMBERS OF THE FIRM OR ASSOCIATION AND ANY DESIGNATED
 EMPLOYEES TO ACT AS PHARMACY BENEFIT MANAGERS UNDER THE LICENSE, AND ALL
 SUCH PERSONS SHALL BE NAMED IN THE APPLICATION AND SUPPLEMENTS THERETO.
   (2) ANY SUCH LICENSE ISSUED TO A CORPORATION SHALL  AUTHORIZE  ALL  OF
 THE  OFFICERS  AND ANY DESIGNATED EMPLOYEES AND DIRECTORS THEREOF TO ACT
 AS PHARMACY BENEFIT MANAGERS ON BEHALF OF SUCH CORPORATION, AND ALL SUCH
 PERSONS SHALL BE NAMED IN THE APPLICATION AND SUPPLEMENTS THERETO.
   (3) FOR EACH BUSINESS ENTITY, THE OFFICER OR OFFICERS AND DIRECTOR  OR
 DIRECTORS  NAMED  IN THE APPLICATION SHALL BE DESIGNATED RESPONSIBLE FOR
 THE BUSINESS ENTITY'S COMPLIANCE WITH  THE  INSURANCE  LAWS,  RULES  AND
 REGULATIONS OF THIS STATE.
   (D)(1)  BEFORE A PHARMACY BENEFIT MANAGER'S LICENSE SHALL BE ISSUED OR
 RENEWED, THE PROSPECTIVE LICENSEE SHALL PROPERLY FILE IN THE  OFFICE  OF
 THE  SUPERINTENDENT A WRITTEN APPLICATION THEREFOR IN SUCH FORM OR FORMS
 AND SUPPLEMENTS THERETO AS THE SUPERINTENDENT PRESCRIBES, AND PAY A  FEE
 OF  ONE  THOUSAND DOLLARS FOR EACH YEAR OR FRACTION OF A YEAR IN WHICH A
 LICENSE SHALL BE VALID.
   (2) EVERY PHARMACY BENEFIT MANAGER'S  LICENSE  ISSUED  TO  A  BUSINESS
 ENTITY  PURSUANT  TO  THIS  SECTION SHALL EXPIRE ON THE THIRTIETH DAY OF
 NOVEMBER OF EVEN-NUMBERED YEARS. EVERY LICENSE ISSUED PURSUANT  TO  THIS
 SECTION  TO  AN  INDIVIDUAL  PHARMACY BENEFIT MANAGER WHO WAS BORN IN AN
 ODD-NUMBERED YEAR, SHALL EXPIRE ON THE  INDIVIDUAL'S  BIRTHDAY  IN  EACH
 ODD-NUMBERED  YEAR.  EVERY LICENSE ISSUED PURSUANT TO THIS SECTION TO AN
 INDIVIDUAL PHARMACY BENEFIT MANAGER WHO WAS  BORN  IN  AN  EVEN-NUMBERED
 YEAR,  SHALL  EXPIRE  ON THE INDIVIDUAL'S BIRTHDAY IN EACH EVEN-NUMBERED
 YEAR. EVERY LICENSE ISSUED PURSUANT TO THIS SECTION MAY BE  RENEWED  FOR
 THE  ENSUING PERIOD OF TWENTY-FOUR MONTHS UPON THE FILING OF AN APPLICA-
 TION IN CONFORMITY WITH THIS SUBSECTION.
   (E)(1) IF AN APPLICATION FOR A RENEWAL LICENSE SHALL HAVE  BEEN  FILED
 WITH  THE SUPERINTENDENT BEFORE OCTOBER FIRST OF THE YEAR OF EXPIRATION,
 THEN THE LICENSE SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL  FORCE  AND
 EFFECT  EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL

 S. 2007                            46                            A. 3007

 LICENSE APPLIED FOR OR UNTIL FIVE DAYS AFTER  THE  SUPERINTENDENT  SHALL
 HAVE  REFUSED  TO  ISSUE  SUCH  RENEWAL LICENSE AND GIVEN NOTICE OF SUCH
 REFUSAL TO THE APPLICANT.
   (2) BEFORE REFUSING TO RENEW ANY LICENSE PURSUANT TO THIS SECTION, THE
 SUPERINTENDENT SHALL NOTIFY THE APPLICANT OF THE SUPERINTENDENT'S INTEN-
 TION SO TO DO AND SHALL GIVE SUCH APPLICANT A HEARING.
   (F)  THE  SUPERINTENDENT MAY REFUSE TO ISSUE A PHARMACY BENEFIT MANAG-
 ER'S LICENSE IF, IN THE SUPERINTENDENT'S JUDGMENT, THE APPLICANT OR  ANY
 MEMBER,  PRINCIPAL,  OFFICER OR DIRECTOR OF THE APPLICANT, IS NOT TRUST-
 WORTHY AND COMPETENT TO ACT AS OR IN CONNECTION WITH A PHARMACY  BENEFIT
 MANAGER,  OR THAT ANY OF THE FOREGOING HAS GIVEN CAUSE FOR REVOCATION OR
 SUSPENSION OF SUCH LICENSE, OR HAS FAILED TO COMPLY WITH  ANY  PREREQUI-
 SITE FOR THE ISSUANCE OF SUCH LICENSE.
   (G)  LICENSEES  UNDER  THIS SECTION SHALL BE SUBJECT TO EXAMINATION BY
 THE SUPERINTENDENT AS OFTEN AS THE SUPERINTENDENT MAY DEEM IT EXPEDIENT.
 THE SUPERINTENDENT MAY PROMULGATE REGULATIONS ESTABLISHING  METHODS  AND
 PROCEDURES  FOR  FACILITATING AND VERIFYING COMPLIANCE WITH THE REQUIRE-
 MENTS OF THIS SECTION AND SUCH OTHER REGULATIONS AS NECESSARY.
   (H) THE  SUPERINTENDENT  MAY  ISSUE  A  REPLACEMENT  FOR  A  CURRENTLY
 IN-FORCE LICENSE THAT HAS BEEN LOST OR DESTROYED. BEFORE THE REPLACEMENT
 LICENSE  SHALL  BE  ISSUED,  THERE SHALL BE ON FILE IN THE OFFICE OF THE
 SUPERINTENDENT  A  WRITTEN  APPLICATION  FOR  THE  REPLACEMENT  LICENSE,
 AFFIRMING  UNDER  PENALTY  OF PERJURY THAT THE ORIGINAL LICENSE HAS BEEN
 LOST OR DESTROYED, TOGETHER WITH A FEE OF ONE HUNDRED DOLLARS.
   § 2907. REVOCATION OR SUSPENSION OF A REGISTRATION  OR  LICENSE  OF  A
 PHARMACY  BENEFIT MANAGER.   (A) THE SUPERINTENDENT MAY REFUSE TO RENEW,
 REVOKE, OR MAY SUSPEND FOR A PERIOD THE  SUPERINTENDENT  DETERMINES  THE
 REGISTRATION OR LICENSE OF ANY PHARMACY BENEFIT MANAGER IF, AFTER NOTICE
 AND HEARING, THE SUPERINTENDENT DETERMINES THAT THE REGISTRANT OR LICEN-
 SEE  OR  ANY MEMBER, PRINCIPAL, OFFICER, DIRECTOR, OR CONTROLLING PERSON
 OF THE REGISTRANT OR LICENSEE, HAS:
   (1) VIOLATED ANY INSURANCE LAWS, OR VIOLATED ANY REGULATION,  SUBPOENA
 OR  ORDER  OF THE SUPERINTENDENT OR OF ANOTHER STATE'S INSURANCE COMMIS-
 SIONER, OR HAS VIOLATED ANY LAW IN THE COURSE OF HIS OR HER DEALINGS  IN
 SUCH CAPACITY;
   (2)  PROVIDED  MATERIALLY INCORRECT, MATERIALLY MISLEADING, MATERIALLY
 INCOMPLETE OR MATERIALLY  UNTRUE  INFORMATION  IN  THE  REGISTRATION  OR
 LICENSE APPLICATION;
   (3)  OBTAINED OR ATTEMPTED TO OBTAIN A REGISTRATION OR LICENSE THROUGH
 MISREPRESENTATION OR FRAUD;
   (4)(A) USED FRAUDULENT, COERCIVE OR DISHONEST PRACTICES;
   (B) DEMONSTRATED INCOMPETENCE;
   (C) DEMONSTRATED UNTRUSTWORTHINESS; OR
   (D) DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT OF BUSINESS
 IN THIS STATE OR ELSEWHERE;
   (5) IMPROPERLY WITHHELD, MISAPPROPRIATED OR CONVERTED  ANY  MONIES  OR
 PROPERTIES  RECEIVED  IN  THE  COURSE OF BUSINESS IN THIS STATE OR ELSE-
 WHERE;
   (6) INTENTIONALLY MISREPRESENTED THE TERMS OF AN  ACTUAL  OR  PROPOSED
 INSURANCE CONTRACT;
   (7) HAS BEEN CONVICTED OF A FELONY;
   (8)  ADMITTED  OR  BEEN  FOUND  TO HAVE COMMITTED ANY INSURANCE UNFAIR
 TRADE PRACTICE OR FRAUD;
   (9) HAD A PHARMACY BENEFIT MANAGER REGISTRATION  OR  LICENSE,  OR  ITS
 EQUIVALENT,  DENIED,  SUSPENDED OR REVOKED IN ANY OTHER STATE, PROVINCE,
 DISTRICT OR TERRITORY;

 S. 2007                            47                            A. 3007

   (10) FAILED TO PAY STATE INCOME TAX OR COMPLY WITH ANY  ADMINISTRATIVE
 OR COURT ORDER DIRECTING PAYMENT OF STATE INCOME TAX; OR
   (11)  CEASED  TO  MEET  THE REQUIREMENTS FOR REGISTRATION OR LICENSURE
 UNDER THIS ARTICLE.
   (B) BEFORE REVOKING OR SUSPENDING THE REGISTRATION OR LICENSE  OF  ANY
 PHARMACY BENEFIT MANAGER PURSUANT TO THE PROVISIONS OF THIS ARTICLE, THE
 SUPERINTENDENT  SHALL  GIVE  NOTICE TO THE REGISTRANT OR LICENSEE AND TO
 EVERY SUB-LICENSEE AND SHALL HOLD, OR CAUSE TO BE HELD,  A  HEARING  NOT
 LESS THAN TEN DAYS AFTER THE GIVING OF SUCH NOTICE.
   (C)  IF  A  REGISTRATION OR LICENSE PURSUANT TO THE PROVISIONS OF THIS
 ARTICLE IS REVOKED OR SUSPENDED BY THE SUPERINTENDENT, THEN  THE  SUPER-
 INTENDENT SHALL FORTHWITH GIVE NOTICE TO THE REGISTRANT OR LICENSEE.
   (D) THE REVOCATION OR SUSPENSION OF ANY REGISTRATION OR LICENSE PURSU-
 ANT  TO  THE  PROVISIONS  OF THIS ARTICLE SHALL TERMINATE FORTHWITH SUCH
 REGISTRATION OR LICENSE AND THE AUTHORITY  CONFERRED  THEREBY  UPON  ALL
 SUB-LICENSEES.
   (E)(1) NO INDIVIDUAL, CORPORATION, FIRM OR ASSOCIATION WHOSE REGISTRA-
 TION  OR LICENSE AS A PHARMACY BENEFIT MANAGER SUBJECT TO SUBSECTION (A)
 OF THIS SECTION HAS BEEN REVOKED, AND NO FIRM OR  ASSOCIATION  OF  WHICH
 SUCH INDIVIDUAL IS A MEMBER, AND NO CORPORATION OF WHICH SUCH INDIVIDUAL
 IS  AN  OFFICER OR DIRECTOR, AND NO CONTROLLING PERSON OF THE REGISTRANT
 OR LICENSEE SHALL BE ENTITLED TO  OBTAIN  ANY  REGISTRATION  OR  LICENSE
 UNDER THE PROVISIONS OF THIS CHAPTER FOR A PERIOD OF ONE YEAR AFTER SUCH
 REVOCATION,  OR, IF SUCH REVOCATION BE JUDICIALLY REVIEWED, FOR ONE YEAR
 AFTER THE FINAL DETERMINATION THEREOF AFFIRMING THE ACTION OF THE SUPER-
 INTENDENT IN REVOKING SUCH LICENSE.
   (2) IF ANY SUCH REGISTRATION OR LICENSE HELD BY A FIRM, ASSOCIATION OR
 CORPORATION BE REVOKED, NO MEMBER OF SUCH FIRM  OR  ASSOCIATION  AND  NO
 OFFICER OR DIRECTOR OF SUCH CORPORATION OR ANY CONTROLLING PERSON OF THE
 REGISTRANT  OR  LICENSEE SHALL BE ENTITLED TO OBTAIN ANY REGISTRATION OR
 LICENSE, OR TO BE NAMED AS A SUB-LICENSEE IN  ANY  SUCH  LICENSE,  UNDER
 THIS  CHAPTER  FOR  THE  SAME  PERIOD OF TIME, UNLESS THE SUPERINTENDENT
 DETERMINES, AFTER NOTICE AND  HEARING,  THAT  SUCH  MEMBER,  OFFICER  OR
 DIRECTOR  WAS  NOT PERSONALLY AT FAULT IN THE MATTER ON ACCOUNT OF WHICH
 SUCH REGISTRATION OR LICENSE WAS REVOKED.
   (F) IF ANY REGISTERED OR LICENSED  PHARMACY  BENEFIT  MANAGER  OR  ANY
 PERSON AGGRIEVED SHALL FILE WITH THE SUPERINTENDENT A VERIFIED COMPLAINT
 SETTING FORTH FACTS TENDING TO SHOW SUFFICIENT GROUND FOR THE REVOCATION
 OR SUSPENSION OF ANY PHARMACY BENEFIT MANAGER'S REGISTRATION OR LICENSE,
 THEN  THE  SUPERINTENDENT  SHALL,  AFTER NOTICE AND A HEARING, DETERMINE
 WHETHER SUCH REGISTRATION OR LICENSE SHALL BE SUSPENDED OR REVOKED.
   (G) THE SUPERINTENDENT SHALL  RETAIN  THE  AUTHORITY  TO  ENFORCE  THE
 PROVISIONS  OF AND IMPOSE ANY PENALTY OR REMEDY AUTHORIZED BY THIS CHAP-
 TER AGAINST ANY PERSON OR ENTITY  WHO  IS  UNDER  INVESTIGATION  FOR  OR
 CHARGED  WITH A VIOLATION OF THIS CHAPTER, EVEN IF THE PERSON'S OR ENTI-
 TY'S REGISTRATION OR LICENSE HAS BEEN SURRENDERED, OR HAS EXPIRED OR HAS
 LAPSED BY OPERATION OF LAW.
   (H) A REGISTRANT OR LICENSEE SUBJECT TO THIS ARTICLE SHALL  REPORT  TO
 THE  SUPERINTENDENT  ANY  ADMINISTRATIVE ACTION TAKEN AGAINST THE REGIS-
 TRANT OR LICENSEE IN ANOTHER JURISDICTION  OR  BY  ANOTHER  GOVERNMENTAL
 AGENCY  IN THIS STATE WITHIN THIRTY DAYS OF THE FINAL DISPOSITION OF THE
 MATTER.  THIS REPORT SHALL INCLUDE A COPY OF THE ORDER, CONSENT TO ORDER
 OR OTHER RELEVANT LEGAL DOCUMENTS.
   (I) WITHIN THIRTY DAYS OF THE INITIAL PRETRIAL HEARING DATE, A  REGIS-
 TRANT  OR  LICENSEE  SUBJECT  TO THIS ARTICLE SHALL REPORT TO THE SUPER-
 INTENDENT ANY CRIMINAL PROSECUTION OF THE REGISTRANT OR  LICENSEE  TAKEN

 S. 2007                            48                            A. 3007
 
 IN  ANY  JURISDICTION.  THE  REPORT  SHALL INCLUDE A COPY OF THE INITIAL
 COMPLAINT FILED, THE ORDER RESULTING FROM  THE  HEARING  AND  ANY  OTHER
 RELEVANT LEGAL DOCUMENTS.
   §  2908. PENALTIES FOR VIOLATIONS.  (A) THE SUPERINTENDENT, IN LIEU OF
 REVOKING OR SUSPENDING THE REGISTRATION OR LICENSE OF  A  REGISTRANT  OR
 LICENSEE  IN  ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, MAY IN ANY
 ONE PROCEEDING BY ORDER, REQUIRE THE REGISTRANT OR LICENSEE  TO  PAY  TO
 THE  PEOPLE  OF  THIS STATE A PENALTY IN A SUM NOT EXCEEDING THE GREATER
 OF: (1) ONE THOUSAND DOLLARS FOR EACH OFFENSE, NOT EXCEEDING TWENTY-FIVE
 HUNDRED DOLLARS IN THE AGGREGATE FOR ALL OFFENSES; OR (2) THE  AGGREGATE
 GROSS RECEIPTS ATTRIBUTABLE TO ALL OFFENSES.
   (B)  UPON  THE  FAILURE  OF  SUCH  A REGISTRANT OR LICENSEE TO PAY THE
 PENALTY ORDERED PURSUANT TO SUBSECTION (A) OF THIS SECTION WITHIN TWENTY
 DAYS AFTER THE MAILING OF THE ORDER, POSTAGE  PREPAID,  REGISTERED,  AND
 ADDRESSED  TO  THE  LAST KNOWN PLACE OF BUSINESS OF THE LICENSEE, UNLESS
 THE ORDER IS STAYED BY AN ORDER OF A COURT  OF  COMPETENT  JURISDICTION,
 THE  SUPERINTENDENT MAY REVOKE THE REGISTRATION OR LICENSE OF THE REGIS-
 TRANT OR LICENSEE OR MAY SUSPEND THE SAME FOR SUCH PERIOD AS THE  SUPER-
 INTENDENT DETERMINES.
   §  2909.  STAY  OR  SUSPENSION OF SUPERINTENDENT'S DETERMINATION.  THE
 COMMENCEMENT OF A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT  OF  THE  CIVIL
 PRACTICE  LAW  AND  RULES, TO REVIEW THE ACTION OF THE SUPERINTENDENT IN
 SUSPENDING OR REVOKING OR REFUSING TO RENEW ANY CERTIFICATE  UNDER  THIS
 ARTICLE,  SHALL  STAY  SUCH ACTION OF THE SUPERINTENDENT FOR A PERIOD OF
 THIRTY DAYS. SUCH STAY SHALL NOT BE EXTENDED FOR A LONGER PERIOD  UNLESS
 THE  COURT  SHALL  DETERMINE,  AFTER  A PRELIMINARY HEARING OF WHICH THE
 SUPERINTENDENT IS NOTIFIED FORTY-EIGHT HOURS IN ADVANCE, THAT A STAY  OF
 THE  SUPERINTENDENT'S ACTION, PENDING THE FINAL DETERMINATION OR FURTHER
 ORDER OF THE COURT, WILL NOT UNDULY INJURE THE INTERESTS OF  THE  PEOPLE
 OF THE STATE.
   §  2910.  REVOKED REGISTRATIONS.  (A)(1) NO PERSON, FIRM, ASSOCIATION,
 CORPORATION OR OTHER ENTITY SUBJECT TO THE PROVISIONS  OF  THIS  ARTICLE
 WHOSE  REGISTRATION  OR  LICENSE UNDER THIS ARTICLE HAS BEEN REVOKED, OR
 WHOSE REGISTRATION OR LICENSE TO ENGAGE  IN  THE  BUSINESS  OF  PHARMACY
 BENEFIT  MANAGEMENT  IN ANY CAPACITY HAS BEEN REVOKED BY ANY OTHER STATE
 OR TERRITORY OF THE UNITED STATES, SHALL BECOME EMPLOYED OR APPOINTED BY
 A PHARMACY BENEFIT MANAGER AS AN OFFICER, DIRECTOR, MANAGER, CONTROLLING
 PERSON OR FOR OTHER SERVICES, WITHOUT THE PRIOR WRITTEN APPROVAL OF  THE
 SUPERINTENDENT, UNLESS SUCH SERVICES ARE FOR MAINTENANCE OR ARE CLERICAL
 OR MINISTERIAL IN NATURE.
   (2)  NO PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER ENTITY SUBJECT
 TO THE PROVISIONS OF THIS ARTICLE SHALL KNOWINGLY EMPLOY OR APPOINT  ANY
 PERSON OR ENTITY WHOSE REGISTRATION OR LICENSE ISSUED UNDER THIS ARTICLE
 HAS  BEEN  REVOKED,  OR  WHOSE  REGISTRATION OR LICENSE TO ENGAGE IN THE
 BUSINESS OF PHARMACY BENEFIT MANAGEMENT IN ANY CAPACITY HAS BEEN REVOKED
 BY ANY OTHER STATE OR TERRITORY OF THE UNITED  STATES,  AS  AN  OFFICER,
 DIRECTOR, MANAGER, CONTROLLING PERSON OR FOR OTHER SERVICES, WITHOUT THE
 PRIOR  WRITTEN  APPROVAL OF THE SUPERINTENDENT, UNLESS SUCH SERVICES ARE
 FOR MAINTENANCE OR ARE CLERICAL OR MINISTERIAL IN NATURE.
   (3) NO CORPORATION OR PARTNERSHIP SUBJECT TO THE  PROVISIONS  OF  THIS
 ARTICLE  SHALL KNOWINGLY PERMIT ANY PERSON WHOSE REGISTRATION OR LICENSE
 ISSUED UNDER THIS ARTICLE HAS BEEN REVOKED,  OR  WHOSE  REGISTRATION  OR
 LICENSE  TO ENGAGE IN THE BUSINESS OF PHARMACY BENEFIT MANAGEMENT IN ANY
 CAPACITY HAS BEEN REVOKED BY ANY OTHER STATE, OR TERRITORY OF THE UNITED
 STATES, TO BE A SHAREHOLDER OR HAVE AN INTEREST IN SUCH  CORPORATION  OR
 PARTNERSHIP,  NOR  SHALL ANY SUCH PERSON BECOME A SHAREHOLDER OR PARTNER

 S. 2007                            49                            A. 3007
 
 IN SUCH CORPORATION OR PARTNERSHIP, WITHOUT THE PRIOR  WRITTEN  APPROVAL
 OF THE SUPERINTENDENT.
   (B)  THE  SUPERINTENDENT  MAY  APPROVE  THE EMPLOYMENT, APPOINTMENT OR
 PARTICIPATION OF ANY SUCH PERSON WHOSE REGISTRATION OR LICENSE HAS  BEEN
 REVOKED:
   (1)  IF THE SUPERINTENDENT DETERMINES THAT THE DUTIES AND RESPONSIBIL-
 ITIES OF SUCH PERSON ARE SUBJECT TO  APPROPRIATE  SUPERVISION  AND  THAT
 SUCH  DUTIES  AND  RESPONSIBILITIES WILL NOT HAVE AN ADVERSE EFFECT UPON
 THE PUBLIC, OTHER REGISTRANTS OR LICENSEES, OR THE REGISTRANT OR  LICEN-
 SEE PROPOSING EMPLOYMENT OR APPOINTMENT OF SUCH PERSON; OR
   (2)  IF  SUCH  PERSON  HAS  FILED AN APPLICATION FOR REREGISTRATION OR
 RELICENSING PURSUANT TO THIS ARTICLE AND THE APPLICATION FOR REREGISTRA-
 TION OR RELICENSING HAS NOT BEEN APPROVED OR DENIED WITHIN  ONE  HUNDRED
 TWENTY  DAYS  FOLLOWING  THE  FILING  THEREOF, UNLESS THE SUPERINTENDENT
 DETERMINES WITHIN THE SAID TIME THAT EMPLOYMENT OR APPOINTMENT  OF  SUCH
 PERSON  BY A REGISTRANT OR LICENSEE IN THE CONDUCT OF A PHARMACY BENEFIT
 MANAGEMENT BUSINESS WOULD NOT BE IN THE PUBLIC INTEREST.
   (C) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE OWNERSHIP OF
 SHARES OF ANY CORPORATION REGISTERED OR LICENSED PURSUANT TO THIS  ARTI-
 CLE  IF  THE  SHARES OF SUCH CORPORATION ARE PUBLICLY HELD AND TRADED IN
 THE OVER-THE-COUNTER MARKET OR UPON ANY NATIONAL OR REGIONAL  SECURITIES
 EXCHANGE.
   §  2911. CHANGE OF ADDRESS.  A REGISTRANT OR LICENSEE UNDER THIS ARTI-
 CLE SHALL INFORM THE SUPERINTENDENT BY A MEANS ACCEPTABLE TO THE  SUPER-
 INTENDENT OF A CHANGE OF ADDRESS WITHIN THIRTY DAYS OF THE CHANGE.
   §  2912. ASSESSMENT.   PHARMACY BENEFIT MANAGERS THAT FILE A REGISTRA-
 TION WITH THE DEPARTMENT OR ARE LICENSED  BY  THE  DEPARTMENT  SHALL  BE
 ASSESSED BY THE SUPERINTENDENT FOR THE OPERATING EXPENSES OF THE DEPART-
 MENT  THAT  ARE  SOLELY ATTRIBUTABLE TO REGULATING SUCH PHARMACY BENEFIT
 MANAGERS IN SUCH PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM  JUST  AND
 REASONABLE.
   §  2913. APPLICABILITY OF OTHER LAWS. NOTHING IN THIS ARTICLE SHALL BE
 CONSTRUED TO EXEMPT A PHARMACY BENEFIT MANAGER FROM COMPLYING  WITH  THE
 PROVISIONS  OF  ARTICLES  TWENTY-ONE  AND FORTY-NINE OF THIS CHAPTER AND
 ARTICLE FORTY-NINE OF THE PUBLIC HEALTH LAW OR ANY  OTHER  PROVISION  OF
 THIS CHAPTER OR THE FINANCIAL SERVICES LAW.
   §  2.  Subsection (b) of section 2402 of the insurance law, as amended
 by section 71 of part A of chapter 62 of the laws of 2011, is amended to
 read as follows:
   (b) "Defined violation" means the commission by a  person  of  an  act
 prohibited  by:  subsection (a) of section one thousand one hundred two,
 section one thousand two hundred  fourteen,  one  thousand  two  hundred
 seventeen,  one  thousand two hundred twenty, one thousand three hundred
 thirteen, subparagraph (B) of paragraph two of subsection (i) of section
 one thousand three hundred twenty-two, subparagraph (B) of paragraph two
 of subsection (i) of section one thousand three hundred twenty-four, two
 thousand one hundred two, two thousand one hundred seventeen, two  thou-
 sand  one  hundred  twenty-two,  two  thousand one hundred twenty-three,
 subsection (p) of section two thousand three hundred  thirteen,  section
 two  thousand  three hundred twenty-four, two thousand five hundred two,
 two thousand five hundred three, two thousand  five  hundred  four,  two
 thousand six hundred one, two thousand six hundred two, two thousand six
 hundred  three,  two thousand six hundred four, two thousand six hundred
 six, two thousand seven hundred three, TWO THOUSAND  NINE  HUNDRED  TWO,
 TWO  THOUSAND  NINE HUNDRED FIVE, three thousand one hundred nine, three
 thousand two hundred twenty-four-a, three thousand four hundred  twenty-

 S. 2007                            50                            A. 3007
 
 nine,  three  thousand  four  hundred  thirty-three,  paragraph seven of
 subsection (e) of section three thousand four hundred  twenty-six,  four
 thousand two hundred twenty-four, four thousand two hundred twenty-five,
 four thousand two hundred twenty-six, seven thousand eight hundred nine,
 seven  thousand  eight hundred ten, seven thousand eight hundred eleven,
 seven thousand eight hundred  thirteen,  seven  thousand  eight  hundred
 fourteen  and  seven  thousand eight hundred fifteen of this chapter; or
 section 135.60, 135.65,  175.05,  175.45,  or  190.20,  or  article  one
 hundred five of the penal law.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly,  the  superintendent  of  financial  services  may repeal, amend, or
 promulgate any rules and regulations necessary for the implementation of
 the provisions of this act on its effective date.
 
                                  PART K

   Section 1. The public health law is amended by adding  a  new  section
 2825-e to read as follows:
   §  2825-E.  HEALTH CARE FACILITY TRANSFORMATION PROGRAM: STATEWIDE II.
 1. A STATEWIDE HEALTH CARE FACILITY  TRANSFORMATION  PROGRAM  IS  HEREBY
 ESTABLISHED  UNDER  THE JOINT ADMINISTRATION OF THE COMMISSIONER AND THE
 PRESIDENT 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 FUNDING IN SUPPORT OF
 CAPITAL PROJECTS, DEBT RETIREMENT, WORKING CAPITAL OR OTHER  NON-CAPITAL
 PROJECTS  THAT  FACILITATE HEALTH CARE TRANSFORMATION ACTIVITIES INCLUD-
 ING, BUT NOT LIMITED TO, MERGER,  CONSOLIDATION,  ACQUISITION  OR  OTHER
 ACTIVITIES INTENDED TO CREATE FINANCIALLY SUSTAINABLE SYSTEMS OF CARE OR
 PRESERVE  OR  EXPAND ESSENTIAL HEALTH CARE SERVICES. GRANTS SHALL NOT BE
 AVAILABLE TO SUPPORT GENERAL OPERATING EXPENSES.  THE  ISSUANCE  OF  ANY
 BONDS  OR  NOTES  HEREUNDER  SHALL BE SUBJECT TO SECTION SIXTEEN HUNDRED
 EIGHTY-R OF THE PUBLIC AUTHORITIES LAW AND THE APPROVAL OF THE  DIRECTOR
 OF THE DIVISION OF THE BUDGET, AND ANY PROJECTS FUNDED THROUGH THE ISSU-
 ANCE 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 DORMITORY 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
 AUTHORITIES  LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND ADMIN-
 ISTERING THE FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION.  SUCH  FUNDS
 MAY  BE  DISTRIBUTED  BY  THE COMMISSIONER FOR CAPITAL GRANTS TO GENERAL
 HOSPITALS, RESIDENTIAL HEALTH CARE FACILITIES, DIAGNOSTIC AND  TREATMENT
 CENTERS  AND  CLINICS  LICENSED  PURSUANT  TO THIS CHAPTER OR THE MENTAL
 HYGIENE LAW, AND COMMUNITY-BASED HEALTH CARE  PROVIDERS  AS  DEFINED  IN
 SUBDIVISION THREE OF THIS SECTION FOR 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 THE 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 UNDER SECTION
 TWENTY-EIGHT HUNDRED TWENTY-FIVE-D OF THIS ARTICLE. PROJECTS AWARDED, IN
 WHOLE OR PART, UNDER SECTIONS  TWENTY-EIGHT  HUNDRED  TWENTY-FIVE-A  AND

 S. 2007                            51                            A. 3007
 
 TWENTY-EIGHT HUNDRED TWENTY-FIVE-B 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
 FIVE  HUNDRED MILLION DOLLARS OF THE FUNDS APPROPRIATED FOR THIS PROGRAM
 SHALL BE AWARDED WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC-
 ESS FOR  GRANTS  TO  HEALTH  CARE  PROVIDERS  (HEREAFTER  "APPLICANTS").
 PROVIDED,  HOWEVER,  THAT  A  MINIMUM OF THIRTY MILLION DOLLARS OF TOTAL
 AWARDED FUNDS SHALL BE MADE TO COMMUNITY-BASED  HEALTH  CARE  PROVIDERS,
 WHICH  FOR PURPOSES OF THIS SECTION SHALL BE DEFINED AS A DIAGNOSTIC AND
 TREATMENT CENTER LICENSED OR GRANTED AN OPERATING CERTIFICATE UNDER THIS
 ARTICLE; A MENTAL HEALTH CLINIC LICENSED OR GRANTED AN OPERATING CERTIF-
 ICATE UNDER ARTICLE THIRTY-ONE OF THE MENTAL HYGIENE LAW; AN ALCOHOL AND
 SUBSTANCE ABUSE  TREATMENT  CLINIC  LICENSED  OR  GRANTED  AN  OPERATING
 CERTIFICATE UNDER ARTICLE THIRTY-TWO OF THE MENTAL HYGIENE LAW; A PRIMA-
 RY  CARE PROVIDER OR A HOME CARE PROVIDER CERTIFIED OR LICENSED PURSUANT
 TO ARTICLE THIRTY-SIX OF THIS  CHAPTER.  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. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION OR ANY INCONSISTENT
 PROVISION  OF  LAW TO THE CONTRARY, AND UPON APPROVAL OF THE DIRECTOR OF
 THE BUDGET, THE COMMISSIONER MAY AWARD ALL OR A  PORTION  OF  THE  FUNDS
 MADE  AVAILABLE  PURSUANT  TO THIS SECTION FOR UNFUNDED PROJECT APPLICA-
 TIONS SUBMITTED IN RESPONSE  TO  THE  REQUEST  FOR  APPLICATIONS  NUMBER
 1607010255  ISSUED  BY  THE  DEPARTMENT  ON JULY TWENTIETH, TWO THOUSAND
 SIXTEEN PURSUANT TO SECTION TWENTY-EIGHT HUNDRED TWENTY-FIVE-D  OF  THIS
 ARTICLE,  PROVIDED  HOWEVER  THAT THE PROVISIONS OF SUBDIVISION THREE OF
 THIS SECTION SHALL APPLY. THE COMMISSIONER SHALL NOTIFY THE CHAIR OF THE
 SENATE FINANCE COMMITTEE AND THE CHAIR OF THE ASSEMBLY  WAYS  AND  MEANS
 COMMITTEE  NO LATER THAN THIRTY DAYS PRIOR TO AWARDING FUNDS PURSUANT TO
 THIS SUBDIVISION.
   5. IN DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER  THIS  SECTION,
 THE COMMISSIONER 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 OR THE LONG TERM  SUSTAINABILITY  OF
 THE APPLICANT OR PRESERVATION OF ESSENTIAL HEALTH SERVICES IN THE COMMU-
 NITY 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  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  ENROL-
 LEES AND UNINSURED INDIVIDUALS;
   (H)  THE  EXTENT  TO  WHICH  THE  APPLICANT  HAS ENGAGED THE COMMUNITY
 AFFECTED BY THE PROPOSED PROJECT  AND  THE  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.

 S. 2007                            52                            A. 3007
 
   6. 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  GOALS OF THE PROJECT ARE ACHIEVED, AND SUCH METRICS AND MILE-
 STONES SHALL BE INCLUDED  IN  GRANT  DISBURSEMENT  AGREEMENTS  OR  OTHER
 CONTRACTUAL DOCUMENTS AS REQUIRED BY THE COMMISSIONER.
   7.  THE  DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS TO THE
 CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, AND 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.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART L
 
   Section  1.  The  public health law is amended by adding a new article
 29-H to read as follows:
                               ARTICLE 29-H
                   HEALTH CARE REGULATION MODERNIZATION
 SECTION 2999-EE. HEALTH CARE REGULATION MODERNIZATION TEAM.
   § 2999-EE. HEALTH CARE REGULATION MODERNIZATION TEAM. 1. A HEALTH CARE
 REGULATION MODERNIZATION TEAM IS HEREBY CREATED  WITHIN  THE  DEPARTMENT
 FOR  THE  PURPOSE OF PROVIDING GUIDANCE FOR, AND ADVICE TO, THE GOVERNOR
 TOWARD A FUNDAMENTAL RESTRUCTURING OF THE STATUTES, POLICIES  AND  REGU-
 LATIONS  THAT  GOVERN THE LICENSURE AND OVERSIGHT OF HEALTH CARE FACILI-
 TIES AND HOME CARE TO BETTER ALIGN WITH RECENT AND  ONGOING  CHANGES  IN
 THE  HEALTH  CARE DELIVERY SYSTEM THAT ARE DESIGNED TO INCREASE QUALITY,
 REDUCE COSTS AND IMPROVE HEALTH OUTCOMES.
   2. DEFINITIONS. FOR THE PURPOSE OF THIS ARTICLE,  UNLESS  THE  CONTEXT
 CLEARLY REQUIRES OTHERWISE:
   (A)  "STATE  AGENCY"  OR "AGENCY" SHALL MEAN ANY STATE AGENCY, DEPART-
 MENT, OFFICE, BOARD, BUREAU, DIVISION, COMMITTEE, COUNCIL OR OFFICE.
   (B) "PUBLIC AUTHORITY" OR "AUTHORITY" SHALL MEAN A PUBLIC AUTHORITY OR
 PUBLIC BENEFIT CORPORATION CREATED BY OR EXISTING  UNDER  ANY  NEW  YORK
 STATE LAW, WITH ONE OR MORE OF ITS MEMBERS APPOINTED BY THE GOVERNOR, OR
 WHO  SERVE  AS  MEMBERS  BY VIRTUE OF HOLDING A CIVIL OFFICE OF NEW YORK
 STATE, OTHER THAN AN INTERSTATE OR  INTERNATIONAL  AUTHORITY  OR  PUBLIC
 BENEFIT  CORPORATION,  AND  INCLUDING  ANY  SUBSIDIARIES  OF SUCH PUBLIC
 AUTHORITY OR PUBLIC BENEFIT CORPORATION.
   (C) "STATE OFFICER OR  EMPLOYEE"  SHALL  HAVE  THE  MEANING  GIVEN  IN
 SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS LAW.
   (D) "PUBLIC HEALTH AND HEALTH PLANNING COUNCIL" SHALL HAVE THE MEANING
 GIVEN IN SECTION TWO HUNDRED TWENTY OF THIS CHAPTER.
   3.  (A) THE GOVERNOR SHALL APPOINT UP TO TWENTY-FIVE VOTING MEMBERS OF
 THE HEALTH CARE REGULATION MODERNIZATION TEAM. THE MEMBERS OF THE HEALTH
 CARE REGULATION MODERNIZATION TEAM  SHALL  INCLUDE:  STATE  OFFICERS  OR
 EMPLOYEES  WITH RELEVANT EXPERTISE; THE CHAIR AND CO-CHAIR OF THE PUBLIC
 HEALTH AND HEALTH PLANNING COUNCIL; TWO MEMBERS OF THE  NEW  YORK  STATE
 ASSEMBLY,  ONE RECOMMENDED BY THE SPEAKER OF THE ASSEMBLY AND ONE RECOM-
 MENDED BY THE MINORITY LEADER OF THE ASSEMBLY, OR THEIR REPRESENTATIVES;
 TWO MEMBERS OF THE NEW YORK STATE SENATE, ONE RECOMMENDED BY THE  TEMPO-

 S. 2007                            53                            A. 3007
 
 RARY  PRESIDENT OF THE SENATE AND ONE RECOMMENDED BY THE MINORITY LEADER
 OF THE SENATE, OR THEIR REPRESENTATIVES; AND STAKEHOLDERS WITH EXPERTISE
 IN AREAS, INCLUDING BUT NOT LIMITED TO: INPATIENT AND OUTPATIENT  HEALTH
 CARE DELIVERY; BEHAVIORAL HEALTH CARE DELIVERY; HOME HEALTH CARE; COMMU-
 NITY  BASED ORGANIZATIONS; HEALTH CARE INSURANCE; HEALTH CARE WORKFORCE;
 HEALTH CARE FACILITY DESIGN AND CONSTRUCTION; CONSUMER RIGHTS; AND OTHER
 RELEVANT AREAS.
   (B) VACANCIES SHALL BE FILLED BY THE GOVERNOR, AND  THE  GOVERNOR  MAY
 APPOINT  ADDITIONAL  VOTING  AND  NON-VOTING  MEMBERS TO THE HEALTH CARE
 REGULATION MODERNIZATION TEAM AS NECESSARY.
   (C) MEMBERS OF THE TEAM SHALL SERVE AT THE PLEASURE OF THE GOVERNOR.
   (D) THE GOVERNOR SHALL DESIGNATE A CHAIR OR CO-CHAIRS FROM  AMONG  THE
 MEMBERS OF THE HEALTH CARE REGULATION MODERNIZATION TEAM.
   (E)  THE GOVERNOR SHALL APPOINT A STATE OFFICER OR EMPLOYEE WITH RELE-
 VANT EXPERIENCE AS EXECUTIVE DIRECTOR  OF  THE  HEALTH  CARE  REGULATION
 MODERNIZATION TEAM.
   (F)  A  MAJORITY  OF  THE  TOTAL MEMBERS OF THE HEALTH CARE REGULATION
 MODERNIZATION TEAM WHO HAVE BEEN APPOINTED SHALL  CONSTITUTE  A  QUORUM,
 AND ALL RECOMMENDATIONS OF THE HEALTH CARE REGULATION MODERNIZATION TEAM
 SHALL REQUIRE APPROVAL OF A MAJORITY OF ITS TOTAL MEMBERS.
   (G)  THE  HEALTH  CARE  REGULATION MODERNIZATION TEAM SHALL ATTEMPT TO
 ENGAGE AND SOLICIT THE INPUT OF A BROAD AND  DIVERSE  RANGE  OF  GROUPS,
 ORGANIZATIONS AND INDIVIDUALS.
   4.  EVERY  AGENCY  OR  AUTHORITY  OF  NEW YORK STATE SHALL PROVIDE THE
 HEALTH CARE REGULATION MODERNIZATION TEAM WITH  ASSISTANCE  AND  COOPER-
 ATION  WHICH  MAY  BE  NECESSARY OR DESIRABLE TO FULFILL THE PURPOSES OF
 THIS ARTICLE, INCLUDING THE USE OF  NEW  YORK  STATE  FACILITIES.  STAFF
 SUPPORT NECESSARY FOR THE CONDUCT OF THE WORK OF THE HEALTH CARE MODERN-
 IZATION  TEAM  MAY  BE FURNISHED BY AGENCIES AND AUTHORITIES, SUBJECT TO
 THE APPROVAL OF THE BOARDS OF DIRECTORS OF SUCH AUTHORITIES.
   5. THE HEALTH CARE REGULATION MODERNIZATION TEAM SHALL DELIBERATE  AND
 ENGAGE HEALTH CARE INDUSTRY STAKEHOLDERS FOR THE PURPOSE OF CONDUCTING A
 COMPREHENSIVE  REVIEW  OF  AND MAKING RECOMMENDATIONS TO ADDRESS MATTERS
 THAT MAY INCLUDE, BUT ARE NOT LIMITED TO:
   (A) STREAMLINING STATE AGENCY CERTIFICATE OF NEED AND OTHER  LICENSURE
 OR  CONSTRUCTION APPROVAL PROCESSES TO SUPPORT SYSTEM-LEVEL PLANNING AND
 RESTRUCTURING  ACTIVITIES,  INCLUDING  REVIEWING  THE  APPLICABILITY  OF
 CURRENT  HEALTH  CARE  SERVICE  AND  FACILITY  NEED METHODOLOGIES IN THE
 CONTEXT OF ONGOING CHANGES IN THE HEALTH CARE SYSTEM DELIVERY SYSTEM;
   (B) IDENTIFYING, STREAMLINING, AND ALIGNING STATUTES, REGULATIONS  AND
 POLICES  WHERE  THERE  IS  DUPLICATION  AND INCONSISTENCY IN FEDERAL AND
 STATE STANDARDS FOR PHYSICAL ENVIRONMENT, QUALITY OF  CARE,  INFORMATION
 TECHNOLOGY, REPORTING, SURVEILLANCE, AND LICENSURE;
   (C)  CREATING  MORE  FLEXIBLE RULES ON LICENSING AND SCOPE OF PRACTICE
 FOR CLINICIANS AND CAREGIVERS, WHICH  SHALL  BE  CONSIDERED  IN  COLLAB-
 ORATION  WITH  THE  WORKFORCE  WORKGROUP  CONVENED  BY THE DEPARTMENT IN
 RELATION TO THE STATE HEALTH INNOVATION PLAN  AND  THE  DELIVERY  SYSTEM
 REFORM INCENTIVE PAYMENT PROGRAM;
   (D) STREAMLINING AND SIMPLIFYING THE PROVISION OF PRIMARY CARE, MENTAL
 HEALTH  AND  SUBSTANCE  USE  DISORDER  SERVICES  IN AN INTEGRATED CLINIC
 SETTING;
   (E) INTEGRATING, STANDARDIZING AND  INCREASING  FLEXIBILITY  OF  STATE
 AGENCY REGULATIONS GOVERNING THE DELIVERY OF AND REIMBURSEMENT FOR TELE-
 HEALTH PROGRAMS;
   (F) ALLOWING MORE FLEXIBLE USE OF OBSERVATION BEDS, AMBULATORY SURGERY
 CENTERS,  DIAGNOSTIC  AND  TREATMENT  CENTERS,  NURSING  HOMES, ASSISTED

 S. 2007                            54                            A. 3007
 
 LIVING, HOME HEALTH CARE, OFF CAMPUS  EMERGENCY  DEPARTMENTS,  COMMUNITY
 PARAMEDICINE AND OTHER MODELS OF DELIVERING HEALTH CARE SERVICES;
   (G)  MODERNIZING  THE LICENSING AND REGULATION OF SERVICES PROVIDED IN
 THE HOME, INCLUDING HOME CARE, CARE MANAGEMENT  AND  OTHER  SERVICES  TO
 BETTER SUPPORT THE ADOPTION OF NEW MODELS OF CARE;
   (H)  ALIGNING  CARE  MODELS  AROUND  HOME AND COMMUNITY BASED SERVICES
 CONSISTENT WITH THE REPORT ISSUED BY THE OLMSTEAD DEVELOPMENT AND IMPLE-
 MENTATION CABINET;
   (I) EXPLORING CIRCUMSTANCES WHERE  STATEWIDE  REGULATORY  REQUIREMENTS
 MAY  NOT  BE  APPROPRIATE  FOR  REGIONS  OR COMMUNITIES CHARACTERIZED BY
 ISOLATION, POVERTY, OR OTHER FACTORS IMPACTING ACCESS;
   (J) CALIBRATING FACILITY AND HOME CARE INSPECTIONS AND  THE  SCOPE  OF
 CERTIFICATE OF NEED REVIEWS BASED ON PROVIDER PERFORMANCE ON QUALITY AND
 OTHER OUTCOME METRICS;
   (K)  INCREASING  THE  OPPORTUNITIES  FOR PUBLIC NOTIFICATION, CONSUMER
 EDUCATION AND COMMUNITY  ENGAGEMENT  PRIOR  TO  MAJOR  COMMUNITY  HEALTH
 SYSTEM CHANGES;
   (L)  EVALUATING  WHERE  CHANGES  IN STATUTE, REGULATION AND POLICY CAN
 SUPPORT TIMELY AND EFFECTIVE EMERGENCY MEDICAL SERVICES AND PRE-HOSPITAL
 CARE THROUGHOUT THE STATE; AND
   (M) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE PERMANENT CHANG-
 ES IN STATUTE OR REGULATION MAY NOT YET BE APPROPRIATE, AUTHORIZING  THE
 COMMISSIONER, THE COMMISSIONER OF MENTAL HEALTH, AND THE COMMISSIONER OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES TO IMPLEMENT TIME-
 LIMITED  DEMONSTRATION  PROGRAMS TO TEST AND EVALUATE NEW AND INNOVATIVE
 PROCEDURES AND PROCESSES FOR ORGANIZING, FINANCING AND DELIVERING HEALTH
 CARE SERVICES THAT ARE NOT PERMISSIBLE UNDER CURRENT  STATUTE  OR  REGU-
 LATION, PROVIDED THAT NO SUCH DEMONSTRATION PROGRAM SHALL BE IMPLEMENTED
 WITHOUT PRIOR PUBLIC NOTICE AND A THIRTY DAY PERIOD OF COMMENT.
   6.  AT THE DIRECTION OF THE HEALTH CARE REGULATION MODERNIZATION TEAM,
 THE EXECUTIVE DIRECTOR SHALL NOTIFY STAKEHOLDERS OF THE PURPOSES OF  THE
 HEALTH  CARE REGULATION MODERNIZATION TEAM, THE OPPORTUNITIES FOR STAKE-
 HOLDER PARTICIPATION AND THE MEANS AND SCHEDULE FOR SUCH  PARTICIPATION.
 MEETINGS  WITH  STAKEHOLDERS  SHALL  BE  HELD  IN VARIOUS REGIONS OF THE
 STATE. PARTICIPATING STAKEHOLDERS MAY BE ASSIGNED  TO  SPECIFIC  WORKING
 GROUPS, CONSISTENT WITH THEIR AREAS OF EXPERTISE AND INTEREST.
   7.  THE  HEALTH  CARE REGULATION MODERNIZATION TEAM SHALL COMMENCE ITS
 WORK NO LATER THAN JULY FIRST, TWO THOUSAND SEVENTEEN AND SHALL SUBMIT A
 REPORT TO THE GOVERNOR OF ITS FINDINGS AND RECOMMENDATIONS NO LATER THAN
 DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN. A  COPY  OF  SUCH  REPORT
 SHALL  BE  PROVIDED  TO THE CHAIR OF THE SENATE HEALTH COMMITTEE AND THE
 CHAIR OF THE ASSEMBLY HEALTH COMMITTEE.
   8. NO LATER THAN JANUARY  THIRTY-FIRST,  TWO  THOUSAND  EIGHTEEN,  THE
 COMMISSIONER  SHALL  RECOMMEND  TO  THE GOVERNOR WHETHER THE HEALTH CARE
 REGULATION MODERNIZATION TEAM SHOULD CONTINUE OR  TERMINATE  ITS  DUTIES
 AND RESPONSIBILITIES PURSUANT TO THIS ARTICLE.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART M
 
   Section 1. This act shall be known and may be cited as  the  "Emerging
 Contaminant Monitoring Act."
   §  2. The public health law is amended by adding a new section 1112 to
 read as follows:

 S. 2007                            55                            A. 3007

   § 1112. EMERGING CONTAMINANT MONITORING. 1. INDUSTRY AND MODERN  TECH-
 NOLOGY  HAVE CREATED THOUSANDS OF NEW CHEMICALS THAT WOULD NOT OTHERWISE
 EXIST IN NATURE. ALTHOUGH SOME OF THESE CHEMICALS HAVE PROVEN  BENEFITS,
 THE  EFFECT  OF  MANY  SUCH  CHEMICALS ON HUMAN HEALTH IS UNKNOWN OR NOT
 FULLY UNDERSTOOD. FURTHERMORE, WITH THE ADVANCE OF SCIENCE AND TECHNOLO-
 GY,  PUBLIC HEALTH SCIENTISTS AND EXPERTS ARE ABLE TO IDENTIFY NATURALLY
 OCCURRING CONTAMINANTS THAT POSE PREVIOUSLY  UNKNOWN  HAZARDS  TO  HUMAN
 HEALTH.  WHERE THESE CHEMICALS OR CONTAMINANTS, COLLECTIVELY REFERRED TO
 AS "EMERGING CONTAMINANTS," ENTER  DRINKING  WATER  SUPPLIES,  THEY  CAN
 PRESENT  UNKNOWN  BUT  POTENTIALLY  SERIOUS RISKS TO PUBLIC HEALTH.  NEW
 YORKERS SERVED BY PUBLIC WATER SUPPLIES HAVE  THE  RIGHT  TO  KNOW  WHEN
 POTENTIALLY  HAZARDOUS  SUBSTANCES  CONTAMINATE THEIR DRINKING WATER AND
 THE DEPARTMENT MUST BE EQUIPPED TO MONITOR AND PROTECT THE  PUBLIC  FROM
 THESE EMERGING CONTAMINANTS.
   2.  A.  "EMERGING  CONTAMINANTS"  SHALL  MEAN  ANY PHYSICAL, CHEMICAL,
 MICROBIOLOGICAL OR RADIOLOGICAL SUBSTANCE LISTED AS AN EMERGING  CONTAM-
 INANT PURSUANT TO  SUBDIVISION THREE OF THIS SECTION.
   B.  "NOTIFICATION  LEVEL" MEANS THE CONCENTRATION LEVEL OF AN EMERGING
 CONTAMINANT IN DRINKING WATER  THAT  THE  COMMISSIONER  HAS  DETERMINED,
 BASED  ON AVAILABLE SCIENTIFIC INFORMATION, WARRANTS PUBLIC NOTIFICATION
 PURSUANT TO THIS SECTION.
   C. "COVERED PUBLIC WATER SYSTEM" SHALL MEAN A  COMMUNITY  OR  NONTRAN-
 SIENT NONCOMMUNITY WATER SYSTEM, AS DEFINED IN THE STATE SANITARY CODE.
   3.  THE COMMISSIONER SHALL PROMULGATE REGULATIONS THAT LIST SUBSTANCES
 IDENTIFIED AS EMERGING CONTAMINANTS THAT MEET THE FOLLOWING CRITERIA:
   A. ARE NOT SUBJECT TO  ANY  OTHER  SUBSTANCE-SPECIFIC  DRINKING  WATER
 REGULATION  OF  THE  DEPARTMENT  THAT  ESTABLISHES A MAXIMUM CONTAMINANT
 LEVEL OR OTHER THRESHOLD CONCENTRATION;
   B. ARE KNOWN OR ANTICIPATED TO OCCUR IN PUBLIC WATER SYSTEMS; AND
   C. BECAUSE OF THEIR QUANTITY, CONCENTRATION, OR PHYSICAL, CHEMICAL  OR
 INFECTIOUS  CHARACTERISTICS,  MAY  CAUSE  PHYSICAL INJURY OR ILLNESS, OR
 OTHERWISE POSE A POTENTIAL HAZARD TO HUMAN HEALTH WHEN PRESENT IN DRINK-
 ING WATER.
   4. EVERY COVERED PUBLIC WATER SYSTEM SHALL TEST DRINKING WATER FOR THE
 PRESENCE OF EMERGING CONTAMINANTS IN THE STATE AND UNREGULATED  CONTAMI-
 NENTS  MONITORED  UNDER  THE  FEDERAL SAFE DRINKING WATER ACT AS AMENDED
 FROM TIME TO TIME, AT LEAST ONCE EVERY THREE YEARS AS DETERMINED BY  THE
 DEPARTMENT.
   5.  EVERY  TEST  CONDUCTED  IN  ACCORDANCE  WITH THIS SECTION SHALL BE
 CONDUCTED BY A  LABORATORY  CERTIFIED  BY  THE  DEPARTMENT  PURSUANT  TO
 SECTION FIVE HUNDRED TWO OF THIS CHAPTER. LABORATORIES SHALL SUBMIT SUCH
 RESULTS TO THE DEPARTMENT ELECTRONICALLY IN THE MANNER PRESCRIBED PURSU-
 ANT TO SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
   6.  THE COMMISSIONER MAY PROMULGATE REGULATIONS ESTABLISHING NOTIFICA-
 TION LEVELS FOR ANY EMERGING CONTAMINANT LISTED PURSUANT TO  SUBDIVISION
 THREE OF THIS SECTION.
   7.  THE  COMMISSIONER MAY, BY DECLARATION, ADD ANY PHYSICAL, CHEMICAL,
 MICROBIOLOGICAL OR  RADIOLOGICAL  SUBSTANCE  TO  THE  LIST  OF  EMERGING
 CONTAMINANTS  ESTABLISHED PURSUANT TO SUBDIVISION THREE OF THIS SECTION,
 OR ESTABLISH A NOTIFICATION LEVEL FOR SUCH SUBSTANCE, IF THE COMMISSION-
 ER DETERMINES THAT SUCH SUBSTANCE POSES OR HAS THE POTENTIAL TO  POSE  A
 HAZARD TO HUMAN HEALTH WHEN PRESENT IN DRINKING WATER, PROVIDED THAT THE
 COMMISSIONER MUST PROMULGATE REGULATIONS ADDING THE NEW EMERGING CONTAM-
 INANT  OR  ESTABLISHING  SUCH NOTIFICATION LEVEL WITHIN ONE YEAR OF SUCH
 DECLARATION.

 S. 2007                            56                            A. 3007
 
   8. WHENEVER A COVERED PUBLIC WATER SYSTEM DETERMINES OR IS ADVISED  BY
 THE  STATE THAT ONE OR MORE EMERGING CONTAMINANTS IS PRESENT IN DRINKING
 WATER AT CONCENTRATIONS ABOVE A NOTIFICATION LEVEL ESTABLISHED  PURSUANT
 TO THIS SECTION:
   A.  THE  COVERED  PUBLIC  WATER  SYSTEM SHALL NOTIFY THE STATE AND ALL
 OWNERS OF REAL PROPERTY SERVED BY THE COVERED PUBLIC WATER SYSTEM  IN  A
 TIME AND MANNER TO BE PRESCRIBED BY THE DEPARTMENT; AND
   B.  THE  COMMISSIONER MAY REQUIRE THAT THE COVERED PUBLIC WATER SYSTEM
 TAKE SUCH ACTIONS AS MAY BE APPROPRIATE TO REDUCE EXPOSURE  TO  EMERGING
 CONTAMINANTS.
   9.  ANY OWNER OF REAL PROPERTY, INCLUDING ANY OWNER'S AGENT, TO WHOM A
 COVERED PUBLIC WATER SYSTEM HAS PROVIDED NOTIFICATION OF THE  EXCEEDANCE
 OF  A NOTIFICATION LEVEL ESTABLISHED PURSUANT TO SUBDIVISION SIX OF THIS
 SECTION, SHALL TAKE ALL REASONABLE AND NECESSARY STEPS TO PROVIDE, WITH-
 IN TEN DAYS, ANY TENANTS WITH COPIES OF THE NOTIFICATION PROVIDED BY THE
 COVERED PUBLIC WATER SYSTEM.
   10. THE COMMISSIONER MAY PROMULGATE REGULATIONS PURSUANT TO WHICH  THE
 DEPARTMENT  MAY  PROVIDE  FINANCIAL  ASSISTANCE  FOR COMPLIANCE WITH THE
 TESTING REQUIREMENTS OF THIS SECTION, TO ANY COVERED PUBLIC WATER SYSTEM
 UPON A SHOWING THAT THE COSTS ASSOCIATED WITH TESTING DRINKING WATER  IN
 COMPLIANCE  WITH  THIS  SECTION  WOULD  IMPOSE AN UNREASONABLE FINANCIAL
 HARDSHIP.
   § 3. Section 502 of the public health law is amended by adding  a  new
 subdivision 10 to read as follows:
   10.  THE  DEPARTMENT MAY REQUIRE AN ENVIRONMENTAL LABORATORY TO REPORT
 LABORATORY TEST RESULTS TO THE DEPARTMENT, OR  TO  ANY  FULL-TIME  CITY,
 COUNTY   OR  PART-COUNTY  HEALTH  DEPARTMENT  IN  AN  ELECTRONIC  MANNER
 PRESCRIBED BY THE DEPARTMENT.
   § 4. This act shall take effect immediately.
 
                                  PART N
 
   Section 1. This act shall be known and may be cited as  the  "residen-
 tial well testing act".
   §  2. The public health law is amended by adding a new section 1111 to
 read as follows:
   § 1111. TESTING OF INDIVIDUAL ONSITE WATER SUPPLY SYSTEMS.  1. A.  THE
 COMMISSIONER SHALL PROMULGATE REGULATIONS ESTABLISHING STANDARDS FOR THE
 TESTING  OF  NEW  OR EXISTING INDIVIDUAL ONSITE WATER SUPPLY SYSTEMS FOR
 CHARACTERISTICS AND CONTAMINANTS, INCLUDING LISTING THE  CHARACTERISTICS
 AND CONTAMINANTS THAT EACH INDIVIDUAL ONSITE WATER SUPPLY SHALL BE TEST-
 ED  FOR.  SUCH REGULATIONS MAY REQUIRE ADDITIONAL TESTING, LIMIT TESTING
 OR EXCLUDE FROM TESTING A CHARACTERISTIC OR  CONTAMINANT  ON  A  COUNTY,
 REGIONAL OR LOCAL BASIS IF THE COMMISSIONER DETERMINES THAT SUCH CHARAC-
 TERISTIC OR CONTAMINANT IS SIGNIFICANT OR NOT SIGNIFICANT IN THAT AREA.
   B.  THE  COMMISSIONER  MAY,  BY DECLARATION, ADD ANY CHARACTERISTIC OR
 CONTAMINANT TO THE LIST PROMULGATED PURSUANT  TO  PARAGRAPH  A  OF  THIS
 SUBDIVISION, PROVIDED THAT THE COMMISSIONER SHALL PROMULGATE REGULATIONS
 ADDING SUCH CHARACTERISTIC OR CONTAMINANT WITHIN ONE YEAR OF SUCH DECLA-
 RATION.
   2.  A.  ANY  REAL ESTATE PURCHASE CONTRACT FOR THE SALE OF RESIDENTIAL
 REAL PROPERTY, AS DEFINED IN SECTION FOUR HUNDRED SIXTY-ONE OF THE  REAL
 PROPERTY  LAW,  WHICH  IS  SERVED  BY  AN INDIVIDUAL ONSITE WATER SUPPLY
 SYSTEM, SHALL INCLUDE A PROVISION REQUIRING, PRIOR TO AND AS A CONDITION
 OF SALE, THE TESTING OF SUCH INDIVIDUAL ONSITE WATER SUPPLY SYSTEM IN  A
 MANNER  THAT  MEETS OR EXCEEDS THE STANDARDS PRESCRIBED PURSUANT TO THIS

 S. 2007                            57                            A. 3007

 SECTION. THIS SECTION SHALL  NOT  APPLY  TO  PUBLIC  WATER  SYSTEMS,  AS
 DEFINED IN REGULATIONS PROMULGATED BY THE DEPARTMENT.
   B.  WITHIN  ONE  YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION, AND AT
 LEAST ONCE EVERY FIVE YEARS THEREAFTER, THE LESSOR  OF  ANY  RESIDENTIAL
 REAL  PROPERTY  WHICH  IS  SERVED  BY  AN INDIVIDUAL ONSITE WATER SUPPLY
 SYSTEM SHALL TEST SUCH WATER SUPPLY IN ACCORDANCE WITH THIS SECTION  FOR
 AT  LEAST THE CHARACTERISTICS AND CONTAMINANTS REQUIRED PURSUANT TO THIS
 SECTION.   WITHIN THIRTY  DAYS  AFTER  THE  RECEIPT  OF  VALIDATED  TEST
 RESULTS, THE LESSOR SHALL PROVIDE A WRITTEN COPY THEREOF TO EACH CURRENT
 TENANT OF A RENTAL UNIT ON THE PROPERTY. THE LESSOR SHALL ALSO PROVIDE A
 WRITTEN  COPY OF THE MOST RECENT VALIDATED TEST RESULTS TO A PROSPECTIVE
 TENANT PRIOR TO THE SIGNING OF THE LEASE  OR  OTHER  AGREEMENT  FOR  THE
 RENTAL  OF  A  RESIDENTIAL  UNIT ON THE PROPERTY OR TO ANY FORMER TENANT
 UPON REQUEST. THE DEPARTMENT OR THE DEPARTMENT'S DESIGNEE SHALL HAVE THE
 AUTHORITY TO REQUEST AND RECEIVE SUCH TEST RESULTS FROM THE LESSOR.
   3. EVERY TEST CONDUCTED IN  ACCORDANCE  WITH  THIS  SECTION  SHALL  BE
 CONDUCTED  BY  A  LABORATORY  CERTIFIED  BY  THE  DEPARTMENT PURSUANT TO
 SECTION FIVE HUNDRED TWO OF THIS CHAPTER. ANY TEST RESULTS  PROVIDED  BY
 THE  LABORATORY,  PURSUANT  TO  THIS  SECTION, SHALL INCLUDE THE MAXIMUM
 CONTAMINANT LEVELS OR OTHER ESTABLISHED VALUES, IF  ANY,  PRESCRIBED  BY
 THE  DEPARTMENT FOR EACH CHARACTERISTIC OR CONTAMINANT TESTED. LABORATO-
 RIES SHALL SUBMIT SUCH RESULTS TO THE DEPARTMENT ELECTRONICALLY  IN  THE
 MANNER PRESCRIBED PURSUANT TO SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
   4.  THE  COMMISSIONER MAY PROMULGATE REGULATIONS PURSUANT TO WHICH THE
 DEPARTMENT MAY PROVIDE FINANCIAL ASSISTANCE  TO  OWNERS  OF  RESIDENTIAL
 PROPERTY  SERVED  BY  AN  INDIVIDUAL  ONSITE WATER SUPPLY SYSTEM, UPON A
 SHOWING THAT THE COSTS ASSOCIATED WITH TESTING DRINKING WATER IN COMPLI-
 ANCE WITH THIS SECTION WOULD IMPOSE AN UNREASONABLE FINANCIAL HARDSHIP.
   5. NOTHING CONTAINED IN THIS SECTION SHALL PROHIBIT OR LIMIT THE TEST-
 ING OF INDIVIDUAL ONSITE WATER SUPPLY  SYSTEMS  PURSUANT  TO  ANY  OTHER
 STATUTORY OR REGULATORY AUTHORITY.
   §  3.  Section 502 of the public health law is amended by adding a new
 subdivision 10 to read as follows:
   10. THE DEPARTMENT MAY REQUIRE AN ENVIRONMENTAL LABORATORY  TO  REPORT
 LABORATORY  TEST  RESULTS  TO  THE DEPARTMENT, OR TO ANY FULL-TIME CITY,
 COUNTY  OR  PART-COUNTY  HEALTH  DEPARTMENT  IN  AN  ELECTRONIC   MANNER
 PRESCRIBED BY THE DEPARTMENT.
   §  4.  The real property law is amended by adding a new section 468 to
 read as follows:
   § 468. INDIVIDUAL ONSITE WATER SUPPLY TESTING REQUIREMENTS.  1.  EVERY
 REAL ESTATE PURCHASE CONTRACT FOR THE SALE OF RESIDENTIAL REAL PROPERTY,
 WHICH  IS  SERVED  BY  AN  INDIVIDUAL  ONSITE WATER SUPPLY SYSTEM, SHALL
 INCLUDE A PROVISION REQUIRING AS A CONDITION OF  SALE,  THE  TESTING  OF
 SUCH  WATER  SUPPLY  FOR  AT  LEAST THE STANDARDS PRESCRIBED PURSUANT TO
 SECTION ELEVEN HUNDRED ELEVEN OF THE PUBLIC  HEALTH  LAW.  THIS  SECTION
 SHALL  NOT APPLY TO PROPERTY THAT IS SERVED BY A PUBLIC WATER SYSTEM, AS
 DEFINED IN REGULATIONS PROMULGATED BY THE COMMISSIONER.
   2. CLOSING OF TITLE ON THE SALE OF SUCH REAL PROPERTY SHALL NOT  OCCUR
 UNLESS  BOTH  THE BUYER AND THE SELLER HAVE RECEIVED AND REVIEWED A COPY
 OF THE WATER TEST RESULTS. AT CLOSING, THE BUYER AND SELLER  BOTH  SHALL
 CERTIFY  IN  WRITING THAT THEY HAVE RECEIVED AND REVIEWED THE WATER TEST
 RESULTS.
   3. THE REQUIREMENTS OF THIS SECTION MAY NOT BE WAIVED.
   § 5.  Subdivision 3 of section 15-1525 of the environmental  conserva-
 tion law, as amended by section 2 of part F of chapter 59 of the laws of
 2006, is amended to read as follows:

 S. 2007                            58                            A. 3007
 
   3.  The  certificate  of  registration  shall require that, before the
 commencement of drilling of any well or wells, the  water  well  driller
 shall  file  a  preliminary  notice  with  the department; it shall also
 provide that upon the completion of the drilling of any  water  well  or
 water  wells,  a  completion report be filed with the department, giving
 the log of the well, the size and depth thereof,  the  capacity  of  the
 pump or pumps attached or to be attached thereto, THE LABORATORY RESULTS
 OF  THE  WATER  SAMPLE  TESTED IN ACCORDANCE WITH SECTION ELEVEN HUNDRED
 ELEVEN OF THE PUBLIC HEALTH LAW, and such other  information  pertaining
 to  the  withdrawal  of  water and operation of such water well or water
 wells as the department by its rules and regulations  may  require.  The
 water well driller shall provide a copy of such completion report to the
 water well owner AND THE DEPARTMENT OF HEALTH AND DEPARTMENT OF ENVIRON-
 MENTAL  CONSERVATION. The number of the certificate of registration must
 be displayed on the well  drilling  machinery  of  the  registrant.  The
 certificate  of  registration shall also contain a notice to the certif-
 icate holder that the business activities authorized by such certificate
 are subject to the provisions of article  thirty-six-A  of  the  general
 business  law. The fee for such certificate of registration shall be ten
 dollars  annually.  The  commissioner  shall  promulgate  a  water  well
 completion  report  form which shall be utilized by all water well dril-
 lers in satisfying the  requirements  of  this  section  and  any  other
 provision of state or local law which requires the submission of a water
 well completion report or water well log.
   § 6. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly, the commissioner of health and commissioner of environmental conser-
 vation  shall  be  authorized  to promulgate any and all rules and regu-
 lations necessary to  implement  the  provisions  of  this  act  on  its
 effective date.
 
                                  PART O

   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  OF  MENTAL  HEALTH,  DIRECTOR  OF  COMMUNITY
 SERVICES  AND  THE  SHERIFF  FOR  THE  RESPECTIVE LOCALITY, AND ANY SUCH
 MENTAL HEALTH UNIT OPERATING WITHIN A CORRECTIONAL FACILITY SHALL QUALI-
 FY AS AN "APPROPRIATE INSTITUTION" ONLY PURSUANT  TO  THE  TERMS  OF  AN
 AGREEMENT BETWEEN THE COMMISSIONER OF MENTAL HEALTH 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 FACILITY to consent to providing care and

 S. 2007                            59                            A. 3007
 
 treatment  to  an  incapacitated  person  at such hospital, CORRECTIONAL
 FACILITY OR LOCAL CORRECTIONAL FACILITY.  IN A CITY WITH A POPULATION OF
 MORE THAN ONE MILLION, ANY SUCH UNIT SHALL  BE  LIMITED  TO  TWENTY-FIVE
 BEDS. THE COMMISSIONER OF MENTAL HEALTH SHALL PROMULGATE REGULATIONS FOR
 DEMONSTRATION  PROGRAMS  TO IMPLEMENT RESTORATION TO COMPETENCY WITHIN A
 CORRECTIONAL FACILITY OR LOCAL CORRECTIONAL FACILITY. SUBJECT TO  ANNUAL
 APPROPRIATION, THE COMMISSIONER OF MENTAL HEALTH MAY, AT THE COMMISSION-
 ER'S DISCRETION, MAKE FUNDS AVAILABLE FOR STATE AID GRANTS TO ANY COUNTY
 THAT  DEVELOPS  AND OPERATES A MENTAL HEALTH UNIT WITHIN A LOCAL CORREC-
 TIONAL FACILITY PURSUANT TO THIS SECTION. NOTHING IN THIS ARTICLE  SHALL
 BE  CONSTRUED  AS  REQUIRING  A HOSPITAL, CORRECTIONAL FACILITY OR LOCAL
 CORRECTIONAL FACILITY TO CONSENT TO PROVIDING CARE AND TREATMENT  TO  AN
 INCAPACITATED  PERSON  AT  SUCH HOSPITAL, CORRECTIONAL FACILITY OR LOCAL
 CORRECTIONAL FACILITY.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017; provided,
 however,  that  this  act  shall expire and be deemed repealed March 31,
 2022.
 
                                  PART P
 
   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 29 part B of chapter 59 of the laws of 2016, is amended to  read
 as follows:
   §  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] ENROLLED outpa-
 tients AND FOR ALL OTHER BEHAVIORAL  HEALTH  SERVICES  EXCEPT  INPATIENT
 INCLUDED  IN  NEW  YORK STATE'S MEDICAID REDESIGN WAIVER APPROVED BY THE
 CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS).    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, the office of alcoholism and substance abuse  services,  or  the
 office of mental health for rate-setting purposes OR ANY SUCH OTHER FEES
 PURSUANT  TO THE MEDICAID STATE PLAN OR OTHERWISE APPROVED BY CMS IN THE
 MEDICAID REDESIGN WAIVER; 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  commissioner of health, in
 consultation with the commissioner 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

 S. 2007                            60                            A. 3007
 
 increase of such ambulatory behavioral health fees to  providers  avail-
 able  under  this section shall be for all rate periods on and after the
 effective date of section [1] 29 of part [C] B of chapter [57] 59 of the
 laws  of  [2015]  2016 through March 31, [2018] 2020 for patients in the
 city of New York, for all rate periods on and after the  effective  date
 of section [1] 29 of part [C] B of chapter [57] 59 of the laws of [2015]
 2016  through  [June  30,  2018] MARCH 31, 2020 for patients outside the
 city of New York, and for all rate periods on and  after  the  effective
 date  of  such  chapter  through  [June 30, 2018] MARCH 31, 2020 for all
 services provided to persons under  the  age  of  twenty-one;  provided,
 however, [eligible providers may work with managed care plans to achieve
 quality  and  efficiency  objectives  and  engage in shared savings] THE
 COMMISSIONER OF HEALTH, IN CONSULTATION WITH THE COMMISSIONER  OF  ALCO-
 HOLISM  AND  SUBSTANCE  ABUSE  SERVICES  AND  THE COMMISSIONER OF MENTAL
 HEALTH, MAY REQUIRE, AS A  CONDITION  OF  APPROVAL  OF  SUCH  AMBULATORY
 BEHAVIORAL  HEALTH  FEES,  THAT  AGGREGATE  MANAGED CARE EXPENDITURES TO
 ELIGIBLE PROVIDERS MEET THE FOLLOWING VALUE BASED  PAYMENT  METRICS  FOR
 THE  FOLLOWING  PERIODS:  (I)  FOR THE PERIOD FROM APRIL 1, 2017 THROUGH
 MARCH 31, 2018, AT LEAST TEN PERCENT OF SUCH MANAGED  CARE  EXPENDITURES
 ARE  PAID  THROUGH  LEVEL  ONE VALUE BASED PAYMENT ARRANGEMENTS, AS SUCH
 LEVEL IS DEFINED IN THE DEPARTMENT OF HEALTH'S VALUE BASED PAYMENT ROAD-
 MAP (II) FOR THE PERIOD APRIL 1, 2018 THROUGH MARCH 31, 2019,  AT  LEAST
 FIFTY  PERCENT  OF SUCH MANAGED CARE EXPENDITURES ARE PAID THROUGH LEVEL
 ONE VALUE BASED  PAYMENT  ARRANGEMENTS  AND  FIFTEEN  PERCENT  ARE  PAID
 THROUGH  LEVEL  TWO VALUE BASED PAYMENT ARRANGEMENTS, AS SUCH LEVELS ARE
 DEFINED IN THE DEPARTMENT OF HEALTH'S VALUE BASED  PAYMENT  ROADMAP  AND
 (III)  FOR  THE  PERIOD  APRIL  1, 2019 THROUGH MARCH 31, 2020, AT LEAST
 EIGHTY PERCENT OF SUCH MANAGED CARE EXPENDITURES ARE PAID THROUGH  LEVEL
 ONE  VALUE  BASED  PAYMENT ARRANGEMENTS AND THIRTY-FIVE PERCENT ARE PAID
 THROUGH LEVEL TWO VALUE BASED PAYMENT ARRANGEMENTS, AS SUCH  LEVELS  ARE
 DEFINED  IN  THE DEPARTMENT OF HEALTH'S VALUE BASED PAYMENT ROADMAP. THE
 COMMISSIONER OF HEALTH MAY, IN CONSULTATION  WITH  THE  COMMISSIONER  OF
 ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  AND THE COMMISSIONER OF THE
 OFFICE OF MENTAL HEALTH, WAIVE SUCH CONDITIONS IF A SUFFICIENT NUMBER OF
 PROVIDERS, AS DETERMINED BY THE COMMISSIONER, SUFFER A  FINANCIAL  HARD-
 SHIP AS A CONSEQUENCE OF SUCH VALUE BASED PAYMENT ARRANGEMENTS, OR IF HE
 OR  SHE  SHALL  DETERMINE  THAT  SUCH  VALUE  BASED PAYMENT ARRANGEMENTS
 SIGNIFICANTLY THREATEN  INDIVIDUALS'  ACCESS  TO  AMBULATORY  BEHAVIORAL
 HEALTH  SERVICES.  SUCH  WAIVER MAY BE APPLIED ON A PROVIDER SPECIFIC OR
 INDUSTRY WIDE BASIS.   Nothing in this section  shall  prohibit  managed
 care  organizations  and  providers from negotiating 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
 commissioner of the office of  mental  health,  promulgate  regulations,
 including  emergency regulations promulgated prior to October 1, 2015 to
 establish rates for ambulatory behavioral health services, as are neces-
 sary 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

 S. 2007                            61                            A. 3007
 
 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 OR ANY SUCH OTHER FEES  ESTABLISHED
 PURSUANT  TO  THE  MEDICAID STATE PLAN. 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 [June
 30, 2018] MARCH 31, 2020, provided, however, that managed care organiza-
 tions 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 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 transi-
 tion of behavioral health services into managed care.
   §  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 30 of part B of chapter 59 of
 the laws of 2016, 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] ENROLLED outpatients AND FOR
 ALL OTHER BEHAVIORAL HEALTH SERVICES EXCEPT INPATIENT  INCLUDED  IN  NEW
 YORK  STATE'S MEDICAID REDESIGN WAIVER APPROVED BY THE CENTERS FOR MEDI-
 CARE AND MEDICAID SERVICES (CMS).  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 OR ANY SUCH OTHER FEES PURSUANT TO
 THE MEDICAID STATE PLAN OR OTHERWISE APPROVED BY  CMS  IN  THE  MEDICAID
 REDESIGN  WAIVER; 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 commissioner of health in consulta-
 tion  with  the  commissioners  of  mental  health  and  alcoholism  and

 S. 2007                            62                            A. 3007
 
 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 [2] 30 of part
 [C] B of chapter [57] 59 of the laws of [2015] 2016  through  March  31,
 [2018]  2020  for patients in the city of New York, for all rate periods
 on and after the effective date of section [2] 30 of part [C] B of chap-
 ter [57] 59 of the laws of [2015] 2016 through [June 30, 2018] MARCH 31,
 2020 for patients outside the city of New York, and for all rate periods
 on and after the effective date of section [2] 30 of part [C] B of chap-
 ter [57] 59 of the laws of [2015] 2016 through [June 30, 2018] MARCH 31,
 2020 for all services provided to persons under the age  of  twenty-one;
 provided,  however, [eligible providers may work with managed care plans
 to achieve quality  and  efficiency  objectives  and  engage  in  shared
 savings]  THE  COMMISSIONER  OF HEALTH, IN CONSULTATION WITH THE COMMIS-
 SIONER OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AND  THE  COMMISSIONER
 OF  MENTAL HEALTH, MAY REQUIRE, AS A CONDITION OF APPROVAL OF SUCH AMBU-
 LATORY BEHAVIORAL HEALTH FEES, THAT AGGREGATE MANAGED CARE  EXPENDITURES
 TO ELIGIBLE PROVIDERS MEET THE FOLLOWING VALUE BASED PAYMENT METRICS FOR
 THE  FOLLOWING  PERIODS:  (I)  FOR THE PERIOD FROM APRIL 1, 2017 THROUGH
 MARCH 31, 2018, AT LEAST TEN PERCENT OF SUCH MANAGED  CARE  EXPENDITURES
 ARE  PAID  THROUGH  LEVEL  ONE VALUE BASED PAYMENT ARRANGEMENTS, AS SUCH
 LEVEL IS DEFINED IN THE DEPARTMENT OF HEALTH'S VALUE BASED PAYMENT ROAD-
 MAP (II) FOR THE PERIOD APRIL 1, 2018 THROUGH MARCH 31, 2019,  AT  LEAST
 FIFTY  PERCENT  OF SUCH MANAGED CARE EXPENDITURES ARE PAID THROUGH LEVEL
 ONE VALUE BASED  PAYMENT  ARRANGEMENTS  AND  FIFTEEN  PERCENT  ARE  PAID
 THROUGH  LEVEL  TWO VALUE BASED PAYMENT ARRANGEMENTS, AS SUCH LEVELS ARE
 DEFINED IN THE DEPARTMENT OF HEALTH'S VALUE BASED  PAYMENT  ROADMAP  AND
 (III)  FOR  THE  PERIOD  APRIL  1, 2019 THROUGH MARCH 31, 2020, AT LEAST
 EIGHTY PERCENT OF SUCH MANAGED CARE EXPENDITURES ARE PAID THROUGH  LEVEL
 ONE  VALUE  BASED  PAYMENT ARRANGEMENTS AND THIRTY-FIVE PERCENT ARE PAID
 THROUGH LEVEL TWO VALUE BASED PAYMENT ARRANGEMENTS, AS SUCH  LEVELS  ARE
 DEFINED  IN  THE DEPARTMENT OF HEALTH'S VALUE BASED PAYMENT ROADMAP. THE
 COMMISSIONER OF HEALTH MAY, IN CONSULTATION  WITH  THE  COMMISSIONER  OF
 ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  AND THE COMMISSIONER OF THE
 OFFICE OF MENTAL HEALTH, WAIVE SUCH CONDITIONS IF A SUFFICIENT NUMBER OF
 PROVIDERS, AS DETERMINED BY THE COMMISSIONER, SUFFER A  FINANCIAL  HARD-
 SHIP AS A CONSEQUENCE OF SUCH VALUE BASED PAYMENT ARRANGEMENTS, OR IF HE
 OR  SHE  SHALL  DETERMINE  THAT  SUCH  VALUE  BASED PAYMENT ARRANGEMENTS
 SIGNIFICANTLY THREATEN  INDIVIDUALS'  ACCESS  TO  AMBULATORY  BEHAVIORAL
 HEALTH  SERVICES.   SUCH WAIVER MAY BE APPLIED ON A PROVIDER SPECIFIC OR
 INDUSTRY WIDE BASIS. Nothing in this section shall prohibit managed care
 organizations and providers from negotiating 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,  including  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.

 S. 2007                            63                            A. 3007
 
   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  [June
 30, 2018] MARCH 31, 2020, provided, however, that managed care organiza-
 tions 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 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 transi-
 tion of behavioral health services into managed care.
   § 3. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017; provided,
 however,  that the amendments to section 48-a of part A of chapter 56 of
 the laws of 2013 made by section one of this act shall  not  affect  the
 repeal  of such section and shall be deemed repealed therewith; provided
 further, that 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 section and shall be deemed to expire therewith.
 
                                  PART Q
 
   Section 1. Subdivisions 3-b and 3-c of section 1 and section 4 of part
 C of chapter 57 of the laws of 2006, relating to establishing a cost  of
 living  adjustment for designated human services programs, as amended by
 section 1 of part I of chapter 60 of the laws of 2014,  are  amended  to
 read as follows:
   3-b.  Notwithstanding  any  inconsistent  provision  of law, beginning
 April 1, 2009 and ending March 31, 2016 AND BEGINNING APRIL 1, 2017  AND
 ENDING  MARCH  31,  2018, the commissioners shall not include a COLA for
 the purpose of establishing rates of payments, contracts  or  any  other
 form of reimbursement.
   3-c.  Notwithstanding  any  inconsistent  provision  of law, beginning
 April 1, [2016] 2018 and ending March 31, [2019] 2021, the commissioners
 shall develop the COLA under this section using the actual U.S. consumer
 price index for all urban consumers  (CPI-U)  published  by  the  United
 States  department  of  labor, bureau of labor statistics for the twelve
 month period ending in July of the  budget  year  prior  to  such  state
 fiscal  year,  for  the  purpose  of  establishing  rates  of  payments,
 contracts or any other form of reimbursement.

 S. 2007                            64                            A. 3007
 
   § 4. This act shall take effect immediately and  shall  be  deemed  to
 have  been in full force and effect on and after April 1, 2006; provided
 section one of this act shall expire and be  deemed  repealed  April  1,
 [2019]  2021; provided, further, that sections two and three of this act
 shall expire and be deemed repealed December 31, 2009.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017; provided,
 however, that the amendments to subdivisions 3-b and 3-c of section 1 of
 part C of chapter 57 of the laws of 2006,  relating  to  establishing  a
 cost  of  living adjustment for designated human services programs, made
 by section one of this act, shall not affect the repeal of such subdivi-
 sions and shall be deemed repealed therewith.
   § 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.
   §  3.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Parts A through Q 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
 ________________________________________________________________________
 
                                  3007--A
 
                           I N  A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
   the Constitution -- read once and referred to the  Committee  on  Ways
   and  Means -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the insurance law, in relation to the early intervention
   program for infants and toddlers with disabilities and their  families
   (Part A); intentionally omitted (Part B); to amend the social services
   law,  in relation to requiring monthly premium payments for the Essen-
   tial Plan (Part C); to amend the public health  law,  in  relation  to
   high  cost  drugs;  to amend the tax law, in relation to surcharges on
   high priced drugs; to amend  the  tax  law,  in  relation  to  secrecy
   provisions;  to  amend  the state finance law, in relation to the high
   priced drug reimbursement fund; to amend the social services  law,  in
   relation  to  the  drug  utilization review board; to amend the social
   services law, in relation to prescription drugs  in  Medicaid  managed
   care  programs; to amend the public health law, in relation to the use
   of preferred drug program and clinical drug review program;  to  amend
   the  social  services  law,  in  relation to Medicaid reimbursement of
   covered outpatient drugs; to authorize the suspension of a  provider's
   Medicaid enrollment for inappropriate prescribing of opioids; to amend
   the  social  services  law,  in  relation  to  refills  of  controlled
   substances; to amend the social services law, in relation to  aligning
   pharmacy  copayment  requirements  with  federal  regulations,  and to
   adjusting consumer price index penalties for  generic  drugs;  and  to
   repeal  subdivisions  25  and  25-a  of  section  364-j  of the social
   services law, relating to the coverage of certain medically  necessary
   prescription  drugs  by managed care providers (Part D); intentionally
   omitted (Part E); to amend the social services  law,  in  relation  to
   carving  out  transportation  from  managed long term care benefit and
   adult day health care  programs  located  at  a  licensed  residential
   health  care  facility  (Part  F);  intentionally omitted (Part G); to
   amend the New York Health Care Reform Act  of  1996,  in  relation  to
   extending  certain  provisions relating thereto; to amend the New York
   Health Care Reform Act of 2000, in relation to  extending  the  effec-
   tiveness  of  provisions  thereof;  to amend the public health law, in
   relation to the distribution of pool allocations and graduate  medical
   education;  to amend the public health law, in relation to health care
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12571-02-7

 A. 3007--A                          2
 
   initiative pool distributions; to amend the social  services  law,  in
   relation  to  extending  payment  provisions for general hospitals; to
   amend the public health law, in relation to the assessments on covered
   lives;  to  amend  chapter 62 of the laws of 2003 amending the general
   business law and other laws  relating  to  enacting  major  components
   necessary  to  implement  the  state fiscal plan for the 2003-04 state
   fiscal year, in relation to the deposit of  certain  funds;  to  amend
   chapter  600 of the laws of 1986 amending the public health law relat-
   ing to the development of pilot reimbursement programs for  ambulatory
   care  services,  in  relation to the effectiveness of such chapter; to
   amend chapter 600 of the laws of 1986 amending the public  health  law
   relating  to the development of pilot reimbursement programs for ambu-
   latory care services, in relation to the effectiveness of  such  chap-
   ter;  to  amend  chapter 520 of the laws of 1978 relating to providing
   for a comprehensive survey of health  care  financing,  education  and
   illness  prevention  and creating councils for the conduct thereof, in
   relation to extending the effectiveness of portions thereof; to  amend
   the  public  health  law, in relation to extending access to community
   health care services in rural areas; to amend the social services law,
   in relation to rates of payment for personal care  service  providers;
   to amend the public health law, in relation to the comprehensive diag-
   nostic  and  treatment centers indigent care program; and to amend the
   public health law, in relation to health care initiative pool distrib-
   utions (Part H); to amend chapter 884 of the laws  of  1990,  amending
   the  public  health  law  relating to authorizing bad debt and charity
   care allowances for certified home health agencies, in relation to the
   effectiveness thereof; to amend chapter 60 of the laws of 2014  amend-
   ing  the  social  services  law  relating  to  eliminating  prescriber
   prevails for brand name drugs with generic equivalents, in relation to
   the effectiveness thereof; to amend the public health law, in relation
   to extending the nursing home cash assessment; to amend chapter 474 of
   the laws of 1996, amending the education law and other  laws  relating
   to  rates  for  residential health care facilities, in relation to the
   effectiveness thereof; to amend chapter 58 of the laws of 2007, amend-
   ing the social services law and other laws relating  to  enacting  the
   major  components of legislation necessary to implement the health and
   mental hygiene budget for the 2007-2008 state fiscal year, in relation
   to delay of certain administrative cost; to amend chapter  81  of  the
   laws  of  1995, amending the public health law and other laws relating
   to medical reimbursement and welfare reform, in relation to the effec-
   tiveness thereof; to amend chapter 109 of the laws of  2010,  amending
   the  social services law relating to transportation costs, in relation
   to the effectiveness thereof; to amend 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 the effectiveness thereof; to amend chapter 2 of the  laws
   of  1998,  amending  the  public health law and other laws relating to
   expanding the child health insurance plan, in relation to  the  effec-
   tiveness  thereof;  to  amend chapter 19 of the laws of 1998, amending
   the social services law relating to limiting the method of payment for
   prescription drugs under the medical assistance program,  in  relation
   to  the  effectiveness  thereof;  to  amend  the public health law, in
   relation to continuing nursing home upper payment limit  payments;  to
   amend  chapter 904 of the laws of 1984, amending the public health law
   and the social services  law  relating  to  encouraging  comprehensive

 A. 3007--A                          3
 
   health  services,  in  relation to the effectiveness thereof; to amend
   chapter 62 of the laws of 2003, amending the public health law  relat-
   ing  to  allowing  for  the use of funds of the office of professional
   medical  conduct  for activities of the patient health information and
   quality  improvement  act  of  2000,  in  relation  to  extending  the
   provisions  thereof; to amend chapter 59 of the laws of 2011, amending
   the public health law relating to  the  statewide  health  information
   network  of  New  York and the statewide planning and research cooper-
   ative system and general powers and duties, in relation to the  effec-
   tiveness  thereof;  to  amend chapter 58 of the laws of 2008, amending
   the elder law and other laws relating to reimbursement to  participat-
   ing provider pharmacies and prescription drug coverage, in relation to
   extending  the  expiration of certain provisions thereof; and to amend
   the public health law, in relation to extending the authority  of  the
   commissioner  of  health  to issue ACO certificates (Part I); to amend
   the insurance law, in relation to pharmacy benefit  managers  and  the
   purchase of prescription drugs; and to amend the public health law, in
   relation   to   pharmacy  benefit  managers;  and  to  repeal  certain
   provisions of such law relating thereto (Part J); to amend the  public
   health  law,  in  relation  to the health care facility transformation
   program (Part K); intentionally omitted (Part L); to amend the  public
   health law, in relation to creating the "Emerging Contaminant Monitor-
   ing  Act"  (Part M); to amend the public health law, the real property
   law, and the environmental conservation law, in relation  to  creating
   the  "residential  well  testing  act" (Part N); intentionally omitted
   (Part O); to amend 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 extending
   government rates for behavioral services  and  adding  a  value  based
   payment  requirement;  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 extending government rates
   for behavioral services and adding a value based  payment  requirement
   (Part  P); intentionally omitted (Part Q); 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 relat-
   ing to malpractice and professional medical conduct,  in  relation  to
   extending  certain provisions concerning the hospital excess liability
   pool (Part R); to direct the commissioner of  developmental  disabili-
   ties  to report on the housing needs of individuals with developmental
   disabilities and the  implementation  of  the  transformation  panel's
   recommendations;  and providing for the repeal of such provisions upon
   expiration thereof (Part S); to amend the penal law,  in  relation  to
   criminal  possession  of a controlled substance in the seventh degree;
   to amend  the  general  business  law,  in  relation  to  drug-related
   paraphernalia; to amend the public health law, in relation to the sale
   and  possession  of  hypodermic  syringes  and  needles; and to repeal
   section 220.45 of the penal law relating to  criminally  possessing  a
   hypodermic  instrument  (Part  T); in relation to the Western New York
   Children's Psychiatric Center (Part U); to amend the  social  services
   law,  in relation to school-based health centers and sponsoring organ-

 A. 3007--A                          4
 
   izations for managed care programs  (Part  V);  to  amend  the  social
   services  law,  in relation to fiscal intermediary certification under
   the consumer directed personal assistance program; to amend the social
   services  law  and the public health law, in relation to needs assess-
   ment and rate adequacy for medicaid; to amend the social services law,
   in relation to the nursing home benchmark rate; to  amend  the  public
   health  law,  in  relation  to  home  care  workforce  recruitment and
   retention funding; and to amend the public health law, in relation  to
   home  care  worker  wage parity (Part W); to amend the social services
   law, in relation to requiring the commissioner of  health  to  provide
   written  notice thirty days prior to implementing or adjusting a rate,
   premium, component of premium, add-on payment, quality pool, or  other
   rate  component  related to a managed care provider (Part X); relating
   to the number of workers  accruing  overtime  in  state  agencies  and
   requiring  certain agencies to maintain all full time equivalent posi-
   tions from the previous year (Part Y); in relation to the transfer  of
   inpatient  services  (Part  Z);  to  amend the social services law, in
   relation to establishing the enhanced safety net hospital program; and
   to prohibit the commissioner  of  health  from  reducing  payment  for
   general  hospital  emergency  services  visits (Part AA); and to amend
   chapter 495 of the laws of 2004 amending the  insurance  law  and  the
   public  health  law  relating  to  the New York state health insurance
   continuation assistance demonstration  project,  in  relation  to  the
   effectiveness thereof (Part BB)
 
   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 2017-2018
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through BB. The effective date for each particular
 provision contained within such Part is set forth in the last section of
 such Part. Any provision in any section contained within a Part, includ-
 ing the effective date of the Part, which makes a reference to a section
 "of this act", when used in connection with that  particular  component,
 shall  be  deemed  to mean and refer to the corresponding section of the
 Part in which it is found. Section three of  this  act  sets  forth  the
 general effective date of this act.
 
                                  PART A
 
   Section  1.  Paragraph  2  of  subsection (d) of section 3224-a of the
 insurance law, as amended by section 57-b of part A of chapter 56 of the
 laws of 2013, is amended to read as follows:
   (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

 A. 3007--A                          5
 
 products,  services  or  durable  medical equipment, or a representative
 designated by such entity or person.
   §  2.  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:
   § 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.  WHEN SUCH POLICY OF ACCI-
 DENT AND HEALTH INSURANCE, INCLUDING A CONTRACT ISSUED PURSUANT TO ARTI-
 CLE FORTY-THREE OF THIS CHAPTER, PROVIDES  COVERAGE  FOR  SERVICES  THAT
 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,  OR PROVIDES COVERAGE FOR AUTISM SPECTRUM DISORDER PURSUANT
 TO PARAGRAPH TWENTY-FIVE OF SUBSECTION (I) OF SECTION THIRTY-TWO HUNDRED
 SIXTEEN, PARAGRAPH SEVENTEEN OF SUBSECTION  (L)  OF  SECTION  THIRTY-TWO
 HUNDRED  TWENTY-ONE,  OR  SUBSECTION (EE) OF SECTION FORTY-THREE HUNDRED
 THREE OF THIS CHAPTER, THE INSURER SHALL PAY FOR SUCH  SERVICES  TO  THE
 EXTENT  THAT  THE  SERVICES  ARE A COVERED BENEFIT UNDER THE POLICY. ANY
 DOCUMENTATION OBTAINED PURSUANT TO  CLAUSE  (II)  OF  PARAGRAPH  (A)  OF
 SUBDIVISION  THREE  OF  SECTION  TWENTY-FIVE  HUNDRED  FIFTY-NINE OF THE
 PUBLIC HEALTH LAW AND SUBMITTED TO THE INSURER SHALL  BE  SUFFICIENT  TO
 MEET   PRECERTIFICATION,   PREAUTHORIZATION   AND/OR  MEDICAL  NECESSITY
 REQUIREMENTS IMPOSED UNDER SUCH POLICY OF ACCIDENT AND HEALTH INSURANCE,
 INCLUDING A CONTRACT ISSUED PURSUANT  TO  ARTICLE  FORTY-THREE  OF  THIS
 CHAPTER.  Visit limitations and other terms and conditions of the policy
 will continue to apply to  early  intervention  services.  However,  any
 visits used for early intervention program services shall not reduce the
 number  of  visits  otherwise available under the policy or contract for
 such services.
   (c) A POLICY OF ACCIDENT AND HEALTH INSURANCE,  INCLUDING  A  CONTRACT
 ISSUED  PURSUANT  TO ARTICLE FORTY-THREE OF THIS CHAPTER, SHALL NOT DENY
 COVERAGE BASED UPON THE FOLLOWING:
   (I) THE LOCATION WHERE SERVICES ARE PROVIDED; OR
   (II) THE DURATION OF THE CHILD'S CONDITION  AND/OR  THAT  THE  CHILD'S
 CONDITION  IS  NOT AMENDABLE TO SIGNIFICANT IMPROVEMENT WITHIN A CERTAIN
 PERIOD OF TIME AS SPECIFIED IN THE POLICY.
   (D) 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.  [The]
 AN INSURER SHALL, WITHIN FIFTEEN BUSINESS DAYS OF RECEIPT OF A NOTICE OF

 A. 3007--A                          6
 
 RIGHT OF SUBROGATION, NOTIFY THE PROVIDER, IN A FORMAT DETERMINED BY THE
 DEPARTMENT OF HEALTH, THROUGH  THE  DEPARTMENT  OF  HEALTH'S  DESIGNATED
 FISCAL  AGENT WHETHER THE INSURER IS ACTING AS A THIRD PARTY ADMINISTRA-
 TOR.
   (E)  UPON  RECEIPT OF WRITTEN REQUEST AND NOTICE FROM THE MUNICIPALITY
 AND SERVICE COORDINATOR THE insurer shall  provide  [the]  SUCH  munici-
 pality  and  service coordinator with information on the extent of bene-
 fits available to the covered person under such policy, INCLUDING WHETH-
 ER THE INSURER IS ACTING AS A THIRD PARTY ADMINISTRATOR, within  fifteen
 days  of the insurer's receipt of written 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.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on or after April 1,  2017;  provided
 however,  that  the amendments to section 3224-a of the insurance law as
 made by section one of this act and the amendments to section 3235-a  of
 the insurance law as made by section two of this act shall apply only to
 policies  and contracts issued, renewed, modified, altered or amended on
 or after such date.
 
                                  PART B
 
                           Intentionally Omitted
 
                                  PART C

   Section 1. Subdivision 5 of section 369-gg of the social services law,
 as added by section 51 of part C of chapter 60 of the laws of  2014,  is
 amended to read as follows:
   5.  Premiums  and  cost  sharing. (a) Subject to federal approval, the
 commissioner shall establish premium payments  enrollees  shall  pay  to
 approved  organizations for coverage of health care services pursuant to
 this title. Such premium payments shall be established in the  following
 manner:
   (i)  up  to  twenty dollars monthly for an individual with a household
 income above one hundred and fifty percent of the federal  poverty  line
 but  at or below two hundred percent of the federal poverty line defined
 and annually revised by the United States department of health and human
 services for a household of the same size; and
   (ii) no payment is required for individuals with a household income at
 or below one hundred and fifty  percent  of  the  federal  poverty  line
 defined  and  annually revised by the United States department of health
 and human services for a household of the same size.
   (b) The commissioner shall  establish  cost  sharing  obligations  for
 enrollees,  subject to federal approval, PROVIDED, HOWEVER, FOR INDIVID-
 UALS WITH A HOUSEHOLD  INCOME  FROM  ONE  HUNDRED  THIRTY-EIGHT  TO  ONE
 HUNDRED  FIFTY  PERCENT  OF  THE  FEDERAL  POVERTY  LEVEL  COST  SHARING
 PROVISIONS SHALL MAINTAIN AN ACTUARIAL VALUE OF 99.68 PERCENT,  AND  FOR

 A. 3007--A                          7
 
 INDIVIDUALS  WITH  A  HOUSEHOLD INCOME FROM ONE HUNDRED FIFTY-ONE TO TWO
 HUNDRED PERCENT OF THE FEDERAL POVERTY  LEVEL  COST  SHARING  PROVISIONS
 SHALL MAINTAIN AN ACTUARIAL VALUE OF 90.02 PERCENT.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after January 1, 2017.
 
                                  PART D
 
   Section 1. The public health law is amended by adding  a  new  section
 280 to read as follows:
   § 280. HIGH COST DRUGS. 1. HIGH PRICED DRUGS. THE DEPARTMENT MAY IDEN-
 TIFY, FOR REVIEW, DRUGS WHICH:
   (A)  WHEN  FIRST INTRODUCED ON THE MARKET, ARE PROHIBITIVELY EXPENSIVE
 FOR PATIENTS WHO COULD BENEFIT FROM THE DRUG; OR
   (B) SUDDENLY OR OVER A RELATIVELY BRIEF PERIOD OF  TIME  EXPERIENCE  A
 LARGE PRICE INCREASE AND SUCH INCREASE IS NOT EXPLAINED BY A SIGNIFICANT
 INCREASE IN INGREDIENT COSTS OR BY SOME OTHER RELEVANT FACTOR; OR
   (C) HAVE BEEN DETERMINED TO BE PRICED DISPROPORTIONALLY IN RELATION TO
 THEIR THERAPEUTIC BENEFITS.
   2.  REPORTING  REQUIREMENTS.  (A) DRUG MANUFACTURERS SHALL PROVIDE THE
 DEPARTMENT, UPON REQUEST, THE  FOLLOWING  INFORMATION  WITH  RESPECT  TO
 DRUGS IDENTIFIED BY THE DEPARTMENT FOR REVIEW:
   (I) THE ACTUAL COST OF DEVELOPING, MANUFACTURING, PRODUCING (INCLUDING
 THE COST PER DOSE OF PRODUCTION), AND DISTRIBUTING THE DRUG;
   (II) RESEARCH AND DEVELOPMENT COSTS OF THE DRUG, INCLUDING PAYMENTS TO
 PREDECESSOR  ENTITIES  CONDUCTING  RESEARCH  AND  DEVELOPMENT,  SUCH  AS
 BIOTECHNOLOGY COMPANIES, UNIVERSITIES AND MEDICAL SCHOOLS,  AND  PRIVATE
 RESEARCH INSTITUTIONS;
   (III)  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-CONSUM-
 ER MARKETING;
   (IV) THE EXTENT OF UTILIZATION OF THE DRUG;
   (V) PRICES FOR THE DRUG THAT ARE CHARGED  TO  PURCHASERS  OUTSIDE  THE
 UNITED STATES;
   (VI)  PRICES CHARGED TO TYPICAL PURCHASERS IN THE STATE, INCLUDING BUT
 NOT LIMITED TO PHARMACIES, PHARMACY  CHAINS,  PHARMACY  WHOLESALERS,  OR
 OTHER DIRECT PURCHASERS;
   (VII) THE AVERAGE REBATES AND DISCOUNTS PROVIDED PER PAYER TYPE;
   (VIII) THE AVERAGE PROFIT MARGIN OF EACH DRUG OVER THE PRIOR FIVE-YEAR
 PERIOD; AND
   (IX)  ANY  OTHER  INFORMATION  THE  MANUFACTURER FEELS IS NECESSARY TO
 PROVIDE TO JUSTIFY THE DRUG PRICE, INCLUDING BUT NOT LIMITED  TO,  COSTS
 INCURRED  FOR  RESEARCH  AND DEVELOPMENT FOR PREDECESSOR DRUGS, OR OTHER
 DRUGS RELATED TO THE DRUG BROUGHT TO MARKET.
   (B) THE DEPARTMENT SHALL DEVELOP A STANDARD REPORTING FORM THAT SATIS-
 FIES THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION.
   (C) ALL INFORMATION DISCLOSED PURSUANT TO PARAGRAPH (A) OF THIS SUBDI-
 VISION SHALL BE CONSIDERED CONFIDENTIAL AND SHALL NOT  BE  DISCLOSED  BY
 THE  DEPARTMENT  IN  A  FORM  THAT IDENTIFIES A SPECIFIC MANUFACTURER OR
 PRICES CHARGED FOR DRUGS BY SUCH MANUFACTURER.
   3. REVIEW OF DRUG COST AND PRICING. THE DEPARTMENT MAY REFER COST  AND
 PRICING  INFORMATION  COLLECTED  PURSUANT  TO  SUBDIVISION  TWO  OF THIS

 A. 3007--A                          8
 
 SECTION WITH RESPECT TO A PARTICULAR DRUG TO THE DRUG UTILIZATION REVIEW
 BOARD, AND REQUEST THE BOARD TO RECOMMEND A PER-UNIT BENCHMARK PRICE FOR
 THE DRUG, TAKING INTO CONSIDERATION SUCH COST AND PRICING INFORMATION AS
 WELL AS OTHER FACTORS, INCLUDING BUT NOT LIMITED TO:
   (A) THE SERIOUSNESS AND PREVALENCE OF THE DISEASE OR CONDITION THAT IS
 TREATED BY THE DRUG;
   (B) THE EXTENT OF UTILIZATION OF THE DRUG;
   (C) THE EFFECTIVENESS OF THE DRUG IN TREATING THE CONDITIONS FOR WHICH
 IT  IS  PRESCRIBED  OR  IMPROVE  A PATIENT'S HEALTH, QUALITY OF LIFE, OR
 OVERALL HEALTH OUTCOMES;
   (D) THE LIKELIHOOD THAT USE OF THE DRUG WILL REDUCE THE NEED FOR OTHER
 MEDICAL CARE, INCLUDING HOSPITALIZATION;
   (E) THE AVERAGE WHOLESALE PRICE AND RETAIL PRICE OF THE DRUG;
   (F) THE NUMBER OF PHARMACEUTICAL MANUFACTURERS THAT PRODUCE THE  DRUG;
 AND
   (G) WHETHER THERE ARE PHARMACEUTICAL EQUIVALENTS TO THE DRUG.
   4.  DESIGNATION  OF  HIGH  PRICED DRUGS.   (A) IF THE DRUG UTILIZATION
 REVIEW BOARD RECOMMENDS A BENCHMARK PRICE FOR A DRUG,  SUCH  RECOMMENDA-
 TION, ALONG WITH THE DOCUMENTATION SUPPORTING SUCH RECOMMENDATION, SHALL
 BE  SUBMITTED  TO  THE ATTORNEY GENERAL FOR REVIEW. THE ATTORNEY GENERAL
 SHALL APPROVE, DENY, OR REFER THE RECOMMENDATION BACK TO THE DRUG UTILI-
 ZATION REVIEW BOARD FOR FURTHER REVIEW. THE ATTORNEY GENERAL SHALL  ONLY
 APPROVE  A  RECOMMENDED BENCHMARK PRICE ONCE HE OR SHE IS SATISFIED THAT
 THE PRICE IS ADEQUATE TO GUARANTEE PATIENT ACCESS TO SUCH DRUG.
   (B) IF THE PRICE AT WHICH A DRUG  IS  BEING  SOLD  BY  A  MANUFACTURER
 EXCEEDS  THE  BENCHMARK  PRICE FOR THE DRUG DETERMINED BY THE DEPARTMENT
 PURSUANT TO THIS SECTION, THE COMMISSIONER SHALL DESIGNATE SUCH  DRUG  A
 HIGH PRICED DRUG AND NOTIFY THE MANUFACTURER OF SUCH DRUG OF SUCH DESIG-
 NATION.  THE COMMISSIONER SHALL PUBLISH ON THE DEPARTMENT WEBSITE A LIST
 OF DRUGS DESIGNATED AS HIGH PRICED DRUGS PURSUANT TO  THIS  SUBDIVISION,
 ALONG  WITH  THE DATE ON WHICH EACH DRUG FIRST APPEARED ON SUCH LIST AND
 THE BENCHMARK PRICE FOR SUCH DRUG DETERMINED BY THE DEPARTMENT.
   5. REBATES. (A) THE COMMISSIONER MAY REQUIRE A  DRUG  MANUFACTURER  TO
 PROVIDE  REBATES  TO  THE  DEPARTMENT FOR A DRUG DETERMINED TO BE A HIGH
 PRICED DRUG PURSUANT TO SUBDIVISION THREE OF THIS SECTION WHEN SUCH DRUG
 IS PAID FOR UNDER THE MEDICAID PROGRAM. IN DETERMINING THE AMOUNT OF ANY
 SUCH REBATE, THE COMMISSIONER MAY CONSIDER INFORMATION PROVIDED  BY  THE
 DRUG  MANUFACTURER  WITH RESPECT TO SURCHARGES PAID BY THE MANUFACTURER,
 OR DECREASES IN THE PRICE OF THE DRUG AS A RESULT OF SURCHARGES PAID  BY
 OTHERS, PURSUANT TO ARTICLE TWENTY-C OF THE TAX LAW.
   (B)  REBATES  REQUIRED  BY  THIS  SECTION  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 DRUGS DISPENSED TO ENROLLEES OF MANAGED
 CARE PROVIDERS PURSUANT TO SECTION THREE  HUNDRED  SIXTY-FOUR-J  OF  THE
 SOCIAL  SERVICES  LAW  AND TO DRUGS DISPENSED TO MEDICAID RECIPIENTS WHO
 ARE NOT ENROLLEES OF SUCH PROVIDERS.
   § 2. The tax law is amended by adding a new article 20-C  to  read  as
 follows:
                               ARTICLE 20-C
                      SURCHARGE ON HIGH PRICED DRUGS
 SECTION 492. DEFINITIONS.
         493. IMPOSITION OF SURCHARGE.
         494. RETURNS TO BE SECRET.
   §  492.  DEFINITIONS.  1. THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS WHEN USED IN THIS SECTION.

 A. 3007--A                          9
 
   (A) "HIGH PRICED DRUG" SHALL MEAN A  DRUG  DETERMINED  TO  BE  A  HIGH
 PRICED  DRUG PURSUANT TO SECTION TWO HUNDRED EIGHTY OF THE PUBLIC HEALTH
 LAW, BUT NOT UNTIL THE FIFTEENTH DAY AFTER THE MANUFACTURER WAS NOTIFIED
 OF SUCH DESIGNATION AND APPEARED ON A LIST OF SUCH  DRUGS  TO  BE  MAIN-
 TAINED  BY  THE  STATE  DEPARTMENT  OF HEALTH ON ITS WEBSITE PURSUANT TO
 SUBDIVISION SEVEN OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE.
   (B) "GROSS RECEIPT" SHALL MEAN THE AMOUNT RECEIVED IN OR BY REASON  OF
 ANY  SALE  OF  A HIGH PRICED DRUG, CONDITIONAL OR OTHERWISE, OR IN OR BY
 REASON OF THE FURNISHING OF SUCH HIGH  PRICED  DRUG.  GROSS  RECEIPT  IS
 EXPRESSED IN MONEY, WHETHER PAID IN CASH, CREDIT OR PROPERTY OF ANY KIND
 OR  NATURE,  AND  SHALL BE DETERMINED WITHOUT ANY DEDUCTION THEREFROM ON
 ACCOUNT OF THE COST OF THE SERVICE SOLD OR THE COST OF MATERIALS,  LABOR
 OR SERVICES USED OR OTHER COSTS, INTEREST OR DISCOUNT PAID, OR ANY OTHER
 EXPENSES WHATSOEVER. "AMOUNT RECEIVED" FOR THE PURPOSE OF THE DEFINITION
 OF  GROSS  RECEIPT,  AS  USED  THROUGHOUT THIS ARTICLE, MEANS THE AMOUNT
 CHARGED FOR THE SALE OR PROVISION OF A HIGH PRICED DRUG.
   (C) "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR  ASSO-
 CIATION REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT
 TO  SECTION  SIX  THOUSAND  EIGHT  HUNDRED EIGHT OR SECTION SIX THOUSAND
 EIGHT HUNDRED EIGHT-B OF THE EDUCATION  LAW,  EXCEPT  FOR  A  "PHARMACY"
 DEFINED  IN SUBDIVISION ONE OF SECTION SIX THOUSAND EIGHT HUNDRED TWO OF
 THE EDUCATION LAW AND ANY PERSON, FIRM, CORPORATION OR ASSOCIATION  THAT
 WOULD  BE REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSU-
 ANT TO SECTION SIX THOUSAND EIGHT HUNDRED EIGHT-B OF THE  EDUCATION  LAW
 BUT  FOR  THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION, EXCEPT FOR A
 "PHARMACY" DEFINED IN SUBDIVISION ONE  OF  SECTION  SIX  THOUSAND  EIGHT
 HUNDRED TWO OF THE EDUCATION LAW.
   (D) "EXCESS CHARGE AMOUNT OF THE GROSS RECEIPT" SHALL MEAN THE DIFFER-
 ENCE  BETWEEN  THE  PRICE  CHARGED BY AN ESTABLISHMENT FOR A HIGH PRICED
 DRUG AND THE BENCHMARK PRICE FOR SUCH DRUG AS DETERMINED BY THE  DEPART-
 MENT  OF  HEALTH  PURSUANT  TO  SECTION TWO HUNDRED EIGHTY OF THE PUBLIC
 HEALTH LAW.
   (E) "INVOICE" SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF  SALE,
 OR OTHER DOCUMENT EVIDENCING A SALE OF A HIGH PRICED DRUG.
   § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE
 ON  THE EXCESS CHARGE AMOUNT OF THE GROSS RECEIPT FROM THE FIRST SALE IN
 THE STATE OF A HIGH PRICED DRUG BY AN ESTABLISHMENT AT THE RATE OF SIXTY
 PERCENT. THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL BE CHARGED  AGAINST
 AND BE PAID BY THE ESTABLISHMENT MAKING SUCH FIRST SALE AND SHALL NOT BE
 ADDED  AS  A  SEPARATE  CHARGE  OR LINE ITEM ON ANY INVOICE GIVEN TO THE
 CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER.  HOWEVER,  AN  ESTAB-
 LISHMENT  LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL CLEARLY
 NOTE ON THE INVOICE FOR THE FIRST SALE OF SUCH HIGH PRICED DRUG  IN  THE
 STATE  ITS  LIABILITY  FOR  THE  SURCHARGE  IMPOSED BY THIS ARTICLE WITH
 REGARD TO SUCH SALE, ALONG WITH ITS NAME, ADDRESS,  AND  TAXPAYER  IDEN-
 TIFICATION NUMBER. ANY SALE OF A HIGH PRICED DRUG IN THIS STATE SHALL BE
 PRESUMED TO BE THE FIRST SALE OF SUCH DRUG IN THE STATE UNLESS THE SELL-
 ER WITH REGARD TO SUCH SALE CAN PROVE THAT THE SURCHARGE IMPOSED BY THIS
 ARTICLE  IS DUE FROM ANOTHER ESTABLISHMENT IN THE CHAIN OF TITLE OF SUCH
 DRUG, WHICH BURDEN CAN BE SATISFIED, AMONG OTHER WAYS, BY  PRODUCING  AN
 INVOICE FROM THE ESTABLISHMENT OWING SUCH SURCHARGE IN WHICH SUCH ESTAB-
 LISHMENT HAS NOTED ITS LIABILITY FOR SUCH SURCHARGE.
   2.  EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTI-
 CLE SHALL, ON OR BEFORE THE TWENTIETH DATE OF EACH MONTH, FILE WITH  THE
 COMMISSIONER  A  RETURN,  ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER,
 SHOWING THE TOTAL EXCESS CHARGE AMOUNT OF ITS  GROSS  RECEIPT  FROM  THE

 A. 3007--A                         10
 
 FIRST SALE IN THE STATE OF HIGH PRICED DRUGS DURING THE PRECEDING CALEN-
 DAR  MONTH  AND  THE AMOUNT OF SURCHARGE DUE THEREON. SUCH RETURNS SHALL
 CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.  EVERY
 ESTABLISHMENT REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE
 TIME  OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF
 SURCHARGE DUE ON SUCH FIRST SALES OF HIGH PRICED DRUGS  FOR  THE  PERIOD
 COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, THE SURCHARGE
 SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED.
   3.  ESTABLISHMENTS  MAKING  SALES  OF  HIGH PRICED DRUGS IN THIS STATE
 SHALL MAINTAIN ALL INVOICES PERTAINING TO SUCH  SALES  FOR  THREE  YEARS
 AFTER  SUCH  SALES  UNLESS  THE  COMMISSIONER  PROVIDES  FOR A DIFFERENT
 RETENTION PERIOD BY RULE OR REGULATION. THE ESTABLISHMENT SHALL  PRODUCE
 SUCH RECORDS UPON DEMAND BY THE DEPARTMENT.
   4.  WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS RECEIVED
 UNDER THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR,  HE  MAY  CAUSE
 THE  SAME  TO  BE REFUNDED, WITH INTEREST, IN ACCORDANCE WITH SUCH RULES
 AND REGULATIONS AS HE OR SHE MAY  PRESCRIBE,  EXCEPT  THAT  NO  INTEREST
 SHALL  BE  ALLOWED  OR PAID IF THE AMOUNT THEREOF WOULD BE LESS THAN ONE
 DOLLAR. SUCH INTEREST SHALL BE  AT  THE  OVERPAYMENT  RATE  SET  BY  THE
 COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED
 SEVENTY-ONE  OF  THIS  CHAPTER, OR IF NO RATE IS SET, AT THE RATE OF SIX
 PERCENT PER ANNUM, FROM THE DATE WHEN THE SURCHARGE, PENALTY OR INTEREST
 TO BE REFUNDED WAS PAID TO A DATE PRECEDING THE DATE OF THE REFUND CHECK
 BY NOT MORE THAN THIRTY DAYS.  PROVIDED, HOWEVER, THAT FOR THE  PURPOSES
 OF  THIS  SUBDIVISION, ANY SURCHARGE PAID BEFORE THE LAST DAY PRESCRIBED
 FOR ITS PAYMENT SHALL BE DEEMED TO HAVE BEEN PAID ON SUCH LAST DAY. SUCH
 MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE  THAT  THE  COMMIS-
 SIONER  SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF FUNDS
 IN THE CUSTODY OF THE COMPTROLLER  TO  THE  CREDIT  OF  SUCH  SURCHARGES
 PROVIDED  AN  APPLICATION THEREFOR IS FILED WITH THE COMMISSIONER WITHIN
 TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE.
   5. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL  APPLY
 TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE
 SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR-
 PORATED  IN  FULL  INTO  THIS  SECTION AND HAD EXPRESSLY REFERRED TO THE
 SURCHARGE IMPOSED BY  THIS  ARTICLE,  EXCEPT  TO  THE  EXTENT  THAT  ANY
 PROVISION  OF  SUCH  ARTICLE  IS EITHER INCONSISTENT WITH A PROVISION OF
 THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
   6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE
 AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE  DEPOSITED  DAILY
 WITH  SUCH  RESPONSIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES, AS MAY
 BE DESIGNATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES, TO THE CREDIT
 OF THE HIGH PRICED  DRUG  REIMBURSEMENT  FUND  ESTABLISHED  PURSUANT  TO
 SECTION EIGHTY-NINE-J OF THE STATE FINANCE LAW. AN ACCOUNT MAY BE ESTAB-
 LISHED  IN  ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL BE KEPT
 SEPARATE AND APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE  SUPER-
 INTENDENT   OF  FINANCIAL  SERVICES.  THE  SUPERINTENDENT  OF  FINANCIAL
 SERVICES SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES.  OF
 THE  TOTAL  REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE SUPER-
 INTENDENT OF FINANCIAL SERVICES SHALL RETAIN SUCH AMOUNT AS THE  COMMIS-
 SIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS ARTICLE. THE
 COMMISSIONER  IS  AUTHORIZED  AND DIRECTED TO DEDUCT FROM THE AMOUNTS IT
 RECEIVES UNDER THIS ARTICLE, BEFORE  DEPOSIT  INTO  THE  TRUST  ACCOUNTS
 DESIGNATED  BY  THE  SUPERINTENDENT  OF FINANCIAL SERVICES, A REASONABLE
 AMOUNT NECESSARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE  DEPART-

 A. 3007--A                         11
 
 MENT  TO  REIMBURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER,
 COLLECT AND DISTRIBUTE THE SURCHARGES IMPOSED BY THIS ARTICLE.
   (B)  ON  OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF EACH SUCCEEDING
 MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND  DEDUCTING  SUCH
 AMOUNTS  FOR  SUCH  COSTS,  AS  PROVIDED  FOR  IN  PARAGRAPH (A) OF THIS
 SUBSECTION, THE COMMISSIONER SHALL  CERTIFY  TO  THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  THE  AMOUNT  OF ALL REVENUES SO RECEIVED DURING THE
 PRIOR MONTH AS A RESULT OF THE SURCHARGES,  INTEREST  AND  PENALTIES  SO
 IMPOSED.  THE  AMOUNT OF REVENUES SO CERTIFIED SHALL BE PAID OVER BY THE
 FIFTEENTH AND THE FINAL BUSINESS DAY OF EACH SUCCEEDING MONTH FROM  SUCH
 ACCOUNT  INTO THE HIGH PRICED DRUG REIMBURSEMENT FUND ESTABLISHED PURSU-
 ANT TO SECTION EIGHTY-NINE-J OF THE STATE FINANCE LAW.
   7. THE STATE DEPARTMENT OF HEALTH SHALL MAINTAIN AND  PUBLISH  ON  ITS
 WEBSITE  A  LIST  OF  DRUGS  DETERMINED, PURSUANT TO SECTION TWO HUNDRED
 EIGHTY OF THE PUBLIC HEALTH LAW, TO BE HIGH PRICED DRUGS, ALONG WITH THE
 DATE ON WHICH EACH DRUG FIRST APPEARED ON THAT LIST  AND  THE  BENCHMARK
 PRICE FOR SUCH DRUG DETERMINED PURSUANT TO SECTION TWO HUNDRED EIGHTY OF
 THE  PUBLIC  HEALTH  LAW  BY  THE DEPARTMENT OF HEALTH.   PROMPTLY AFTER
 INCLUDING A HIGH PRICED DRUG ON  SUCH  LIST,  THE  STATE  DEPARTMENT  OF
 HEALTH  SHALL  NOTIFY  THE  MANUFACTURER OF SUCH DRUG AND THE DEPARTMENT
 THAT THE DRUG HAS BEEN DETERMINED TO BE A HIGH PRICED DRUG.
   8. THE STATE DEPARTMENT OF  EDUCATION  AND  THE  STATE  DEPARTMENT  OF
 HEALTH  SHALL  COOPERATE  WITH  THE  DEPARTMENT  IN  ADMINISTERING  THIS
 SURCHARGE, INCLUDING SHARING WITH THE DEPARTMENT  PERTINENT  INFORMATION
 ABOUT ESTABLISHMENTS UPON THE REQUEST OF THE COMMISSIONER.
   9.  THE  COMMISSIONER  MAY  MAKE,  ADOPT AND AMEND RULES, REGULATIONS,
 PROCEDURES AND FORMS NECESSARY FOR THE  PROPER  ADMINISTRATION  OF  THIS
 ARTICLE.
   § 494. RETURNS TO BE SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER JUDI-
 CIAL  ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT SHALL
 BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART-
 MENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMIT-
 TED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT OR  A
 PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFORMATION
 CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON ENGAGED OR
 RETAINED  BY  SUCH  DEPARTMENT  ON  AN INDEPENDENT CONTRACT BASIS OR ANY
 PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE  OF  THE  CONTENTS  OF  A
 RETURN OR REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN
 IN  ANY  MANNER  THE  CONTENTS  OR ANY OTHER INFORMATION RELATING TO THE
 BUSINESS OF AN ESTABLISHMENT CONTAINED IN ANY RETURN OR REPORT  REQUIRED
 UNDER  THIS  ARTICLE.  THE  OFFICERS  CHARGED  WITH  THE CUSTODY OF SUCH
 RETURNS OR REPORTS SHALL NOT BE REQUIRED  TO  PRODUCE  ANY  OF  THEM  OR
 EVIDENCE  OF  ANYTHING  CONTAINED IN THEM IN ANY ACTION OR PROCEEDING IN
 ANY COURT, EXCEPT ON BEHALF  OF  THE  STATE,  THE  STATE  DEPARTMENT  OF
 HEALTH,  THE  STATE  DEPARTMENT  OF  EDUCATION OR THE COMMISSIONER IN AN
 ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS CHAPTER OR  ON  BEHALF
 OF  THE  STATE  OR  THE  COMMISSIONER  IN ANY OTHER ACTION OR PROCEEDING
 INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS CHAPTER  TO  WHICH  THE
 STATE  OR  THE COMMISSIONER IS A PARTY OR A CLAIMANT OR ON BEHALF OF ANY
 PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS  ARTICLE,
 WHEN  THE RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
 INVOLVED IN SUCH ACTION OR PROCEEDING, OR IN  AN  ACTION  OR  PROCEEDING
 RELATING  TO  THE REGULATION OR SURCHARGE OF HIGH PRICED DRUGS ON BEHALF
 OF OFFICERS TO WHOM INFORMATION SHALL HAVE BEEN SUPPLIED AS PROVIDED  IN
 SUBSECTION  TWO  OF  THIS  SECTION, IN ANY OF WHICH EVENTS THE COURT MAY
 REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN EVIDENCE  SO  MUCH  OF  SAID

 A. 3007--A                         12
 
 RETURNS OR REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE
 ACTION  OR  PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE CONSTRUED TO
 PROHIBIT THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM  ALLOWING  THE
 INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED
 UNDER THIS ARTICLE OR OF ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR
 REPORT  BY  OR  TO  A  DULY  AUTHORIZED OFFICER OR EMPLOYEE OF THE STATE
 DEPARTMENT OF HEALTH OR THE STATE DEPARTMENT OF EDUCATION; OR BY  OR  TO
 THE ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF THE STATE WHEN AN
 ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER
 IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
 INVOLVED;  OR  THE  INSPECTION  OF THE RETURNS OR REPORTS REQUIRED UNDER
 THIS ARTICLE BY THE COMPTROLLER OR DULY DESIGNATED OFFICER  OR  EMPLOYEE
 OF  THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT
 OF A REFUND OF ANY SURCHARGE PAID BY AN ESTABLISHMENT  OR  OTHER  PERSON
 UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISHMENT, OR
 A DULY AUTHORIZED REPRESENTATIVE OF SUCH ESTABLISHMENT, A CERTIFIED COPY
 OF  ANY  RETURN  OR  REPORT FILED BY SUCH ESTABLISHMENT PURSUANT TO THIS
 ARTICLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED  AS
 TO  PREVENT  THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE
 ITEMS THEREOF.
   2. THE COMMISSIONER, IN HIS OR HER DISCRETION  AND  PURSUANT  TO  SUCH
 RULES AND REGULATIONS AS HE OR SHE MAY ADOPT, MAY PERMIT THE COMMISSION-
 ER OF INTERNAL REVENUE OF THE UNITED STATES, OR THE APPROPRIATE OFFICERS
 OF  ANY  OTHER STATE WHICH REGULATES OR SURCHARGES HIGH PRICED DRUGS, OR
 THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY  SUCH
 OFFICERS,  TO  INSPECT RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE,
 OR MAY FURNISH TO SUCH COMMISSIONER OR OTHER OFFICERS, OR  DULY  AUTHOR-
 IZED REPRESENTATIVES, A COPY OF ANY SUCH RETURN OR REPORT OR AN ABSTRACT
 OF  THE  INFORMATION  THEREIN  CONTAINED, OR ANY PORTION THEREOF, OR MAY
 SUPPLY SUCH COMMISSIONER OR ANY SUCH OFFICERS  OR  SUCH  REPRESENTATIVES
 WITH  INFORMATION  RELATING  TO  THE BUSINESS OF AN ESTABLISHMENT MAKING
 RETURNS OR REPORTS HEREUNDER. THE  COMMISSIONER  MAY  REFUSE  TO  SUPPLY
 INFORMATION  PURSUANT TO THIS SUBSECTION TO THE COMMISSIONER OF INTERNAL
 REVENUE OF THE UNITED STATES OR TO THE OFFICERS OF ANY  OTHER  STATE  IF
 THE  STATUTES  OF THE UNITED STATES, OR OF THE STATE REPRESENTED BY SUCH
 OFFICERS, DO NOT GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO  THE  COMMIS-
 SIONER,  BUT  SUCH REFUSAL SHALL NOT BE MANDATORY. INFORMATION SHALL NOT
 BE SUPPLIED TO THE COMMISSIONER OF INTERNAL REVENUE OF THE UNITED STATES
 OR THE APPROPRIATE OFFICERS  OF  ANY  OTHER  STATE  WHICH  REGULATES  OR
 SURCHARGES  HIGH PRICED DRUGS, OR THE DULY AUTHORIZED REPRESENTATIVES OF
 SUCH COMMISSIONER OR OF ANY OF SUCH OFFICERS, UNLESS SUCH  COMMISSIONER,
 OFFICER  OR  OTHER  REPRESENTATIVES  SHALL  AGREE NOT TO DIVULGE OR MAKE
 KNOWN IN ANY MANNER THE INFORMATION SO SUPPLIED, BUT SUCH  OFFICERS  MAY
 TRANSMIT  SUCH  INFORMATION  TO THEIR EMPLOYEES OR LEGAL REPRESENTATIVES
 WHEN NECESSARY, WHO IN TURN SHALL BE SUBJECT TO THE SAME RESTRICTIONS AS
 THOSE HEREBY IMPOSED UPON SUCH COMMISSIONER, OFFICER OR OTHER  REPRESEN-
 TATIVES.
   3. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF  SUBSECTION ONE OR TWO OF THIS SECTION SHALL BE DISMISSED
 FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS  STATE
 FOR A PERIOD OF FIVE YEARS THEREAFTER.
   (B)  A  VIOLATION  OF  THIS ARTICLE SHALL BE CONSIDERED A VIOLATION OF
 SECRECY PROVISIONS UNDER ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
   § 3.  Section 1825 of the tax law, as amended by section 89 of part  A
 of chapter 59 of the laws of 2014, is amended to read as follows:

 A. 3007--A                         13
 
   §  1825.  Violation  of secrecy provisions of the tax law.--Any person
 who violates the provisions of subdivision (b)  of  section  twenty-one,
 subdivision one of section two hundred two, subdivision eight of section
 two  hundred  eleven, subdivision (a) of section three hundred fourteen,
 subdivision  one  or  two  of section four hundred thirty-seven, section
 four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision
 one or two of section five hundred fourteen, subsection (e)  of  section
 six  hundred  ninety-seven, subsection (a) of section nine hundred nine-
 ty-four, subdivision (a) of section eleven  hundred  forty-six,  section
 twelve hundred eighty-seven, subdivision (a) of section fourteen hundred
 eighteen,  subdivision (a) of section fifteen hundred eighteen, subdivi-
 sion (a) of section fifteen hundred  fifty-five  of  this  chapter,  and
 subdivision  (e)  of  section  11-1797 of the administrative code of the
 city of New York shall be guilty of a misdemeanor.
   § 4.  The state finance law is amended by adding a new section 89-j to
 read as follows:
   § 89-J. HIGH PRICED DRUG REIMBURSEMENT  FUND.    1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  SOLE  CUSTODY  OF  THE SUPERINTENDENT OF FINANCIAL
 SERVICES AN AGENCY FUND, TO BE KNOWN AS THE "HIGH PRICED DRUG REIMBURSE-
 MENT FUND."
   2. SUCH FUND SHALL CONSIST OF REVENUES DERIVED FROM THE  SURCHARGE  ON
 HIGH  PRICED  DRUGS  IMPOSED  BY ARTICLE TWENTY-C OF THE TAX LAW AND ALL
 OTHER MONEYS CREDITED OR TRANSFERRED THERETO  FROM  ANY  OTHER  FUND  OR
 SOURCE PURSUANT TO LAW.
   3.  ALL MONEYS RETAINED IN SUCH FUND SHALL BE HELD ON BEHALF OF HEALTH
 INSURERS AND THE NEW YORK MEDICAID PROGRAM, AND PAID OUT BY  THE  SUPER-
 INTENDENT  OF  FINANCIAL  SERVICES  TO  HEALTH INSURERS AND THE NEW YORK
 MEDICAID PROGRAM IN PROPORTION TO HEALTH  INSURERS'  AND  THE  NEW  YORK
 MEDICAID  PROGRAM'S RESPECTIVE COSTS ATTRIBUTABLE TO EACH PHARMACEUTICAL
 PRODUCT FOR WHICH THE SURCHARGE ON HIGH PRICE  DRUGS  WAS  IMPOSED.  THE
 SUPERINTENDENT  OF  FINANCIAL  SERVICES  SHALL  ESTABLISH REGULATIONS TO
 APPORTION SUCH REVENUES DERIVED TO REFLECT HEALTH INSURERS' AND THE  NEW
 YORK MEDICAID PROGRAM'S RESPECTIVE COSTS FOR SUCH DRUGS.
   4. ALL MONEYS DISTRIBUTED FROM THE HIGH PRICED DRUG REIMBURSEMENT FUND
 TO A HEALTH INSURER SHALL BE, AT THE DISCRETION OF THE SUPERINTENDENT OF
 FINANCIAL  SERVICES, EITHER (1) CREDITED TO THE PREMIUMS CHARGED BY SUCH
 HEALTH INSURER FOR THE NEXT POLICY PERIOD OR (2) CREDITED TO POLICYHOLD-
 ERS PURSUANT TO PROCEDURES THAT THE SUPERINTENDENT OF FINANCIAL SERVICES
 SHALL ESTABLISH BY REGULATIONS.
   5. FOR PURPOSES OF THIS SECTION: (A) "HEALTH INSURER"  SHALL  MEAN  AN
 INSURANCE  COMPANY AUTHORIZED IN THIS STATE TO WRITE ACCIDENT AND HEALTH
 INSURANCE, A COMPANY ORGANIZED PURSUANT TO ARTICLE  FORTY-THREE  OF  THE
 INSURANCE  LAW,  A MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED
 PURSUANT TO ARTICLE FORTY-SEVEN OF THE INSURANCE LAW, A  HEALTH  MAINTE-
 NANCE  ORGANIZATION  CERTIFIED  PURSUANT  TO  ARTICLE  FORTY-FOUR OF THE
 PUBLIC HEALTH LAW, AN INSTITUTION OF HIGHER EDUCATION CERTIFIED PURSUANT
 TO SECTION ONE THOUSAND ONE HUNDRED TWENTY-FOUR OF  THE  INSURANCE  LAW,
 THE NEW YORK STATE HEALTH INSURANCE PLAN ESTABLISHED UNDER ARTICLE ELEV-
 EN  OF  THE  CIVIL  SERVICE LAW, OR AN EMPLOYER WITH AN EMPLOYEE BENEFIT
 PLAN, AS DEFINED BY THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY  ACT
 OF 1974, PROVIDED THAT THE EMPLOYER VOLUNTARILY ELECTS;
   (B)  "NEW  YORK  MEDICAID  PROGRAM"  SHALL MEAN THE MEDICAL ASSISTANCE
 PROGRAM FOR NEEDY PERSONS ESTABLISHED PURSUANT TO TITLE ELEVEN OF  ARTI-
 CLE FIVE OF THE SOCIAL SERVICES LAW.

 A. 3007--A                         14
 
   6.  THE  SUPERINTENDENT OF FINANCIAL SERVICES MAY ISSUE SUCH RULES AND
 REGULATIONS AS HE OR SHE SHALL DEEM NECESSARY TO IMPLEMENT THIS  SECTION
 AND ADMINISTER THE HIGH PRICED DRUG REIMBURSEMENT FUND.
   7.  THE  FUNDS  SO  RECEIVED  AND  DEPOSITED  IN  THE HIGH PRICED DRUG
 REIMBURSEMENT FUND SHALL NOT BE DEEMED TO BE STATE FUNDS.
   8. MONEYS DISTRIBUTED FROM THE FUND SHALL NOT BE SUBJECT TO  APPROPRI-
 ATION.
   9.  NO  AMOUNTS MAY BE PAID OUT OF THIS FUND PRIOR TO APRIL FIRST, TWO
 THOUSAND EIGHTEEN.
   § 5. Subdivision 1 and paragraph (f) of subdivision 2 of section  369-
 bb  of  the  social services law, subdivision 1 as amended and paragraph
 (f) of subdivision 2 as added by section 20 of part A of chapter  56  of
 the  laws  of  2013,  are amended and two new paragraphs (g) and (h) are
 added to subdivision 2 to read as follows:
   1. A [nineteen-member] TWENTY-THREE  MEMBER  drug  utilization  review
 board  is hereby created in the department. The board is responsible for
 the establishment and implementation of medical standards  and  criteria
 for the retrospective and prospective DUR program.
   (f)(I)  The  commissioner shall designate a person from the department
 to serve as chairperson of the board.
   (II) TWO PERSONS WHO ARE HEALTH CARE ECONOMISTS.
   (G) ONE PERSON WHO IS AN ACTUARY.
   (H) ONE PERSON REPRESENTING THE DEPARTMENT OF FINANCIAL SERVICES.
   § 6. Paragraphs (g), (h) and (i) of subdivision 8 of section 369-bb of
 the social services law are relettered paragraphs (h), (i) and (j) and a
 new paragraph (g) is added to read as follows:
   (G) THE REVIEW OF THE DRUG COST AND PRICING OF SPECIFIC DRUGS  SUBMIT-
 TED  TO  THE  BOARD PURSUANT TO SECTION TWO HUNDRED EIGHTY OF THE PUBLIC
 HEALTH LAW, AND THE FORMULATION OF  RECOMMENDATIONS  AS  TO  A  PER-UNIT
 BENCHMARK  PRICE  FOR  SUCH  DRUGS, IN ACCORDANCE WITH THE PROVISIONS OF
 SUCH SECTION.
   § 7. The social services law is amended by adding a new section  365-i
 to read as follows:
   §  365-I.  PRESCRIPTION  DRUGS  IN MEDICAID MANAGED CARE PROGRAMS.  1.
 DEFINITIONS. (A) THE DEFINITIONS OF TERMS IN SECTION TWO HUNDRED SEVENTY
 OF THE PUBLIC HEALTH LAW SHALL APPLY TO THIS SECTION.
   (B) AS USED IN THIS  SECTION,  UNLESS  THE  CONTEXT  CLEARLY  REQUIRES
 OTHERWISE:
   (I)  "MANAGED  CARE  PROVIDER"  MEANS  A  MANAGED  CARE PROVIDER UNDER
 SECTION THREE HUNDRED SIXTY-FOUR-J OF THIS TITLE, A  MANAGED  LONG  TERM
 CARE  PLAN UNDER SECTION FORTY-FOUR HUNDRED THREE-F OF THE PUBLIC HEALTH
 LAW, OR ANY OTHER ENTITY THAT PROVIDES OR ARRANGES FOR THE PROVISION  OF
 MEDICAL  ASSISTANCE  SERVICES  AND  SUPPLIES TO PARTICIPANTS DIRECTLY OR
 INDIRECTLY (INCLUDING BY REFERRAL), INCLUDING CASE MANAGEMENT,  AND  THE
 MANAGED CARE PROVIDER'S AUTHORIZED AGENTS.
   (II)  "PARTICIPANT" MEANS A MEDICAL ASSISTANCE RECIPIENT WHO RECEIVES,
 IS REQUIRED TO RECEIVE OR ELECTS TO RECEIVE HIS OR HER  MEDICAL  ASSIST-
 ANCE SERVICES FROM A MANAGED CARE PROVIDER.
   2.  PROVIDING  AND PAYMENT FOR PRESCRIPTION DRUGS FOR MEDICAID MANAGED
 CARE PROVIDER PARTICIPANTS. PRESCRIPTION DRUGS ELIGIBLE  FOR  REIMBURSE-
 MENT  UNDER THIS ARTICLE PRESCRIBED IN RELATION TO A SERVICE PROVIDED BY
 A MANAGED CARE PROVIDER  SHALL  BE  PROVIDED  AND  PAID  FOR  UNDER  THE
 PREFERRED  DRUG PROGRAM AND THE CLINICAL DRUG REVIEW PROGRAM UNDER TITLE
 ONE OF ARTICLE TWO-A OF THE PUBLIC HEALTH LAW. THE MANAGED CARE PROVIDER
 SHALL ACCOUNT TO AND REIMBURSE THE DEPARTMENT FOR THE NET  COST  TO  THE
 DEPARTMENT  FOR  PRESCRIPTION DRUGS PROVIDED TO THE MANAGED CARE PROVID-

 A. 3007--A                         15
 
 ER'S PARTICIPANTS. PAYMENT FOR PRESCRIPTION DRUGS SHALL BE  INCLUDED  IN
 THE  CAPITATION  PAYMENTS  TO  THE MANAGED CARE PROVIDER FOR SERVICES OR
 SUPPLIES PROVIDED TO A MANAGED CARE PROVIDER'S PARTICIPANTS.
   §  8.  Section 270 of the public health law is amended by adding a new
 subdivision 15 to read as follows:
   15. "THIRD-PARTY HEALTH CARE PAYER"  HAS  ITS  ORDINARY  MEANINGS  AND
 INCLUDES  AN  ENTITY  SUCH  AS A FISCAL ADMINISTRATOR, OR ADMINISTRATIVE
 SERVICES PROVIDER THAT PARTICIPATES IN THE ADMINISTRATION  OF  A  THIRD-
 PARTY HEALTH CARE PAYER SYSTEM.
   § 9. The public health law is amended by adding a new section 274-a to
 read as follows:
   §  274-A.  USE  OF  PREFERRED  DRUG  PROGRAM  AND CLINICAL DRUG REVIEW
 PROGRAM. THE COMMISSIONER SHALL CONTRACT  WITH  ANY  THIRD-PARTY  HEALTH
 CARE  PAYER  THAT  SO CHOOSES, TO USE THE PREFERRED DRUG PROGRAM AND THE
 CLINICAL DRUG REVIEW PROGRAM TO PROVIDE AND PAY FOR  PRESCRIPTION  DRUGS
 FOR  THE  THIRD-PARTY  HEALTH  CARE PAYER'S ENROLLEES. TO CONTRACT UNDER
 THIS SECTION, THE THIRD-PARTY HEALTH CARE PAYER SHALL  PROVIDE  COVERAGE
 FOR  PRESCRIPTION  DRUGS  AUTHORIZED  UNDER  THIS TITLE. THE THIRD-PARTY
 HEALTH CARE PAYER SHALL ACCOUNT TO AND REIMBURSE THE DEPARTMENT FOR  THE
 NET COST TO THE DEPARTMENT FOR PRESCRIPTION DRUGS PROVIDED TO THE THIRD-
 PARTY  HEALTH  CARE  PAYERS' ENROLLEES. THE CONTRACT SHALL INCLUDE TERMS
 REQUIRED BY THE COMMISSIONER.
   § 10. Section 272 of the public health law is amended by adding a  new
 subdivision 12 to read as follows:
   12.  (A)  AS USED IN THIS SECTION, UNLESS THE CONTEXT CLEARLY REQUIRES
 OTHERWISE, "HIGH-PRICED DRUG" MEANS A DRUG WHICH:
   (I) WHEN FIRST INTRODUCED ON THE MARKET,  IS  PROHIBITIVELY  EXPENSIVE
 FOR PATIENTS WHO COULD BENEFIT FROM THE DRUG; OR
   (II)  SUDDENLY OR OVER A RELATIVELY BRIEF PERIOD OF TIME EXPERIENCES A
 LARGE PRICE INCREASE AND SUCH INCREASE IS NOT EXPLAINED BY A SIGNIFICANT
 INCREASE IN INGREDIENT COSTS OR BY SOME OTHER RELEVANT FACTOR; OR
   (III) HAS BEEN DETERMINED TO BE PRICED DISPROPORTIONALLY  IN  RELATION
 TO ITS THERAPEUTIC BENEFITS.
   (B)  WHERE A DRUG MEETS THE CRITERIA IN PARAGRAPH (A) OF THIS SUBDIVI-
 SION:
   (I) THE COMMISSIONER MAY NEGOTIATE WITH THE MANUFACTURER OF  THE  DRUG
 FOR  PAYMENT  OF  AN  ENHANCED  SUPPLEMENTAL REBATE, INCLUDING UNDER ANY
 PROVISION OF THIS SECTION, AND DESIGNATE THE DRUG TO BE ON THE PREFERRED
 DRUG LIST; AND
   (II) THE HIGH-PRICED DRUG SHALL NOT BE PLACED ON  THE  PREFERRED  DRUG
 LIST  IN  THE ABSENCE OF A NEGOTIATED ENHANCED SUPPLEMENTAL REBATE UNDER
 THIS SUBDIVISION, OR A REBATE UNDER SECTION TWO HUNDRED EIGHTY  OF  THIS
 ARTICLE,  NOTWITHSTANDING  PARAGRAPH  (B)  OF  SUBDIVISION  TEN  OF THIS
 SECTION.
   § 11. Subdivisions 25 and 25-a of section 364-j of the social services
 law are REPEALED.
   § 12. The opening paragraph and subparagraphs (i) and  (ii)  of  para-
 graph  (b)  and  paragraph  (d) of subdivision 9 of section 367-a of the
 social services law, the opening paragraph and paragraph (d) as  amended
 by  chapter  19 of the laws of 1998, subparagraphs (i) and (ii) of para-
 graph (b) as amended by section 2 of part C of chapter 60 of the laws of
 2014, subparagraph (i) of paragraph (d) as amended by  section  10-a  of
 part  H of chapter 59 of the laws of 2011 and subparagraph (ii) of para-
 graph (d) as amended by section 48 of part C of chapter 58 of  the  laws
 of 2009, are amended to read as follows:

 A. 3007--A                         16
 
   Notwithstanding any inconsistent provision of law or regulation to the
 contrary,  for  those  drugs  which  may  not  be  dispensed  without  a
 prescription as required by  section  sixty-eight  hundred  ten  of  the
 education  law and for which payment is authorized pursuant to paragraph
 (g)  of  subdivision  two  of section three hundred sixty-five-a of this
 title, AND FOR THOSE DRUGS THAT ARE AVAILABLE WITHOUT A PRESCRIPTION  AS
 REQUIRED BY SECTION SIXTY-EIGHT HUNDRED TEN OF THE EDUCATION LAW BUT ARE
 REIMBURSED  AS  ITEMS OF MEDICAL ASSISTANCE PURSUANT TO PARAGRAPH (A) OF
 SUBDIVISION FOUR OF SECTION THREE HUNDRED SIXTY-FIVE-A  OF  THIS  TITLE,
 payments under this title shall be made at the following amounts:
   (i)  [if the drug dispensed is a multiple source prescription drug for
 which an upper limit has been set by the federal  centers  for  medicare
 and medicaid services, the lower of: (A) an amount equal to the specific
 upper  limit  set  by  such  federal  agency  for  the  multiple  source
 prescription drug; (B) the estimated acquisition cost of  such  drug  to
 pharmacies  which,  for  purposes  of  this subparagraph, shall mean the
 average wholesale price of a prescription drug based on the package size
 dispensed from, as reported by the  prescription  drug  pricing  service
 used  by the department, less twenty-five percent thereof; (C) the maxi-
 mum acquisition cost, if any, established pursuant to paragraph  (e)  of
 this  subdivision,  provided that the methodology used by the department
 to establish a maximum acquisition cost shall not include average acqui-
 sition cost as determined by department surveys; or (D)  the  dispensing
 pharmacy's usual and customary price charged to the general public; and]
 IF  THE DRUG DISPENSED IS A GENERIC PRESCRIPTION DRUG, OR IS A DRUG THAT
 IS AVAILABLE WITHOUT A PRESCRIPTION AS REQUIRED BY  SECTION  SIXTY-EIGHT
 HUNDRED TEN OF THE EDUCATION LAW BUT IS REIMBURSED AS AN ITEM OF MEDICAL
 ASSISTANCE  PURSUANT  TO  PARAGRAPH  (A)  OF SUBDIVISION FOUR OF SECTION
 THREE HUNDRED SIXTY-FIVE-A OF THIS TITLE, THE LOWER OF:  (A)  AN  AMOUNT
 EQUAL  TO  THE NATIONAL AVERAGE DRUG ACQUISITION COST SET BY THE FEDERAL
 CENTERS FOR MEDICARE AND MEDICAID SERVICES FOR THE DRUG, IF ANY,  OR  IF
 SUCH AMOUNT IF NOT AVAILABLE, THE WHOLESALE ACQUISITION COST OF THE DRUG
 BASED   ON   THE  PACKAGE  SIZE  DISPENSED  FROM,  AS  REPORTED  BY  THE
 PRESCRIPTION DRUG PRICING SERVICE USED BY THE DEPARTMENT; (B) THE FEDER-
 AL UPPER LIMIT, IF ANY, ESTABLISHED BY THE FEDERAL CENTERS FOR  MEDICARE
 AND  MEDICAID  SERVICES; (C) THE STATE MAXIMUM ACQUISITION COST, IF ANY,
 ESTABLISHED PURSUANT TO PARAGRAPH (E) OF THIS SUBDIVISION;  OR  (D)  THE
 DISPENSING  PHARMACY'S  USUAL AND CUSTOMARY PRICE CHARGED TO THE GENERAL
 PUBLIC;
   (ii) if the drug dispensed is [a multiple source prescription drug or]
 a brand-name prescription drug [for which no specific  upper  limit  has
 been  set  by such federal agency], the lower of [the estimated acquisi-
 tion cost of such drug to pharmacies or the dispensing pharmacy's  usual
 and customary price charged to the general public. For sole and multiple
 source  brand  name  drugs, estimated acquisition cost means the average
 wholesale price of a prescription  drug  based  upon  the  package  size
 dispensed  from,  as  reported  by the prescription drug pricing service
 used by the department, less seventeen percent thereof or the  wholesale
 acquisition  cost  of  a  prescription  drug  based  upon  package  size
 dispensed from, as reported by the  prescription  drug  pricing  service
 used  by  the  department,  minus  zero and forty-one hundredths percent
 thereof, and updated monthly by  the  department.  For  multiple  source
 generic drugs, estimated acquisition cost means the lower of the average
 wholesale  price  of  a  prescription  drug  based  on  the package size
 dispensed from, as reported by the  prescription  drug  pricing  service
 used by the department, less twenty-five percent thereof, or the maximum

 A. 3007--A                         17

 acquisition  cost, if any, established pursuant to paragraph (e) of this
 subdivision, provided that the methodology used  by  the  department  to
 establish  a maximum acquisition cost shall not include average acquisi-
 tion cost as determined by department surveys.]:
   (A)  AN AMOUNT EQUAL TO THE NATIONAL AVERAGE DRUG ACQUISITION COST SET
 BY THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID SERVICES FOR THE  DRUG,
 IF  ANY,  OR  IF SUCH AMOUNT IS NOT AVAILABLE, THE WHOLESALE ACQUISITION
 COST OF THE DRUG BASED ON THE PACKAGE SIZE DISPENSED FROM,  AS  REPORTED
 BY  THE PRESCRIPTION DRUG PRICING SERVICE USED BY THE DEPARTMENT; OR (B)
 THE DISPENSING PHARMACY'S USUAL  AND  CUSTOMARY  PRICE  CHARGED  TO  THE
 GENERAL PUBLIC; AND
   (d)  In addition to the amounts paid pursuant to paragraph (b) of this
 subdivision [to pharmacies for those drugs which may  not  be  dispensed
 without  a  prescription, as required by section sixty-eight hundred ten
 of the education law and for which payment  is  authorized  pursuant  to
 paragraph  (g)  of subdivision two of section three hundred sixty-five-a
 of this  title],  the  department  shall  pay  a  PROFESSIONAL  pharmacy
 dispensing  fee  for  each  such  [prescription]  drug dispensed[, which
 dispensing fee shall not be less than the following amounts:
   (i) for prescription drugs categorized as generic by the  prescription
 drug  pricing  service  used  by the department, three dollars and fifty
 cents per prescription; and
   (ii) for prescription drugs  categorized  as  brand-name  prescription
 drugs  by  the prescription drug pricing service used by the department,
 three dollars and fifty cents per prescription, provided, however,  that
 for  brand  name  prescription drugs reimbursed pursuant to subparagraph
 (ii) of paragraph (a-1) of subdivision four  of  section  three  hundred
 sixty-five-a of this title, the dispensing fee shall be four dollars and
 fifty  cents  per  prescription]  IN  THE  AMOUNT  OF  TEN  DOLLARS  PER
 PRESCRIPTION OR WRITTEN ORDER OF A PRACTITIONER; PROVIDED, HOWEVER  THAT
 THIS PROFESSIONAL DISPENSING FEE WILL NOT APPLY TO DRUGS THAT ARE AVAIL-
 ABLE  WITHOUT  A PRESCRIPTION AS REQUIRED BY SECTION SIXTY-EIGHT HUNDRED
 TEN OF THE EDUCATION LAW BUT DO NOT MEET THE  DEFINITION  OF  A  COVERED
 OUTPATIENT DRUG PURSUANT TO SECTION 1927K OF THE SOCIAL SECURITY ACT.
   §  13.  It  shall  be an unacceptable practice in the Medicaid program
 established pursuant to title 11 of article 5 of the social services law
 for a provider to prescribe opioids in violation of the requirements  of
 paragraph  (g-1)  of  subdivision  2  of  section  365-a of such law, in
 violation of any  other  applicable  law  limiting  or  restricting  the
 prescribing of opioids, and/or contrary to recommendations issued by the
 drug  utilization  review  board  established  by  section 369-bb of the
 social services law, such practice may  result  in  the  provider  being
 sanctioned pursuant to 18 NYCRR 515.
   §  14. Paragraph (g-1) of subdivision 2 of section 365-a of the social
 services law, as amended by section 5 of part C of  chapter  60  of  the
 laws of 2014, is amended to read as follows:
   (g-1)  drugs provided on an in-patient basis, those drugs contained on
 the list established by regulation of the commissioner of health  pursu-
 ant  to  subdivision four of this section, and those drugs which may not
 be dispensed without a prescription as required by  section  sixty-eight
 hundred  ten  of  the education law and which the commissioner of health
 shall determine to be reimbursable based upon such factors as the avail-
 ability of such drugs or alternatives at low  cost  if  purchased  by  a
 medicaid  recipient,  or the essential nature of such drugs as described
 by such commissioner in regulations, provided, however, that such drugs,
 exclusive of long-term maintenance drugs, shall be dispensed in  quanti-

 A. 3007--A                         18
 
 ties no greater than a thirty day supply or one hundred doses, whichever
 is  greater; provided further that the commissioner of health is author-
 ized to require prior authorization for any  refill  of  a  prescription
 when  more  than  a  ten  day  supply of the previously dispensed amount
 should remain were the product used as normally  indicated,  OR  IN  THE
 CASE  OF  A  CONTROLLED  SUBSTANCE,  AS  DEFINED IN SECTION THIRTY-THREE
 HUNDRED TWO OF THE PUBLIC HEALTH LAW, WHEN MORE THAN A SEVEN DAY  SUPPLY
 OF  THE  PREVIOUSLY DISPENSED AMOUNT SHOULD REMAIN WERE THE PRODUCT USED
 AS NORMALLY INDICATED; provided further that the commissioner of  health
 is  authorized to require prior authorization of prescriptions of opioid
 analgesics in excess of four prescriptions in  a  thirty-day  period  in
 accordance  with  section two hundred seventy-three of the public health
 law; medical assistance shall not include any  drug  provided  on  other
 than  an in-patient basis for which a recipient is charged or a claim is
 made in the case of a prescription drug, in excess of the maximum  reim-
 bursable  amounts to be established by department regulations in accord-
 ance with standards established by the secretary of  the  United  States
 department  of  health and human services, or, in the case of a drug not
 requiring a prescription, in excess of the maximum  reimbursable  amount
 established  by  the commissioner of health pursuant to paragraph (a) of
 subdivision four of this section;
   § 15. Subparagraph (iii) of paragraph (c) of subdivision 6 of  section
 367-a  of  the social services law, as amended by section 9 of part C of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (iii) Notwithstanding any other provision of this  paragraph,  co-pay-
 ments  charged for each generic prescription drug dispensed shall be one
 dollar and for each brand name  prescription  drug  dispensed  shall  be
 [three dollars] TWO DOLLARS AND FIFTY CENTS; provided, however, that the
 co-payments  charged  for  [each  brand  name  prescription  drug on the
 preferred drug list established pursuant to section two  hundred  seven-
 ty-two of the public health law or, for managed care providers operating
 pursuant  to  section three hundred sixty-four-j of this title, for each
 brand name prescription drug on a managed care provider's formulary that
 such provider has designated as a preferred drug,  and  the  co-payments
 charged  for]  each  brand name prescription drug reimbursed pursuant to
 subparagraph (ii) of paragraph (a-1)  of  subdivision  four  of  section
 three hundred sixty-five-a of this title shall be one dollar.
   §  16.  Subparagraphs  1  and  5  of paragraph (f) of subdivision 7 of
 section 367-a of the social services law, as added by section 11 of part
 B of chapter 59 of the laws of 2016, are amended to read as follows:
   (1) The department 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. § 1396r-8(k), to provide rebates to the depart-
 ment for any drug that has increased more than three hundred percent  of
 its  state  maximum  acquisition  cost  (SMAC)[, on or after] DURING THE
 PERIOD April 1, 2016 THROUGH MARCH 31, 2017, OR THAT HAS INCREASED  MORE
 THAN  SEVENTY-FIVE  PERCENT  OF  ITS  SMAC ON OR AFTER APRIL 1, 2017, in
 comparison to its SMAC at any time during the course  of  the  preceding
 twelve  months.  The  required  rebate shall be limited to the amount by
 which the current SMAC for the drug exceeds [three hundred percent]  THE
 APPLICABLE  PERCENTAGE  of the SMAC for the same drug at any time during
 the course of the preceding twelve months.  Such  rebates  shall  be  in
 addition  to any rebates payable to the department pursuant to any other
 provision of federal or state  law.  Nothing  herein  shall  affect  the
 department's obligation to reimburse for covered outpatient drugs pursu-
 ant to paragraph (d) of this subdivision.

 A. 3007--A                         19
 
   (5)  Beginning in two thousand seventeen, the department shall provide
 an annual report to the legislature no later than February first setting
 forth:
   (i) The number of drugs that exceeded the ceiling price established in
 this  paragraph during the preceding year in comparison to the number of
 drugs that experienced at least a three hundred percent  price  increase
 during  two  thousand  fourteen  and two thousand fifteen, OR AT LEAST A
 SEVENTY-FIVE PERCENT PRICE INCREASE DURING TWO THOUSAND FIFTEEN AND  TWO
 THOUSAND SIXTEEN;
   (ii)  The average percent amount above the ceiling price of drugs that
 exceeded the ceiling price in the preceding year in  comparison  to  the
 number  of  drugs  that  experienced  a  price  increase more than three
 hundred percent during two thousand fourteen and two  thousand  fifteen,
 OR  AT  LEAST  A SEVENTY-FIVE PERCENT PRICE INCREASE DURING TWO THOUSAND
 FIFTEEN AND TWO THOUSAND SIXTEEN;
   (iii) The number of generic drugs available to enrollees  in  Medicaid
 fee  for  service  or  Medicaid  managed care, by fiscal quarter, in the
 preceding year in comparison to the drugs available, by fiscal  quarter,
 during  two thousand fourteen [and], two thousand fifteen, AND TWO THOU-
 SAND SIXTEEN; and
   (iv) The total drug spend on generic drugs for the preceding  year  in
 comparison  to the total drug spend on generic drugs during two thousand
 fourteen [and], two thousand fifteen, AND TWO THOUSAND SIXTEEN.
   § 17.  Severability. If any clause, sentence, paragraph,  or  subdivi-
 sion  of this section shall be adjudged by any court of competent juris-
 diction to be invalid, such judgment shall not affect, impair, or inval-
 idate the remainder thereof, but shall be confined in its  operation  to
 the clause, sentence, paragraph, or subdivision directly involved in the
 controversy in which such judgment shall have been rendered. It is here-
 by  declared to be the intent of the legislature that this section would
 have been enacted even if such invalid provisions had not been  included
 herein.
   §  18.  This  act shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017; provided,
 however, that sections fourteen, fifteen, and sixteen of this act  shall
 take  effect  July  1,  2017;  provided, further, that the amendments to
 paragraph (c) of subdivision 6 of section 367-a of the  social  services
 law  made  by section fifteen of this act shall not affect the repeal of
 such  paragraph  and  shall  be  deemed  repealed  therewith;  provided,
 further,  that  the  amendments  to  paragraph  (f)  of subdivision 7 of
 section 367-a of the social services law made by section sixteen of this
 act shall not affect the repeal of such paragraph and  shall  be  deemed
 repealed therewith; and provided, further, that the amendments to subdi-
 vision  9  of  section  367-a of the social services law made by section
 twelve of this act shall not affect the expiration of  such  subdivision
 and shall be deemed to expire therewith.
 
                                  PART E
 
                           Intentionally Omitted
 
                                  PART F
 
   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:

 A. 3007--A                         20
 
   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;
 AND ADULT DAY HEALTH CARE PROGRAMS LOCATED  AT  A  LICENSED  RESIDENTIAL
 HEALTH  CARE  FACILITY AS DEFINED BY SECTION TWENTY-EIGHT HUNDRED ONE OF
 THE PUBLIC HEALTH LAW OR AN APPROVED EXTENSION SITE THEREOF. Any  trans-
 portation  manager  or  managers  selected by the commissioner to manage
 transportation services shall have  proven  experience  in  coordinating
 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  processing  of
 transportation  orders; management of the appropriate level of transpor-
 tation 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.
   § 2. This act shall take effect October 1,  2017;  provided,  further,
 that  the amendments to section 365-h of the social services law made by
 section one of this act shall not affect the repeal of such section  and
 shall be deemed repealed therewith.
 
                                  PART G
 
                           Intentionally Omitted
 
                                  PART H
 
   Section  1. Subdivision 5 of section 168 of chapter 639 of the laws of
 1996, constituting the New York Health  Care  Reform  Act  of  1996,  as
 amended  by  section  1  of part B of chapter 60 of the laws of 2014, is
 amended to read as follows:
   5. sections 2807-c, 2807-j, 2807-s and 2807-t  of  the  public  health
 law,  as  amended  or as added by this act, shall expire on December 31,
 [2017] 2020, and shall be thereafter effective only in  respect  to  any
 act  done  on or before such date or action or proceeding arising out of
 such act including continued collections of funds from  assessments  and
 allowances  and  surcharges  established  pursuant  to  sections 2807-c,
 2807-j, 2807-s and 2807-t of the public health law,  and  administration
 and  distributions  of funds from pools established pursuant to sections
 2807-c, 2807-j, 2807-k, 2807-l, 2807-m, 2807-s and 2807-t of the  public
 health  law  related  to  patient  services provided before December 31,

 A. 3007--A                         21
 
 [2017] 2020, and continued expenditure of funds authorized for  programs
 and grants until the exhaustion of funds therefor;
   §  2.  Subdivision  1 of section 138 of chapter 1 of the laws of 1999,
 constituting the New York Health Care Reform Act of 2000, as amended  by
 section  2  of  part  B of chapter 60 of the laws of 2014, is amended to
 read as follows:
   1. sections 2807-c, 2807-j, 2807-s, and 2807-t of  the  public  health
 law,  as  amended by this act, shall expire on December 31, [2017] 2020,
 and shall be thereafter effective only in respect to any act done before
 such date or action or proceeding arising  out  of  such  act  including
 continued  collections  of  funds  from  assessments  and allowances and
 surcharges established pursuant to sections 2807-c, 2807-j,  2807-s  and
 2807-t of the public health law, and administration and distributions of
 funds  from  pools  established  pursuant  to  sections  2807-c, 2807-j,
 2807-k, 2807-l, 2807-m, 2807-s, 2807-t, 2807-v and 2807-w of the  public
 health law, as amended or added by this act, related to patient services
 provided  before  December 31, [2017] 2020, and continued expenditure of
 funds authorized for programs and grants until the exhaustion  of  funds
 therefor;
   §  3.  Subparagraph  (xv) of paragraph (a) of subdivision 6 of section
 2807-s of the public health law, as amended by section 3 of  part  B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xv) A gross annual statewide amount for the period January first, two
 thousand fifteen through December thirty-first, two thousand [seventeen]
 TWENTY, shall be one billion forty-five million dollars.
   §  4. Subparagraph (xiii) of paragraph (a) of subdivision 7 of section
 2807-s of the public health law, as amended by section 4 of  part  B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xiii)  twenty-three million eight hundred thirty-six thousand dollars
 each state fiscal year for the period April first, two  thousand  twelve
 through March thirty-first, two thousand [seventeen] TWENTY;
   §  5.  Subparagraphs (iv) and (v) of paragraph (a) of subdivision 9 of
 section 2807-j of the public health law, as amended by section 5 of part
 B of chapter 60 of the laws of 2014, are amended to read as follows:
   (iv) seven hundred sixty-five million dollars annually  of  the  funds
 accumulated for the periods January first, two thousand through December
 thirty-first, two thousand [sixteen] NINETEEN, and
   (v)  one hundred ninety-one million two hundred fifty thousand dollars
 of the funds accumulated for the  period  January  first,  two  thousand
 [seventeen]  TWENTY through March thirty-first, two thousand [seventeen]
 TWENTY.
   § 6. Subdivisions 5-a and 7 of section 2807-m  of  the  public  health
 law,  as  amended  by  section  9 of part B of chapter 60 of the laws of
 2014, subparagraphs (iv), (v) and (vi) of paragraph (d)  of  subdivision
 5-a  as  added by section 4 of part W of chapter 57 of the laws of 2015,
 are amended to read as follows:
   5-a. Graduate medical education  innovations  pool.  (a)  Supplemental
 distributions.  (i)  Thirty-one  million  dollars for the period January
 first, two thousand eight through December  thirty-first,  two  thousand
 eight,  shall  be  set  aside  and reserved by the commissioner from the
 regional pools established pursuant to subdivision two of  this  section
 and shall be available for distributions pursuant to subdivision five of
 this  section  and in accordance with section 86-1.89 of title 10 of the
 codes, rules and regulations of the state of New York as  in  effect  on
 January  first,  two  thousand eight; provided, however, for purposes of
 funding the empire clinical research investigation  program  (ECRIP)  in

 A. 3007--A                         22
 
 accordance  with paragraph eight of subdivision (e) and paragraph two of
 subdivision (f) of section 86-1.89 of title 10 of the codes,  rules  and
 regulations  of the state of New York, distributions shall be made using
 two  regions  defined as New York city and the rest of the state and the
 dollar amount set forth in subparagraph (i) of paragraph two of subdivi-
 sion (f) of section 86-1.89 of title 10 of the codes,  rules  and  regu-
 lations  of the state of New York shall be increased from sixty thousand
 dollars to seventy-five thousand dollars.
   (ii) For periods on  and  after  January  first,  two  thousand  nine,
 supplemental  distributions pursuant to subdivision five of this section
 and in accordance with section 86-1.89 of title 10 of the  codes,  rules
 and regulations of the state of New York shall no longer be made and the
 provisions  of section 86-1.89 of title 10 of the codes, rules and regu-
 lations of the state of New York shall be null and void.
   (b)  Empire  clinical  research  investigator  program  (ECRIP).  Nine
 million  one  hundred  twenty  thousand  dollars annually for the period
 January first, two thousand  nine  through  December  thirty-first,  two
 thousand  ten,  and  two million two hundred eighty thousand dollars for
 the period January first, two thousand  eleven,  through  March  thirty-
 first,  two  thousand  eleven,  nine million one hundred twenty thousand
 dollars each state fiscal year for the period April first, two  thousand
 eleven  through  March  thirty-first, two thousand fourteen, [and] up to
 eight million six hundred twelve thousand dollars each state fiscal year
 for the period April first, two thousand fourteen through March  thirty-
 first,  two thousand seventeen, AND WITHIN AMOUNTS APPROPRIATED FOR EACH
 STATE FISCAL YEAR FOR PERIODS ON AND AFTER  APRIL  FIRST,  TWO  THOUSAND
 SEVENTEEN,  shall be set aside and reserved by the commissioner from the
 regional pools established pursuant to subdivision two of  this  section
 to  be  allocated  regionally  with  two-thirds of the available funding
 going to New York city and one-third of the available funding  going  to
 the  rest  of  the  state  and  shall  be  available for distribution as
 follows:
   Distributions shall first be made to consortia  and  teaching  general
 hospitals  for the empire clinical research investigator program (ECRIP)
 to help secure federal funding for biomedical research,  train  clinical
 researchers,  recruit national leaders as faculty to act as mentors, and
 train residents and fellows  in  biomedical  research  skills  based  on
 hospital-specific  data  submitted  to the commissioner by consortia and
 teaching general hospitals in accordance with clause (G) of this subpar-
 agraph. Such distributions shall be made in accordance with the  follow-
 ing methodology:
   (A)  The  greatest  number  of clinical research positions for which a
 consortium or teaching general hospital may be funded pursuant  to  this
 subparagraph  shall  be  one  percent  of  the total number of residents
 training at the consortium or teaching general hospital on  July  first,
 two  thousand  eight  for  the  period  January first, two thousand nine
 through December thirty-first, two thousand nine rounded up to the near-
 est one position.
   (B) Distributions made to a consortium or  teaching  general  hospital
 shall  equal  the product of the total number of clinical research posi-
 tions submitted  by  a  consortium  or  teaching  general  hospital  and
 accepted  by the commissioner as meeting the criteria set forth in para-
 graph (b) of subdivision one of this section, subject to  the  reduction
 calculation  set  forth  in  clause  (C) of this subparagraph, times one
 hundred ten thousand dollars.

 A. 3007--A                         23
 
   (C) If the dollar amount for the total  number  of  clinical  research
 positions  in  the  region  calculated  pursuant  to  clause (B) of this
 subparagraph exceeds the total amount appropriated for purposes of  this
 paragraph,  including clinical research positions that continue from and
 were funded in prior distribution periods, the commissioner shall elimi-
 nate  one-half  of  the  clinical  research  positions submitted by each
 consortium or teaching general hospital rounded down to the nearest  one
 position.  Such  reduction shall be repeated until the dollar amount for
 the total number of clinical research positions in the region  does  not
 exceed  the total amount appropriated for purposes of this paragraph. If
 the repeated reduction of the total number of  clinical  research  posi-
 tions  in  the region by one-half does not render a total funding amount
 that is equal to or less than the total amount reserved for that  region
 within  the  appropriation, the funding for each clinical research posi-
 tion in that region shall be  reduced  proportionally  in  one  thousand
 dollar  increments until the total dollar amount for the total number of
 clinical research positions in that region does  not  exceed  the  total
 amount  reserved for that region within the appropriation. Any reduction
 in funding will be effective for the duration of the award. No  clinical
 research  positions that continue from and were funded in prior distrib-
 ution periods shall be eliminated or reduced by such methodology.
   (D) Each consortium or teaching general  hospital  shall  receive  its
 annual distribution amount in accordance with the following:
   (I) Each consortium or teaching general hospital with a one-year ECRIP
 award  shall  receive  its  annual  distribution  amount  in  full  upon
 completion of the requirements set forth in items (I) and (II) of clause
 (G) of this subparagraph. The requirements set forth in items  (IV)  and
 (V)  of clause (G) of this subparagraph must be completed by the consor-
 tium or teaching general hospital in order for the consortium or  teach-
 ing  general  hospital  to be eligible to apply for ECRIP funding in any
 subsequent funding cycle.
   (II) Each consortium or teaching  general  hospital  with  a  two-year
 ECRIP  award  shall receive its first annual distribution amount in full
 upon completion of the requirements set forth in items (I) and  (II)  of
 clause  (G)  of  this  subparagraph. Each consortium or teaching general
 hospital will receive its second annual distribution amount in full upon
 completion of the requirements set forth in item (III) of clause (G)  of
 this  subparagraph.  The requirements set forth in items (IV) and (V) of
 clause (G) of this subparagraph must be completed by the  consortium  or
 teaching general hospital in order for the consortium or teaching gener-
 al  hospital to be eligible to apply for ECRIP funding in any subsequent
 funding cycle.
   (E) Each consortium or teaching general  hospital  receiving  distrib-
 utions pursuant to this subparagraph shall reserve seventy-five thousand
 dollars  to  primarily  fund  salary and fringe benefits of the clinical
 research position with the remainder going to fund  the  development  of
 faculty  who  are involved in biomedical research, training and clinical
 care.
   (F)  Undistributed  or  returned  funds  available  to  fund  clinical
 research  positions pursuant to this paragraph for a distribution period
 shall be available to fund clinical research positions in  a  subsequent
 distribution period.
   (G) In order to be eligible for distributions pursuant to this subpar-
 agraph,  each  consortium and teaching general hospital shall provide to
 the commissioner by July first of each distribution period, the  follow-
 ing  data  and  information  on a hospital-specific basis. Such data and

 A. 3007--A                         24

 information shall be certified as to accuracy and  completeness  by  the
 chief executive officer, chief financial officer or chair of the consor-
 tium  governing body of each consortium or teaching general hospital and
 shall be maintained by each consortium and teaching general hospital for
 five years from the date of submission:
   (I)  For  each  clinical  research  position, information on the type,
 scope, training objectives,  institutional  support,  clinical  research
 experience of the sponsor-mentor, plans for submitting research outcomes
 to  peer reviewed journals and at scientific meetings, including a meet-
 ing sponsored by the department, the name of a principal contact  person
 responsible for tracking the career development of researchers placed in
 clinical  research positions, as defined in paragraph (c) of subdivision
 one of this section, and who is authorized to certify to the commission-
 er that all the requirements of the clinical  research  training  objec-
 tives  set  forth  in this subparagraph shall be met. Such certification
 shall be provided by July first of each distribution period;
   (II) For each clinical research position,  information  on  the  name,
 citizenship  status, medical education and training, and medical license
 number of the researcher, if applicable, shall be provided  by  December
 thirty-first of the calendar year following the distribution period;
   (III)  Information on the status of the clinical research plan, accom-
 plishments, changes in research activities, progress, and performance of
 the researcher shall be provided upon  completion  of  one-half  of  the
 award term;
   (IV)  A  final report detailing training experiences, accomplishments,
 activities and performance of the clinical researcher, and  data,  meth-
 ods,  results  and  analyses  of  the  clinical  research  plan shall be
 provided three months after the clinical research position ends; and
   (V) Tracking information concerning past  researchers,  including  but
 not  limited  to (A) background information, (B) employment history, (C)
 research status, (D) current research activities, (E)  publications  and
 presentations,  (F)  research  support,  and  (G)  any other information
 necessary to track the researcher; and
   (VI) Any other data or information required  by  the  commissioner  to
 implement this subparagraph.
   (H)  Notwithstanding  any  inconsistent provision of this subdivision,
 for periods on and after April first, two thousand thirteen, ECRIP grant
 awards shall be made in accordance with rules and regulations promulgat-
 ed by the commissioner. Such regulations shall, at a minimum:
   (1) provide that ECRIP grant awards shall be made with  the  objective
 of  securing  federal funding for biomedical research, training clinical
 researchers, recruiting national leaders as faculty to act  as  mentors,
 and training residents and fellows in biomedical research skills;
   (2)  provide that ECRIP grant applicants may include interdisciplinary
 research teams comprised of teaching general hospitals acting in collab-
 oration with entities including but  not  limited  to  medical  centers,
 hospitals, universities and local health departments;
   (3) provide that applications for ECRIP grant awards shall be based on
 such  information requested by the commissioner, which shall include but
 not be limited to hospital-specific data;
   (4) establish the qualifications for  investigators  and  other  staff
 required for grant projects eligible for ECRIP grant awards; and
   (5)  establish a methodology for the distribution of funds under ECRIP
 grant awards.
   (c) Ambulatory care  training.  Four  million  nine  hundred  thousand
 dollars  for the period January first, two thousand eight through Decem-

 A. 3007--A                         25
 
 ber thirty-first, two thousand eight, four million nine hundred thousand
 dollars for the period January first, two thousand nine through December
 thirty-first, two thousand nine,  four  million  nine  hundred  thousand
 dollars  for the period January first, two thousand ten through December
 thirty-first, two thousand ten,  one  million  two  hundred  twenty-five
 thousand  dollars  for  the  period  January  first, two thousand eleven
 through March thirty-first, two  thousand  eleven,  four  million  three
 hundred  thousand  dollars  each  state fiscal year for the period April
 first, two thousand eleven  through  March  thirty-first,  two  thousand
 fourteen,  [and]  up  to  four million sixty thousand dollars each state
 fiscal year for the period April first, two  thousand  fourteen  through
 March thirty-first, two thousand seventeen, AND WITHIN AMOUNTS APPROPRI-
 ATED  FOR  EACH  STATE FISCAL YEAR FOR PERIODS ON AND AFTER APRIL FIRST,
 TWO THOUSAND SEVENTEEN, shall be set aside and reserved by  the  commis-
 sioner  from  the regional pools established pursuant to subdivision two
 of this section and shall be available for distributions  to  sponsoring
 institutions  to  be  directed  to  support clinical training of medical
 students  and  residents  in  free-standing  ambulatory  care  settings,
 including  community  health centers and private practices. Such funding
 shall be allocated regionally with two-thirds of the  available  funding
 going  to  New York city and one-third of the available funding going to
 the rest of the state and shall  be  distributed  to  sponsoring  insti-
 tutions  in each region pursuant to a request for application or request
 for proposal process with preference being given  to  sponsoring  insti-
 tutions  which provide training in sites located in underserved rural or
 inner-city areas and those that include medical students in such  train-
 ing.
   (d)  Physician  loan repayment program. One million nine hundred sixty
 thousand dollars for  the  period  January  first,  two  thousand  eight
 through  December  thirty-first,  two  thousand  eight, one million nine
 hundred sixty thousand dollars for the period January first,  two  thou-
 sand  nine through December thirty-first, two thousand nine, one million
 nine hundred sixty thousand dollars for the period  January  first,  two
 thousand  ten  through  December  thirty-first,  two  thousand ten, four
 hundred ninety thousand dollars for the period January first, two  thou-
 sand eleven through March thirty-first, two thousand eleven, one million
 seven  hundred  thousand  dollars  each state fiscal year for the period
 April first, two thousand eleven through March thirty-first,  two  thou-
 sand  fourteen,  [and]  up  to  one  million seven hundred five thousand
 dollars each state fiscal year for the period April first, two  thousand
 fourteen  through March thirty-first, two thousand seventeen, AND WITHIN
 AMOUNTS APPROPRIATED FOR EACH STATE FISCAL YEAR FOR PERIODS ON AND AFTER
 APRIL FIRST, TWO THOUSAND SEVENTEEN, shall be set aside and reserved  by
 the  commissioner from the regional pools established pursuant to subdi-
 vision two of this section and shall be available for purposes of physi-
 cian loan repayment in accordance with subdivision ten of this  section.
 Notwithstanding  any  contrary  provision  of this section, sections one
 hundred twelve and one hundred sixty-three of the state finance law,  or
 any  other  contrary  provision  of law, such funding shall be allocated
 regionally with one-third of available funds going to New York city  and
 two-thirds  of  available funds going to the rest of the state and shall
 be distributed in a manner to be determined by the commissioner  without
 a competitive bid or request for proposal process as follows:
   (i) Funding shall first be awarded to repay loans of up to twenty-five
 physicians  who  train  in  primary care or specialty tracks in teaching

 A. 3007--A                         26
 
 general hospitals, and who enter and remain in primary care or specialty
 practices in underserved communities, as determined by the commissioner.
   (ii)  After  distributions in accordance with subparagraph (i) of this
 paragraph, all remaining funds shall be awarded to repay loans of physi-
 cians who enter and remain in primary care  or  specialty  practices  in
 underserved  communities,  as  determined by the commissioner, including
 but not limited to physicians working in  general  hospitals,  or  other
 health care facilities.
   (iii)  In no case shall less than fifty percent of the funds available
 pursuant to this paragraph be distributed in  accordance  with  subpara-
 graphs (i) and (ii) of this paragraph to physicians identified by gener-
 al hospitals.
   (iv)  In addition to the funds allocated under this paragraph, for the
 period April first, two thousand fifteen through March thirty-first, two
 thousand sixteen,  two  million  dollars  shall  be  available  for  the
 purposes described in subdivision ten of this section;
   (v)  In  addition to the funds allocated under this paragraph, for the
 period April first, two thousand sixteen through March thirty-first, two
 thousand seventeen, two million  dollars  shall  be  available  for  the
 purposes described in subdivision ten of this section;
   (vi) Notwithstanding any provision of law to the contrary, and subject
 to the extension of the Health Care Reform Act of 1996, sufficient funds
 shall be available for the purposes described in subdivision ten of this
 section  in amounts necessary to fund the remaining year commitments for
 awards made pursuant to subparagraphs (iv) and (v) of this paragraph.
   (e) Physician practice support. Four  million  nine  hundred  thousand
 dollars  for the period January first, two thousand eight through Decem-
 ber thirty-first, two thousand eight, four million nine hundred thousand
 dollars annually for the period January first, two thousand nine through
 December thirty-first, two thousand ten, one million two  hundred  twen-
 ty-five  thousand  dollars  for  the  period January first, two thousand
 eleven through March thirty-first, two  thousand  eleven,  four  million
 three  hundred  thousand  dollars  each state fiscal year for the period
 April first, two thousand eleven through March thirty-first,  two  thou-
 sand  fourteen,  [and]  up  to four million three hundred sixty thousand
 dollars each state fiscal year for the period April first, two  thousand
 fourteen  through March thirty-first, two thousand seventeen, AND WITHIN
 AMOUNTS APPROPRIATED FOR EACH STATE FISCAL YEAR FOR PERIODS ON AND AFTER
 APRIL FIRST, TWO THOUSAND SEVENTEEN, shall be set aside and reserved  by
 the  commissioner from the regional pools established pursuant to subdi-
 vision two of this section and shall be available for purposes of physi-
 cian practice support. Notwithstanding any contrary  provision  of  this
 section,  sections one hundred twelve and one hundred sixty-three of the
 state finance law, or any other contrary provision of law, such  funding
 shall be allocated regionally with one-third of available funds going to
 New York city and two-thirds of available funds going to the rest of the
 state  and  shall  be  distributed  in  a manner to be determined by the
 commissioner without a competitive bid or request for  proposal  process
 as follows:
   (i)  Preference in funding shall first be accorded to teaching general
 hospitals for up to twenty-five awards, to  support  costs  incurred  by
 physicians  trained in primary or specialty tracks who thereafter estab-
 lish or join practices in underserved communities, as determined by  the
 commissioner.
   (ii)  After  distributions in accordance with subparagraph (i) of this
 paragraph, all remaining funds shall be awarded to physicians to support

 A. 3007--A                         27
 
 the cost of establishing or joining practices  in  underserved  communi-
 ties,  as  determined  by  the  commissioner, and to hospitals and other
 health care providers to recruit new physicians to provide  services  in
 underserved communities, as determined by the commissioner.
   (iii)  In no case shall less than fifty percent of the funds available
 pursuant to this  paragraph  be  distributed  to  general  hospitals  in
 accordance with subparagraphs (i) and (ii) of this paragraph.
   (e-1) Work group. For funding available pursuant to paragraphs (d) and
 (e) of this subdivision:
   (i)  The  department  shall  appoint a work group from recommendations
 made by associations  representing  physicians,  general  hospitals  and
 other  health care facilities to develop a streamlined application proc-
 ess by June first, two thousand twelve.
   (ii) Subject to available funding, applications shall be accepted on a
 continuous basis. The department shall provide technical  assistance  to
 applicants  to facilitate their completion of applications. An applicant
 shall be notified in writing  by  the  department  within  ten  days  of
 receipt  of an application as to whether the application is complete and
 if the application is incomplete, what information is  outstanding.  The
 department  shall act on an application within thirty days of receipt of
 a complete application.
   (f) Study on physician workforce. Five hundred ninety thousand dollars
 annually for the period January first, two thousand eight through Decem-
 ber thirty-first, two thousand ten,  one  hundred  forty-eight  thousand
 dollars  for the period January first, two thousand eleven through March
 thirty-first, two thousand eleven, five hundred sixteen thousand dollars
 each state fiscal year for the period April first, two  thousand  eleven
 through  March  thirty-first,  two  thousand  fourteen, [and] up to four
 hundred eighty-seven thousand dollars each state  fiscal  year  for  the
 period  April  first,  two thousand fourteen through March thirty-first,
 two thousand seventeen, AND WITHIN AMOUNTS APPROPRIATED FOR  EACH  STATE
 FISCAL  YEAR  FOR  PERIODS  ON  AND  AFTER  APRIL  FIRST,  TWO  THOUSAND
 SEVENTEEN, shall be set aside and reserved by the commissioner from  the
 regional  pools  established pursuant to subdivision two of this section
 and shall be available to fund a study of physician workforce needs  and
 solutions  including,  but  not  limited  to,  an  analysis of residency
 programs and projected physician  workforce  and  community  needs.  The
 commissioner  shall enter into agreements with one or more organizations
 to conduct such study based on a request for proposal process.
   (g) Diversity in medicine/post-baccalaureate program.  Notwithstanding
 any  inconsistent provision of section one hundred twelve or one hundred
 sixty-three of the state finance law or any other law, one million  nine
 hundred  sixty  thousand  dollars annually for the period January first,
 two thousand eight through December thirty-first, two thousand ten, four
 hundred ninety thousand dollars for the period January first, two  thou-
 sand eleven through March thirty-first, two thousand eleven, one million
 seven  hundred  thousand  dollars  each state fiscal year for the period
 April first, two thousand eleven through March thirty-first,  two  thou-
 sand fourteen, [and] up to one million six hundred five thousand dollars
 each state fiscal year for the period April first, two thousand fourteen
 through  March  thirty-first, two thousand seventeen, AND WITHIN AMOUNTS
 APPROPRIATED FOR EACH STATE FISCAL YEAR FOR PERIODS ON AND  AFTER  APRIL
 FIRST,  TWO  THOUSAND  SEVENTEEN, shall be set aside and reserved by the
 commissioner from the regional pools established pursuant to subdivision
 two of this section and shall be  available  for  distributions  to  the
 Associated  Medical  Schools  of  New York to fund its diversity program

 A. 3007--A                         28
 
 including existing and new post-baccalaureate programs for minority  and
 economically disadvantaged students and encourage participation from all
 medical  schools in New York. The associated medical schools of New York
 shall report to the commissioner on an annual basis regarding the use of
 funds  for  such  purpose  in  such  form and manner as specified by the
 commissioner.
   (h) In the event there are undistributed  funds  within  amounts  made
 available for distributions pursuant to this subdivision, such funds may
 be  reallocated  and  distributed  in current or subsequent distribution
 periods in a manner determined by the commissioner for any  purpose  set
 forth in this subdivision.
   7.  Notwithstanding  any inconsistent provision of section one hundred
 twelve or one hundred sixty-three of the state finance law or any  other
 law,  up  to one million dollars for the period January first, two thou-
 sand through  December  thirty-first,  two  thousand,  one  million  six
 hundred  thousand  dollars  annually  for the periods January first, two
 thousand one through December  thirty-first,  two  thousand  eight,  one
 million  five  hundred thousand dollars annually for the periods January
 first, two thousand nine through  December  thirty-first,  two  thousand
 ten,  three hundred seventy-five thousand dollars for the period January
 first, two thousand eleven  through  March  thirty-first,  two  thousand
 eleven,  one  million  three  hundred twenty thousand dollars each state
 fiscal year for the period April  first,  two  thousand  eleven  through
 March  thirty-first,  two  thousand  fourteen,  [and]  up to two million
 seventy-seven thousand dollars each state fiscal  year  for  the  period
 April first, two thousand fourteen through March thirty-first, two thou-
 sand  seventeen,  AND  WITHIN AMOUNTS APPROPRIATED FOR EACH STATE FISCAL
 YEAR FOR PERIODS ON AND AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN, shall
 be set aside and reserved by the commissioner from  the  regional  pools
 established  pursuant  to  subdivision  two of this section and shall be
 available for distributions to the New York state area health  education
 center  program for the purpose of expanding community-based training of
 medical students. In addition, one  million  dollars  annually  for  the
 period  January first, two thousand eight through December thirty-first,
 two thousand ten, two hundred fifty  thousand  dollars  for  the  period
 January first, two thousand eleven through March thirty-first, two thou-
 sand eleven, and eight hundred eighty thousand dollars each state fiscal
 year for the period April first, two thousand eleven through March thir-
 ty-first,  two thousand fourteen, shall be set aside and reserved by the
 commissioner from the regional pools established pursuant to subdivision
 two of this section and shall be available for distributions to the  New
 York state area health education center program for the purpose of post-
 secondary training of health care professionals who will achieve specif-
 ic  program  outcomes  within  the  New York state area health education
 center program.  The New York state area health education center program
 shall report to the commissioner on an annual basis regarding the use of
 funds for each purpose in such form  and  manner  as  specified  by  the
 commissioner.
   §  7.  Paragraph  (a) of subdivision 12 of section 367-b of the social
 services law, as amended by section 10 of part B of chapter  60  of  the
 laws of 2014, is amended to read as follows:
   (a) For the purpose of regulating cash flow for general hospitals, the
 department  shall develop and implement a payment methodology to provide
 for timely payments for inpatient hospital services  eligible  for  case
 based  payments per discharge based on diagnosis-related groups provided
 during the period January first, nineteen hundred  eighty-eight  through

 A. 3007--A                         29
 
 March  thirty-first  two  thousand [seventeen] TWENTY, by such hospitals
 which elect to participate in the system.
   §  8.  Subdivision  6  of  section 2807-t of the public health law, as
 amended by section 15 of part B of chapter 60 of the laws  of  2014,  is
 amended to read as follows:
   6. Prospective adjustments. (a) The commissioner shall annually recon-
 cile  the  sum  of  the  actual payments made to the commissioner or the
 commissioner's designee for each region pursuant to section twenty-eight
 hundred seven-s of this article and pursuant to  this  section  for  the
 prior  year  with  the regional allocation of the gross annual statewide
 amount specified in subdivision  six  of  section  twenty-eight  hundred
 seven-s  of this article for such prior year. The difference between the
 actual amount raised for a region and the  regional  allocation  of  the
 specified  gross annual amount for such prior year shall be applied as a
 prospective adjustment to the regional allocation of the specified gross
 annual payment amount for such region for the year  next  following  the
 calculation  of  the  reconciliation. The authorized dollar value of the
 adjustments shall be the same as if calculated retrospectively.
   (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
 sion,  for  covered  lives  assessment rate periods on and after January
 first, two thousand fifteen through December thirty-first, two  thousand
 [seventeen]  TWENTY, for amounts collected in the aggregate in excess of
 one billion forty-five million dollars on an annual  basis,  prospective
 adjustments  shall be suspended if the annual reconciliation calculation
 from the prior year would otherwise result in a decrease to the regional
 allocation of the specified gross annual payment amount for that region,
 provided, however, that such suspension shall be lifted upon a  determi-
 nation  by  the  commissioner,  in consultation with the director of the
 budget, that sixty-five million dollars in aggregate collections  on  an
 annual basis over and above one billion forty-five million dollars on an
 annual  basis  have  been reserved and set aside for deposit in the HCRA
 resources fund. Any amounts collected in the aggregate at or  below  one
 billion  forty-five million dollars on an annual basis, shall be subject
 to regional adjustments reconciling any decreases or  increases  to  the
 regional  allocation  in  accordance with paragraph (a) of this subdivi-
 sion.
   § 9. Section 34 of part A3 of chapter 62 of the laws of 2003  amending
 the  general  business  law  and  other  laws relating to enacting major
 components necessary to implement the state fiscal plan for the  2003-04
 state  fiscal  year,  as amended by section 6 of part B of chapter 60 of
 the laws of 2014, is amended to read as follows:
   § 34. (1) Notwithstanding any inconsistent provision of law,  rule  or
 regulation  and  effective  April 1, 2008 through March 31, [2017] 2020,
 the commissioner of health is authorized to transfer and the state comp-
 troller is authorized and directed to receive for deposit to the  credit
 of  the department of health's special revenue fund - other, health care
 reform act (HCRA) resources fund - 061, provider  collection  monitoring
 account,  within  amounts  appropriated each year, those funds collected
 and accumulated pursuant to section 2807-v of  the  public  health  law,
 including  income  from  invested  funds, for the purpose of payment for
 administrative costs of the department of  health  related  to  adminis-
 tration  of  statutory  duties  for  the  collections  and distributions
 authorized by section 2807-v of the public health law.
   (2) Notwithstanding any inconsistent provision of law, rule  or  regu-
 lation  and  effective  April 1, 2008 through March 31, [2017] 2020, the
 commissioner of health is authorized to transfer  and  the  state  comp-

 A. 3007--A                         30

 troller  is authorized and directed to receive for deposit to the credit
 of the department of health's special revenue fund - other, health  care
 reform  act  (HCRA) resources fund - 061, provider collection monitoring
 account,  within  amounts  appropriated each year, those funds collected
 and accumulated and interest earned through surcharges on  payments  for
 health care services pursuant to section 2807-s of the public health law
 and from assessments pursuant to section 2807-t of the public health law
 for the purpose of payment for administrative costs of the department of
 health related to administration of statutory duties for the collections
 and  distributions  authorized by sections 2807-s, 2807-t, and 2807-m of
 the public health law.
   (3) Notwithstanding any inconsistent provision of law, rule  or  regu-
 lation  and  effective  April 1, 2008 through March 31, [2017] 2020, the
 commissioner of health is authorized to transfer and the comptroller  is
 authorized  to  deposit,  within  amounts  appropriated each year, those
 funds authorized for distribution in accordance with the  provisions  of
 paragraph  (a)  of  subdivision 1 of section 2807-l of the public health
 law for the purposes of payment for administrative costs of the  depart-
 ment  of  health  related  to  the  child  health insurance plan program
 authorized pursuant to title 1-A of article 25 of the public health  law
 into  the  special  revenue funds - other, health care reform act (HCRA)
 resources fund - 061, child health insurance account, established within
 the department of health.
   (4) Notwithstanding any inconsistent provision of law, rule  or  regu-
 lation  and  effective  April 1, 2008 through March 31, [2017] 2020, the
 commissioner of health is authorized to transfer and the comptroller  is
 authorized  to  deposit,  within  amounts  appropriated each year, those
 funds authorized for distribution in accordance with the  provisions  of
 paragraph  (e)  of  subdivision 1 of section 2807-l of the public health
 law for the purpose of payment for administrative costs of  the  depart-
 ment  of  health  related to the health occupation development and work-
 place demonstration program established pursuant to section  2807-h  and
 the  health workforce retraining program established pursuant to section
 2807-g of the public health law into the special revenue funds -  other,
 health  care  reform  act (HCRA) resources fund - 061, health occupation
 development and workplace  demonstration  program  account,  established
 within the department of health.
   (5)  Notwithstanding  any inconsistent provision of law, rule or regu-
 lation and effective April 1, 2008 through March 31,  [2017]  2020,  the
 commissioner  of health is authorized to transfer and the comptroller is
 authorized to deposit, within  amounts  appropriated  each  year,  those
 funds  allocated  pursuant  to paragraph (j) of subdivision 1 of section
 2807-v of the public health law for the purpose of payment for  adminis-
 trative  costs  of the department of health related to administration of
 the state's tobacco control programs and cancer services provided pursu-
 ant to sections 2807-r and 1399-ii of the public health  law  into  such
 accounts established within the department of health for such purposes.
   (6)  Notwithstanding  any inconsistent provision of law, rule or regu-
 lation and effective April 1, 2008 through March 31,  [2017]  2020,  the
 commissioner  of health is authorized to transfer and the comptroller is
 authorized to deposit, within amounts appropriated each year, the  funds
 authorized for distribution in accordance with the provisions of section
 2807-l of the public health law for the purposes of payment for adminis-
 trative costs of the department of health related to the programs funded
 pursuant  to  section  2807-l  of the public health law into the special
 revenue funds - other, health care reform act (HCRA)  resources  fund  -

 A. 3007--A                         31
 
 061,  pilot  health insurance account, established within the department
 of health.
   (7)  Notwithstanding  any inconsistent provision of law, rule or regu-
 lation and effective April 1, 2008 through March 31,  [2017]  2020,  the
 commissioner  of health is authorized to transfer and the comptroller is
 authorized to deposit, within  amounts  appropriated  each  year,  those
 funds  authorized  for distribution in accordance with the provisions of
 subparagraph (ii) of paragraph (f) of subdivision 19 of  section  2807-c
 of  the public health law from monies accumulated and interest earned in
 the bad debt and charity care and capital  statewide  pools  through  an
 assessment  charged  to  general hospitals pursuant to the provisions of
 subdivision 18 of section 2807-c of the  public  health  law  and  those
 funds  authorized  for distribution in accordance with the provisions of
 section 2807-l of the public health law for the purposes of payment  for
 administrative  costs  of  the  department of health related to programs
 funded under section 2807-l of the public health law  into  the  special
 revenue  funds  -  other, health care reform act (HCRA) resources fund -
 061, primary care initiatives account, established within the department
 of health.
   (8) Notwithstanding any inconsistent provision of law, rule  or  regu-
 lation  and  effective  April 1, 2008 through March 31, [2017] 2020, the
 commissioner of health is authorized to transfer and the comptroller  is
 authorized  to  deposit,  within  amounts  appropriated each year, those
 funds authorized for distribution in accordance with section  2807-l  of
 the  public  health  law  for the purposes of payment for administrative
 costs of the department of  health  related  to  programs  funded  under
 section 2807-l of the public health law into the special revenue funds -
 other,  health  care reform act (HCRA) resources fund - 061, health care
 delivery administration account, established within  the  department  of
 health.
   (9)  Notwithstanding  any inconsistent provision of law, rule or regu-
 lation and effective April 1, 2008 through March 31,  [2017]  2020,  the
 commissioner  of health is authorized to transfer and the comptroller is
 authorized to deposit, within  amounts  appropriated  each  year,  those
 funds  authorized  pursuant to sections 2807-d, 3614-a and 3614-b of the
 public health law and section 367-i of the social services law  and  for
 distribution  in  accordance  with  the  provisions  of subdivision 9 of
 section 2807-j of the public health law for the purpose of  payment  for
 administration of statutory duties for the collections and distributions
 authorized  by  sections  2807-c, 2807-d, 2807-j, 2807-k, 2807-l, 3614-a
 and 3614-b of the public health law and  section  367-i  of  the  social
 services  law into the special revenue funds - other, health care reform
 act (HCRA) resources fund - 061, provider collection monitoring account,
 established within the department of health.
   § 10. Section 2 of chapter 600 of the laws of 1986 amending the public
 health law relating to the development of pilot  reimbursement  programs
 for  ambulatory  care  services,  as  amended by section 11 of part B of
 chapter 60 of the laws of 2014, is amended to read as follows:
   § 2. This act shall take effect  immediately,  except  that  this  act
 shall expire and be of no further force and effect on and after April 1,
 [2017]  2020;  provided,  however, that the commissioner of health shall
 submit a report to the governor and the legislature detailing the objec-
 tive, impact, design and computation of any pilot reimbursement  program
 established  pursuant to this act, on or before March 31, 1994 and annu-
 ally thereafter. Such report shall include an assessment of  the  finan-

 A. 3007--A                         32
 
 cial  impact  of such payment system on providers, as well as the impact
 of such system on access to care.
   §  11. Paragraph (i) of subdivision (b) of section 1 of chapter 520 of
 the laws of 1978, relating to providing for a  comprehensive  survey  of
 health  care  financing,  education  and illness prevention and creating
 councils for the conduct thereof, as amended by section 12 of part B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (i)  oversight  and  evaluation  of  the inpatient financing system in
 place for 1988 through March 31, [2017] 2020,  and  the  appropriateness
 and effectiveness of the bad debt and charity care financing provisions;
   §  12.  Paragraph  (l)  of subdivision 9 of section 3614 of the public
 health law, as added by section 13 of part B of chapter 60 of  the  laws
 of 2014, is amended to read as follows:
   (l)  for  the  period  April first, two thousand sixteen through March
 thirty-first, two thousand [seventeen] TWENTY, up to one hundred million
 dollars ANNUALLY.
   § 13. Paragraph (p) of subdivision 1 of section 367-q  of  the  social
 services law, as added by section 14 of part B of chapter 60 of the laws
 of 2014, is amended to read as follows:
   (p)  for  the  period  April first, two thousand sixteen through March
 thirty-first,  two  thousand  [seventeen]  TWENTY,  up  to  twenty-eight
 million five hundred thousand dollars ANNUALLY.
   §  14.  Subdivision 4-c of section 2807-p of the public health law, as
 amended by section 16 of part B of chapter 60 of the laws  of  2014,  is
 amended to read as follows:
   4-c. Notwithstanding any provision of law to the contrary, the commis-
 sioner  shall  make additional payments for uncompensated care to volun-
 tary non-profit diagnostic and treatment centers that are  eligible  for
 distributions  under  subdivision  four of this section in the following
 amounts: for the period June first, two thousand  six  through  December
 thirty-first,  two  thousand  six,  in  the amount of seven million five
 hundred thousand dollars, for the period  January  first,  two  thousand
 seven  through  December thirty-first, two thousand seven, seven million
 five hundred thousand dollars, for the period January first,  two  thou-
 sand  eight  through  December  thirty-first,  two thousand eight, seven
 million five hundred thousand dollars, for the period January first, two
 thousand nine through December thirty-first, two thousand nine,  fifteen
 million five hundred thousand dollars, for the period January first, two
 thousand  ten  through  December  thirty-first,  two thousand ten, seven
 million five hundred thousand dollars, for the period January first, two
 thousand eleven though December thirty-first, two thousand eleven, seven
 million five hundred thousand dollars, for the period January first, two
 thousand twelve through  December  thirty-first,  two  thousand  twelve,
 seven  million  five  hundred  thousand  dollars, for the period January
 first, two thousand thirteen through December thirty-first, two thousand
 thirteen, seven million five hundred thousand dollars,  for  the  period
 January  first, two thousand fourteen through December thirty-first, two
 thousand fourteen, seven million five hundred thousand dollars, for  the
 period  January  first,  two  thousand  fifteen through December thirty-
 first,  two  thousand  fifteen,  seven  million  five  hundred  thousand
 dollars,  for  the  period  January  first  two thousand sixteen through
 December thirty-first, two thousand sixteen, seven million five  hundred
 thousand dollars, and for the period January first, two thousand [seven-
 teen]  TWENTY  through  March  thirty-first,  two  thousand  [seventeen]
 TWENTY, in the amount of  one  million  six  hundred  thousand  dollars,
 provided,  however,  that  for  periods  on and after January first, two

 A. 3007--A                         33
 
 thousand eight, such additional payments shall be distributed to  volun-
 tary, non-profit diagnostic and treatment centers and to public diagnos-
 tic  and  treatment centers in accordance with paragraph (g) of subdivi-
 sion  four  of  this  section.  In  the  event  that  federal  financial
 participation  is  available  for  rate  adjustments  pursuant  to  this
 section, the commissioner shall make such payments as additional adjust-
 ments to rates of payment for voluntary non-profit diagnostic and treat-
 ment  centers  that  are  eligible  for  distributions under subdivision
 four-a of this section in the following amounts:  for  the  period  June
 first, two thousand six through December thirty-first, two thousand six,
 fifteen  million  dollars  in  the aggregate, and for the period January
 first, two thousand seven through June thirtieth,  two  thousand  seven,
 seven  million  five  hundred  thousand  dollars  in  the aggregate. The
 amounts allocated pursuant to this paragraph shall  be  aggregated  with
 and  distributed  pursuant  to  the  same  methodology applicable to the
 amounts allocated to such diagnostic  and  treatment  centers  for  such
 periods  pursuant  to subdivision four of this section if federal finan-
 cial participation is not available, or pursuant to  subdivision  four-a
 of  this  section  if  federal  financial  participation  is  available.
 Notwithstanding  section  three  hundred  sixty-eight-a  of  the  social
 services  law,  there  shall  be  no local share in a medical assistance
 payment adjustment under this subdivision.
   § 15. Subparagraph (ii) of paragraph (c) of subdivision 1  of  section
 2807-l  of  the  public health law, as amended by section 7 of part B of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (ii) deposit by the commissioner, within amounts appropriated, and the
 state comptroller is hereby  authorized  and  directed  to  receive  for
 deposit  to,  to  the  credit of the emergency medical services training
 account established in section ninety-seven-q of the state  finance  law
 or the health care reform act (HCRA) resources fund, whichever is appli-
 cable,  up  to  sixteen  million  dollars on an annualized basis for the
 periods January first, nineteen hundred  ninety-seven  through  December
 thirty-first, nineteen hundred ninety-nine, up to twenty million dollars
 for  the  period  January  first,  two thousand through December thirty-
 first, two thousand, up to twenty-one million  dollars  for  the  period
 January first, two thousand one through December thirty-first, two thou-
 sand one, up to twenty-two million dollars for the period January first,
 two  thousand two through December thirty-first, two thousand two, up to
 twenty-two million five hundred fifty thousand dollars  for  the  period
 January  first,  two  thousand  three through December thirty-first, two
 thousand three, up to nine million six hundred eighty  thousand  dollars
 for  the  period January first, two thousand four through December thir-
 ty-first, two thousand four, up to twelve  million  one  hundred  thirty
 thousand dollars for the period January first, two thousand five through
 December  thirty-first, two thousand five, up to twenty-four million two
 hundred fifty thousand dollars for the period January first,  two  thou-
 sand  six  through December thirty-first, two thousand six, up to twenty
 million four hundred ninety-two thousand dollars annually for the period
 January first, two thousand seven  through  December  thirty-first,  two
 thousand  ten,  up  to  five  million  one hundred twenty-three thousand
 dollars for the period January first, two thousand eleven through  March
 thirty-first,  two thousand eleven, up to eighteen million three hundred
 fifty thousand dollars for the period April first, two  thousand  eleven
 through  March thirty-first, two thousand twelve, up to eighteen million
 nine hundred fifty thousand dollars for  the  period  April  first,  two
 thousand twelve through March thirty-first, two thousand thirteen, up to

 A. 3007--A                         34

 nineteen  million  four hundred nineteen thousand dollars for the period
 April first, two thousand thirteen through March thirty-first, two thou-
 sand fourteen, and up to nineteen million six hundred  fifty-nine  thou-
 sand  seven  hundred  dollars  each  state fiscal year for the period of
 April first, two thousand fourteen through March thirty-first, two thou-
 sand [seventeen] TWENTY;
   § 16. Clause (C) of subparagraph (ii) of paragraph (c) of  subdivision
 1 of section 2807-l of the public health law, as amended by section 7 of
 part B of chapter 60 of the laws of 2014, is amended to read as follows:
   (C)  for services and expenses, including grants, related to emergency
 assistance distributions as designated by the  commissioner.    Notwith-
 standing  section  one  hundred twelve or one hundred sixty-three of the
 state finance law or any other contrary provision of law, such  distrib-
 utions shall be limited to providers or programs where, as determined by
 the  commissioner,  emergency assistance is vital to protect the life or
 safety of patients, to ensure the retention of  facility  caregivers  or
 other  staff, or in instances where health facility operations are jeop-
 ardized, or where the public health is jeopardized  or  other  emergency
 situations  exist,  up  to three million dollars annually for the period
 April first, two thousand seven through March thirty-first, two thousand
 eleven, up to two million  nine  hundred  thousand  dollars  each  state
 fiscal  year  for  the  period  April first, two thousand eleven through
 March thirty-first, two thousand fourteen, and up to  two  million  nine
 hundred  thousand  dollars  each  state fiscal year for the period April
 first, two thousand fourteen through March  thirty-first,  two  thousand
 [seventeen] TWENTY. Upon any distribution of such funds, the commission-
 er shall immediately notify the chair and ranking minority member of the
 senate  finance  committee,  the  assembly ways and means committee, the
 senate committee on health, and the assembly committee on health;
   § 17. Subparagraph (iv) of paragraph (c) of subdivision 1  of  section
 2807-l  of  the  public health law, as amended by section 7 of part B of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (iv) distributions by  the  commissioner  related  to  poison  control
 centers  pursuant  to subdivision seven of section twenty-five hundred-d
 of this chapter, up to five  million  dollars  for  the  period  January
 first,  nineteen  hundred  ninety-seven  through  December thirty-first,
 nineteen hundred ninety-seven, up to three million dollars on an annual-
 ized basis for the periods during the  period  January  first,  nineteen
 hundred  ninety-eight  through  December  thirty-first, nineteen hundred
 ninety-nine, up to five million dollars annually for the periods January
 first, two thousand through December thirty-first, two thousand two,  up
 to  four  million  six hundred thousand dollars annually for the periods
 January first, two thousand three  through  December  thirty-first,  two
 thousand  four,  up to five million one hundred thousand dollars for the
 period January first, two thousand five through  December  thirty-first,
 two  thousand  six  annually,  up  to  five million one hundred thousand
 dollars annually for  the  period  January  first,  two  thousand  seven
 through  December  thirty-first,  two thousand nine, up to three million
 six hundred thousand dollars for the period January first, two  thousand
 ten through December thirty-first, two thousand ten, up to seven hundred
 seventy-five thousand dollars for the period January first, two thousand
 eleven  through  March  thirty-first,  two  thousand  eleven,  up to two
 million five hundred thousand dollars each state  fiscal  year  for  the
 period  April first, two thousand eleven through March thirty-first, two
 thousand fourteen, and up to three million  dollars  each  state  fiscal

 A. 3007--A                         35
 
 year  for  the  period  April first, two thousand fourteen through March
 thirty-first, two thousand [seventeen] TWENTY; and
   §  18.  Subparagraph  (i) of paragraph (d) of subdivision 1 of section
 2807-l of the public health law, as amended by section 7 of  part  B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (i)  An amount of up to twenty million dollars annually for the period
 January first, two thousand through December thirty-first, two  thousand
 six,  up  to ten million dollars for the period January first, two thou-
 sand seven through June thirtieth, two  thousand  seven,  up  to  twenty
 million  dollars  annually  for  the  period January first, two thousand
 eight through December  thirty-first,  two  thousand  ten,  up  to  five
 million  dollars  for  the  period  January  first,  two thousand eleven
 through March thirty-first, two thousand eleven, up to nineteen  million
 six hundred thousand dollars each state fiscal year for the period April
 first,  two  thousand  eleven  through  March thirty-first, two thousand
 fourteen, and up to nineteen million six hundred thousand  dollars  each
 state  fiscal  year  for  the  period April first, two thousand fourteen
 through March thirty-first, two thousand [seventeen]  TWENTY,  shall  be
 transferred to the health facility restructuring pool established pursu-
 ant to section twenty-eight hundred fifteen of this article;
   §  19.  Paragraph (e) of subdivision 1 of section 2807-l of the public
 health law, as amended by section 7 of part B of chapter 60 of the  laws
 of 2014, is amended to read as follows:
   (e)  Funds  shall  be  reserved  and accumulated from year to year and
 shall be available,  including income from invested funds, for  purposes
 of  distributions  to  organizations  to  support  the  health workforce
 retraining program established pursuant to section twenty-eight  hundred
 seven-g  of  this   article  from the respective health care initiatives
 pools established for the following periods  in  the  following  amounts
 from  the  pools  or  the  health care reform act (HCRA) resources fund,
 whichever is applicable,  during  the  period  January  first,  nineteen
 hundred  ninety-seven  through  December  thirty-first, nineteen hundred
 ninety-nine, up to fifty million dollars on an annualized basis,  up  to
 thirty  million  dollars  for  the  period  January  first, two thousand
 through December thirty-first, two thousand, up to forty million dollars
 for the period January first, two thousand one through December  thirty-
 first,  two  thousand  one,  up  to fifty million dollars for the period
 January first, two thousand two through December thirty-first, two thou-
 sand two, up to forty-one million one hundred fifty thousand dollars for
 the period January first, two thousand three  through  December  thirty-
 first,  two  thousand  three,  up to forty-one million one hundred fifty
 thousand dollars for the period January first, two thousand four through
 December thirty-first, two thousand  four,  up  to  fifty-eight  million
 three  hundred  sixty thousand dollars for the period January first, two
 thousand five through December thirty-first, two thousand  five,  up  to
 fifty-two  million  three  hundred sixty thousand dollars for the period
 January first, two thousand six through December thirty-first, two thou-
 sand six, up to thirty-five million four hundred thousand dollars  annu-
 ally  for  the period January first, two thousand seven through December
 thirty-first, two thousand ten, up to eight million eight hundred  fifty
 thousand  dollars  for  the  period  January  first, two thousand eleven
 through March thirty-first, two  thousand  eleven,  up  to  twenty-eight
 million  four  hundred  thousand  dollars each state fiscal year for the
 period April first, two thousand eleven through March thirty-first,  two
 thousand  fourteen, and up to twenty-six million eight hundred seventeen
 thousand dollars each state fiscal year for the period April first,  two

 A. 3007--A                         36
 
 thousand  fourteen  through March thirty-first, two thousand [seventeen]
 TWENTY, less the amount of funds  available  for  allocations  for  rate
 adjustments  for  workforce  training  programs  for  payments  by state
 governmental agencies for inpatient hospital services.
   §  20.  Subparagraph  (v) of paragraph (i) of subdivision 1 of section
 2807-l of the public health law, as amended by section 7 of  part  B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (v) from the pool or the health care reform act (HCRA) resources fund,
 whichever is applicable, for the period January first, two thousand four
 through  December thirty-first, two thousand four, up to fifteen million
 eight hundred fifty thousand dollars, for the period January first,  two
 thousand  five  through  December thirty-first, two thousand five, up to
 nineteen million two hundred thousand dollars, for  the  period  January
 first, two thousand six through December thirty-first, two thousand six,
 up  to  nineteen  million  two  hundred thousand dollars, for the period
 January first, two thousand seven  through  December  thirty-first,  two
 thousand  ten, up to eighteen million one hundred fifty thousand dollars
 annually, for the period January  first,  two  thousand  eleven  through
 March thirty-first, two thousand eleven, up to four million five hundred
 thirty-eight thousand dollars, for each state fiscal year for the period
 April  first,  two thousand eleven through March thirty-first, two thou-
 sand fourteen, up to sixteen million two hundred thousand  dollars,  and
 up  to  sixteen  million  two hundred thousand dollars each state fiscal
 year for the period April first, two  thousand  fourteen  through  March
 thirty-first, two thousand [seventeen] TWENTY.
   § 21. Clause (A) of subparagraph (v) of paragraph (k) of subdivision 1
 of  section  2807-l of the public health law, as amended by section 7 of
 part B of chapter 60 of the laws of 2014, is amended to read as follows:
   (A) from the pool or the health care reform act (HCRA) resources fund,
 whichever is applicable, for the period July first, two  thousand  three
 through  December  thirty-first,  two  thousand three, up to six million
 dollars, for the period January first, two thousand four through  Decem-
 ber thirty-first, two thousand six, up to twelve million dollars annual-
 ly,  for  the  period January first, two thousand seven through December
 thirty-first, two thousand thirteen, up to forty-eight  million  dollars
 annually,  for  the  period January first, two thousand fourteen through
 March thirty-first, two thousand fourteen, up to twelve million  dollars
 and  for  the  period  April  first, two thousand fourteen through March
 thirty-first, two thousand [seventeen] TWENTY, up to forty-eight million
 dollars annually;
   § 22. Subparagraph (v) of paragraph (l) of subdivision  1  of  section
 2807-l  of  the  public health law, as amended by section 7 of part B of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (v) from the pool or the health care reform act (HCRA) resources fund,
 whichever is applicable, for the periods  January  first,  two  thousand
 four  through  December thirty-first, two thousand four, up to fifty-six
 million dollars, for the period January first, two thousand five through
 December thirty-first, two thousand six, up  to  sixty  million  dollars
 annually,  for  the  period  January  first,  two thousand seven through
 December thirty-first, two thousand ten, up  to  sixty  million  dollars
 annually,  for  the  period  January  first, two thousand eleven through
 March thirty-first, two thousand eleven, up to fifteen million  dollars,
 each  state  fiscal year for the period April first, two thousand eleven
 through March thirty-first,  two  thousand  fourteen,  up  to  forty-two
 million three hundred thousand dollars and up to forty-one million fifty
 thousand  dollars each state fiscal year for the period April first, two

 A. 3007--A                         37
 
 thousand fourteen through March thirty-first, two  thousand  [seventeen]
 TWENTY.
   §  23.  Paragraph (b) of subdivision 1 of section 2807-v of the public
 health law, as amended by section 8 of part B of chapter 60 of the  laws
 of 2014, is amended to read as follows:
   (b)  Funds  shall  be  reserved  and accumulated from year to year and
 shall be available, including income from invested funds,  for  purposes
 of payment of audits or audit contracts necessary to determine payor and
 provider compliance with requirements set forth in sections twenty-eight
 hundred  seven-j,  twenty-eight hundred seven-s and twenty-eight hundred
 seven-t of this article from the tobacco control  and  insurance  initi-
 atives  pool  established  for  the  following  periods in the following
 amounts: five million six hundred  thousand  dollars  annually  for  the
 periods  January  first, two thousand through December thirty-first, two
 thousand two, up to five million dollars for the period  January  first,
 two thousand three through December thirty-first, two thousand three, up
 to  five million dollars for the period January first, two thousand four
 through December thirty-first, two thousand four,  up  to  five  million
 dollars for the period January first, two thousand five through December
 thirty  first,  two  thousand  five,  up to five million dollars for the
 period January first, two thousand six  through  December  thirty-first,
 two thousand six, up to seven million eight hundred thousand dollars for
 the  period  January  first, two thousand seven through December thirty-
 first, two thousand seven, and up to eight million three  hundred  twen-
 ty-five  thousand  dollars  for  the  period January first, two thousand
 eight through December thirty-first, two thousand  eight,  up  to  eight
 million  five hundred thousand dollars for the period January first, two
 thousand nine through December thirty-first, two thousand  nine,  up  to
 eight  million  five  hundred  thousand  dollars  for the period January
 first, two thousand ten through December thirty-first, two thousand ten,
 up to two million one hundred twenty-five thousand dollars for the peri-
 od January first, two thousand eleven through  March  thirty-first,  two
 thousand  eleven,  up to fourteen million seven hundred thousand dollars
 each state fiscal year for the period April first, two  thousand  eleven
 through  March  thirty-first,  two  thousand  fourteen, and up to eleven
 million one hundred thousand dollars each  state  fiscal  year  for  the
 period  April  first,  two thousand fourteen through March thirty-first,
 two thousand [seventeen] TWENTY.
   § 24. Subparagraph (xiv) of paragraph (j) of subdivision 1 of  section
 2807-v  of  the  public health law, as amended by section 8 of part B of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xiv) up to six million dollars each state fiscal year for the  period
 April first, two thousand fourteen through March thirty-first, two thou-
 sand [seventeen] TWENTY.
   §  25. Subparagraph (xvi) of paragraph (n) of subdivision 1 of section
 2807-v of the public health law, as amended by section 8 of  part  B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xvi)  one  hundred twenty-seven million four hundred sixteen thousand
 dollars each state fiscal year for the period April first, two  thousand
 fourteen through March thirty-first, two thousand [seventeen] TWENTY.
   §  26. Subparagraph (xiv) of paragraph (o) of subdivision 1 of section
 2807-v of the public health law, as amended by section 8 of  part  B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xiv) up to ninety-six million six hundred thousand dollars each state
 fiscal  year  for  the period April first, two thousand fourteen through
 March thirty-first, two thousand [seventeen] TWENTY.

 A. 3007--A                         38
 
   § 27. Subparagraph (xii) of paragraph (q) of subdivision 1 of  section
 2807-v  of  the  public health law, as amended by section 8 of part B of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xii)  up  to  five million two hundred eighty-eighty thousand dollars
 each state fiscal year for the period April first, two thousand fourteen
 through March thirty-first, two thousand [seventeen] TWENTY.
   § 28. Subparagraph (xii) of paragraph (w) of subdivision 1 of  section
 2807-v  of  the  public health law, as amended by section 8 of part B of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xii) up to two million one hundred thousand dollars each state fiscal
 year for the period April first, two  thousand  fourteen  through  March
 thirty-first, two thousand [seventeen] TWENTY.
   §  29. Clause (L) of subparagraph (i) of paragraph (bb) of subdivision
 1 of section 2807-v of the public health law, as amended by section 8 of
 part B of chapter 60 of the laws of 2014, is amended to read as follows:
   (L) up to one hundred thirty-six million  dollars  each  state  fiscal
 year  for  the  period March thirty-first, two thousand fourteen through
 April first, two thousand [seventeen] TWENTY.
   § 30. Clause (L) of subparagraph (ii) of paragraph (bb) of subdivision
 1 of section 2807-v of the public health law, as amended by section 8 of
 part B of chapter 60 of the laws of 2014, is amended to read as follows:
   (L) for each state fiscal year within  the  period  April  first,  two
 thousand  fourteen  through March thirty-first, two thousand [seventeen]
 TWENTY, three hundred forty million dollars.
   § 31. Subparagraph (xii) of paragraph (cc) of subdivision 1 of section
 2807-v of the public health law, as amended by section 8 of  part  B  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xii)  up  to  eleven  million two hundred thousand dollars each state
 fiscal year for the period April first, two  thousand  fourteen  through
 March thirty-first, two thousand [seventeen] TWENTY.
   § 32. Subparagraph (xii) of paragraph (ff) of subdivision 1 of section
 2807-v  of  the  public health law, as amended by section 8 of part B of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xii) fifteen million dollars each state fiscal year  for  the  period
 April first, two thousand fourteen through March thirty-first, two thou-
 sand [seventeen] TWENTY.
   § 33. Subparagraph (xii) of paragraph (ii) of subdivision 1 of section
 2807-v  of  the  public health law, as amended by section 8 of part B of
 chapter 60 of the laws of 2014, is amended to read as follows:
   (xii) eight million five hundred thousand dollars  each  state  fiscal
 year  for  the  period  April first, two thousand fourteen through March
 thirty-first, two thousand [seventeen] TWENTY.
   § 34. Paragraph (aaa) of subdivision 1 of section 2807-v of the public
 health law, as amended by section 8 of part B of chapter 60 of the  laws
 of 2014, is amended to read as follows:
   (aaa)  Funds  shall  be reserved and accumulated from year to year and
 shall be available, including income from invested funds,  for  services
 and  expenses related to school based health centers, in an amount up to
 three million five hundred thousand dollars for the period April  first,
 two  thousand  six through March thirty-first, two thousand seven, up to
 three million five hundred thousand dollars for the period April  first,
 two thousand seven through March thirty-first, two thousand eight, up to
 three  million five hundred thousand dollars for the period April first,
 two thousand eight through March thirty-first, two thousand nine, up  to
 three  million five hundred thousand dollars for the period April first,
 two thousand nine through March thirty-first, two thousand  ten,  up  to

 A. 3007--A                         39
 
 three  million five hundred thousand dollars for the period April first,
 two thousand ten through March thirty-first, two thousand eleven, up  to
 two  million  eight  hundred thousand dollars each state fiscal year for
 the  period April first, two thousand eleven through March thirty-first,
 two thousand fourteen, and up to  two  million  six  hundred  forty-four
 thousand  dollars each state fiscal year for the period April first, two
 thousand fourteen through March thirty-first, two  thousand  [seventeen]
 TWENTY.   The total amount of funds provided herein shall be distributed
 as grants based on the ratio of each provider's total enrollment for all
 sites to the total enrollment of all providers. This  formula  shall  be
 applied to the total amount provided herein.
   §  35.  Subparagraph  (viii)  of  paragraph  (ccc) of subdivision 1 of
 section 2807-v of the public health law, as amended by section 8 of part
 B of chapter 60 of the laws of 2014, is amended to read as follows:
   (viii) up to fifty million dollars each  state  fiscal  year  for  the
 period  April  first,  two thousand fourteen through March thirty-first,
 two thousand [seventeen] TWENTY.
   § 36. This act shall take effect immediately; provided, however, that:
   (a) the amendments made to sections 2807-s and 2807-j  of  the  public
 health  law  made by sections three, four and five of this act shall not
 affect the expiration of such sections and shall expire therewith; and
   (b) the amendments to subdivision 6 of section 2807-t  of  the  public
 health  law made by section eight of this act shall not affect the expi-
 ration of such section and shall be deemed to expire therewith.
 
                                  PART I
 
   Section 1. Section 11 of chapter 884 of the laws of 1990, amending the
 public health law relating to authorizing  bad  debt  and  charity  care
 allowances  for  certified home health agencies, as amended by section 1
 of part D of chapter 57 of the laws of  2015,  is  amended  to  read  as
 follows:
   § 11. This act shall take effect immediately and:
   (a) sections one and three shall expire on December 31, 1996,
   (b)  sections  four  through ten shall expire on June 30, [2017] 2020,
 and
   (c) provided that the amendment to section 2807-b of the public health
 law by section two of this act shall not affect the expiration  of  such
 section  2807-b  as  otherwise  provided  by  law and shall be deemed to
 expire therewith.
   § 2. Subdivision 4-a of section 71 of part C of chapter 60 of the laws
 of 2014 amending the social services law relating to  eliminating  pres-
 criber prevails for brand name drugs with generic equivalent, as amended
 by  section 6 of part D of chapter 59 of the laws of 2016, is amended to
 read as follows:
   4-a. section twenty-two of this act shall take effect April  1,  2014,
 and shall be deemed expired January 1, [2018] 2020;
   §  3.  Subparagraph  (vi) of paragraph (b) of subdivision 2 of section
 2807-d of the public health law, as amended by section 3 of  part  D  of
 chapter 57 of the laws of 2015, is amended to read as follows:
   (vi)  Notwithstanding  any contrary provision of this paragraph or any
 other provision of law or regulation to the  contrary,  for  residential
 health care facilities the assessment shall be six percent of each resi-
 dential  health care facility's gross receipts received from all patient
 care services and other operating income on a cash basis for the  period
 April  first,  two thousand two through March thirty-first, two thousand

 A. 3007--A                         40

 three for hospital  or  health-related  services,  including  adult  day
 services;  provided,  however,  that residential health care facilities'
 gross receipts attributable to payments received pursuant to title XVIII
 of the federal social security act (medicare) shall be excluded from the
 assessment; provided, however, that for all such gross receipts received
 on  or after April first, two thousand three through March thirty-first,
 two thousand five, such assessment shall be five  percent,  and  further
 provided  that  for  all  such gross receipts received on or after April
 first, two thousand five through March thirty-first, two thousand  nine,
 and  on  or  after  April first, two thousand nine through March thirty-
 first, two thousand eleven such assessment shall  be  six  percent,  and
 further  provided  that for all such gross receipts received on or after
 April first, two thousand eleven through March thirty-first,  two  thou-
 sand thirteen such assessment shall be six percent, and further provided
 that  for  all such gross receipts received on or after April first, two
 thousand thirteen through March thirty-first, two thousand fifteen  such
 assessment  shall be six percent, and further provided that for all such
 gross receipts received on or after April first,  two  thousand  fifteen
 through March thirty-first, two thousand seventeen such assessment shall
 be  six  percent,  AND FURTHER PROVIDED THAT FOR ALL SUCH GROSS RECEIPTS
 RECEIVED ON OR AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN  THROUGH  MARCH
 THIRTY-FIRST, TWO THOUSAND TWENTY SUCH ASSESSMENT SHALL BE SIX PERCENT.
   §  4. Subdivision 1 of section 194 of chapter 474 of the laws of 1996,
 amending the education law and other laws relating to rates for residen-
 tial health care facilities, as amended by section 5 of part D of  chap-
 ter 57 of the laws of 2015, is amended to read as follows:
   1.  Notwithstanding  any  inconsistent provision of law or regulation,
 the trend factors used to project reimbursable operating  costs  to  the
 rate  period  for  purposes  of determining rates of payment pursuant to
 article 28 of the public health law for residential health care  facili-
 ties for reimbursement of inpatient services provided to patients eligi-
 ble  for payments made by state governmental agencies on and after April
 1, 1996 through March 31, 1999 and for payments made on and  after  July
 1,  1999  through  March 31, 2000 and on and after April 1, 2000 through
 March 31, 2003 and on and after April 1, 2003 through March 31, 2007 and
 on and after April 1, 2007 through March 31, 2009 and on and after April
 1, 2009 through March 31, 2011 and on and after April  1,  2011  through
 March  31,  2013  and on and after April 1, 2013 through March 31, 2015,
 and on and after April 1, 2015 through March 31, 2017, AND ON AND  AFTER
 APRIL  1,  2017  THROUGH  MARCH  31,  2020 shall reflect no trend factor
 projections or adjustments for the period April 1, 1996,  through  March
 31, 1997.
   § 5. Subdivision 1 of section 89-a of part C of chapter 58 of the laws
 of  2007,  amending  the  social services law and other laws relating to
 enacting the major components of legislation necessary to implement  the
 health and mental hygiene budget for the 2007-2008 state fiscal year, as
 amended  by  section  6  of part D of chapter 57 of the laws of 2015, is
 amended to read as follows:
   1. Notwithstanding paragraph (c) of subdivision 10 of  section  2807-c
 of  the  public  health  law  and section 21 of chapter 1 of the laws of
 1999, as amended, and any other inconsistent provision of law  or  regu-
 lation  to  the  contrary,  in  determining  rates  of payments by state
 governmental agencies effective for services provided beginning April 1,
 2006, through March 31, 2009, and on and after  April  1,  2009  through
 March  31,  2011, and on and after April 1, 2011 through March 31, 2013,
 and on and after April 1, 2013 through March 31, 2015, and on and  after

 A. 3007--A                         41
 
 April  1,  2015  through  March 31, 2017, AND ON AND AFTER APRIL 1, 2017
 THROUGH MARCH 31, 2020 for inpatient and outpatient services provided by
 general hospitals and for inpatient services and  outpatient  adult  day
 health  care  services  provided  by  residential health care facilities
 pursuant to article 28 of the public health  law,  the  commissioner  of
 health  shall  apply  a  trend  factor projection of two and twenty-five
 hundredths percent attributable to the period January  1,  2006  through
 December  31, 2006, and on and after January 1, 2007, provided, however,
 that on reconciliation of such trend factor for the  period  January  1,
 2006  through December 31, 2006 pursuant to paragraph (c) of subdivision
 10 of section 2807-c of the public health law, such trend  factor  shall
 be  the  final US Consumer Price Index (CPI) for all urban consumers, as
 published by the US Department of Labor, Bureau of Labor Statistics less
 twenty-five hundredths of a percentage point.
   § 6. Subdivision 5-a of section 246 of chapter 81 of the laws of 1995,
 amending the public health  law  and  other  laws  relating  to  medical
 reimbursement  and welfare reform, as amended by section 11 of part D of
 chapter 57 of the laws of 2015, is amended to read as follows:
   5-a. Section sixty-four-a of this act shall be deemed to have been  in
 full  force and effect on and after April 1, 1995 through March 31, 1999
 and on and after July 1, 1999 through March 31, 2000 and  on  and  after
 April  1,  2000  through  March  31, 2003 and on and after April 1, 2003
 through March 31, 2007, and on and after April 1, 2007 through March 31,
 2009, and on and after April 1, 2009 through March 31, 2011, and on  and
 after  April  1,  2011 through March 31, 2013, and on and after April 1,
 2013 through March 31, 2015, and on and  after  April  1,  2015  through
 March 31, 2017 AND ON AND AFTER APRIL 1, 2017 THROUGH MARCH 31, 2020;
   §  7.  Section  64-b  of  chapter 81 of the laws of 1995, amending the
 public health law and other laws relating to medical  reimbursement  and
 welfare  reform, as amended by section 12 of part D of chapter 57 of the
 laws of 2015, is amended to read as follows:
   §  64-b.  Notwithstanding  any  inconsistent  provision  of  law,  the
 provisions of subdivision 7 of section 3614 of the public health law, as
 amended,  shall  remain and be in full force and effect on April 1, 1995
 through March 31, 1999 and on July 1, 1999 through March 31, 2000 and on
 and after April 1, 2000 through March 31, 2003 and on and after April 1,
 2003 through March 31, 2007, and on and  after  April  1,  2007  through
 March  31,  2009, and on and after April 1, 2009 through March 31, 2011,
 and on and after April 1, 2011 through March 31, 2013, and on and  after
 April  1,  2013  through  March 31, 2015, and on and after April 1, 2015
 through March 31, 2017 AND ON AND AFTER APRIL 1, 2017 THROUGH MARCH  31,
 2020.
   §  8.  Subdivision  (a)  of section 40 of part B of chapter 109 of the
 laws of 2010, amending the social services law relating  to  transporta-
 tion costs, as amended by section 23 of part D of chapter 57 of the laws
 of 2015, is amended to read as follows:
   (a)  sections  two, three, three-a, three-b, three-c, three-d, three-e
 and twenty-one of this act shall take  effect  July  1,  2010;  sections
 fifteen,  sixteen,  seventeen,  eighteen  and nineteen of this act shall
 take effect January 1, 2011; and provided further that section twenty of
 this act shall be deemed repealed [six] NINE years after  the  date  the
 contract  entered  into pursuant to section 365-h of the social services
 law, as amended by section twenty of this  act,  is  executed;  provided
 that the commissioner of health shall notify the legislative bill draft-
 ing  commission upon the execution of the contract entered into pursuant
 to section 367-h of the social services law in order that the commission

 A. 3007--A                         42
 
 may maintain an accurate and timely effective data base 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 officers law;
   §  9. Section 4-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 relat-
 ing to the cap on local Medicaid expenditures, as amended by section  29
 of  part  D  of  chapter  57  of the laws of 2015, is amended to read as
 follows:
   § 4-a. Notwithstanding paragraph (c)  of  subdivision  10  of  section
 2807-c  of the public health law, section 21 of chapter 1 of the laws of
 1999, or any other contrary provision of law, in  determining  rates  of
 payments  by state governmental agencies effective for services provided
 on and after January 1, [2017] 2018 through March 31, [2017]  2018,  for
 inpatient  and  outpatient  services  provided by general hospitals, for
 inpatient  services  and  adult  day  health  care  outpatient  services
 provided by residential health care facilities pursuant to article 28 of
 the  public health law, except for residential health care facilities or
 units of such facilities providing services primarily to children  under
 twenty-one years of age, for home health care services provided pursuant
 to  article  36  of the public health law by certified home health agen-
 cies, long term home health care programs and AIDS home  care  programs,
 and for personal care services provided pursuant to section 365-a of the
 social  services  law, the commissioner of health shall apply no greater
 than zero trend factors attributable to the [2017] 2018 calendar year in
 accordance with paragraph (c) of subdivision 10 of section 2807-c of the
 public health law, provided, however, that such  no  greater  than  zero
 trend  factors attributable to such [2017] 2018 calendar year shall also
 be applied to rates of payment provided on and after January  1,  [2017]
 2018  through  March 31, [2017] 2018 for personal care services provided
 in those local social services districts, including New York city, whose
 rates of payment for such services are established by such local  social
 services  districts  pursuant  to a rate-setting exemption issued by the
 commissioner of health  to  such  local  social  services  districts  in
 accordance  with  applicable regulations, and provided further, however,
 that for rates of payment for assisted living program services  provided
 on  and after January 1, [2017] 2018 through March 31, [2017] 2018, such
 trend factors attributable to the [2017] 2018  calendar  year  shall  be
 established at no greater than zero percent.
   §  10.  Subdivisions 3 and 5 of section 47 of chapter 2 of the laws of
 1998, amending the public health law and other laws relating to  expand-
 ing  the child health insurance plan, as amended by section 61 of part C
 of chapter 60 of the laws of 2014, are amended to read as follows:
   3. section six  of  this  act  shall  take  effect  January  1,  1999;
 provided,  however, that subparagraph (iii) of paragraph (c) of subdivi-
 sion 9 of section 2510 of the public health law, as added by  this  act,
 shall expire on July 1, [2017] 2020;
   5.  section  twelve  of  this  act  shall take effect January 1, 1999;
 provided, however, paragraphs (g) and (h) of subdivision  2  of  section
 2511 of the public health law, as added by such section, shall expire on
 July 1, [2017] 2020;
   § 11. Section 4 of chapter 19 of the laws of 1998, amending the social
 services law relating to limiting the method of payment for prescription
 drugs  under the medical assistance program, as amended by section 65 of
 part C of chapter 60 of the laws of 2014, is amended to read as follows:

 A. 3007--A                         43
 
   § 4. This act shall take effect 120 days after it shall have become  a
 law and shall expire and be deemed repealed March 31, [2017] 2020.
   §  12. Paragraph (e-1) of subdivision 12 of section 2808 of the public
 health law, as amended by section 66 of part C of chapter 60 of the laws
 of 2014, is amended to read as follows:
   (e-1) Notwithstanding any inconsistent provision of law or regulation,
 the commissioner shall provide,  in  addition  to  payments  established
 pursuant  to  this  article  prior to application of this section, addi-
 tional payments under the medical assistance program pursuant  to  title
 eleven of article five of the social services law for non-state operated
 public  residential health care facilities, including public residential
 health care facilities located in the county of Nassau,  the  county  of
 Westchester  and  the  county  of Erie, but excluding public residential
 health care facilities operated by a town or city within  a  county,  in
 aggregate  annual  amounts of up to one hundred fifty million dollars in
 additional payments for the state fiscal year beginning April first, two
 thousand six and for the state fiscal year beginning  April  first,  two
 thousand  seven and for the state fiscal year beginning April first, two
 thousand eight and of up to three hundred million dollars in such aggre-
 gate annual additional payments for  the  state  fiscal  year  beginning
 April  first, two thousand nine, and for the state fiscal year beginning
 April first, two thousand ten and for the state  fiscal  year  beginning
 April  first, two thousand eleven, and for the state fiscal years begin-
 ning April first, two thousand twelve  and  April  first,  two  thousand
 thirteen,  and  of  up to five hundred million dollars in such aggregate
 annual additional payments for the state fiscal  years  beginning  April
 first,  two  thousand  fourteen,  April  first, two thousand fifteen and
 April first, two thousand sixteen AND OF  UP  TO  FIVE  HUNDRED  MILLION
 DOLLARS  IN  SUCH  AGGREGATE  ANNUAL  ADDITIONAL  PAYMENTS FOR THE STATE
 FISCAL YEARS BEGINNING APRIL FIRST, TWO THOUSAND SEVENTEEN, APRIL FIRST,
 TWO THOUSAND EIGHTEEN, AND  APRIL  FIRST,  TWO  THOUSAND  NINETEEN.  The
 amount allocated to each eligible public residential health care facili-
 ty  for  this period shall be computed in accordance with the provisions
 of paragraph (f) of this subdivision, provided,  however,  that  patient
 days  shall  be utilized for such computation reflecting actual reported
 data for two thousand three and each representative succeeding  year  as
 applicable,  and  provided  further, however, that, in consultation with
 impacted providers, of the funds allocated for distribution in the state
 fiscal year beginning April first, two thousand thirteen, up to  thirty-
 two  million dollars may be allocated in accordance with paragraph (f-1)
 of this subdivision.
   § 13. Section 18 of chapter 904 of the  laws  of  1984,  amending  the
 public  health  law  and the social services law relating to encouraging
 comprehensive health services, as amended by section 67-c of part  C  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   §  18.  This  act  shall take effect immediately, except that sections
 six, nine, ten and eleven of this act shall take effect on the  sixtieth
 day after it shall have become a law, sections two, three, four and nine
 of  this  act  shall  expire  and be of no further force or effect on or
 after March 31, [2017] 2020, section two of this act shall  take  effect
 on  April  1,  1985 or seventy-five days following the submission of the
 report required by section one of this  act,  whichever  is  later,  and
 sections  eleven  and  thirteen  of  this  act shall expire and be of no
 further force or effect on or after March 31, 1988.
   § 14. Section 4 of part X2 of chapter 62 of the laws of 2003, amending
 the public health law relating to allowing for the use of funds  of  the

 A. 3007--A                         44
 
 office  of  professional  medical  conduct for activities of the patient
 health information and quality improvement act of 2000,  as  amended  by
 section  4-b  of part A of chapter 57 of the laws of 2015, is amended to
 read as follows:
   §  4.  This  act  shall  take  effect  immediately;  provided that the
 provisions of section one of this act shall be deemed to  have  been  in
 full force and effect on and after April 1, 2003, and shall expire March
 31, [2017] 2020 when upon such date the provisions of such section shall
 be deemed repealed.
   §  15.   Subdivision (o) of section 111 of part H of chapter 59 of the
 laws of 2011, amending the public health law relating to  the  statewide
 health  information  network  of New York and the statewide planning and
 research cooperative system and general powers and duties, as amended by
 section 28 of part D of chapter 57 of the laws of 2015,  is  amended  to
 read as follows:
   (o)  sections thirty-eight and thirty-eight-a of this act shall expire
 and be deemed repealed March 31, [2017] 2020;
   § 16. Section 32 of part A of chapter 58 of the laws of 2008, amending
 the elder law and other laws relating to reimbursement to  participating
 provider  pharmacies  and  prescription  drug  coverage,  as  amended by
 section 13 of part A of chapter 57 of the laws of 2015,  is  amended  to
 read as follows:
   §  32.  This  act shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2008;  provided
 however,  that  sections  one, six-a, nineteen, twenty, twenty-four, and
 twenty-five of this act shall take effect July 1, 2008; provided however
 that sections sixteen, seventeen and eighteen of this act  shall  expire
 April  1,  [2017]  2020;  provided, however, that the amendments made by
 section twenty-eight of this act shall take effect on the same  date  as
 section  1  of  chapter  281  of the laws of 2007 takes effect; provided
 further, that sections twenty-nine, thirty, and thirty-one of  this  act
 shall  take effect October 1, 2008; provided further, that section twen-
 ty-seven of this act shall take effect January  1,  2009;  and  provided
 further,  that  section  twenty-seven  of  this  act shall expire and be
 deemed repealed March 31, [2017] 2020; and provided,  further,  however,
 that the amendments to subdivision 1 of section 241 of the education law
 made  by section twenty-nine of this act shall not affect the expiration
 of such subdivision and shall be deemed to expire therewith and provided
 that the amendments to section 272 of the  public  health  law  made  by
 section  thirty  of this act shall not affect the repeal of such section
 and shall be deemed repealed therewith.
   § 17. Subdivision 3 of section 2999-p of the  public  health  law,  as
 amended  by  chapter  461  of  the  laws  of 2012, is amended to read as
 follows:
   3. The commissioner may issue a certificate of authority to an  entity
 that  meets conditions for ACO certification as set forth in regulations
 made by the commissioner pursuant to section twenty-nine  hundred  nine-
 ty-nine-q  of  this  article.  The  commissioner shall not issue any new
 certificate under this article after December thirty-first, two thousand
 [sixteen] TWENTY.
   § 18. This act shall take effect immediately and shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART J

 A. 3007--A                         45
 
   Section  1. The insurance law is amended by adding a new article 29 to
 read as follows:
                                ARTICLE 29
                         PHARMACY BENEFIT MANAGERS
 SECTION 2901. DEFINITIONS.
         2902. ACTING WITHOUT A REGISTRATION.
         2903. REGISTRATION REQUIREMENTS FOR PHARMACY BENEFIT MANAGERS.
         2904. REPORTING REQUIREMENTS FOR PHARMACY BENEFIT MANAGERS.
         2905. ACTING WITHOUT A LICENSE.
         2906. LICENSING OF A PHARMACY BENEFIT MANAGER.
         2907. REVOCATION OR SUSPENSION OF A REGISTRATION OR LICENSE OF A
                 PHARMACY BENEFIT MANAGER.
         2908. PENALTIES FOR VIOLATIONS.
         2909. STAY OR SUSPENSION OF SUPERINTENDENT'S DETERMINATION.
         2910. REVOKED REGISTRATIONS.
         2911. CHANGE OF ADDRESS.
         2912. ASSESSMENT.
         2913. APPLICABILITY OF OTHER LAWS.
   § 2901. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   (A)  "CONTROLLING  PERSON"  IS ANY PERSON OR OTHER ENTITY WHO OR WHICH
 DIRECTLY OR INDIRECTLY HAS THE POWER TO DIRECT OR CAUSE TO  BE  DIRECTED
 THE MANAGEMENT, CONTROL OR ACTIVITIES OF A PHARMACY BENEFIT MANAGER.
   (B)  "HEALTH  INSURER"  MEANS  AN INSURANCE COMPANY AUTHORIZED IN THIS
 STATE TO WRITE ACCIDENT AND HEALTH INSURANCE, A COMPANY ORGANIZED PURSU-
 ANT TO ARTICLE FORTY-THREE OF  THIS  CHAPTER,  A  MUNICIPAL  COOPERATIVE
 HEALTH  BENEFIT PLAN ESTABLISHED PURSUANT TO ARTICLE FORTY-SEVEN OF THIS
 CHAPTER, A HEALTH MAINTENANCE ORGANIZATION CERTIFIED PURSUANT TO ARTICLE
 FORTY-FOUR OF THE PUBLIC HEALTH LAW, AN INSTITUTION OF HIGHER  EDUCATION
 CERTIFIED  PURSUANT  TO  SECTION ONE THOUSAND ONE HUNDRED TWENTY-FOUR OF
 THIS CHAPTER, THE STATE PUBLIC HEALTH PLAN AS  DEFINED  IN  SECTION  TWO
 HUNDRED  SEVENTY OF THE PUBLIC HEALTH LAW, CHILD HEALTH PLUS ESTABLISHED
 PURSUANT TO TITLE ONE-A OF ARTICLE TWENTY-FIVE OF THE PUBLIC HEALTH LAW,
 THE NEW YORK STATE HEALTH INSURANCE PLAN ESTABLISHED UNDER ARTICLE ELEV-
 EN OF THE CIVIL SERVICE LAW, OR ANY OTHER HEALTH  PLAN  OR  PROVIDER  AS
 DEFINED  IN  PARAGRAPH  (A)  OF  SUBDIVISION  ONE OF SECTION TWO HUNDRED
 EIGHTY-A OF THE PUBLIC HEALTH LAW.
   (C) "PHARMACY BENEFIT  MANAGEMENT  SERVICES"  MEANS  PHARMACY  BENEFIT
 MANAGEMENT  SERVICES  DEFINED  BY  SECTION  TWO  HUNDRED EIGHTY-A OF THE
 PUBLIC HEALTH LAW.
   (D) "PHARMACY BENEFIT MANAGER"  MEANS  A  PERSON,  FIRM,  ASSOCIATION,
 CORPORATION  OR  OTHER ENTITY THAT, PURSUANT TO A CONTRACT WITH A HEALTH
 INSURER, PROVIDES PHARMACY BENEFIT MANAGEMENT SERVICES, EXCEPT THAT TERM
 SHALL NOT INCLUDE:
   (1) AN OFFICER OR EMPLOYEE OF A REGISTERED OR LICENSED PHARMACY  BENE-
 FIT MANAGER; OR
   (2) A HEALTH INSURER, OR ANY MANAGER THEREOF, INDIVIDUAL OR CORPORATE,
 OR ANY OFFICER, DIRECTOR OR REGULAR SALARIED EMPLOYEE THEREOF, PROVIDING
 PHARMACY  BENEFIT  MANAGEMENT SERVICES UNDER A POLICY OR CONTRACT ISSUED
 BY THE HEALTH INSURER.
   § 2902. ACTING WITHOUT A REGISTRATION.  (A) NO PERSON,  FIRM,  ASSOCI-
 ATION, CORPORATION OR OTHER ENTITY MAY ACT AS A PHARMACY BENEFITS MANAG-
 ER ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION WITHOUT HAVING A VALID
 REGISTRATION AS A PHARMACY BENEFIT MANAGER FILED WITH THE SUPERINTENDENT
 IN  ACCORDANCE  WITH THIS ARTICLE AND THE REGULATIONS PROMULGATED THERE-
 UNDER.

 A. 3007--A                         46
 
   (B) FOLLOWING THE EFFECTIVE DATE OF THIS SECTION,  NO  HEALTH  INSURER
 MAY  PAY ANY FEE OR OTHER COMPENSATION TO ANY PERSON, FIRM, ASSOCIATION,
 CORPORATION OR OTHER ENTITY FOR PERFORMING PHARMACY  BENEFIT  MANAGEMENT
 SERVICES  UNLESS  THE  PERSON,  FIRM,  ASSOCIATION, CORPORATION OR OTHER
 ENTITY  IS  REGISTERED  AS A PHARMACY BENEFIT MANAGER IN ACCORDANCE WITH
 THIS ARTICLE.
   (C) ANY PERSON, FIRM, ASSOCIATION, CORPORATION OR  OTHER  ENTITY  THAT
 VIOLATES  THIS  SECTION SHALL, IN ADDITION TO ANY OTHER PENALTY PROVIDED
 BY LAW, BE SUBJECT TO A CIVIL PENALTY OF THE GREATER OF: (1)  ONE  THOU-
 SAND  DOLLARS  FOR  THE  FIRST  VIOLATION  AND TWO THOUSAND FIVE HUNDRED
 DOLLARS FOR EACH  SUBSEQUENT  VIOLATION;  OR  (2)  THE  AGGREGATE  GROSS
 RECEIPTS ATTRIBUTABLE TO ALL VIOLATIONS.
   §  2903. REGISTRATION REQUIREMENTS FOR PHARMACY BENEFIT MANAGERS.  (A)
 EVERY PHARMACY BENEFIT MANAGER THAT PERFORMS PHARMACY BENEFIT MANAGEMENT
 SERVICES PRIOR TO JANUARY FIRST, TWO THOUSAND  NINETEEN  SHALL  REGISTER
 WITH  THE  SUPERINTENDENT  IN  ACCORDANCE WITH THIS ARTICLE, IN A MANNER
 ACCEPTABLE TO THE SUPERINTENDENT, AND SHALL PAY A FEE  OF  ONE  THOUSAND
 DOLLARS  FOR  EACH  YEAR IN WHICH THE REGISTRATION SHALL BE VALID. EVERY
 REGISTRATION WILL EXPIRE ON DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN
 REGARDLESS OF WHEN REGISTRATION WAS FIRST MADE.
   (B) EVERY PHARMACY BENEFIT  MANAGER  THAT  PERFORMS  PHARMACY  BENEFIT
 MANAGEMENT  SERVICES  AT  ANY  TIME  BETWEEN JANUARY FIRST, TWO THOUSAND
 SEVENTEEN AND JUNE FIRST, TWO THOUSAND  SEVENTEEN,  SHALL  REGISTER  AND
 MAKE  THE  REGISTRATION  FEE  PAYMENT REQUIRED BY SUBSECTION (A) OF THIS
 SECTION ON OR BEFORE JUNE FIRST, TWO THOUSAND SEVENTEEN.
   (C) EVERY PHARMACY BENEFIT MANAGER NOT SUBJECT TO  SUBSECTION  (B)  OF
 THIS  SECTION  SHALL  MAKE  THE REGISTRATION AND FEE PAYMENT REQUIRED BY
 SUBSECTION (A) OF THIS SECTION  PRIOR  TO  PERFORMING  PHARMACY  BENEFIT
 MANAGEMENT SERVICES.
   (D) EACH REGISTERED PHARMACY BENEFIT MANAGER SHALL RENEW ITS REGISTRA-
 TION  AND  MAKE THE REQUIRED FEE PAYMENT BY FEBRUARY FIRST, TWO THOUSAND
 EIGHTEEN FOR THE TWO THOUSAND EIGHTEEN CALENDAR YEAR.
   § 2904. REPORTING REQUIREMENTS FOR PHARMACY BENEFIT MANAGERS.   (A)(1)
 ON  OR  BEFORE JULY FIRST OF EACH YEAR, BEGINNING IN TWO THOUSAND SEVEN-
 TEEN, EVERY PHARMACY BENEFIT MANAGER SHALL REPORT TO THE SUPERINTENDENT,
 IN A STATEMENT SUBSCRIBED AND AFFIRMED AS TRUE UNDER PENALTIES OF PERJU-
 RY, INFORMATION REQUESTED BY THE SUPERINTENDENT TO ENABLE HIM OR HER  TO
 CARRY  OUT  HIS  OR HER DUTIES UNDER THIS ARTICLE.  SUCH INFORMATION MAY
 INCLUDE, WITHOUT LIMITATION, DISCLOSURE OF ANY  FINANCIAL  INCENTIVE  OR
 BENEFIT  FOR  PROMOTING  THE  USE  OF  CERTAIN DRUGS AND OTHER FINANCIAL
 ARRANGEMENTS  AFFECTING  HEALTH  INSURERS  OR  THEIR  POLICYHOLDERS   OR
 INSUREDS.
   (2) THE SUPERINTENDENT ALSO MAY ADDRESS TO ANY PHARMACY BENEFIT MANAG-
 ER  OR ITS OFFICERS ANY INQUIRY IN RELATION TO ITS PROVISION OF PHARMACY
 BENEFIT MANAGEMENT SERVICES OR ANY  MATTER  CONNECTED  THEREWITH.  EVERY
 PHARMACY  BENEFIT  MANAGER OR PERSON SO ADDRESSED SHALL REPLY IN WRITING
 TO SUCH INQUIRY PROMPTLY AND TRUTHFULLY, AND SUCH  REPLY  SHALL  BE,  IF
 REQUIRED  BY  THE  SUPERINTENDENT,  SUBSCRIBED BY SUCH INDIVIDUAL, OR BY
 SUCH OFFICER OR OFFICERS OF THE PHARMACY BENEFIT MANAGER AS  THE  SUPER-
 INTENDENT SHALL DESIGNATE, AND AFFIRMED BY THEM AS TRUE UNDER THE PENAL-
 TIES OF PERJURY.
   (3)  IN ADDITION TO THE OTHER REPORTS REQUIRED BY THIS SUBSECTION, THE
 SUPERINTENDENT ALSO MAY REQUIRE THE FILING OF QUARTERLY OR OTHER  STATE-
 MENTS,  WHICH  SHALL  BE  IN  SUCH  FORM  AND SHALL CONTAIN SUCH MATTERS
 CONCERNING THIS ARTICLE AS THE SUPERINTENDENT SHALL PRESCRIBE.

 A. 3007--A                         47
 
   (B) IN THE EVENT ANY PHARMACY  BENEFIT  MANAGER  OR  PERSON  DOES  NOT
 SUBMIT  THE  REPORT REQUIRED BY PARAGRAPH ONE OR THREE OF SUBSECTION (A)
 OF THIS SECTION OR DOES NOT PROVIDE A GOOD FAITH RESPONSE TO AN  INQUIRY
 FROM  THE  SUPERINTENDENT PURSUANT TO PARAGRAPH TWO OF SUBSECTION (A) OF
 THIS SECTION WITHIN A TIME PERIOD SPECIFIED BY THE SUPERINTENDENT OF NOT
 LESS  THAN  FIFTEEN  BUSINESS  DAYS, THE SUPERINTENDENT IS AUTHORIZED TO
 LEVY A CIVIL PENALTY, AFTER NOTICE AND HEARING,  AGAINST  SUCH  PHARMACY
 BENEFIT MANAGER OR PERSON NOT TO EXCEED FIVE HUNDRED DOLLARS PER DAY FOR
 EACH DAY BEYOND THE DATE THE REPORT IS DUE OR SUCH DATE SPECIFIED BY THE
 SUPERINTENDENT FOR RESPONSE TO THE INQUIRY.
   §  2905.  ACTING WITHOUT A LICENSE.  (A) NO PERSON, FIRM, ASSOCIATION,
 CORPORATION OR OTHER ENTITY MAY ACT AS A PHARMACY BENEFIT MANAGER ON  OR
 AFTER  JANUARY  FIRST, TWO THOUSAND NINETEEN WITHOUT HAVING AUTHORITY TO
 DO SO BY VIRTUE OF A LICENSE ISSUED IN FORCE PURSUANT TO THE  PROVISIONS
 OF THIS CHAPTER.
   (B)  NO  HEALTH  INSURER  MAY PAY ANY FEE OR OTHER COMPENSATION TO ANY
 PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER  ENTITY  FOR  PERFORMING
 PHARMACY  BENEFIT  MANAGEMENT  SERVICES UNLESS THE PERSON, FIRM, ASSOCI-
 ATION, CORPORATION OR OTHER ENTITY IS LICENSED  AS  A  PHARMACY  BENEFIT
 MANAGER IN ACCORDANCE WITH THIS ARTICLE.
   (C)  ANY  PERSON,  FIRM, ASSOCIATION, CORPORATION OR OTHER ENTITY THAT
 VIOLATES THIS SECTION SHALL, IN ADDITION TO ANY OTHER  PENALTY  PROVIDED
 BY  LAW,  BE SUBJECT TO A CIVIL PENALTY OF THE GREATER OF: (1) ONE THOU-
 SAND DOLLARS FOR THE FIRST  VIOLATION  AND  TWO  THOUSAND  FIVE  HUNDRED
 DOLLARS  FOR  EACH  SUBSEQUENT  VIOLATION;  OR  (2)  THE AGGREGATE GROSS
 RECEIPTS ATTRIBUTABLE TO ALL VIOLATIONS.
   § 2906. LICENSING OF A PHARMACY BENEFIT MANAGER.  (A) THE  SUPERINTEN-
 DENT MAY ISSUE A PHARMACY BENEFIT MANAGER'S LICENSE TO ANY PERSON, FIRM,
 ASSOCIATION  OR  CORPORATION  WHO OR THAT HAS COMPLIED WITH THE REQUIRE-
 MENTS OF THIS CHAPTER, INCLUDING REGULATIONS PROMULGATED BY  THE  SUPER-
 INTENDENT CONSISTENT WITH APPLICABLE LAW.  THE SUPERINTENDENT MAY ESTAB-
 LISH,  BY REGULATION, MINIMUM STANDARDS FOR THE ISSUANCE OF A LICENSE TO
 A PHARMACY BENEFIT MANAGER.
   (B) THE SUPERINTENDENT MAY ESTABLISH, BY REGULATION, MINIMUM STANDARDS
 FOR THE DELIVERY OF PHARMACY BENEFIT MANAGEMENT  SERVICES.  THE  MINIMUM
 STANDARDS ESTABLISHED UNDER THIS SUBSECTION MAY ADDRESS:
   (1)  THE ELIMINATION OF CONFLICTS OF INTEREST BETWEEN PHARMACY BENEFIT
 MANAGERS AND HEALTH INSURERS;
   (2) THE ELIMINATION OF DECEPTIVE  PRACTICES  IN  CONNECTION  WITH  THE
 PERFORMANCE OF PHARMACY BENEFIT MANAGEMENT SERVICES;
   (3)  THE  ELIMINATION OF ANTI-COMPETITIVE PRACTICES IN CONNECTION WITH
 THE PERFORMANCE OF PHARMACY BENEFIT MANAGEMENT SERVICES; AND
   (4) THE ELIMINATION OF UNFAIR CLAIMS PRACTICES IN CONNECTION WITH  THE
 PERFORMANCE OF PHARMACY BENEFIT MANAGEMENT SERVICES.
   (C)(1)  ANY SUCH LICENSE ISSUED TO A FIRM OR ASSOCIATION SHALL AUTHOR-
 IZE ALL OF THE MEMBERS OF THE FIRM OR  ASSOCIATION  AND  ANY  DESIGNATED
 EMPLOYEES TO ACT AS PHARMACY BENEFIT MANAGERS UNDER THE LICENSE, AND ALL
 SUCH PERSONS SHALL BE NAMED IN THE APPLICATION AND SUPPLEMENTS THERETO.
   (2)  ANY  SUCH  LICENSE ISSUED TO A CORPORATION SHALL AUTHORIZE ALL OF
 THE OFFICERS AND ANY DESIGNATED EMPLOYEES AND DIRECTORS THEREOF  TO  ACT
 AS PHARMACY BENEFIT MANAGERS ON BEHALF OF SUCH CORPORATION, AND ALL SUCH
 PERSONS SHALL BE NAMED IN THE APPLICATION AND SUPPLEMENTS THERETO.
   (3)  FOR EACH BUSINESS ENTITY, THE OFFICER OR OFFICERS AND DIRECTOR OR
 DIRECTORS NAMED IN THE APPLICATION SHALL BE DESIGNATED  RESPONSIBLE  FOR
 THE  BUSINESS  ENTITY'S  COMPLIANCE  WITH  THE INSURANCE LAWS, RULES AND
 REGULATIONS OF THIS STATE.

 A. 3007--A                         48
 
   (D)(1) BEFORE A PHARMACY BENEFIT MANAGER'S LICENSE SHALL BE ISSUED  OR
 RENEWED,  THE  PROSPECTIVE LICENSEE SHALL PROPERLY FILE IN THE OFFICE OF
 THE SUPERINTENDENT A WRITTEN APPLICATION THEREFOR IN SUCH FORM OR  FORMS
 AND  SUPPLEMENTS THERETO AS THE SUPERINTENDENT PRESCRIBES, AND PAY A FEE
 OF  ONE  THOUSAND  DOLLARS  FOR  EACH  YEAR FOR WHICH A LICENSE SHALL BE
 VALID.
   (2) EVERY PHARMACY BENEFIT MANAGER'S  LICENSE  ISSUED  TO  A  BUSINESS
 ENTITY  PURSUANT  TO  THIS  SECTION SHALL EXPIRE ON THE THIRTIETH DAY OF
 NOVEMBER OF EVEN-NUMBERED YEARS. EVERY LICENSE ISSUED PURSUANT  TO  THIS
 SECTION  TO  AN  INDIVIDUAL  PHARMACY BENEFIT MANAGER WHO WAS BORN IN AN
 ODD-NUMBERED YEAR, SHALL EXPIRE ON THE  INDIVIDUAL'S  BIRTHDAY  IN  EACH
 ODD-NUMBERED  YEAR.  EVERY LICENSE ISSUED PURSUANT TO THIS SECTION TO AN
 INDIVIDUAL PHARMACY BENEFIT MANAGER WHO WAS  BORN  IN  AN  EVEN-NUMBERED
 YEAR,  SHALL  EXPIRE  ON THE INDIVIDUAL'S BIRTHDAY IN EACH EVEN-NUMBERED
 YEAR. EVERY LICENSE ISSUED PURSUANT TO THIS SECTION MAY BE  RENEWED  FOR
 THE  ENSUING PERIOD OF TWENTY-FOUR MONTHS UPON THE FILING OF AN APPLICA-
 TION IN CONFORMITY WITH THIS SUBSECTION.
   (E)(1) IF AN APPLICATION FOR A RENEWAL LICENSE SHALL HAVE  BEEN  FILED
 WITH  THE SUPERINTENDENT BEFORE OCTOBER FIRST OF THE YEAR OF EXPIRATION,
 THEN THE LICENSE SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL  FORCE  AND
 EFFECT  EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
 LICENSE APPLIED FOR OR UNTIL FIVE DAYS AFTER  THE  SUPERINTENDENT  SHALL
 HAVE  REFUSED  TO  ISSUE  SUCH  RENEWAL LICENSE AND GIVEN NOTICE OF SUCH
 REFUSAL TO THE APPLICANT.
   (2) BEFORE REFUSING TO RENEW ANY LICENSE PURSUANT TO THIS SECTION, THE
 SUPERINTENDENT SHALL NOTIFY THE APPLICANT OF THE SUPERINTENDENT'S INTEN-
 TION SO TO DO AND THE REASONS THEREFOR AND SHALL GIVE SUCH  APPLICANT  A
 HEARING.
   (F)  THE  SUPERINTENDENT MAY REFUSE TO ISSUE A PHARMACY BENEFIT MANAG-
 ER'S LICENSE IF, IN THE SUPERINTENDENT'S JUDGMENT, THE APPLICANT OR  ANY
 MEMBER,  PRINCIPAL,  OFFICER OR DIRECTOR OF THE APPLICANT, IS NOT TRUST-
 WORTHY AND COMPETENT TO ACT AS OR IN CONNECTION WITH A PHARMACY  BENEFIT
 MANAGER, OR HAS GIVEN CAUSE FOR REVOCATION OR SUSPENSION OF SUCH LICENSE
 BY VIOLATION OF THIS ARTICLE, OR HAS FAILED TO COMPLY WITH ANY PREREQUI-
 SITE FOR THE ISSUANCE OF SUCH LICENSE.
   (G)  THE SUPERINTENDENT MAY PROMULGATE REGULATIONS ESTABLISHING OTHER-
 WISE LAWFUL  METHODS  AND  PROCEDURES  FOR  FACILITATING  AND  VERIFYING
 COMPLIANCE  WITH  THE REQUIREMENTS OF THIS SECTION AND SUCH OTHER LAWFUL
 REGULATIONS AS NECESSARY.
   (H) THE  SUPERINTENDENT  MAY  ISSUE  A  REPLACEMENT  FOR  A  CURRENTLY
 IN-FORCE LICENSE THAT HAS BEEN LOST OR DESTROYED. BEFORE THE REPLACEMENT
 LICENSE  SHALL  BE  ISSUED,  THERE SHALL BE ON FILE IN THE OFFICE OF THE
 SUPERINTENDENT  A  WRITTEN  APPLICATION  FOR  THE  REPLACEMENT  LICENSE,
 AFFIRMING  UNDER  PENALTY  OF PERJURY THAT THE ORIGINAL LICENSE HAS BEEN
 LOST OR DESTROYED, TOGETHER WITH A FEE OF ONE HUNDRED DOLLARS.
   § 2907. REVOCATION OR SUSPENSION OF A REGISTRATION  OR  LICENSE  OF  A
 PHARMACY  BENEFIT MANAGER.   (A) THE SUPERINTENDENT MAY REFUSE TO RENEW,
 REVOKE OR SUSPEND, FOR AN APPROPRIATE PERIOD THE  SUPERINTENDENT  DETER-
 MINES,  THE  REGISTRATION OR LICENSE OF ANY PHARMACY BENEFIT MANAGER IF,
 AFTER NOTICE AND HEARING, THERE HAS BEEN A DETERMINATION THAT THE REGIS-
 TRANT OR LICENSEE  OR  ANY  MEMBER,  PRINCIPAL,  OFFICER,  DIRECTOR,  OR
 CONTROLLING PERSON OF THE REGISTRANT OR LICENSEE, HAS:
   (1)  IN  A MATERIAL RESPECT, VIOLATED ANY INSURANCE LAW OR REGULATION,
 SUBPOENA, OR ORDER OF THE SUPERINTENDENT OR OF ANOTHER STATE'S INSURANCE
 COMMISSIONER OR ANY LAW INCLUDING BUT NOT LIMITED TO SECTION TWO HUNDRED

 A. 3007--A                         49

 EIGHTY-A OF THE PUBLIC HEALTH LAW, IN THE COURSE OF HIS OR HER  DEALINGS
 IN SUCH CAPACITY;
   (2)  PROVIDED  MATERIALLY INCORRECT, MATERIALLY MISLEADING, MATERIALLY
 INCOMPLETE OR MATERIALLY  UNTRUE  INFORMATION  IN  THE  REGISTRATION  OR
 LICENSE APPLICATION;
   (3)  OBTAINED OR ATTEMPTED TO OBTAIN A REGISTRATION OR LICENSE THROUGH
 FRAUD OR INTENTIONAL MISREPRESENTATION;
   (4)(A) USED FRAUDULENT, COERCIVE OR DISHONEST PRACTICES;
   (B) DEMONSTRATED INCOMPETENCE;
   (C) DEMONSTRATED UNTRUSTWORTHINESS; OR
   (D) DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT OF BUSINESS
 IN THIS STATE OR ELSEWHERE;
   (5) IMPROPERLY WITHHELD, MISAPPROPRIATED OR CONVERTED  ANY  MONIES  OR
 PROPERTIES  RECEIVED  IN  THE  COURSE OF BUSINESS IN THIS STATE OR ELSE-
 WHERE;
   (6) INTENTIONALLY MISREPRESENTED THE TERMS OF AN  ACTUAL  OR  PROPOSED
 INSURANCE CONTRACT;
   (7)  ADMITTED  OR  BEEN  FOUND  TO HAVE COMMITTED ANY INSURANCE UNFAIR
 TRADE PRACTICE OR FRAUD;
   (8) HAD A PHARMACY BENEFIT MANAGER REGISTRATION  OR  LICENSE,  OR  ITS
 EQUIVALENT,  DENIED,  SUSPENDED OR REVOKED IN ANY OTHER STATE, PROVINCE,
 DISTRICT OR TERRITORY;
   (9) FAILED TO PAY STATE INCOME TAX OR COMPLY WITH  ANY  ADMINISTRATIVE
 OR COURT ORDER DIRECTING PAYMENT OF STATE INCOME TAX; OR
   (10)  CEASED  TO  MEET  THE REQUIREMENTS FOR REGISTRATION OR LICENSURE
 UNDER THIS ARTICLE.
   (B) BEFORE REVOKING OR SUSPENDING THE REGISTRATION OR LICENSE  OF  ANY
 PHARMACY BENEFIT MANAGER PURSUANT TO THE PROVISIONS OF THIS ARTICLE, THE
 SUPERINTENDENT  SHALL  GIVE  NOTICE TO THE REGISTRANT OR LICENSEE AND TO
 EVERY SUB-LICENSEE AND SHALL HOLD A HEARING NOT LESS THAN TEN DAYS AFTER
 THE GIVING OF SUCH NOTICE EXCEPT THAT A REASONABLE REQUEST FOR DELAY  OF
 A  REVOCATION  HEARING  BY  A  SUSPENDED REGISTRANT OR LICENSEE SHALL BE
 GRANTED.
   (C) IF A REGISTRATION OR LICENSE PURSUANT TO THE  PROVISIONS  OF  THIS
 ARTICLE  IS  REVOKED OR SUSPENDED BY THE SUPERINTENDENT, THEN THE SUPER-
 INTENDENT SHALL FORTHWITH GIVE NOTICE TO THE REGISTRANT OR LICENSEE.
   (D) THE REVOCATION OR SUSPENSION OF ANY REGISTRATION OR LICENSE PURSU-
 ANT TO THE PROVISIONS OF THIS ARTICLE  SHALL  TERMINATE  FORTHWITH  SUCH
 REGISTRATION  OR  LICENSE  AND  THE AUTHORITY CONFERRED THEREBY UPON ALL
 SUB-LICENSEES.
   (E)(1) NO INDIVIDUAL, CORPORATION, FIRM OR ASSOCIATION WHOSE REGISTRA-
 TION OR LICENSE AS A PHARMACY BENEFIT MANAGER SUBJECT TO SUBSECTION  (A)
 OF  THIS  SECTION  HAS BEEN REVOKED, AND NO FIRM OR ASSOCIATION OF WHICH
 SUCH INDIVIDUAL IS A MEMBER, AND NO CORPORATION OF WHICH SUCH INDIVIDUAL
 IS AN OFFICER OR DIRECTOR, AND NO CONTROLLING PERSON OF  THE  REGISTRANT
 OR  LICENSEE  SHALL  BE  ENTITLED  TO OBTAIN ANY REGISTRATION OR LICENSE
 UNDER THE PROVISIONS OF THIS CHAPTER FOR A PERIOD OF ONE YEAR AFTER SUCH
 REVOCATION. IN THE EVENT THAT SUCH REVOCATION  BE  JUDICIALLY  REVIEWED,
 THE  ONE  YEAR  SUSPENSION SHALL BE IN EFFECT FOLLOWING A FINAL DETERMI-
 NATION THEREOF AFFIRMING THE ACTION OF THE  SUPERINTENDENT  IN  REVOKING
 SUCH LICENSE AND SHALL INCLUDE ANY INTERIM PERIOD OF SUSPENSION.
   (2) IF ANY SUCH REGISTRATION OR LICENSE HELD BY A FIRM, ASSOCIATION OR
 CORPORATION  BE  REVOKED,  NO  MEMBER OF SUCH FIRM OR ASSOCIATION AND NO
 OFFICER OR DIRECTOR OF SUCH CORPORATION OR ANY CONTROLLING PERSON OF THE
 REGISTRANT OR LICENSEE SHALL BE ENTITLED TO OBTAIN ANY  REGISTRATION  OR
 LICENSE,  OR  TO  BE  NAMED AS A SUB-LICENSEE IN ANY SUCH LICENSE, UNDER

 A. 3007--A                         50
 
 THIS CHAPTER FOR THE SAME PERIOD  OF  TIME,  UNLESS  THE  SUPERINTENDENT
 DETERMINES,  AFTER  NOTICE AND HEARING WHICH SHALL BE HELD PROMPTLY UPON
 SUCH REQUEST, THAT SUCH MEMBER, OFFICER OR  DIRECTOR  WAS  NOT  DIRECTLY
 INVOLVED  IN THE MATTER ON ACCOUNT OF WHICH SUCH REGISTRATION OR LICENSE
 WAS REVOKED.
   (F) IF ANY PERSON AGGRIEVED SHALL FILE WITH THE SUPERINTENDENT A VERI-
 FIED COMPLAINT SETTING FORTH FACTS TENDING TO SHOW SUFFICIENT GROUND FOR
 THE REVOCATION OR SUSPENSION OF ANY PHARMACY BENEFIT MANAGER'S REGISTRA-
 TION OR LICENSE, THEN THE SUPERINTENDENT SHALL, AFTER NOTICE AND A HEAR-
 ING, DETERMINE WHETHER SUCH REGISTRATION OR LICENSE SHALL  BE  SUSPENDED
 OR REVOKED.
   (G)  THE  SUPERINTENDENT  SHALL  RETAIN  THE  AUTHORITY TO ENFORCE THE
 PROVISIONS OF AND IMPOSE ANY PENALTY OR REMEDY AUTHORIZED BY THIS  CHAP-
 TER  AGAINST  ANY  PERSON OR ENTITY WHO IS IN VIOLATION OF THIS CHAPTER,
 EVEN IF THE PERSON'S  OR  ENTITY'S  REGISTRATION  OR  LICENSE  HAS  BEEN
 SURRENDERED, HAS EXPIRED OR HAS LAPSED BY OPERATION OF LAW.
   (H)  A  REGISTRANT OR LICENSEE SUBJECT TO THIS ARTICLE SHALL REPORT TO
 THE SUPERINTENDENT ANY ADMINISTRATIVE ACTION TAKEN  AGAINST  THE  REGIS-
 TRANT  OR  LICENSEE  IN  ANOTHER JURISDICTION OR BY ANOTHER GOVERNMENTAL
 AGENCY IN THIS STATE WITHIN THIRTY DAYS OF THE FINAL DISPOSITION OF  THE
 MATTER.  THIS REPORT SHALL INCLUDE A COPY OF THE ORDER, CONSENT TO ORDER
 OR OTHER RELEVANT LEGAL DOCUMENTS DOCUMENTING SUCH FINAL DETERMINATION.
   (I)  WITHIN THIRTY DAYS OF THE INITIAL PRETRIAL HEARING DATE, A REGIS-
 TRANT OR LICENSEE SUBJECT TO THIS ARTICLE SHALL  REPORT  TO  THE  SUPER-
 INTENDENT  ANY  CRIMINAL PROSECUTION OF THE REGISTRANT OR LICENSEE TAKEN
 IN ANY JURISDICTION. THE REPORT SHALL INCLUDE  A  COPY  OF  THE  INITIAL
 COMPLAINT  FILED,  THE  ORDER  RESULTING  FROM THE HEARING AND ANY OTHER
 RELEVANT LEGAL DOCUMENTS DOCUMENTING THE DISPOSITION OF THE MATTER.
   § 2908. PENALTIES FOR VIOLATIONS.  (A) THE SUPERINTENDENT, IN LIEU  OF
 REVOKING  OR  SUSPENDING  THE REGISTRATION OR LICENSE OF A REGISTRANT OR
 LICENSEE IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, MAY  IN  ANY
 ONE  PROCEEDING  BY  ORDER, REQUIRE THE REGISTRANT OR LICENSEE TO PAY TO
 THE PEOPLE OF THIS STATE A CIVIL PENALTY IN  A  SUM  NOT  EXCEEDING  THE
 GREATER  OF:  (1)  ONE  THOUSAND DOLLARS FOR EACH OFFENSE, NOT EXCEEDING
 TWENTY-FIVE HUNDRED DOLLARS IN THE AGGREGATE FOR ALL  OFFENSES;  OR  (2)
 THE AGGREGATE GROSS RECEIPTS ATTRIBUTABLE TO ALL OFFENSES.
   (B)  UPON  THE  FAILURE  OF  SUCH  A REGISTRANT OR LICENSEE TO PAY THE
 PENALTY ORDERED PURSUANT TO SUBSECTION (A) OF THIS SECTION WITHIN TWENTY
 DAYS AFTER THE MAILING OF THE ORDER, POSTAGE  PREPAID,  REGISTERED,  AND
 ADDRESSED  TO  THE  LAST KNOWN PLACE OF BUSINESS OF THE LICENSEE, UNLESS
 THE ORDER IS STAYED BY THE SUPERINTENDENT OR AN  ORDER  OF  A  COURT  OF
 COMPETENT  JURISDICTION,  THE SUPERINTENDENT MAY REVOKE THE REGISTRATION
 OR LICENSE OF THE REGISTRANT OR LICENSEE OR MAY  SUSPEND  THE  SAME  FOR
 SUCH PERIOD AS THE SUPERINTENDENT DETERMINES.
   §  2909.  STAY  OR  SUSPENSION OF SUPERINTENDENT'S DETERMINATION.  THE
 COMMENCEMENT OF A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT  OF  THE  CIVIL
 PRACTICE  LAW  AND  RULES, TO REVIEW THE ACTION OF THE SUPERINTENDENT IN
 SUSPENDING OR REVOKING OR REFUSING TO RENEW ANY CERTIFICATE  UNDER  THIS
 ARTICLE,  SHALL  STAY  SUCH ACTION OF THE SUPERINTENDENT FOR A PERIOD OF
 THIRTY DAYS. SUCH STAY MAY BE EXTENDED FOR A LONGER PERIOD BY THE COURT,
 PENDING THE FINAL DETERMINATION  OR  FURTHER  ORDER  OF  THE  COURT,  IN
 ACCORDANCE  WITH  THE  RELEVANT PROVISIONS OF THE CIVIL PRACTICE LAW AND
 RULES.
   § 2910. REVOKED REGISTRATIONS.  (A)(1) NO PERSON,  FIRM,  ASSOCIATION,
 CORPORATION  OR  OTHER  ENTITY SUBJECT TO THE PROVISIONS OF THIS ARTICLE
 WHOSE REGISTRATION OR LICENSE UNDER THIS ARTICLE HAS  BEEN  REVOKED,  OR

 A. 3007--A                         51
 
 WHOSE  REGISTRATION  OR  LICENSE  TO  ENGAGE IN THE BUSINESS OF PHARMACY
 BENEFIT MANAGEMENT IN ANY CAPACITY HAS BEEN REVOKED BY ANY  OTHER  STATE
 OR TERRITORY OF THE UNITED STATES, SHALL BECOME EMPLOYED OR APPOINTED BY
 A PHARMACY BENEFIT MANAGER AS AN OFFICER, DIRECTOR, MANAGER, CONTROLLING
 PERSON  WITHOUT THE PRIOR WRITTEN APPROVAL OF THE SUPERINTENDENT, UNLESS
 SUCH SERVICES ARE FOR MAINTENANCE OR  ARE  CLERICAL  OR  MINISTERIAL  IN
 NATURE.
   (2)  NO PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER ENTITY SUBJECT
 TO THE PROVISIONS OF THIS ARTICLE SHALL KNOWINGLY EMPLOY OR APPOINT  ANY
 PERSON OR ENTITY WHOSE REGISTRATION OR LICENSE ISSUED UNDER THIS ARTICLE
 HAS  BEEN  REVOKED,  OR  WHOSE  REGISTRATION OR LICENSE TO ENGAGE IN THE
 BUSINESS OF PHARMACY BENEFIT MANAGEMENT IN ANY CAPACITY HAS BEEN REVOKED
 BY ANY OTHER STATE OR TERRITORY OF THE UNITED  STATES,  AS  AN  OFFICER,
 DIRECTOR,  MANAGER  OR  CONTROLLING  PERSON,  WITHOUT  THE PRIOR WRITTEN
 APPROVAL OF THE SUPERINTENDENT, UNLESS SUCH SERVICES ARE FOR MAINTENANCE
 OR ARE CLERICAL OR MINISTERIAL IN NATURE.
   (3) NO CORPORATION OR PARTNERSHIP SUBJECT TO THE  PROVISIONS  OF  THIS
 ARTICLE  SHALL KNOWINGLY PERMIT ANY PERSON WHOSE REGISTRATION OR LICENSE
 ISSUED UNDER THIS ARTICLE HAS BEEN REVOKED,  OR  WHOSE  REGISTRATION  OR
 LICENSE  TO  ENGAGE  IN  THE BUSINESS OF PHARMACY BENEFIT MANAGEMENT HAS
 BEEN REVOKED BY ANY OTHER STATE, OR TERRITORY OF THE UNITED  STATES,  TO
 BE A SHAREHOLDER OR HAVE AN INTEREST IN SUCH CORPORATION OR PARTNERSHIP,
 NOR SHALL ANY SUCH PERSON BECOME A SHAREHOLDER OR PARTNER IN SUCH CORPO-
 RATION  OR PARTNERSHIP, WITHOUT THE PRIOR WRITTEN APPROVAL OF THE SUPER-
 INTENDENT.
   (B) THE SUPERINTENDENT MAY  APPROVE  THE  EMPLOYMENT,  APPOINTMENT  OR
 PARTICIPATION  OF ANY SUCH PERSON WHOSE REGISTRATION OR LICENSE HAS BEEN
 REVOKED:
   (1) IF THE SUPERINTENDENT DETERMINES THAT THE DUTIES AND  RESPONSIBIL-
 ITIES  OF  SUCH  PERSON  ARE SUBJECT TO APPROPRIATE SUPERVISION AND THAT
 SUCH DUTIES AND RESPONSIBILITIES WILL NOT HAVE AN  ADVERSE  EFFECT  UPON
 THE  PUBLIC,  OTHER  REGISTRANTS  AND  LICENSEES,  AND THE REGISTRANT OR
 LICENSEE PROPOSING EMPLOYMENT OR APPOINTMENT OF SUCH PERSON; OR
   (2) IF SUCH PERSON HAS FILED  AN  APPLICATION  FOR  REREGISTRATION  OR
 RELICENSING PURSUANT TO THIS ARTICLE AND THE APPLICATION FOR REREGISTRA-
 TION  OR  RELICENSING HAS NOT BEEN APPROVED OR DENIED WITHIN ONE HUNDRED
 TWENTY DAYS FOLLOWING THE  FILING  THEREOF,  UNLESS  THE  SUPERINTENDENT
 DETERMINES  WITHIN  THE SAID TIME THAT EMPLOYMENT OR APPOINTMENT OF SUCH
 PERSON BY A REGISTRANT OR LICENSEE IN THE CONDUCT OF A PHARMACY  BENEFIT
 MANAGEMENT BUSINESS WOULD NOT BE IN THE PUBLIC INTEREST.
   (C) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE OWNERSHIP OF
 SHARES  OF ANY CORPORATION REGISTERED OR LICENSED PURSUANT TO THIS ARTI-
 CLE IF SUCH SHARES OF SUCH CORPORATION ARE PUBLICLY HELD AND  TRADED  IN
 THE  OVER-THE-COUNTER MARKET OR UPON ANY NATIONAL OR REGIONAL SECURITIES
 EXCHANGE.
   § 2911. CHANGE OF ADDRESS.  A REGISTRANT OR LICENSEE UNDER THIS  ARTI-
 CLE  SHALL INFORM THE SUPERINTENDENT BY A REASONABLE MEANS ACCEPTABLE TO
 THE SUPERINTENDENT OF A CHANGE OF ADDRESS  WITHIN  THIRTY  DAYS  OF  THE
 CHANGE.
   §  2912. ASSESSMENT.  PHARMACY BENEFIT MANAGERS THAT MAINTAIN A REGIS-
 TRATION WITH THE DEPARTMENT OR ARE LICENSED BY THE DEPARTMENT  SHALL  BE
 ASSESSED BY THE SUPERINTENDENT FOR THE OPERATING EXPENSES OF THE DEPART-
 MENT  THAT  ARE  SOLELY ATTRIBUTABLE TO REGULATING SUCH PHARMACY BENEFIT
 MANAGERS IN SUCH PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM  JUST  AND
 REASONABLE.

 A. 3007--A                         52
 
   §  2913. APPLICABILITY OF OTHER LAWS. NOTHING IN THIS ARTICLE SHALL BE
 CONSTRUED TO EXEMPT A PHARMACY BENEFIT MANAGER FROM COMPLYING  WITH  THE
 PROVISIONS  OF  ARTICLES  TWENTY-ONE AND FORTY-NINE OF THIS CHAPTER, AND
 SECTION TWO HUNDRED EIGHTY-A AND ARTICLE FORTY-NINE OF THE PUBLIC HEALTH
 LAW  OR  ANY  OTHER  PROVISION OF THIS CHAPTER OR THE FINANCIAL SERVICES
 LAW.
   § 2. Subsection (b) of section 2402 of the insurance law,  as  amended
 by section 71 of part A of chapter 62 of the laws of 2011, is amended to
 read as follows:
   (b)  "Defined  violation"  means  the commission by a person of an act
 prohibited by: subsection (a) of section one thousand one  hundred  two,
 section  one  thousand  two  hundred  fourteen, one thousand two hundred
 seventeen, one thousand two hundred twenty, one thousand  three  hundred
 thirteen, subparagraph (B) of paragraph two of subsection (i) of section
 one thousand three hundred twenty-two, subparagraph (B) of paragraph two
 of subsection (i) of section one thousand three hundred twenty-four, two
 thousand  one hundred two, two thousand one hundred seventeen, two thou-
 sand one hundred twenty-two,  two  thousand  one  hundred  twenty-three,
 subsection  (p)  of section two thousand three hundred thirteen, section
 two thousand three hundred twenty-four, two thousand five  hundred  two,
 two  thousand  five  hundred  three, two thousand five hundred four, two
 thousand six hundred one, two thousand six hundred two, two thousand six
 hundred three, two thousand six hundred four, two thousand  six  hundred
 six,  two  thousand  seven hundred three, TWO THOUSAND NINE HUNDRED TWO,
 TWO THOUSAND NINE HUNDRED FIVE, three thousand one hundred  nine,  three
 thousand  two hundred twenty-four-a, three thousand four hundred twenty-
 nine, three thousand  four  hundred  thirty-three,  paragraph  seven  of
 subsection  (e)  of section three thousand four hundred twenty-six, four
 thousand two hundred twenty-four, four thousand two hundred twenty-five,
 four thousand two hundred twenty-six, seven thousand eight hundred nine,
 seven thousand eight hundred ten, seven thousand eight  hundred  eleven,
 seven  thousand  eight  hundred  thirteen,  seven thousand eight hundred
 fourteen and seven thousand eight hundred fifteen of  this  chapter;  or
 section  135.60,  135.65,  175.05,  175.45,  or  190.20,  or article one
 hundred five of the penal law.
   § 3. Paragraph 28 of subsection (i) of section 3216 of  the  insurance
 law, as amended by chapter 11 of the laws of 2012, is amended to read as
 follows:
   (28) (A) DEFINITIONS. FOR THE PURPOSE OF THIS PARAGRAPH:
   (1) "SAME REIMBURSEMENT AMOUNT" SHALL MEAN THAT ANY COVERAGE DESCRIBED
 UNDER  SUBPARAGRAPH  (B) OF THIS PARAGRAPH SHALL PROVIDE THE SAME BENCH-
 MARK INDEX, INCLUDING THE SAME AVERAGE WHOLESALE PRICE,  MAXIMUM  ALLOW-
 ABLE  COST AND NATIONAL PRESCRIPTION DRUG CODES TO REIMBURSE ALL PHARMA-
 CIES PARTICIPATING IN THE INSURANCE  NETWORK  REGARDLESS  OF  WHETHER  A
 PHARMACY IS A MAIL ORDER PHARMACY OR A NON-MAIL ORDER PHARMACY.
   (2)  "MAIL  ORDER PHARMACY" MEANS A PHARMACY WHOSE PRIMARY BUSINESS IS
 TO  RECEIVE  PRESCRIPTIONS  BY  MAIL,  TELEFAX  OR  THROUGH   ELECTRONIC
 SUBMISSIONS  AND  TO  DISPENSE MEDICATION TO PATIENTS THROUGH THE USE OF
 THE UNITED STATES MAIL OR OTHER COMMON OR CONTRACT CARRIER SERVICES  AND
 PROVIDES ANY CONSULTATION WITH PATIENTS ELECTRONICALLY RATHER THAN FACE-
 TO-FACE.
   (B)  Any  policy  that  provides coverage for prescription drugs shall
 permit each insured  to  fill  any  covered  prescription  that  may  be
 obtained at a network participating mail order or other non-retail phar-
 macy, at the insured's option, at a network participating non-mail order
 retail  pharmacy  provided that the network participating non-mail order

 A. 3007--A                         53
 
 retail pharmacy agrees [in advance, through a contractual network agree-
 ment,] to the same reimbursement amount[, as well as the same applicable
 terms and conditions,] that the insurer has established for the  network
 participating  mail  order or other non-retail pharmacy. In such a case,
 the policy shall not impose a co-payment fee or other condition  on  any
 insured who elects to purchase prescription drugs from a network partic-
 ipating  non-mail  order  retail  pharmacy  which is not also imposed on
 insureds electing to purchase drugs from a  network  participating  mail
 order or other non-retail pharmacy.
   §  4.  Paragraph 18 of subsection (l) of section 3221 of the insurance
 law, as amended by chapter 11 of the laws of 2012, is amended to read as
 follows:
   (18) (A) DEFINITIONS. FOR THE PURPOSE OF THIS PARAGRAPH:
   (1) "SAME REIMBURSEMENT AMOUNT" SHALL MEAN THAT ANY COVERAGE DESCRIBED
 UNDER SUBPARAGRAPH (B) OF THIS PARAGRAPH SHALL PROVIDE THE  SAME  BENCH-
 MARK  INDEX,  INCLUDING THE SAME AVERAGE WHOLESALE PRICE, MAXIMUM ALLOW-
 ABLE COST AND NATIONAL PRESCRIPTION DRUG CODES TO REIMBURSE ALL  PHARMA-
 CIES  PARTICIPATING  IN  THE  INSURANCE  NETWORK REGARDLESS OF WHETHER A
 PHARMACY IS A MAIL ORDER PHARMACY OR A NON-MAIL ORDER PHARMACY.
   (2) "MAIL ORDER PHARMACY" MEANS A PHARMACY WHOSE PRIMARY  BUSINESS  IS
 TO   RECEIVE  PRESCRIPTIONS  BY  MAIL,  TELEFAX  OR  THROUGH  ELECTRONIC
 SUBMISSIONS AND TO DISPENSE MEDICATION TO PATIENTS THROUGH  THE  USE  OF
 THE  UNITED STATES MAIL OR OTHER COMMON OR CONTRACT CARRIER SERVICES AND
 PROVIDES ANY CONSULTATION WITH PATIENTS ELECTRONICALLY RATHER THAN FACE-
 TO-FACE.
   (B) Any insurer delivering a group or  blanket  policy  or  issuing  a
 group  or blanket policy for delivery in this state that provides cover-
 age for prescription drugs shall permit each insured to fill any covered
 prescription that may be obtained at a network participating mail  order
 or  other  non-retail  pharmacy,  at  the insured's option, at a network
 participating non-mail order retail pharmacy provided that  the  network
 participating non-mail order retail pharmacy agrees [in advance, through
 a  contractual network agreement,] to the same reimbursement amount[, as
 well as the same applicable terms and conditions,] that the insurer  has
 established for the network participating mail order or other non-retail
 pharmacy.  In  such a case, the policy shall not impose a co-payment fee
 or other condition on any insured who elects to purchase  drugs  from  a
 network  participating  non-mail order retail pharmacy which is not also
 imposed on insureds electing to purchase drugs from  a  network  partic-
 ipating mail order or other non-retail pharmacy; provided, however, that
 the  provisions  of  this  section  shall  not  supersede the terms of a
 collective bargaining agreement or apply to a policy that is the  result
 of  a  collective  bargaining agreement between an employer and a recog-
 nized or certified employee organization.
   § 5. Subsection (kk) of section 4303 of the insurance law, as  amended
 by  chapter  11  of  the laws of 2012 and as relettered by section 55 of
 part D of chapter 56 of the laws of 2013, is amended to read as follows:
   (kk) (1) DEFINITIONS. FOR THE PURPOSE OF THIS SUBSECTION:
   (A) "SAME REIMBURSEMENT AMOUNT" SHALL MEAN THAT ANY COVERAGE DESCRIBED
 UNDER PARAGRAPH TWO OF THIS SUBSECTION SHALL PROVIDE THE SAME  BENCHMARK
 INDEX,  INCLUDING  THE  SAME  AVERAGE WHOLESALE PRICE, MAXIMUM ALLOWABLE
 COST AND NATIONAL PRESCRIPTION DRUG CODES TO  REIMBURSE  ALL  PHARMACIES
 PARTICIPATING IN THE HEALTH BENEFIT PLAN REGARDLESS OF WHETHER A PHARMA-
 CY IS A MAIL ORDER PHARMACY OR A NON-MAIL ORDER PHARMACY.
   (B)  "MAIL  ORDER PHARMACY" MEANS A PHARMACY WHOSE PRIMARY BUSINESS IS
 TO  RECEIVE  PRESCRIPTIONS  BY  MAIL,  TELEFAX  OR  THROUGH   ELECTRONIC

 A. 3007--A                         54
 
 SUBMISSIONS  AND  TO  DISPENSE MEDICATION TO PATIENTS THROUGH THE USE OF
 THE UNITED STATES MAIL OR OTHER COMMON OR CONTRACT CARRIER SERVICES  AND
 PROVIDES ANY CONSULTATION WITH PATIENTS ELECTRONICALLY RATHER THAN FACE-
 TO-FACE.
   (2)  Any contract issued by a medical expense indemnity corporation, a
 hospital service corporation  or  a  health  services  corporation  that
 provides  coverage  for  prescription  drugs  shall  permit each covered
 person to fill any covered  prescription  that  may  be  obtained  at  a
 network  participating  mail  order or other non-retail pharmacy, at the
 covered person's option,  at  a  network  participating  non-mail  order
 retail  pharmacy  provided that the network participating non-mail order
 retail pharmacy agrees [in advance, through a contractual network agree-
 ment,] to the same reimbursement amount[, as well as the same applicable
 terms and conditions,] that the  corporation  has  established  for  the
 network  participating mail order or other non-retail pharmacy.  In such
 a case, the contract shall not impose a copayment fee or other condition
 on any covered person who  elects  to  purchase  drugs  from  a  network
 participating  non-mail  order retail pharmacy which is not also imposed
 on covered persons electing to purchase drugs from a network participat-
 ing mail order or other non-retail pharmacy; provided, however, that the
 provisions of this section shall not supersede the terms of a collective
 bargaining agreement or apply to a contract that  is  the  result  of  a
 collective  bargaining agreement between an employer and a recognized or
 certified employee organization.
   § 6. Section 280-a of the public health law  is  REPEALED  and  a  new
 section 280-a is added to read as follows:
   §  280-A.  PHARMACY BENEFIT MANAGERS. 1. DEFINITIONS.  AS USED IN THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "HEALTH PLAN OR PROVIDER" MEANS AN ENTITY  FOR  WHICH  A  PHARMACY
 BENEFIT MANAGER PROVIDES PHARMACY BENEFIT MANAGEMENT SERVICES INCLUDING,
 BUT NOT LIMITED TO:
   (I)  A  HEALTH  BENEFIT  PLAN OR OTHER ENTITY THAT APPROVES, PROVIDES,
 ARRANGES FOR, OR PAYS FOR HEALTH CARE ITEMS  OR  SERVICES,  UNDER  WHICH
 PRESCRIPTION  DRUGS  FOR  BENEFICIARIES  OF  THE ENTITY ARE PURCHASED OR
 WHICH PROVIDES OR ARRANGES REIMBURSEMENT IN WHOLE OR  IN  PART  FOR  THE
 PURCHASE OF PRESCRIPTION DRUGS; OR
   (II)  A  HEALTH  CARE  PROVIDER  OR PROFESSIONAL, INCLUDING A STATE OR
 LOCAL GOVERNMENT ENTITY, THAT ACQUIRES  PRESCRIPTION  DRUGS  TO  USE  OR
 DISPENSE IN PROVIDING HEALTH CARE TO PATIENTS.
   (B)  "PHARMACY  BENEFIT  MANAGEMENT"  MEANS  THE SERVICE PROVIDED TO A
 HEALTH PLAN OR PROVIDER, DIRECTLY OR THROUGH ANOTHER  ENTITY,  INCLUDING
 THE  PROCUREMENT  OF  PRESCRIPTION DRUGS TO BE DISPENSED TO PATIENTS, OR
 THE ADMINISTRATION OR MANAGEMENT OF PRESCRIPTION DRUG BENEFITS,  INCLUD-
 ING BUT NOT LIMITED TO, ANY OF THE FOLLOWING:
   (I) MAIL SERVICE PHARMACY;
   (II)  CLAIMS  PROCESSING,  RETAIL  NETWORK  MANAGEMENT,  OR PAYMENT OF
 CLAIMS TO PHARMACIES FOR DISPENSING PRESCRIPTION DRUGS;
   (III) CLINICAL OR OTHER FORMULARY OR PREFERRED DRUG  LIST  DEVELOPMENT
 OR MANAGEMENT;
   (IV)  NEGOTIATION  OR  ADMINISTRATION  OF  REBATES, DISCOUNTS, PAYMENT
 DIFFERENTIALS, OR OTHER INCENTIVES,  FOR  THE  INCLUSION  OF  PARTICULAR
 PRESCRIPTION  DRUGS  IN A PARTICULAR CATEGORY OR TO PROMOTE THE PURCHASE
 OF PARTICULAR PRESCRIPTION DRUGS;
   (V) PATIENT COMPLIANCE, THERAPEUTIC INTERVENTION, OR  GENERIC  SUBSTI-
 TUTION PROGRAMS;
   (VI) DISEASE MANAGEMENT;

 A. 3007--A                         55
 
   (VII) DRUG UTILIZATION REVIEW OR PRIOR AUTHORIZATION;
   (VIII)  ADJUDICATION  OF APPEALS OR GRIEVANCES RELATED TO PRESCRIPTION
 DRUG COVERAGE;
   (IX) CONTROLLING THE COST OF COVERED PRESCRIPTION DRUGS; AND
   (X) CONTRACTING WITH NETWORK PHARMACIES.
   (C) "PHARMACY BENEFIT MANAGER" MEANS ANY  ENTITY  THAT:  (I)  PERFORMS
 PHARMACY BENEFIT MANAGEMENT SERVICES FOR A HEALTH PLAN OR PROVIDER; OR
   (II)  IS  REGISTERED  OR  LICENSED AS A PHARMACY BENEFIT MANAGER UNDER
 ARTICLE TWENTY-NINE OF THE INSURANCE LAW.
   (D) "MAXIMUM ALLOWABLE  COST  PRICE"  MEANS  A  MAXIMUM  REIMBURSEMENT
 AMOUNT  SET  BY  THE PHARMACY BENEFIT MANAGER FOR THERAPEUTICALLY EQUIV-
 ALENT MULTIPLE SOURCE GENERIC DRUGS.
   2. APPLICATION OF SECTION.  THIS SECTION APPLIES TO THE  PROVIDING  OF
 PHARMACY  BENEFIT MANAGEMENT SERVICES BY A PHARMACY BENEFIT MANAGER TO A
 PARTICULAR HEALTH PLAN OR PROVIDER.
   3. DUTY, ACCOUNTABILITY AND TRANSPARENCY.   (A) THE  PHARMACY  BENEFIT
 MANAGER  SHALL  HAVE A FIDUCIARY RELATIONSHIP WITH AND OBLIGATION TO THE
 HEALTH PLAN OR PROVIDER, AND SHALL PERFORM PHARMACY  BENEFIT  MANAGEMENT
 WITH CARE, SKILL, PRUDENCE, DILIGENCE, AND PROFESSIONALISM.
   (B)  ALL FUNDS RECEIVED BY THE PHARMACY BENEFIT MANAGER IN RELATION TO
 PROVIDING PHARMACY BENEFIT MANAGEMENT SERVICES SHALL BE RECEIVED BY  THE
 PHARMACY  BENEFIT  MANAGER  IN TRUST FOR THE HEALTH PLAN OR PROVIDER AND
 SHALL BE USED OR DISTRIBUTED  ONLY  PURSUANT  TO  THE  PHARMACY  BENEFIT
 MANAGER'S  CONTRACT  WITH THE HEALTH PLAN OR PROVIDER OR APPLICABLE LAW;
 EXCEPT FOR ANY FEE OR PAYMENT EXPRESSLY PROVIDED  FOR  IN  THE  CONTRACT
 BETWEEN  THE PHARMACY BENEFIT MANAGER AND THE HEALTH PLAN OR PROVIDER TO
 COMPENSATE THE PHARMACY BENEFIT MANAGER FOR ITS SERVICES.
   (C) THE PHARMACY BENEFIT MANAGER SHALL  PERIODICALLY  ACCOUNT  TO  THE
 HEALTH  PLAN  OR PROVIDER FOR ALL FUNDS RECEIVED BY THE PHARMACY BENEFIT
 MANAGER. THE HEALTH PLAN OR PROVIDER SHALL HAVE ACCESS TO ALL  FINANCIAL
 AND  UTILIZATION INFORMATION OF THE PHARMACY BENEFIT MANAGER IN RELATION
 TO PHARMACY BENEFIT MANAGEMENT SERVICES PROVIDED TO THE HEALTH  PLAN  OR
 PROVIDER.
   (D)  THE  PHARMACY  BENEFIT  MANAGER  SHALL DISCLOSE IN WRITING TO THE
 HEALTH PLAN OR PROVIDER THE TERMS AND  CONDITIONS  OF  ANY  CONTRACT  OR
 ARRANGEMENT  BETWEEN THE PHARMACY BENEFIT MANAGER AND ANY PARTY RELATING
 TO PHARMACY BENEFIT MANAGEMENT SERVICES PROVIDED TO THE HEALTH  PLAN  OR
 PROVIDER.
   (E)  THE  PHARMACY  BENEFIT  MANAGER  SHALL DISCLOSE IN WRITING TO THE
 HEALTH PLAN OR PROVIDER ANY  ACTIVITY,  POLICY,  PRACTICE,  CONTRACT  OR
 ARRANGEMENT  OF THE PHARMACY BENEFIT MANAGER THAT DIRECTLY OR INDIRECTLY
 PRESENTS ANY CONFLICT OF INTEREST WITH THE  PHARMACY  BENEFIT  MANAGER'S
 RELATIONSHIP WITH OR OBLIGATION TO THE HEALTH PLAN OR PROVIDER.
   (F)  ANY  INFORMATION  REQUIRED  TO BE DISCLOSED BY A PHARMACY BENEFIT
 MANAGER TO A HEALTH PLAN OR PROVIDER UNDER THIS SECTION THAT IS  REASON-
 ABLY  DESIGNATED BY THE PHARMACY BENEFIT MANAGER AS PROPRIETARY OR TRADE
 SECRET INFORMATION SHALL BE KEPT CONFIDENTIAL  BY  THE  HEALTH  PLAN  OR
 PROVIDER,  EXCEPT  AS REQUIRED OR PERMITTED BY LAW, INCLUDING DISCLOSURE
 NECESSARY TO PROSECUTE OR DEFEND ANY LEGITIMATE LEGAL CLAIM OR CAUSE  OF
 ACTION.
   4.  PRESCRIPTIONS.    A PHARMACY BENEFIT MANAGER MAY NOT SUBSTITUTE OR
 CAUSE THE SUBSTITUTING OF ONE PRESCRIPTION DRUG FOR ANOTHER IN  DISPENS-
 ING  A  PRESCRIPTION,  OR  ALTER OR CAUSE THE ALTERING OF THE TERMS OF A
 PRESCRIPTION, EXCEPT WITH THE APPROVAL OF THE PRESCRIBER OR AS EXPLICIT-
 LY REQUIRED OR PERMITTED BY LAW.

 A. 3007--A                         56
 
   5. A PHARMACY BENEFIT MANAGER SHALL, WITH RESPECT TO CONTRACTS BETWEEN
 A PHARMACY BENEFIT MANAGER AND A PHARMACY OR, ALTERNATIVELY, A  PHARMACY
 BENEFIT  MANAGER  AND A PHARMACY'S CONTRACTING AGENT, SUCH AS A PHARMACY
 SERVICES ADMINISTRATIVE ORGANIZATION, INCLUDE A  REASONABLE  PROCESS  TO
 APPEAL,  INVESTIGATE AND RESOLVE DISPUTES REGARDING MULTI-SOURCE GENERIC
 DRUG  PRICING.  THE  APPEALS  PROCESS  SHALL   INCLUDE   THE   FOLLOWING
 PROVISIONS:
   (A)  THE  RIGHT  TO  APPEAL  BY  THE  PHARMACY  AND/OR  THE PHARMACY'S
 CONTRACTING AGENT SHALL BE LIMITED TO THIRTY DAYS FOLLOWING THE  INITIAL
 CLAIM SUBMITTED FOR PAYMENT;
   (B)  A  TELEPHONE  NUMBER THROUGH WHICH A NETWORK PHARMACY MAY CONTACT
 THE PHARMACY BENEFIT MANAGER FOR THE PURPOSE OF FILING AN APPEAL AND  AN
 ELECTRONIC  MAIL  ADDRESS OF THE INDIVIDUAL WHO IS RESPONSIBLE FOR PROC-
 ESSING APPEALS;
   (C) THE PHARMACY BENEFIT MANAGER SHALL SEND AN ELECTRONIC MAIL MESSAGE
 ACKNOWLEDGING RECEIPT OF THE APPEAL. THE PHARMACY BENEFIT MANAGER  SHALL
 RESPOND  IN  AN ELECTRONIC MESSAGE TO THE PHARMACY AND/OR THE PHARMACY'S
 CONTRACTING AGENT FILING THE APPEAL WITHIN SEVEN BUSINESS DAYS  INDICAT-
 ING  ITS  DETERMINATION.  IF  THE  APPEAL IS DETERMINED TO BE VALID, THE
 MAXIMUM ALLOWABLE COST FOR THE DRUG SHALL BE ADJUSTED FOR THE  APPEALING
 PHARMACY EFFECTIVE AS OF THE DATE OF THE ORIGINAL CLAIM FOR PAYMENT. THE
 PHARMACY BENEFIT MANAGER SHALL REQUIRE THE APPEALING PHARMACY TO REVERSE
 AND  REBILL  THE  CLAIM  IN  QUESTION  IN  ORDER TO OBTAIN THE CORRECTED
 REIMBURSEMENT;
   (D) IF AN UPDATE TO THE MAXIMUM ALLOWABLE COST IS WARRANTED, THE PHAR-
 MACY BENEFIT MANAGER OR COVERED ENTITY SHALL ADJUST THE  MAXIMUM  ALLOW-
 ABLE COST OF THE DRUG EFFECTIVE FOR ALL SIMILARLY SITUATED PHARMACIES IN
 ITS  NETWORK  IN  THE  STATE ON THE DATE THE APPEAL WAS DETERMINED TO BE
 VALID; AND
   (E) IF AN APPEAL IS DENIED, THE PHARMACY BENEFIT MANAGER SHALL IDENTI-
 FY THE NATIONAL DRUG CODE  OF  A  THERAPEUTICALLY  EQUIVALENT  DRUG,  AS
 DETERMINED  BY  THE FEDERAL FOOD AND DRUG ADMINISTRATION, THAT IS AVAIL-
 ABLE FOR PURCHASE BY PHARMACIES IN THIS STATE  FROM  WHOLESALERS  REGIS-
 TERED  PURSUANT TO SUBDIVISION FOUR OF SECTION SIXTY-EIGHT HUNDRED EIGHT
 OF THE EDUCATION LAW AT A PRICE WHICH IS EQUAL TO OR LESS THAN THE MAXI-
 MUM ALLOWABLE COST FOR THAT DRUG AS DETERMINED BY THE  PHARMACY  BENEFIT
 MANAGER.
   § 7. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly,  the  superintendent  of  financial services shall repeal, amend, or
 promulgate any rules and regulations necessary for the implementation of
 the provisions of this act on its effective date.
 
                                  PART K
 
   Section 1. The public health law is amended by adding  a  new  section
 2825-e to read as follows:
   §  2825-E.  HEALTH CARE FACILITY TRANSFORMATION PROGRAM: STATEWIDE II.
 1. A STATEWIDE HEALTH CARE FACILITY  TRANSFORMATION  PROGRAM  IS  HEREBY
 ESTABLISHED  UNDER  THE JOINT ADMINISTRATION OF THE COMMISSIONER AND THE
 PRESIDENT 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 FUNDING IN SUPPORT OF
 CAPITAL PROJECTS, DEBT RETIREMENT, WORKING CAPITAL OR OTHER  NON-CAPITAL
 PROJECTS  THAT  FACILITATE HEALTH CARE TRANSFORMATION ACTIVITIES INCLUD-
 ING, BUT NOT LIMITED TO, MERGER,  CONSOLIDATION,  ACQUISITION  OR  OTHER

 A. 3007--A                         57
 
 ACTIVITIES INTENDED TO CREATE FINANCIALLY SUSTAINABLE SYSTEMS OF CARE OR
 PRESERVE  OR  EXPAND ESSENTIAL HEALTH CARE SERVICES. GRANTS SHALL NOT BE
 AVAILABLE TO SUPPORT GENERAL OPERATING EXPENSES.  THE  ISSUANCE  OF  ANY
 BONDS  OR  NOTES  HEREUNDER  SHALL BE SUBJECT TO SECTION SIXTEEN HUNDRED
 EIGHTY-R OF THE PUBLIC AUTHORITIES LAW AND THE APPROVAL OF THE  DIRECTOR
 OF THE DIVISION OF THE BUDGET, AND ANY PROJECTS FUNDED THROUGH THE ISSU-
 ANCE 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 DORMITORY 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
 AUTHORITIES  LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND ADMIN-
 ISTERING THE FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION.  SUCH  FUNDS
 MAY  BE  DISTRIBUTED  BY  THE COMMISSIONER FOR CAPITAL GRANTS TO GENERAL
 HOSPITALS, RESIDENTIAL HEALTH CARE FACILITIES, DIAGNOSTIC AND  TREATMENT
 CENTERS  AND  CLINICS  LICENSED  PURSUANT  TO THIS CHAPTER OR THE MENTAL
 HYGIENE LAW, AND COMMUNITY-BASED HEALTH CARE  PROVIDERS  AS  DEFINED  IN
 SUBDIVISION THREE OF THIS SECTION FOR 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 THE 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 UNDER SECTION
 TWENTY-EIGHT HUNDRED TWENTY-FIVE-D OF THIS ARTICLE. PROJECTS AWARDED, IN
 WHOLE OR PART, UNDER SECTIONS  TWENTY-EIGHT  HUNDRED  TWENTY-FIVE-A  AND
 TWENTY-EIGHT HUNDRED TWENTY-FIVE-B 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
 SEVEN HUNDRED MILLION DOLLARS OF THE FUNDS APPROPRIATED FOR THIS PROGRAM
 SHALL BE AWARDED WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC-
 ESS  FOR  GRANTS  TO  HEALTH  CARE  PROVIDERS  (HEREAFTER "APPLICANTS").
 PROVIDED, HOWEVER, THAT A MINIMUM OF  ONE  HUNDRED  TWENTY-FIVE  MILLION
 DOLLARS  OF  TOTAL AWARDED FUNDS SHALL BE MADE TO COMMUNITY-BASED HEALTH
 CARE PROVIDERS, WHICH FOR PURPOSES OF THIS SECTION SHALL BE DEFINED AS A
 DIAGNOSTIC AND TREATMENT CENTER LICENSED OR GRANTED AN OPERATING CERTIF-
 ICATE UNDER THIS ARTICLE; A MENTAL HEALTH CLINIC LICENSED OR GRANTED  AN
 OPERATING  CERTIFICATE  UNDER  ARTICLE  THIRTY-ONE OF THE MENTAL HYGIENE
 LAW; AN ALCOHOL AND SUBSTANCE ABUSE TREATMENT CLINIC LICENSED OR GRANTED
 AN OPERATING CERTIFICATE UNDER ARTICLE THIRTY-TWO OF THE MENTAL  HYGIENE
 LAW;  A  PRIMARY  CARE  PROVIDER  OR  A  HOME CARE PROVIDER CERTIFIED OR
 LICENSED PURSUANT TO ARTICLE THIRTY-SIX OF THIS CHAPTER. ELIGIBLE APPLI-
 CANTS SHALL BE THOSE DEEMED BY THE COMMISSIONER TO BE  A  PROVIDER  THAT
 FULFILLS  OR WILL FULFILL A HEALTH CARE NEED FOR ACUTE INPATIENT, OUTPA-
 TIENT, PRIMARY, HOME CARE OR  RESIDENTIAL  HEALTH  CARE  SERVICES  IN  A
 COMMUNITY.
   4.  IN  DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER THIS SECTION,
 THE COMMISSIONER 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 OR THE LONG TERM SUSTAINABILITY OF
 THE APPLICANT OR PRESERVATION OF ESSENTIAL HEALTH SERVICES IN THE COMMU-
 NITY OR COMMUNITIES SERVED BY THE APPLICANT;

 A. 3007--A                         58
 
   (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  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  ENROL-
 LEES AND UNINSURED INDIVIDUALS;
   (H)  THE  EXTENT  TO  WHICH  THE  APPLICANT  HAS ENGAGED THE COMMUNITY
 AFFECTED BY THE PROPOSED PROJECT  AND  THE  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 GOALS OF THE PROJECT ARE ACHIEVED, AND SUCH METRICS  AND  MILE-
 STONES  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, AND 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.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART L
 
                           Intentionally Omitted
 
                                  PART M
 
   Section 1. This act shall be known and may be cited as  the  "Emerging
 Contaminant Monitoring Act."
   §  2. The public health law is amended by adding a new section 1112 to
 read as follows:
   § 1112. EMERGING CONTAMINANT MONITORING. 1. INDUSTRY AND MODERN  TECH-
 NOLOGY  HAVE CREATED THOUSANDS OF NEW CHEMICALS THAT WOULD NOT OTHERWISE
 EXIST IN NATURE. ALTHOUGH SOME OF THESE CHEMICALS HAVE PROVEN  BENEFITS,
 THE  EFFECT  OF  MANY  SUCH  CHEMICALS ON HUMAN HEALTH IS UNKNOWN OR NOT
 FULLY UNDERSTOOD. FURTHERMORE, WITH THE ADVANCE OF SCIENCE AND TECHNOLO-
 GY, PUBLIC HEALTH SCIENTISTS AND EXPERTS ARE ABLE TO IDENTIFY  NATURALLY
 OCCURRING  CONTAMINANTS  THAT  POSE  PREVIOUSLY UNKNOWN HAZARDS TO HUMAN
 HEALTH. WHERE THESE CHEMICALS OR CONTAMINANTS, COLLECTIVELY REFERRED  TO
 AS  "EMERGING  CONTAMINANTS,"  ENTER  DRINKING  WATER SUPPLIES, THEY CAN
 PRESENT UNKNOWN BUT POTENTIALLY SERIOUS RISKS TO  PUBLIC  HEALTH.    NEW
 YORKERS  SERVED  BY  PUBLIC  WATER  SUPPLIES HAVE THE RIGHT TO KNOW WHEN

 A. 3007--A                         59
 
 POTENTIALLY HAZARDOUS SUBSTANCES CONTAMINATE THEIR  DRINKING  WATER  AND
 THE  DEPARTMENT  MUST BE EQUIPPED TO MONITOR AND PROTECT THE PUBLIC FROM
 THESE EMERGING CONTAMINANTS.
   2.  A.  "EMERGING  CONTAMINANTS"  SHALL  MEAN  ANY PHYSICAL, CHEMICAL,
 MICROBIOLOGICAL OR RADIOLOGICAL SUBSTANCE LISTED AS AN EMERGING  CONTAM-
 INANT PURSUANT TO  SUBDIVISION THREE OF THIS SECTION.
   B.  "NOTIFICATION  LEVEL"  SHALL  MEAN  THE  CONCENTRATION LEVEL OF AN
 EMERGING CONTAMINANT IN DRINKING WATER THAT THE COMMISSIONER HAS  DETER-
 MINED,  BASED  ON  AVAILABLE  SCIENTIFIC  INFORMATION,  TO  BE LINKED TO
 ADVERSE HEALTH OUTCOMES INCLUDING BOTH PHYSICAL AND  BEHAVIORAL  HEALTH,
 AND WARRANTS PUBLIC NOTIFICATION PURSUANT TO THIS SECTION.
   C.  "COVERED  PUBLIC  WATER  SYSTEM"  SHALL MEAN:   (I) A PUBLIC WATER
 SYSTEM THAT SERVES AT LEAST FIVE SERVICE CONNECTIONS USED BY  YEAR-ROUND
 RESIDENTS OR REGULARLY SERVES AT LEAST TWENTY-FIVE YEAR-ROUND RESIDENTS;
 (II) A PUBLIC WATER SYSTEM THAT REGULARLY SERVES AT LEAST TWENTY-FIVE OF
 THE  SAME  PEOPLE, FOUR HOURS OR MORE PER DAY, FOR FOUR OR MORE DAYS PER
 WEEK, FOR TWENTY-SIX OR MORE WEEKS PER YEAR; OR (III) ANY OTHER SUBSTAN-
 TIALLY SIMILAR WATER SYSTEM AS DETERMINED BY THE COMMISSIONER.
   3. THE COMMISSIONER SHALL PROMULGATE REGULATIONS TO IDENTIFY AND  LIST
 SUBSTANCES  AS  EMERGING  CONTAMINANTS.  IN  DETERMINING WHAT SUBSTANCES
 SHALL BE IDENTIFIED AS EMERGING CONTAMINANTS THE COMMISSIONER SHALL,  AT
 A MINIMUM, EXAMINE SUBSTANCES THAT REQUIRE REGULATION OR MONITORING WHEN
 PRESENT  IN  DRINKING  WATER IN OTHER JURISDICTIONS OUTSIDE THE STATE OF
 NEW YORK; THE UNITED  STATES  ENVIRONMENTAL  PROTECTION  AGENCY'S  HUMAN
 HEALTH  BENCHMARKS  FOR  PESTICIDES;  AND,  SUBSTANCES FOUND AT SITES IN
 REMEDIAL PROGRAMS LOCATED INSIDE AND OUTSIDE  THE  STATE  OF  NEW  YORK,
 INCLUDING BUT NOT LIMITED TO INACTIVE HAZARDOUS WASTE SITES. THE COMMIS-
 SIONER  SHALL, AT A MINIMUM, INCLUDE THE FOLLOWING CHEMICALS TO BE IDEN-
 TIFIED AS EMERGING CONTAMINANTS: 1,4-DIOXANE; VANADIUM; STRONTIUM; CHRO-
 MIUM-6; CHLORATE; PERFLUOROOCTANESULFONIC  ACID;  AND  PERFLUOROOCTANOIC
 ACID.  ADDITIONAL  SUBSTANCES  TO BE IDENTIFIED AS EMERGING CONTAMINANTS
 SHALL MEET THE FOLLOWING CRITERIA:
   A. ARE NOT SUBJECT TO  ANY  OTHER  SUBSTANCE-SPECIFIC  DRINKING  WATER
 REGULATION  OF  THE  DEPARTMENT  THAT  ESTABLISHES A MAXIMUM CONTAMINANT
 LEVEL, OR OTHER LEGALLY ESTABLISHED THRESHOLD CONCENTRATION USED BY  THE
 DEPARTMENT THAT REQUIRES PUBLIC NOTIFICATION OR REMEDIAL ACTION;
   B. ARE KNOWN OR ANTICIPATED TO OCCUR IN PUBLIC WATER SYSTEMS; AND
   C.  BECAUSE OF THEIR QUANTITY, CONCENTRATION, OR PHYSICAL, CHEMICAL OR
 INFECTIOUS CHARACTERISTICS, MAY CAUSE PHYSICAL  INJURY  OR  ILLNESS,  OR
 OTHERWISE POSE A POTENTIAL HAZARD TO HUMAN HEALTH WHEN PRESENT IN DRINK-
 ING WATER.
   4. EVERY COVERED PUBLIC WATER SYSTEM SHALL TEST DRINKING WATER FOR THE
 PRESENCE  OF  EMERGING CONTAMINANTS IN THE STATE AND UNREGULATED CONTAM-
 INANTS MONITORED UNDER THE FEDERAL SAFE DRINKING WATER  ACT  AS  AMENDED
 FROM TIME TO TIME, AT LEAST ONCE EVERY THREE YEARS IN A MANNER AND TIME-
 FRAME ESTABLISHED BY THE DEPARTMENT THROUGH REGULATION.
   5.  EVERY  TEST  CONDUCTED  IN  ACCORDANCE  WITH THIS SECTION SHALL BE
 CONDUCTED BY A  LABORATORY  CERTIFIED  BY  THE  DEPARTMENT  PURSUANT  TO
 SECTION FIVE HUNDRED TWO OF THIS CHAPTER. LABORATORIES SHALL SUBMIT SUCH
 RESULTS  TO THE DEPARTMENT, ANY OTHER HEALTH DEPARTMENT THAT THE COVERED
 PUBLIC WATER SYSTEM IS LOCATED IN,  AND  TO  THE  COVERED  PUBLIC  WATER
 SYSTEM ELECTRONICALLY IN THE MANNER PRESCRIBED BY THE COMMISSIONER.
   6.  THE COMMISSIONER SHALL PROMULGATE REGULATIONS ESTABLISHING NOTIFI-
 CATION LEVELS FOR ANY EMERGING CONTAMINANT LISTED PURSUANT  TO  SUBDIVI-
 SION THREE OF THIS SECTION.  ANY NOTIFICATION LEVEL ESTABLISHED PURSUANT
 TO THIS SUBDIVISION SHALL BE EQUAL TO OR LOWER THAN ANY FEDERALLY ESTAB-

 A. 3007--A                         60
 
 LISHED  CONCENTRATION  LEVEL  THAT WOULD REQUIRE PUBLIC NOTIFICATION, OR
 REMEDIAL ACTION FOR THAT SUBSTANCE.
   7.  WHENEVER  ONE OR MORE EMERGING CONTAMINANTS IS PRESENT IN DRINKING
 WATER AT CONCENTRATIONS AT OR ABOVE  A  NOTIFICATION  LEVEL  ESTABLISHED
 PURSUANT  TO  THIS  SECTION THE COVERED PUBLIC WATER SYSTEM SHALL NOTIFY
 ALL OWNERS OF REAL PROPERTY SERVED BY THE COVERED PUBLIC WATER SYSTEM IN
 A TIME AND MANNER TO BE PRESCRIBED  BY  THE  DEPARTMENT.    SUCH  PUBLIC
 NOTIFICATION  SHALL  OCCUR  WITHIN THIRTY DAYS. THE COVERED PUBLIC WATER
 SYSTEM SHALL CONSULT WITH THE DEPARTMENT  WITHIN  TWENTY-FOUR  HOURS  OF
 BEING  NOTIFIED  OF THE PRESENCE OF AN EMERGING CONTAMINANT. THE DEPART-
 MENT MAY REDUCE THE TIMEFRAME FOR PUBLIC NOTIFICATION FROM  THIRTY  DAYS
 IF  IT  IS DETERMINED THAT THE PUBLIC'S INTEREST WOULD BE BEST SERVED BY
 SUCH REDUCTION. THE COMMISSIONER MAY DIRECTLY NOTIFY SUCH OWNERS OF REAL
 PROPERTY IF IT IS DETERMINED THAT THE PUBLIC'S INTEREST  WOULD  BE  BEST
 SERVED  BY SUCH NOTIFICATION, OR IF THE COMMISSIONER DETERMINES THAT THE
 COVERED PUBLIC WATER SYSTEM IS NOT ACTING, OR CANNOT  ACT  IN  A  TIMELY
 MANNER.
   8.  THE  COMMISSIONER MAY REQUIRE THAT THE COVERED PUBLIC WATER SYSTEM
 TAKE SUCH ACTIONS AS MAY BE APPROPRIATE TO REDUCE EXPOSURE  TO  EMERGING
 CONTAMINANTS.  THE  COMMISSIONER  SHALL  WORK  IN  CONSULTATION WITH THE
 COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO  DEVELOP
 EDUCATIONAL  MATERIALS,  WHICH  SHALL  BE  MADE AVAILABLE TO THE COVERED
 PUBLIC WATER SYSTEM AND THE GENERAL PUBLIC,  RELATING  TO  METHODOLOGIES
 FOR  REDUCING  EXPOSURE  TO  EMERGING CONTAMINANTS AND POTENTIAL ACTIONS
 THAT MAY BE TAKEN TO REMEDIATE EMERGING CONTAMINANTS.  THE  COMMISSIONER
 SHALL  ALSO  PROVIDE  THE  COVERED  PUBLIC WATER SYSTEM WITH INFORMATION
 RELATING TO POTENTIAL FUNDING SOURCES PROVIDED BY THE STATE AND  FEDERAL
 GOVERNMENT FOR REMEDIAL ACTIVITIES, AND TO REDUCE THE EXPOSURE TO EMERG-
 ING  CONTAMINANTS.  WHENEVER  THE  COMMISSIONER OF HEALTH HAS REQUIRED A
 PUBLIC WATER SYSTEM TO  TAKE  ACTION  TO  REDUCE  EXPOSURE  TO  EMERGING
 CONTAMINANTS,  THE  DEPARTMENT SHALL UNDERTAKE ALL REASONABLE AND NECES-
 SARY MEASURES TO ENSURE THAT SAFE DRINKING WATER IS  EXPEDITIOUSLY  MADE
 AVAILABLE  TO  ALL  PEOPLE  IN  ANY  AREA OF THE STATE IN WHICH EMERGING
 CONTAMINANTS ARE KNOWN TO BE PRESENT. SUCH  AREA  SHALL  INCLUDE,  AT  A
 MINIMUM,  ALL  PROPERTIES  SERVED BY THE COVERED PUBLIC WATER SYSTEM AND
 ANY LAND AND ANY SURFACE OR UNDERGROUND WATER SOURCES IDENTIFIED BY  THE
 DEPARTMENT  OR  DEPARTMENT  OF  ENVIRONMENTAL CONSERVATION AS CAUSING OR
 CONTRIBUTING TO THE CONTAMINATION. THE DEPARTMENT'S MEASURES MAY INCLUDE
 INSTALLATION OF ONSITE WATER SUPPLIES, OR THE PROVISION  OF  ALTERNATIVE
 WATER SUPPLY SOURCES.
   9.  ANY OWNER OF REAL PROPERTY, INCLUDING ANY OWNER'S AGENT, TO WHOM A
 COVERED PUBLIC WATER SYSTEM OR THE DEPARTMENT HAS PROVIDED  NOTIFICATION
 OF THE EXCEEDANCE OF A NOTIFICATION LEVEL ESTABLISHED PURSUANT TO SUBDI-
 VISION  SIX  OF  THIS  SECTION,  SHALL TAKE ALL REASONABLE AND NECESSARY
 STEPS TO PROVIDE, WITHIN TEN  DAYS,  ANY  TENANTS  WITH  COPIES  OF  THE
 NOTIFICATION PROVIDED BY THE COVERED PUBLIC WATER SYSTEM, OR THE COMMIS-
 SIONER.
   10.  THE  COMMISSIONER  SHALL PROMULGATE REGULATIONS PURSUANT TO WHICH
 THE DEPARTMENT MAY PROVIDE FINANCIAL ASSISTANCE FOR COMPLIANCE WITH  THE
 TESTING REQUIREMENTS OF THIS SECTION, TO ANY COVERED PUBLIC WATER SYSTEM
 UPON  A SHOWING THAT THE COSTS ASSOCIATED WITH TESTING DRINKING WATER IN
 COMPLIANCE WITH THIS SECTION  WOULD  IMPOSE  AN  UNREASONABLE  FINANCIAL
 HARDSHIP.
   11.  THE COMMISSIONER OF HEALTH SHALL REVIEW SUBSTANCES THAT HAVE BEEN
 IDENTIFIED AS EMERGING CONTAMINANTS PURSUANT TO THIS SECTION AND  DETER-
 MINE  IF THE DEPARTMENT SHOULD ESTABLISH A MAXIMUM CONTAMINANT LEVEL FOR

 A. 3007--A                         61
 
 THE SUBSTANCE. SUCH A REVIEW SHALL OCCUR, AT A MINIMUM, ONCE EVERY THREE
 YEARS.
   §  3.  Section 502 of the public health law is amended by adding a new
 subdivision 10 to read as follows:
   10. THE DEPARTMENT MAY REQUIRE AN ENVIRONMENTAL LABORATORY  TO  REPORT
 LABORATORY  TEST  RESULTS  TO  THE  DEPARTMENT,  OR  TO ANY OTHER HEALTH
 DEPARTMENT IN AN ELECTRONIC MANNER PRESCRIBED BY THE DEPARTMENT.
   § 4. This act shall take effect immediately.
 
                                  PART N
 
   Section 1. This act shall be known and may be cited as  the  "residen-
 tial well testing act".
   §  2. The public health law is amended by adding a new section 1111 to
 read as follows:
   § 1111. TESTING OF INDIVIDUAL ONSITE WATER SUPPLY  SYSTEMS.    1.  THE
 COMMISSIONER SHALL PROMULGATE REGULATIONS ESTABLISHING STANDARDS FOR THE
 TESTING  OF  NEW OR EXISTING INDIVIDUAL ONSITE WATER SUPPLY SYSTEMS THAT
 PROVIDE POTABLE WATER FOR HUMANS. SUCH  REGULATIONS  SHALL  SPECIFY  THE
 MANNER  OF  TESTING  AND THE AMOUNT OF TIME SUCH RESULTS SHALL BE VALID.
 INDIVIDUAL ONSITE WATER SUPPLIES  SHALL  BE  TESTED  FOR  CHARACTER  AND
 CONTAMINANTS  COMMONLY  FOUND  IN SUCH WATER SUPPLIES, INCLUDING BUT NOT
 LIMITED TO:   BACTERIA (TOTAL  COLIFORM);  SODIUM;  NITRITES;  NITRATES;
 IRON;  MANGANESE;  IRON PLUS MANGANESE; PH; LEAD; 1,4-DIOXANE; VANADIUM;
 STRONTIUM; CHROMIUM-6; CHLORATE; PERFLUOROOCTANESULFONIC ACID;  PERFLUO-
 ROOCTANOIC ACID; AND OTHER EMERGING CONTAMINANTS AS SUCH TERM IS DEFINED
 IN  SECTION  ONE  THOUSAND ONE HUNDRED TWELVE OF THIS TITLE.  SUCH REGU-
 LATIONS MAY REQUIRE ADDITIONAL TESTING, LIMIT TESTING  OR  EXCLUDE  FROM
 TESTING  A  CHARACTERISTIC OR CONTAMINANT ON A COUNTY, REGIONAL OR LOCAL
 BASIS IF THE COMMISSIONER DETERMINES THAT SUCH CHARACTERISTIC OR CONTAM-
 INANT IS SIGNIFICANT OR NOT SIGNIFICANT IN THAT AREA.
   2. A. FOR THE PURPOSES OF THIS SECTION RESIDENTIAL REAL PROPERTY SHALL
 INCLUDE REAL PROPERTY USED OR OCCUPIED, OR INTENDED TO BE USED OR  OCCU-
 PIED, WHOLLY OR PARTLY, AS THE HOME OR RESIDENCE OF ONE OR MORE PERSONS,
 BUT  SHALL  NOT REFER TO UNIMPROVED REAL PROPERTY UPON WHICH SUCH DWELL-
 INGS ARE TO BE CONSTRUCTED, CONDOMINIUM UNITS OR COOPERATIVE APARTMENTS,
 OR PROPERTY IN A HOMEOWNERS' ASSOCIATION THAT IS NOT OWNED IN FEE SIMPLE
 BY THE SELLER. ANY REAL ESTATE PURCHASE CONTRACT FOR THE SALE  OF  RESI-
 DENTIAL  REAL  PROPERTY,  WHICH  IS SERVED BY AN INDIVIDUAL ONSITE WATER
 SUPPLY SYSTEM, SHALL INCLUDE A PROVISION REQUIRING, PRIOR TO  AND  AS  A
 CONDITION  OF  SALE,  THE TESTING OF SUCH INDIVIDUAL ONSITE WATER SUPPLY
 SYSTEM IN A MANNER THAT MEETS OR EXCEEDS THE STANDARDS PRESCRIBED PURSU-
 ANT TO THIS SECTION. THIS SECTION SHALL  NOT  APPLY  TO  COVERED  PUBLIC
 WATER  SYSTEMS, AS DEFINED BY SECTION ONE THOUSAND ONE HUNDRED TWELVE OF
 THIS TITLE.
   B. WITHIN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS  SECTION,  AND  AT
 LEAST  ONCE  EVERY  FIVE YEARS THEREAFTER, THE LESSOR OF ANY RESIDENTIAL
 REAL PROPERTY WHICH IS SERVED  BY  AN  INDIVIDUAL  ONSITE  WATER  SUPPLY
 SYSTEM  SHALL TEST SUCH WATER SUPPLY IN ACCORDANCE WITH THIS SECTION FOR
 AT LEAST THE CHARACTERISTICS AND CONTAMINANTS REQUIRED PURSUANT TO  THIS
 SECTION. WITHIN THIRTY DAYS AFTER THE RECEIPT OF VALIDATED TEST RESULTS,
 THE  LESSOR  SHALL PROVIDE A WRITTEN COPY THEREOF TO EACH CURRENT TENANT
 OF A RENTAL UNIT ON THE PROPERTY. THE LESSOR SHALL ALSO PROVIDE A  WRIT-
 TEN  COPY  OF  THE  MOST  RECENT VALIDATED TEST RESULTS TO A PROSPECTIVE
 TENANT PRIOR TO THE SIGNING OF THE LEASE OR ENTERING INTO  AN  AGREEMENT
 FOR  THE  RENTAL OF A RESIDENTIAL UNIT ON THE PROPERTY, OR TO ANY FORMER

 A. 3007--A                         62
 
 TENANT UPON REQUEST. THE DEPARTMENT OR THE DEPARTMENT'S  DESIGNEE  SHALL
 HAVE  THE  AUTHORITY  TO  REQUEST AND RECEIVE SUCH TEST RESULTS FROM THE
 LESSOR.
   3.  EVERY  TEST  CONDUCTED  IN  ACCORDANCE  WITH THIS SECTION SHALL BE
 CONDUCTED BY A  LABORATORY  CERTIFIED  BY  THE  DEPARTMENT  PURSUANT  TO
 SECTION  FIVE  HUNDRED TWO OF THIS CHAPTER. ANY TEST RESULTS PROVIDED BY
 THE LABORATORY, PURSUANT TO THIS  SECTION,  SHALL  INCLUDE  THE  MAXIMUM
 CONTAMINANT LEVELS OR OTHER THRESHOLD CONCENTRATIONS, IF ANY, PRESCRIBED
 BY THE DEPARTMENT FOR EACH CHARACTERISTIC OR CONTAMINANT TESTED. LABORA-
 TORIES SHALL SUBMIT SUCH RESULTS TO THE DEPARTMENT ELECTRONICALLY IN THE
 MANNER PRESCRIBED PURSUANT TO SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
   4. THE COMMISSIONER SHALL PROMULGATE REGULATIONS PURSUANT TO WHICH THE
 DEPARTMENT  MAY  PROVIDE  FINANCIAL  ASSISTANCE TO OWNERS OF RESIDENTIAL
 PROPERTY SERVED BY AN INDIVIDUAL ONSITE  WATER  SUPPLY  SYSTEM,  UPON  A
 SHOWING THAT THE COSTS ASSOCIATED WITH TESTING DRINKING WATER IN COMPLI-
 ANCE WITH THIS SECTION WOULD IMPOSE AN UNREASONABLE FINANCIAL HARDSHIP.
   5. NOTHING CONTAINED IN THIS SECTION SHALL PROHIBIT OR LIMIT THE TEST-
 ING  OF  INDIVIDUAL  ONSITE  WATER  SUPPLY SYSTEMS PURSUANT TO ANY OTHER
 STATUTORY OR REGULATORY AUTHORITY.
   § 3. Section 502 of the public health law is amended by adding  a  new
 subdivision 10 to read as follows:
   10.  THE  DEPARTMENT MAY REQUIRE AN ENVIRONMENTAL LABORATORY TO REPORT
 LABORATORY TEST RESULTS TO  THE  DEPARTMENT,  OR  TO  ANY  OTHER  HEALTH
 DEPARTMENT IN AN ELECTRONIC MANNER PRESCRIBED BY THE DEPARTMENT.
   §  4.  The real property law is amended by adding a new section 468 to
 read as follows:
   § 468. INDIVIDUAL ONSITE WATER SUPPLY TESTING REQUIREMENTS.  1.  EVERY
 REAL ESTATE PURCHASE CONTRACT FOR THE SALE OF RESIDENTIAL REAL PROPERTY,
 AS  DEFINED  BY  SECTION  ONE  THOUSAND ONE HUNDRED ELEVEN OF THE PUBLIC
 HEALTH LAW, WHICH IS SERVED BY AN INDIVIDUAL ONSITE WATER SUPPLY SYSTEM,
 SHALL INCLUDE A PROVISION REQUIRING AS A CONDITION OF SALE, THE  TESTING
 OF  SUCH  WATER SUPPLY FOR AT LEAST THE STANDARDS PRESCRIBED PURSUANT TO
 SECTION ELEVEN HUNDRED ELEVEN OF THE PUBLIC  HEALTH  LAW.  THIS  SECTION
 SHALL  NOT APPLY TO PROPERTY THAT IS SERVED BY A PUBLIC WATER SYSTEM, AS
 DEFINED IN REGULATIONS PROMULGATED BY THE COMMISSIONER.
   2. CLOSING OF TITLE ON THE SALE OF SUCH REAL PROPERTY SHALL NOT  OCCUR
 UNLESS  BOTH  THE BUYER AND THE SELLER HAVE RECEIVED AND REVIEWED A COPY
 OF THE WATER TEST RESULTS. AT CLOSING, THE BUYER AND SELLER  BOTH  SHALL
 CERTIFY  IN  WRITING THAT THEY HAVE RECEIVED AND REVIEWED THE WATER TEST
 RESULTS.
   3. THE REQUIREMENTS OF THIS SECTION MAY NOT BE WAIVED.
   § 5.  Subdivision 3 of section 15-1525 of the environmental  conserva-
 tion law, as amended by section 2 of part F of chapter 59 of the laws of
 2006, is amended to read as follows:
   3.  The  certificate  of  registration  shall require that, before the
 commencement of drilling of any well or wells, the  water  well  driller
 shall  file  a  preliminary  notice  with  the department; it shall also
 provide that upon the completion of the drilling of any  water  well  or
 water  wells,  a  completion report be filed with the department, giving
 the log of the well, the size and depth thereof,  the  capacity  of  the
 pump or pumps attached or to be attached thereto, THE LABORATORY RESULTS
 OF  THE  WATER  SAMPLE  TESTED IN ACCORDANCE WITH SECTION ELEVEN HUNDRED
 ELEVEN OF THE PUBLIC HEALTH LAW, and such other  information  pertaining
 to  the  withdrawal  of  water and operation of such water well or water
 wells as the department by its rules and regulations  may  require.  The
 water well driller shall provide a copy of such completion report to the

 A. 3007--A                         63

 water well owner AND THE DEPARTMENT OF HEALTH AND DEPARTMENT OF ENVIRON-
 MENTAL  CONSERVATION. The number of the certificate of registration must
 be displayed on the well  drilling  machinery  of  the  registrant.  The
 certificate  of  registration shall also contain a notice to the certif-
 icate holder that the business activities authorized by such certificate
 are subject to the provisions of article  thirty-six-A  of  the  general
 business  law. The fee for such certificate of registration shall be ten
 dollars  annually.  The  commissioner  shall  promulgate  a  water  well
 completion  report  form which shall be utilized by all water well dril-
 lers in satisfying the  requirements  of  this  section  and  any  other
 provision of state or local law which requires the submission of a water
 well completion report or water well log.
   §  5-a. Subdivision 1 of section 3-0315 of the environmental conserva-
 tion law, as added by section 1 of part C of chapter 1 of  the  laws  of
 2003, is amended to read as follows:
   1. The department shall create or modify an existing geographic infor-
 mation  system, and maintain such system for purposes including, but not
 limited to, incorporating information from remedial programs  under  its
 jurisdiction,  and  shall  also  incorporate information from the source
 water assessment program collected by the department of health, INFORMA-
 TION COLLECTED PURSUANT TO SECTION ELEVEN HUNDRED ELEVEN OF  THE  PUBLIC
 HEALTH  LAW,  data from annual water supply statements prepared pursuant
 to section eleven hundred fifty-one of the public health  law,  informa-
 tion from the database pursuant to title fourteen of article twenty-sev-
 en  of  this  chapter,  and  any  other existing data regarding soil and
 groundwater contamination currently gathered by the department, as  well
 as  data  on  contamination  that  is  readily available from the United
 States geological survey and other sources determined appropriate by the
 department.
   § 6. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly, the commissioner of health and commissioner of environmental conser-
 vation shall be authorized to promulgate any and  all  rules  and  regu-
 lations  necessary  to  implement  the  provisions  of  this  act on its
 effective date.
 
                                  PART O
 
                           Intentionally Omitted
 
                                  PART P

   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 29 of  part B of chapter 59 of the laws of 2016, is  amended  to
 read as follows:
   §  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

 A. 3007--A                         64
 
 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] ENROLLED outpa-
 tients  AND  FOR  ALL  OTHER BEHAVIORAL HEALTH SERVICES EXCEPT INPATIENT
 INCLUDED IN NEW YORK STATE'S MEDICAID REDESIGN WAIVER  APPROVED  BY  THE
 CENTERS  FOR  MEDICARE  AND MEDICAID SERVICES (CMS).  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,  the  office  of alcoholism and substance abuse services, or the
 office of mental health for rate-setting purposes OR ANY SUCH OTHER FEES
 PURSUANT TO THE MEDICAID STATE PLAN OR OTHERWISE APPROVED BY CMS IN  THE
 MEDICAID  REDESIGN  WAIVER; 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  commissioner  of  health,  in
 consultation  with  the  commissioner  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 avail-
 able under this section shall be for all rate periods on and  after  the
 effective date of section [1] 29 of part [C] B of chapter [57] 59 of the
 laws  of  [2015]  2016 through March 31, [2018] 2021 for patients in the
 city of New York, for all rate periods on and after the  effective  date
 of section [1] 29 of part [C] B of chapter [57] 59 of the laws of [2015]
 2016  through  [June  30,  2018] MARCH 31, 2021 for patients outside the
 city of New York, and for all rate periods on and  after  the  effective
 date  of  such  chapter  through  [June 30, 2018] MARCH 31, 2021 for all
 services provided to persons under  the  age  of  twenty-one;  provided,
 however, [eligible providers may work with managed care plans to achieve
 quality  and  efficiency  objectives  and  engage in shared savings] THE
 COMMISSIONER OF HEALTH, IN CONSULTATION WITH THE COMMISSIONER  OF  ALCO-
 HOLISM  AND  SUBSTANCE  ABUSE  SERVICES  AND  THE COMMISSIONER OF MENTAL
 HEALTH, MAY REQUIRE, AS A  CONDITION  OF  APPROVAL  OF  SUCH  AMBULATORY
 BEHAVIORAL  HEALTH  FEES,  THAT  AGGREGATE  MANAGED CARE EXPENDITURES TO
 ELIGIBLE PROVIDERS MEET THE FOLLOWING VALUE BASED  PAYMENT  METRICS  FOR
 THE  FOLLOWING  PERIODS:  (I)  FOR THE PERIOD FROM APRIL 1, 2018 THROUGH
 MARCH 31, 2019, AT LEAST TEN PERCENT OF SUCH MANAGED  CARE  EXPENDITURES
 ARE PAID THROUGH LEVEL ONE VALUE BASED PAYMENT ARRANGEMENTS, PURSUANT TO
 THE TERMS AND CONDITIONS OF THE DELIVERY SYSTEM REFORM INCENTIVE PAYMENT
 PROGRAM  WAIVER  APPROVED  BY  THE  CENTERS  FOR  MEDICARE  AND MEDICAID
 SERVICES (II) FOR THE PERIOD APRIL 1, 2019 THROUGH MARCH  31,  2020,  AT
 LEAST  FIFTY  PERCENT OF SUCH MANAGED CARE EXPENDITURES ARE PAID THROUGH
 LEVEL ONE VALUE BASED PAYMENT ARRANGEMENTS AND AT LEAST FIFTEEN  PERCENT
 ARE PAID THROUGH LEVEL TWO VALUE BASED PAYMENT ARRANGEMENTS, PURSUANT TO
 THE TERMS AND CONDITIONS OF THE DELIVERY SYSTEM REFORM INCENTIVE PAYMENT
 PROGRAM  WAIVER  APPROVED  BY  THE  CENTERS  FOR  MEDICARE  AND MEDICAID
 SERVICES AND (III) FOR THE PERIOD APRIL 1, 2020 THROUGH MARCH 31,  2021,
 AT  LEAST  EIGHTY  PERCENT  OF  SUCH  MANAGED CARE EXPENDITURES ARE PAID
 THROUGH LEVEL ONE VALUE BASED PAYMENT ARRANGEMENTS AND AT LEAST  THIRTY-
 FIVE  PERCENT  ARE  PAID  THROUGH LEVEL TWO VALUE BASED PAYMENT ARRANGE-
 MENTS, PURSUANT TO THE TERMS  AND  CONDITIONS  OF  THE  DELIVERY  SYSTEM
 REFORM  INCENTIVE  PAYMENT  PROGRAM  WAIVER  APPROVED BY THE CENTERS FOR
 MEDICARE AND MEDICAID SERVICES. THE COMMISSIONER  OF  HEALTH  SHALL,  IN

 A. 3007--A                         65

 CONSULTATION  WITH  THE  COMMISSIONER  OF ALCOHOLISM AND SUBSTANCE ABUSE
 SERVICES AND THE COMMISSIONER OF THE OFFICE OF MENTAL HEALTH, WAIVE SUCH
 CONDITIONS IF A SUFFICIENT NUMBER OF PROVIDERS,  AS  DETERMINED  BY  THE
 COMMISSIONER, SUFFER A FINANCIAL HARDSHIP AS A CONSEQUENCE OF SUCH VALUE
 BASED  PAYMENT  ARRANGEMENTS,  OR IF HE OR SHE SHALL DETERMINE THAT SUCH
 VALUE BASED PAYMENT  ARRANGEMENTS  SIGNIFICANTLY  THREATEN  INDIVIDUALS'
 ACCESS  TO  AMBULATORY  BEHAVIORAL  HEALTH  SERVICES. SUCH WAIVER MAY BE
 APPLIED ON A PROVIDER SPECIFIC OR INDUSTRY WIDE BASIS.  Nothing in  this
 section  shall  prohibit  managed  care organizations and providers from
 negotiating 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 commissioner of the office of mental
 health, promulgate regulations, including emergency regulations  promul-
 gated  prior to October 1, 2015 to establish rates for ambulatory behav-
 ioral 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 OR ANY SUCH OTHER FEES ESTABLISHED
 PURSUANT TO THE MEDICAID STATE PLAN. 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  [June
 30, 2018] MARCH 31, 2021, provided, however, that managed care organiza-
 tions 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 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 transi-
 tion of behavioral health services into managed care.
   § 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 30 of part B of chapter  59  of
 the laws of 2016, 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

 A. 3007--A                         66

 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] ENROLLED outpatients AND FOR
 ALL OTHER BEHAVIORAL HEALTH SERVICES EXCEPT INPATIENT  INCLUDED  IN  NEW
 YORK  STATE'S MEDICAID REDESIGN WAIVER APPROVED BY THE CENTERS FOR MEDI-
 CARE AND MEDICAID SERVICES (CMS).  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 OR ANY SUCH OTHER FEES PURSUANT TO
 THE MEDICAID STATE PLAN OR OTHERWISE APPROVED BY  CMS  IN  THE  MEDICAID
 REDESIGN  WAIVER; 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 commissioner of health in consulta-
 tion  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 [2] 30  of  part
 [C]  B  of  chapter [57] 59 of the laws of [2015] 2016 through March 31,
 [2018] 2021 for patients in the city of New York, for all  rate  periods
 on and after the effective date of section [2] 30 of part [C] B of chap-
 ter [57] 59 of the laws of [2015] 2016 through [June 30, 2018] MARCH 31,
 2021 for patients outside the city of New York, and for all rate periods
 on and after the effective date of section [2] 30 of part [C] B of chap-
 ter [57] 59 of the laws of [2015] 2016 through [June 30, 2018] MARCH 31,
 2021  for  all services provided to persons under the age of twenty-one;
 provided, however, [eligible providers may work with managed care  plans
 to  achieve  quality  and  efficiency  objectives  and  engage in shared
 savings] THE COMMISSIONER OF HEALTH, IN CONSULTATION  WITH  THE  COMMIS-
 SIONER  OF  ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AND THE COMMISSIONER
 OF MENTAL HEALTH, MAY REQUIRE, AS A CONDITION OF APPROVAL OF SUCH  AMBU-
 LATORY  BEHAVIORAL HEALTH FEES, THAT AGGREGATE MANAGED CARE EXPENDITURES
 TO ELIGIBLE PROVIDERS MEET THE FOLLOWING VALUE BASED PAYMENT METRICS FOR
 THE FOLLOWING PERIODS: (I) FOR THE PERIOD FROM  APRIL  1,  2018  THROUGH
 MARCH  31,  2019, AT LEAST TEN PERCENT OF SUCH MANAGED CARE EXPENDITURES
 ARE PAID THROUGH LEVEL ONE VALUE BASED PAYMENT ARRANGEMENTS, PURSUANT TO
 THE TERMS AND CONDITIONS OF THE DELIVERY SYSTEM REFORM INCENTIVE PAYMENT
 PROGRAM WAIVER  APPROVED  BY  THE  CENTERS  FOR  MEDICARE  AND  MEDICAID
 SERVICES  (II)  FOR  THE PERIOD APRIL 1, 2019 THROUGH MARCH 31, 2020, AT
 LEAST FIFTY PERCENT OF SUCH MANAGED CARE EXPENDITURES ARE  PAID  THROUGH
 LEVEL  ONE VALUE BASED PAYMENT ARRANGEMENTS AND AT LEAST FIFTEEN PERCENT
 ARE PAID THROUGH LEVEL TWO VALUE BASED PAYMENT ARRANGEMENTS, PURSUANT TO
 THE TERMS AND CONDITIONS OF THE DELIVERY SYSTEM REFORM INCENTIVE PAYMENT
 PROGRAM WAIVER  APPROVED  BY  THE  CENTERS  FOR  MEDICARE  AND  MEDICAID
 SERVICES  (III)  FOR THE PERIOD APRIL 1, 2020 THROUGH MARCH 31, 2021, AT
 LEAST EIGHTY PERCENT OF SUCH MANAGED CARE EXPENDITURES ARE PAID  THROUGH

 A. 3007--A                         67
 
 LEVEL  ONE  VALUE  BASED  PAYMENT  ARRANGEMENTS AND AT LEAST THIRTY-FIVE
 PERCENT ARE PAID THROUGH LEVEL TWO  VALUE  BASED  PAYMENT  ARRANGEMENTS,
 PURSUANT  TO  THE  TERMS  AND  CONDITIONS  OF THE DELIVERY SYSTEM REFORM
 INCENTIVE  PAYMENT  PROGRAM  WAIVER APPROVED BY THE CENTERS FOR MEDICARE
 AND MEDICAID SERVICES. THE COMMISSIONER OF HEALTH SHALL, IN CONSULTATION
 WITH THE COMMISSIONER OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AND THE
 COMMISSIONER OF THE OFFICE OF MENTAL HEALTH, WAIVE SUCH CONDITIONS IF  A
 SUFFICIENT  NUMBER  OF  PROVIDERS,  AS  DETERMINED  BY THE COMMISSIONER,
 SUFFER A FINANCIAL HARDSHIP AS A CONSEQUENCE OF SUCH VALUE BASED PAYMENT
 ARRANGEMENTS, OR IF HE OR SHE SHALL  DETERMINE  THAT  SUCH  VALUE  BASED
 PAYMENT ARRANGEMENTS SIGNIFICANTLY THREATEN INDIVIDUALS' ACCESS TO AMBU-
 LATORY  BEHAVIORAL  HEALTH  SERVICES.    SUCH WAIVER MAY BE APPLIED ON A
 PROVIDER SPECIFIC OR INDUSTRY WIDE BASIS. Nothing in this section  shall
 prohibit  managed  care  organizations  and  providers  from negotiating
 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,  including  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 chap-
 ter 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 [June
 30, 2018] MARCH 31, 2021, provided, however, that managed care organiza-
 tions 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 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 transi-
 tion of behavioral health services into managed care.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017; provided,
 however, that the amendments to section 48-a of part A of chapter 56  of
 the  laws  of  2013 made by section one of this act shall not affect the

 A. 3007--A                         68
 
 repeal of such section and shall be deemed repealed therewith;  provided
 further,  that  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 section and shall be deemed to expire therewith.
 
                                  PART Q
 
                           Intentionally Omitted
 
                                  PART R
 
   Section 1. 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 2 of part C of chapter 59 of the  laws  of  2016,  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, between July 1, 2015 and June 30, 2016, [and]
 between  July  1,  2016  and June 30, 2017, AND BETWEEN JULY 1, 2017 AND
 JUNE 30, 2018 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,

 A. 3007--A                         69
 
 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, between July 1, 2015 and June 30, 2016, [and] between July 1,
 2016 and June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30,  2018  for
 physicians  or  dentists  certified  as eligible for each such period or
 periods pursuant 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  coverage  for  such  occurrences  or  be  endorsed as additional
 insureds under a hospital professional liability policy which is offered
 through a voluntary attending physician ("channeling") program previous-
 ly 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  malprac-
 tice insurance coverage or coverage provided through a voluntary attend-
 ing  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 cover-
 age,  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  thousand  dollars  for  each claimant and three
 million nine hundred thousand dollars for all claimants for such  occur-
 rences shall be effective April 1, 2002.
   §  2.  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 3 of
 part C of chapter 59 of the laws of 2016, is amended to read as follows:

 A. 3007--A                         70
 
   (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, between July 1, 2015 and June 30, 2016, and  between  July  1,
 2016 and June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 allo-
 cable  to  each general hospital for physicians 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, between July 1, 2015 and June
 30, 2016, and between July 1, 2016 and June 30, 2017, AND  BETWEEN  JULY
 1,  2017 AND JUNE 30, 2018 allocable to each general hospital for physi-
 cians 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 alloca-
 ble to the period July 1, 1987 to December 31, 1987, to the period Janu-
 ary 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

 A. 3007--A                         71
 
 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,  to  the
 period July 1, 2015 and June 30, 2016, and between July 1, 2016 and June
 30, 2017, AND TO THE PERIOD JULY 1, 2017 AND JUNE 30, 2018.
   § 3. 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 4 of part C of chapter 59 of the
 laws of 2016, 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, during the period July 1, 2015 and June  30,  2016,  [and
 between]  DURING  THE  PERIOD July 1, 2016 and June 30, 2017, AND DURING

 A. 3007--A                         72
 
 THE PERIOD JULY 1, 2017 AND JUNE 30, 2018 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, OR COVERING THE PERI-
 OD  JULY  1,  2017  TO JUNE 30, 2018 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,

 A. 3007--A                         73
 
 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, OR COVERING THE PERIOD JULY 1,
 2017 TO JUNE 30, 2018 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 superintendent of financial
 services pursuant to paragraph (b) of this subdivision, 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,  OR
 COVERING  THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 that has made payment
 to such provider of  excess  insurance  coverage  or  equivalent  excess
 coverage  in  accordance  with  paragraph (b) of this subdivision 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

 A. 3007--A                         74
 
 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,  AND TO THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 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 cover-
 ing the period July 1, 1999 to June 30, 2000, and  covering  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 cover-
 ing 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 covering 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  cover-
 ing  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, AND COVERING  THE
 PERIOD  JULY  1,  2017 TO JUNE 30, 2018 for a physician or dentist where
 such  excess  insurance  coverage  or  equivalent  excess  coverage   is
 cancelled in accordance with paragraph (c) of this subdivision.
   § 4. 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 5 of part C of chap-
 ter 59 of the laws of 2016, is amended to read as follows:
   § 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,
 [2017] 2018; 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,  [2017]
 2018, at which time and thereafter such surcharge shall not exceed twen-
 ty-five  percent  of  the  approved  adequate rate, and that such annual

 A. 3007--A                         75
 
 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, [2017]
 2018 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.
   §  5. 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 6
 of part C of chapter 59 of the laws of 2016,  are  amended  to  read  as
 follows:
   §  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, June 15, 2016, [and] June 15,  2017,
 AND  JUNE  15, 2018 the amount of funds available in the hospital excess
 liability pool, created pursuant to section 18 of  chapter  266  of  the

 A. 3007--A                         76
 
 laws  of  1986,  and  whether  such funds are sufficient for purposes of
 purchasing excess insurance coverage for eligible  participating  physi-
 cians  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, OR TO JULY 1, 2017 TO JUNE 30, 2018 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, OR JULY 1, 2017 TO JUNE 30, 2018
 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, June 15, 2016, [and] June 15, 2017, AND JUNE 15, 2018 as  applica-
 ble.
   § 6. 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 seventeen, shall be eligible to apply for such coverage for
 the coverage period beginning the first of July, two thousand seventeen;
 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 seventeen

 A. 3007--A                         77
 
 exceeds the total number of physicians or dentists certified as eligible
 for the coverage period beginning the first of July, two thousand seven-
 teen,  then the general hospitals may certify additional eligible physi-
 cians  or  dentists in a number equal to such general hospital's propor-
 tional 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  thirtieth  of
 June,  two  thousand seventeen, 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  seventeen  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 seventeen.
   § 7. Intentionally omitted.
   § 8. This act shall take effect immediately.
 
                                  PART S
 
   Section  1.  On  or  before  October  1, 2017, the commissioner of the
 office for people with developmental disabilities shall issue  a  report
 to the temporary president of the senate and the speaker of the assembly
 to include the following:
   (a) progress the office has made in meeting the housing needs of indi-
 viduals with developmental disabilities, including through:
   (1) its ongoing review of the residential registration list, including
 information  regarding services currently provided to individuals on the
 list and any available information on residential support categories and
 housing needs for such individuals;
   (2) recommendations and information provided by  the  regional  stake-
 holder advisory groups;
   (3) increasing access to rental housing, supportive housing, and other
 independent living options;
   (4)  building understanding and awareness of housing options for inde-
 pendent living among people with developmental  disabilities,  families,
 public  and private organizations, developers and direct support profes-
 sionals; and
   (5) assisting with the creation of a  sustainable  living  environment
 through funding for home modifications, down payment assistance and home
 repairs; and
   (b)  an update on the implementation of the report and recommendations
 of the transformation panel, including  implementation  of  the  panel's
 recommendations to:
   (1) increase and support access to self-directed models of care;
   (2)  enhance  opportunities  for individuals to access community inte-
 grated housing;
   (3) increase integrated employment opportunities; and
   (4) examine the program design and fiscal model for  managed  care  to
 appropriately  address the needs of individuals with developmental disa-
 bilities.
   § 2. This act shall take effect immediately; provided,  however,  that
 this  at  shall be subject to appropriations made specifically available
 for this purpose and shall expire and be deemed repealed April 1, 2018.
 
                                  PART T

 A. 3007--A                         78

   Section 1. The opening paragraph of section 220.03 of the  penal  law,
 as  amended by section 4 of part I of chapter 57 of the laws of 2015, is
 amended to read as follows:
   A person is guilty of criminal possession of a controlled substance in
 the  seventh  degree when he or she knowingly and unlawfully possesses a
 controlled  substance;  provided,  however,  that  it  shall  not  be  a
 violation of this section when a person possesses a residual amount of a
 controlled  substance  and that residual amount is in or on a hypodermic
 syringe or hypodermic needle [obtained and possessed pursuant to section
 thirty-three hundred eighty-one of the public health law, which includes
 the state's syringe exchange and  pharmacy  and  medical  provider-based
 expanded  syringe  access programs]; nor shall it be a violation of this
 section when a person's unlawful possession of a controlled substance is
 discovered as a result of seeking immediate health care  as  defined  in
 paragraph  (b) of subdivision three of section 220.78 of [the penal law]
 THIS ARTICLE, for either another person or him or herself  because  such
 person  is experiencing a drug or alcohol overdose or other life threat-
 ening medical emergency as defined in paragraph (a) of subdivision three
 of section 220.78 of [the penal law] THIS ARTICLE.
   § 2. Section 220.45 of the penal law is REPEALED.
   § 3. Subdivision 2 of section 850 of  the  general  business  law,  as
 amended  by  chapter  812  of  the  laws  of 1980, is amended to read as
 follows:
   2. (A) "Drug-related paraphernalia" consists of the following  objects
 used for the following purposes:
   [(a)]  (I)  Kits, used or designed for the purpose of planting, propa-
 gating, cultivating, growing or harvesting of any species of plant which
 is a controlled substance or from which a controlled  substance  can  be
 derived;
   [(b)]  (II)  Kits,  used or designed for the purpose of manufacturing,
 compounding, converting, producing, or preparing controlled substances;
   [(c)] (III) Isomerization devices, used or designed for the purpose of
 increasing the potency of any species of plant  which  is  a  controlled
 substance;
   [(d)]  (IV)  Scales  and balances, used or designed for the purpose of
 weighing or measuring controlled substances;
   [(e)] (V) Diluents and  adulterants,  including  but  not  limited  to
 quinine  hydrochloride, mannitol, mannite, dextrose and lactose, used or
 designed for the purpose of cutting controlled substances;
   [(f)] (VI) Separation gins, used or designed for the purpose of remov-
 ing twigs and seeds in order to clean or refine marihuana;
   [(g) Hypodermic syringes, needles and other objects, used or  designed
 for the purpose of parenterally injecting controlled substances into the
 human body;
   (h)] AND
   (VII)  Objects,  used or designed for the purpose of ingesting, inhal-
 ing, or otherwise introducing marihuana, cocaine,  hashish,  or  hashish
 oil into the human body.
   (B) "DRUG-RELATED PARAPHERNALIA" SHALL NOT INCLUDE HYPODERMIC NEEDLES,
 HYPODERMIC  SYRINGES AND OTHER OBJECTS USED FOR THE PURPOSE OF PARENTER-
 ALLY INJECTING CONTROLLED SUBSTANCES INTO THE HUMAN BODY.
   § 4. Section 3381 of the public health law, as amended by section  9-a
 of  part B of chapter 58 of the laws of 2007, subdivisions 1, 2 and 3 as
 amended by chapter 178 of the laws of 2010, paragraphs (e), (f) and  (g)
 of  subdivision 5 as amended by section 2 of part D of chapter 71 of the
 laws of 2016, is amended to read as follows:

 A. 3007--A                         79
 
   § 3381. Sale and possession  of  hypodermic  syringes  and  hypodermic
 needles.  1.  It  shall be unlawful for any person to sell or furnish to
 another person or persons, a hypodermic  syringe  or  hypodermic  needle
 except:
   (a)  pursuant  to  a  prescription  of  a  practitioner, which for the
 purposes of this section shall include a patient  specific  prescription
 form as provided for in the education law; or
   (b)  to persons who have been authorized by the commissioner to obtain
 and possess such instruments; or
   (c) by a pharmacy licensed under article one hundred  thirty-seven  of
 the  education  law, health care facility licensed under article twenty-
 eight of this chapter or a health care  practitioner  who  is  otherwise
 authorized to prescribe the use of hypodermic needles or syringes within
 his  or  her  scope  of  practice;  provided, however, that such sale or
 furnishing: (i) shall only be to a  person  eighteen  years  of  age  or
 older; AND (ii) [shall be limited to a quantity of ten or less hypoderm-
 ic  needles or syringes; and (iii)] shall be in accordance with subdivi-
 sion [five] FOUR of this section[.] ; OR
    (D) UNDER SUBDIVISION THREE OF THIS SECTION.
   2. [It shall be unlawful for any person to obtain or possess  a  hypo-
 dermic  syringe  or  hypodermic  needle  unless such possession has been
 authorized by the commissioner or is pursuant to a prescription,  or  is
 pursuant to subdivision five of this section.
   3.] Any person selling or furnishing a hypodermic syringe or hypoderm-
 ic needle pursuant to a prescription shall record upon the prescription,
 his  or  her signature or electronic signature, and the date of the sale
 or furnishing of the  hypodermic  syringe  or  hypodermic  needle.  Such
 prescription shall be retained on file for a period of five years and be
 readily  accessible  for  inspection  by  any public officer or employee
 engaged in the enforcement of this section.  Such  prescription  may  be
 refilled  not  more  than the number of times specifically authorized by
 the prescriber upon the prescription, provided however no such  authori-
 zation  shall  be effective for a period greater than two years from the
 date the prescription is signed.
   [4] 3.  The commissioner shall, subject to subdivision [five] FOUR  of
 this  section,  designate  persons, or by regulation, classes of persons
 who may  obtain  hypodermic  syringes  and  hypodermic  needles  without
 prescription  and  the  manner in which such transactions may take place
 and the records thereof which shall be maintained.
   [5] 4.  (a) A person eighteen years of age or  older  may  obtain  and
 possess  a hypodermic syringe or hypodermic needle pursuant to paragraph
 (c) of subdivision one of this section.
   (b) Subject to regulations of the commissioner,  a  pharmacy  licensed
 under  article  one  hundred thirty-seven of the education law, a health
 care facility licensed under article twenty-eight of this chapter  or  a
 health  care  practitioner  who is otherwise authorized to prescribe the
 use of hypodermic needles or syringes within his or her scope  of  prac-
 tice,  may  obtain  and  possess  hypodermic needles or syringes for the
 purpose of selling or furnishing  them  pursuant  to  paragraph  (c)  of
 subdivision  one  of  this  section  or  for the purpose of disposing of
 them[, provided that such pharmacy, health care facility or health  care
 practitioner has registered with the department].
   (c) Sale or furnishing of hypodermic syringes or hypodermic needles to
 direct consumers pursuant to this subdivision by a pharmacy, health care
 facility,  or  health care practitioner shall be accompanied by a safety
 insert. Such safety insert shall be developed or approved by the commis-

 A. 3007--A                         80
 
 sioner and shall include, but not be limited to, (i) information on  the
 proper  use of hypodermic syringes and hypodermic needles; (ii) the risk
 of blood borne diseases that may  result  from  the  use  of  hypodermic
 syringes and hypodermic needles; (iii) methods for preventing the trans-
 mission  or  contraction of blood borne diseases; (iv) proper hypodermic
 syringe and hypodermic needle disposal practices; (v) information on the
 dangers of injection drug use, and how to access drug treatment; (vi)  a
 toll-free  phone  number  for  information on the human immunodeficiency
 virus; and (vii) information on the safe disposal of hypodermic syringes
 and hypodermic needles including the relevant provisions of the environ-
 mental conservation law relating to the unlawful  release  of  regulated
 medical waste. The safety insert shall be attached to or included in the
 hypodermic syringe and hypodermic needle packaging, or shall be given to
 the purchaser at the point of sale or furnishing in brochure form.
   (d)  In  addition  to the requirements of paragraph (c) of subdivision
 one of this section, a pharmacy licensed under article one hundred thir-
 ty-seven of the education law may sell or furnish hypodermic needles  or
 syringes  only  if  such pharmacy[: (i) does not advertise to the public
 the availability for retail sale or furnishing of hypodermic needles  or
 syringes  without  a  prescription; and (ii) at any location where hypo-
 dermic needles or syringes are kept  for  retail  sale  or  furnishing,]
 stores  such  needles and syringes in a manner that makes them available
 only to authorized personnel and not openly available to customers.
   (e) A pharmacy registered under article one  hundred  thirty-seven  of
 the  education law may offer counseling and referral services to custom-
 ers purchasing  hypodermic  syringes  for  the  purpose  of:  preventing
 injection  drug  abuse;  the provision of drug treatment; preventing and
 treating hepatitis C; preventing drug overdose; testing  for  the  human
 immunodeficiency  virus; and providing pre-exposure prophylaxis and non-
 occupational post-exposure prophylaxis. The content of  such  counseling
 and referral shall be at the professional discretion of the pharmacist.
   (f)  The commissioner shall promulgate rules and regulations necessary
 to implement the provisions of this subdivision which shall include: (I)
 STANDARDS FOR ADVERTISING TO THE PUBLIC THE AVAILABILITY FOR RETAIL SALE
 OR FURNISHING OF HYPODERMIC SYRINGES OR NEEDLES; AND (II) a  requirement
 that such pharmacies, health care facilities and health care practition-
 ers cooperate in a safe disposal of used hypodermic needles or syringes.
   (g)  The  commissioner  may,  upon  the finding of a violation of this
 section, suspend for a determinate period of time the sale or furnishing
 of syringes by a specific entity.
   [6] 5.  The provisions of this section  shall  not  apply  to  farmers
 engaged  in  livestock  production or to those persons supplying farmers
 engaged in livestock production, provided that:
   (a) Hypodermic syringes and needles  shall  be  stored  in  a  secure,
 locked storage container.
   (b) At any time the department may request a document outlining:
   (i)  the  number of hypodermic needles and syringes purchased over the
 past calendar year;
   (ii) a record of all hypodermic needles used over  the  past  calendar
 year; and
   (iii)  a  record of all hypodermic needles and syringes destroyed over
 the past calendar year.
   (c) Hypodermic needles and syringes shall be  destroyed  in  a  manner
 consistent with the provisions set forth in section thirty-three hundred
 eighty-one-a of this article.
   § 5. This act shall take effect immediately.

 A. 3007--A                         81
 
                                  PART U
 
   Section  1.  Notwithstanding  any other inconsistent provision of law,
 the Western New York Children's Psychiatric Center shall  be  maintained
 as  a  distinct entity, both organizationally and physically, within the
 office of mental health, and such facility shall not  be  collocated  or
 merged  with  any  adult facility. Such facility shall have no less than
 forty-six beds that only serve children or adolescents, and  the  office
 of  mental health shall not take any steps to limit clinically appropri-
 ate admissions or transfers to such facility.
   § 2. This act shall take effect immediately.
 
                                  PART V
 
   Section 1. Subdivision 1 of section 364-j of the social  services  law
 is  amended  by  adding  two  new  paragraphs  (w)  and (w-1) 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 ARTICLE TWENTY-EIGHT OF  THE  PUBLIC  HEALTH  LAW,  WHICH
 PROVIDES  PRIMARY  AND  PREVENTATIVE  CARE  WHICH MAY INCLUDE BUT IS NOT
 LIMITED TO HEALTH MAINTENANCE, WELL-CHILD CARE, DIAGNOSIS AND  TREATMENT
 OF  INJURY  AND  ACUTE  ILLNESS,  DIAGNOSIS  AND  MANAGEMENT  OF CHRONIC
 DISEASE, BEHAVIORAL HEALTH SERVICES  DIRECTLY  OR  BY  REFERRAL,  VISION
 CARE,  DENTAL  CARE, AND NUTRITIONAL OR OTHER ENHANCED SERVICES TO CHIL-
 DREN AND ADOLESCENTS, WITHIN AN ELEMENTARY, SECONDARY OR PREKINDERGARTEN
 PUBLIC SCHOOL SETTING.
   (W-1) "SPONSORING ORGANIZATION." A  FACILITY  LICENSED  UNDER  ARTICLE
 TWENTY-EIGHT  OF  THE  PUBLIC HEALTH LAW WHICH ACTS AS THE SPONSOR FOR A
 SCHOOL-BASED HEALTH CENTER.
   § 2. Subdivision 3 of section 364-j of  the  social  services  law  is
 amended by adding a new paragraph (d-3) to read as follows:
   (D-3)  SERVICES  PROVIDED  BY SCHOOL-BASED HEALTH CENTERS 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  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), 1396B(M)(2)(A)(IX) AND
 1396A(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
 SERVICE  RATE FOR SUCH SERVICES IN EFFECT PRIOR TO THE ENACTMENT OF THIS
 PARAGRAPH FOR THE AMBULATORY  PATIENT  GROUP  RATE  FOR  THE  APPLICABLE
 SERVICE.
   §  3.  This  act shall take effect immediately provided, however, that
 the amendments to subdivisions 1 and 3 of section 364-j  of  the  social
 services  law  made by sections one and two of this act shall not affect
 the repeal of such section and shall be deemed repealed therewith.
 
                                  PART W

 A. 3007--A                         82
 
   Section 1. Section 365-f of the social  services  law  is  amended  by
 adding two new subdivisions 4-a and 4-b to read as follows:
   4-A.  FISCAL  INTERMEDIARY  SERVICES.  (A)  FOR  THE  PURPOSES OF THIS
 SECTION:
   (I) "FISCAL INTERMEDIARY" MEANS AN ENTITY THAT PROVIDES FISCAL  INTER-
 MEDIARY SERVICES AND HAS A CONTRACT FOR PROVIDING SUCH SERVICES WITH:
   (A) A LOCAL DEPARTMENT OF SOCIAL SERVICES;
   (B)  AN  ORGANIZATION  LICENSED UNDER ARTICLE FORTY-FOUR OF THE PUBLIC
 HEALTH LAW; OR
   (C) AN ACCOUNTABLE CARE ORGANIZATION CERTIFIED UNDER  ARTICLE  TWENTY-
 NINE-E  OF  THE  PUBLIC  HEALTH  LAW  OR  AN  INTEGRATED DELIVERY SYSTEM
 COMPOSED PRIMARILY OF HEALTH CARE PROVIDERS RECOGNIZED BY THE DEPARTMENT
 AS A PERFORMING PROVIDER SYSTEM UNDER THE DELIVERY SYSTEM REFORM  INCEN-
 TIVE PAYMENT PROGRAM.
   (II)   FISCAL   INTERMEDIARY  SERVICES  SHALL  INCLUDE  THE  FOLLOWING
 SERVICES, PERFORMED ON BEHALF OF THE CONSUMER TO FACILITATE HIS  OR  HER
 ROLE AS THE EMPLOYER:
   (A) WAGE AND BENEFIT PROCESSING FOR CONSUMER DIRECTED PERSONAL ASSIST-
 ANTS;
   (B) PROCESSING ALL INCOME TAX AND OTHER REQUIRED WAGE WITHHOLDINGS;
   (C)  COMPLYING WITH WORKERS' COMPENSATION, DISABILITY AND UNEMPLOYMENT
 REQUIREMENTS;
   (D) MAINTAINING PERSONNEL RECORDS FOR EACH CONSUMER DIRECTED  PERSONAL
 ASSISTANT,  INCLUDING  TIME  SHEETS  AND  OTHER DOCUMENTATION NEEDED FOR
 WAGES AND BENEFIT PROCESSING AND A COPY  OF  THE  MEDICAL  DOCUMENTATION
 REQUIRED PURSUANT TO REGULATIONS ESTABLISHED BY THE COMMISSIONER;
   (E) ENSURING THAT THE HEALTH STATUS OF EACH CONSUMER DIRECTED PERSONAL
 ASSISTANT  IS ASSESSED PRIOR TO SERVICE DELIVERY PURSUANT TO REGULATIONS
 ISSUED BY THE COMMISSIONER;
   (F) MAINTAINING  RECORDS  OF  AUTHORIZATIONS  OR  REAUTHORIZATIONS  OF
 SERVICES;
   (G) MONITORING THE CONSUMER'S OR, IF APPLICABLE, THE DESIGNATED REPRE-
 SENTATIVE'S  CONTINUING  ABILITY  TO FULFILL THE CONSUMER'S RESPONSIBIL-
 ITIES UNDER THE PROGRAM AND PROMPTLY NOTIFYING THE AUTHORIZING ENTITY OF
 ANY CIRCUMSTANCE THAT MAY AFFECT THE CONSUMER'S OR, IF  APPLICABLE,  THE
 DESIGNATED REPRESENTATIVE'S ABILITY TO FULFILL SUCH RESPONSIBILITIES;
   (H)  COMPLYING WITH REGULATIONS ESTABLISHED BY THE COMMISSIONER SPECI-
 FYING THE RESPONSIBILITIES OF PROVIDERS PROVIDING  SERVICES  UNDER  THIS
 TITLE; AND
   (I)  ENTERING  INTO  A DEPARTMENT APPROVED MEMORANDUM OF UNDERSTANDING
 WITH THE CONSUMER THAT DESCRIBES  THE  PARTIES'  RESPONSIBILITIES  UNDER
 THIS PROGRAM.
   (III) FISCAL INTERMEDIARIES ARE NOT RESPONSIBLE FOR, AND FISCAL INTER-
 MEDIARY  SERVICES SHALL NOT INCLUDE, FULFILLMENT OF THE RESPONSIBILITIES
 OF THE CONSUMER OR, IF APPLICABLE, THE CONSUMER'S  DESIGNATED  REPRESEN-
 TATIVE  AS  ESTABLISHED  BY  THE  COMMISSIONER.  A FISCAL INTERMEDIARY'S
 RESPONSIBILITIES SHALL NOT INCLUDE, AND A FISCAL INTERMEDIARY SHALL  NOT
 ENGAGE  IN:  MANAGING THE PLAN OF CARE INCLUDING RECRUITING AND HIRING A
 SUFFICIENT NUMBER OF INDIVIDUALS WHO MEET  THE  DEFINITION  OF  CONSUMER
 DIRECTED  PERSONAL ASSISTANT, AS SUCH TERM IS DEFINED BY THE COMMISSION-
 ER, TO PROVIDE AUTHORIZED SERVICES THAT ARE INCLUDED ON  THE  CONSUMER'S
 PLAN  OF  CARE;  TRAINING,  SUPERVISING  AND  SCHEDULING  EACH  CONSUMER
 DIRECTED PERSONAL ASSISTANT; TERMINATING THE CONSUMER DIRECTED  PERSONAL
 ASSISTANT'S EMPLOYMENT; OR ASSURING THAT EACH CONSUMER DIRECTED PERSONAL
 ASSISTANT  COMPETENTLY  AND  SAFELY PERFORMS THE PERSONAL CARE SERVICES,
 HOME HEALTH AIDE SERVICES AND SKILLED NURSING TASKS THAT ARE INCLUDED ON

 A. 3007--A                         83
 
 THE CONSUMER'S PLAN  OF  CARE.  A  FISCAL  INTERMEDIARY  SHALL  EXERCISE
 REASONABLE  CARE IN PROPERLY CARRYING OUT ITS RESPONSIBILITIES UNDER THE
 PROGRAM.
   (B)  NO  ENTITY  SHALL  PROVIDE,  DIRECTLY OR THROUGH CONTRACT, FISCAL
 INTERMEDIARY SERVICES WITHOUT A CERTIFICATION AS A  FISCAL  INTERMEDIARY
 ISSUED BY THE COMMISSIONER IN ACCORDANCE WITH THIS SUBDIVISION.
   (C) AN APPLICATION FOR CERTIFICATION AS A FISCAL INTERMEDIARY SHALL BE
 FILED WITH THE COMMISSIONER, TOGETHER WITH SUCH OTHER FORMS AND INFORMA-
 TION  AS SHALL BE PRESCRIBED BY, OR ACCEPTABLE TO THE COMMISSIONER. SUCH
 INFORMATION SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (I) THE NAME, EMPLOYER IDENTIFICATION NUMBER,  AND  MEDICAID  PROVIDER
 IDENTIFICATION  NUMBER  OF  THE  ORGANIZATION,  INCLUDING ANY SUBSIDIARY
 CORPORATIONS, IF APPLICABLE, AND ANY NAME UNDER WHICH  THE  ENTITY  DOES
 BUSINESS;
   (II) ALL ADDRESSES AT WHICH THE ORGANIZATION OPERATES;
   (III)  THE  NAMES,  TITLES AND CONTACT INFORMATION OF ALL OFFICERS AND
 DIRECTORS IN A NOT-FOR-PROFIT COMPANY OR  BUSINESS,  OR  MANAGERS  IN  A
 LIMITED LIABILITY COMPANY, AS WELL AS THE NAME AND EMPLOYMENT HISTORY OF
 THE INDIVIDUAL ULTIMATELY ACCOUNTABLE FOR OPERATION OF THE FISCAL INTER-
 MEDIARY;  AND  FOR A NOT-FOR-PROFIT ENTITY, THE NUMBER OF DIRECTOR POSI-
 TIONS SET BY THE COMPANY'S BY-LAWS, AND HOW MANY ARE CURRENTLY FILLED;
   (IV) A HISTORY OF THE ORGANIZATION, ALONG  WITH  AN  OVERVIEW  OF  THE
 ORGANIZATION  AND  ALL  SERVICES  IT OFFERS, INCLUDING ANY RELATIONSHIPS
 WITH OUTSIDE AGENCIES THAT MAY INFLUENCE IN ANY WAY THE ABILITY  OF  THE
 ORGANIZATION TO PROVIDE FISCAL INTERMEDIARY SERVICES CONSISTENT WITH THE
 MANNER DESCRIBED IN ITS APPLICATION;
   (V)  ALL POLICIES AND PROCEDURES OF THE FISCAL INTERMEDIARY, INCLUDING
 ANY CONTRACTS OR OTHER DOCUMENTS USED IN COMMUNICATIONS WITH CONSUMERS;
   (VI) PLANS TO SOLICIT AND CONSIDER  INPUT  FROM  THE  FISCAL  INTERME-
 DIARY'S  CONSUMERS,  STAFF,  PERSONAL  ASSISTANTS  AND  OTHER INTERESTED
 PARTIES WHICH MAY BE CHARGED WITH ROLES INCLUDING, BUT NOT  LIMITED  TO,
 QUALITY ASSURANCE REVIEW, REFERRAL, PROGRAM MONITORING OR DEVELOPMENT OR
 ESTABLISHING AND RESPONDING TO COMMUNITY NEEDS; SUCH INPUT MAY BE IN THE
 FORM  OF  A  BOARD  OF DIRECTORS, COMMITTEE, SURVEY, OR OTHER MECHANISM,
 PROVIDED THAT THE MAJORITY OF INPUT OBTAINED AS  PART  OF  THIS  PROCESS
 MUST  BE  FROM INDIVIDUAL CONSUMERS AND CONSUMER ADVOCATES OF THE FISCAL
 INTERMEDIARY;
   (VII) THE ORGANIZATION'S PLAN TO ADDRESS THE NEEDS  OF  CONSUMERS  AND
 THEIR  PERSONAL  ASSISTANTS IN A TIMELY MANNER, REGARDLESS OF WHERE THEY
 LIVE, INCLUDING, BUT NOT LIMITED TO,  INPUT  FROM  CONSUMERS,  OBTAINING
 PHYSICALS AND OTHER HEALTH INFORMATION FROM PERSONAL ASSISTANTS, OBTAIN-
 ING TIME RECORDS FOR PAYROLL, AND TIMELY PROCESSING OF PAYROLL; AND
   (VIII)  A WRITTEN SWORN STATEMENT BY AN OFFICER OF THE ENTITY DISCLOS-
 ING  ANY  PENDING  LITIGATION,  UNSATISFIED  JUDGMENTS   OR   PENALTIES,
 CONVICTIONS FOR FRAUD OR SANCTIONS IMPOSED BY GOVERNMENT AUTHORITIES.
   (D)  THE ENTITY SHALL REASONABLY PROMPTLY NOTIFY THE DEPARTMENT OF ANY
 CHANGE IN THE INFORMATION SUBMITTED TO THE DEPARTMENT FOR  CERTIFICATION
 UNDER THIS SUBDIVISION.
   (E)  THE  COMMISSIONER  SHALL  NOT  APPROVE AN APPLICATION FOR CERTIF-
 ICATION UNLESS HE OR SHE IS SATISFIED AS TO  THE  CHARACTER,  COMPETENCE
 AND  STANDING  IN THE COMMUNITY OF THE APPLICANT'S INCORPORATORS, DIREC-
 TORS, SPONSORS, STOCKHOLDERS OR OPERATORS AND FINDS THAT THE  PERSONNEL,
 RULES,   CONSUMER  CONTRACTS  OR  AGREEMENTS,  AND  FISCAL  INTERMEDIARY
 SERVICES ARE FIT AND ADEQUATE, AND THAT THE FISCAL INTERMEDIARY SERVICES
 WILL BE PROVIDED IN THE MANNER REQUIRED  BY  THIS  SUBDIVISION  AND  THE

 A. 3007--A                         84
 
 RULES  AND  REGULATIONS HEREUNDER, IN A MANNER DETERMINED BY THE COMMIS-
 SIONER.
   (F)  THE  COMMISSIONER  MAY  CONTRACT  WITH AN ENTITY WITH APPROPRIATE
 KNOWLEDGE, EXPERTISE AND EXPERIENCE POSSESSING  EXTENSIVE  KNOWLEDGE  OF
 CONSUMER  DIRECTED  PERSONAL ASSISTANCE FISCAL INTERMEDIARY SERVICES AND
 WHICH HAS A HISTORY OF PROVIDING SIMILAR SERVICES IN RELATION TO A SELF-
 DIRECTED PROGRAM TO DEVELOP AND TO ASSIST THE COMMISSIONER IN EVALUATING
 APPLICANTS FOR CERTIFICATIONS OR READINESS REVIEWS TO BE A FISCAL INTER-
 MEDIARY.
   (G) NEITHER PUBLIC NEED, TAX STATUS NOR PROFIT-MAKING STATUS SHALL  BE
 A  CRITERION  FOR  CERTIFICATION  UNDER  THIS SUBDIVISION.   STATUS AS A
 LICENSED HOME CARE SERVICES AGENCY OR OTHER HEALTH  PROVIDER  SHALL  NOT
 POSITIVELY  OR  NEGATIVELY AFFECT AN APPLICATION FOR CERTIFICATION UNDER
 THIS SUBDIVISION.    AN  ORGANIZATION  AUTHORIZED  PURSUANT  TO  ARTICLE
 FORTY-FOUR OF THE PUBLIC HEALTH LAW SHALL NOT BE A FISCAL INTERMEDIARY.
   (H)  A CERTIFICATION UNDER THIS SUBDIVISION SHALL LAST FOR A PERIOD OF
 FIVE YEARS. UPON APPLICATION FOR  A  RENEWAL,  THE  FISCAL  INTERMEDIARY
 SHALL SUBMIT UP TO DATE INFORMATION TO THE COMMISSIONER.
   (I)  THE COMMISSIONER SHALL CHARGE APPLICANTS FOR THE CERTIFICATION AN
 APPLICATION FEE OF ONE THOUSAND DOLLARS.
   4-B. PROCEEDINGS INVOLVING THE CERTIFICATION OF A FISCAL INTERMEDIARY.
 (A) A CERTIFICATION OF A FISCAL INTERMEDIARY MAY BE REVOKED,  SUSPENDED,
 LIMITED  OR  ANNULLED BY THE COMMISSIONER ON PROOF THAT IT HAS FAILED TO
 COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION OR REGULATIONS PROMULGAT-
 ED HEREUNDER.
   (B) NO  SUCH  CERTIFICATION  SHALL  BE  REVOKED,  SUSPENDED,  LIMITED,
 ANNULLED  OR  DENIED  WITHOUT A HEARING. HOWEVER, A CERTIFICATION MAY BE
 TEMPORARILY SUSPENDED OR LIMITED WITHOUT A HEARING FOR A PERIOD  NOT  IN
 EXCESS  OF  THIRTY  DAYS  UPON WRITTEN NOTICE TO THE FISCAL INTERMEDIARY
 FOLLOWING A FINDING BY THE DEPARTMENT THAT THE PUBLIC HEALTH  OR  SAFETY
 IS  IN  IMMINENT  DANGER. SUCH PERIOD MAY BE RENEWED UPON WRITTEN NOTICE
 AND A CONTINUED FINDING UNDER THIS PARAGRAPH.
   (C) THE COMMISSIONER SHALL FIX A TIME AND PLACE  FOR  THE  HEARING.  A
 COPY  OF  THE CHARGES, TOGETHER WITH THE NOTICE OF THE TIME AND PLACE OF
 THE HEARING, SHALL BE SERVED IN PERSON OR MAILED BY REGISTERED OR CERTI-
 FIED MAIL TO THE FISCAL INTERMEDIARY AT LEAST TWENTY-ONE DAYS BEFORE THE
 DATE FIXED FOR THE HEARING. THE FISCAL INTERMEDIARY SHALL FILE WITH  THE
 DEPARTMENT  NOT  LESS  THAN  EIGHT  DAYS PRIOR TO THE HEARING, A WRITTEN
 ANSWER TO THE CHARGES.
   (D) ALL ORDERS OR  DETERMINATIONS  UNDER  THIS  SUBDIVISION  SHALL  BE
 SUBJECT  TO  REVIEW  AS  PROVIDED  IN ARTICLE SEVENTY-EIGHT OF THE CIVIL
 PRACTICE LAW AND RULES.
   § 2. Section 365-a of the social services law is amended by  adding  a
 new subdivision 10 to read as follows:
   10.  FOR ANY DETERMINATION OF THE AMOUNT, NATURE AND MANNER OF PROVID-
 ING LONG TERM CARE ASSISTANCE UNDER THIS ARTICLE FOR WHICH AN ASSESSMENT
 TOOL IS USED, THE DEPARTMENT, IN CONSULTATION WITH THE INDEPENDENT ACTU-
 ARY, REPRESENTATIVES OF MEDICAL ASSISTANCE  RECIPIENTS,  REPRESENTATIVES
 OF  THE MANAGED CARE PROGRAMS, REPRESENTATIVES OF LONG TERM CARE PROVID-
 ERS AND OTHER INTERESTED PARTIES,  SHALL  EVALUATE  EXISTING  ASSESSMENT
 TOOLS  AND  DEVELOP  ADDITIONAL  PROFESSIONALLY  AND STATISTICALLY VALID
 ASSESSMENT TOOLS TO BE USED TO ASSIST IN DETERMINING THE AMOUNT,  NATURE
 AND MANNER OF SERVICES AND CARE NEEDS OF INDIVIDUALS WHICH SHALL INVOLVE
 CONSIDERATION  OF  VARIABLES  INCLUDING  BUT NOT LIMITED TO PHYSICAL AND
 BEHAVIORAL FUNCTIONING; ACTIVITIES  OF  DAILY  LIVING  AND  INSTRUMENTAL
 ACTIVITIES OF DAILY LIVING; FAMILY, SOCIAL OR GEOGRAPHIC DETERMINANTS OF

 A. 3007--A                         85
 
 HEALTH; PRIMARY OR SECONDARY DIAGNOSES OF COGNITIVE IMPAIRMENT OR MENTAL
 ILLNESS; AND OTHER APPROPRIATE CONDITIONS OR FACTORS.
   §  3.  Paragraphs (c) of subdivision 18 of section 364-j of the social
 services law, as added by sections 40-c and 55 of part B of  chapter  57
 of the laws of 2015, are amended to read as follows:
   (c)  (I)  In  setting such reimbursement methodologies, the department
 shall consider costs borne by the managed care program to ensure actuar-
 ially sound and adequate rates of payment to ensure quality of care  FOR
 ITS ENROLLEES AND SHALL REFLECT THE COSTS ASSOCIATED WITH ALL APPLICABLE
 FEDERAL  AND  STATE LAWS AND REGULATIONS, INCLUDING, BUT NOT LIMITED TO,
 THOSE RELATING TO WAGES, LABOR, AND ACTUARIAL SOUNDNESS.
   [(c)] (II) The department [of health] shall  require  the  independent
 actuary  selected  pursuant  to  paragraph  (b)  of  this subdivision to
 provide a  complete  actuarial  memorandum,  along  with  all  actuarial
 assumptions made and all other data, materials and methodologies used in
 the development of rates, to managed care providers thirty days prior to
 submission  of  such  rates  to  the  centers  for medicare and medicaid
 services for approval. Managed care  providers  may  request  additional
 review  of  the  actuarial  soundness of the rate setting process and/or
 methodology.
   (III) IN FULFILLING THE REQUIREMENTS OF THIS PARAGRAPH, THE DEPARTMENT
 SHALL ESTABLISH SEPARATE RATE CELLS TO REFLECT THE  COSTS  OF  CARE  FOR
 SPECIFIC HIGH-NEED ENROLLEES IN MANAGED CARE PROVIDERS. THE COMMISSIONER
 SHALL  MAKE  ANY  NECESSARY  AMENDMENTS  TO  THE  STATE PLAN FOR MEDICAL
 ASSISTANCE UNDER SECTION THREE HUNDRED SIXTY-THREE-A OF THIS TITLE,  AND
 SUBMIT  ANY APPLICATIONS FOR WAIVERS OF THE FEDERAL SOCIAL SECURITY ACT,
 AS MAY BE NECESSARY TO ENSURE FEDERAL FINANCIAL PARTICIPATION.  AS  USED
 IN  THIS  SUBPARAGRAPH AND SUBPARAGRAPH (IV) OF THIS PARAGRAPH, "MANAGED
 CARE PROVIDER" SHALL MEAN A MANAGED CARE PROVIDER OPERATING  ON  A  FULL
 CAPITATION  BASIS  OR  A  MANAGED  LONG  TERM  CARE PLAN OPERATING UNDER
 SECTION FORTY-FOUR HUNDRED THREE-F OF THE PUBLIC HEALTH LAW;  AND  "LONG
 TERM  CARE  ENTITY"  SHALL MEAN A RESIDENTIAL HEALTH CARE FACILITY UNDER
 ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH LAW, HOME CARE SERVICES AGENCY
 UNDER ARTICLE THIRTY-SIX OF THE PUBLIC HEALTH LAW, A FISCAL INTERMEDIARY
 IN THE CONSUMER DIRECTED PERSONAL ASSISTANCE PROGRAM,  OTHER  LONG  TERM
 CARE  PROVIDER AUTHORIZED UNDER A HOME AND COMMUNITY BASED WAIVER ADMIN-
 ISTERED BY THE DEPARTMENT OR THE OFFICE FOR  PEOPLE  WITH  DEVELOPMENTAL
 DISABILITIES.    THE HIGH-NEED RATE CELLS ESTABLISHED IN ACCORDANCE WITH
 THIS SUBPARAGRAPH SHALL BE CONSISTENT WITH SUBDIVISION  TEN  OF  SECTION
 THREE  HUNDRED  SIXTY-FIVE-A OF THIS TITLE AND INCLUDE, BUT SHALL NOT BE
 LIMITED TO:
   (A) INDIVIDUALS WHO ARE IN A RESIDENTIAL HEALTH CARE FACILITY;
   (B) INDIVIDUALS ENROLLED WITH A MANAGED CARE PROVIDER, WHO  REMAIN  IN
 THE  COMMUNITY  AND  WHO DAILY RECEIVE LIVE-IN TWENTY-FOUR HOUR PERSONAL
 CARE OR HOME HEALTH SERVICES OR TWELVE HOURS OR MORE OF  PERSONAL  CARE,
 HOME HEALTH SERVICES OR HOME AND COMMUNITY SUPPORT SERVICES;
   (C)  SUCH OTHER INDIVIDUALS WHO, BASED ON THE ASSESSMENT OF THEIR CARE
 NEEDS, THEIR DIAGNOSIS OR OTHER FACTORS, ARE DETERMINED TO PRESENT ESPE-
 CIALLY HIGH NEEDS RELATED TO FACTORS THAT WOULD INFLUENCE  THE  DELIVERY
 (INCLUDING  BUT  NOT LIMITED TO HOME LOCATION) OR THEIR USE OF SERVICES,
 AS MAY BE IDENTIFIED BY THE DEPARTMENT.
   (IV) ANY CONTRACT FOR SERVICES UNDER THIS  TITLE  BY  A  MANAGED  CARE
 PROVIDER  WITH  A LONG TERM CARE ENTITY SHALL ENSURE THAT RESOURCES MADE
 AVAILABLE BY THE PAYER UNDER SUCH CONTRACT WILL SUPPORT THE RECRUITMENT,
 HIRING, TRAINING AND RETENTION  OF  A  QUALIFIED  WORKFORCE  CAPABLE  OF
 PROVIDING QUALITY CARE, INCLUDING COMPLIANCE WITH ALL APPLICABLE FEDERAL

 A. 3007--A                         86
 
 AND  STATE  LAWS  AND  REGULATIONS, INCLUDING, BUT NOT LIMITED TO, THOSE
 RELATING TO WAGES AND LABOR. A MANAGED CARE PROVIDER WITH  A  LONG  TERM
 CARE  ENTITY SHALL REPORT ITS METHOD OF COMPLIANCE WITH THIS SUBDIVISION
 TO  THE DEPARTMENT AS A COMPONENT OF COST REPORTS REQUIRED UNDER SECTION
 FORTY-FOUR HUNDRED THREE-F OF THE PUBLIC HEALTH LAW.
   (V) A LONG TERM CARE ENTITY THAT CONTRACTS WITH A MANAGED CARE PROVID-
 ER SHALL ANNUALLY SUBMIT WRITTEN CERTIFICATION TO THE  DEPARTMENT  AS  A
 COMPONENT  OF  COST REPORTS REQUIRED UNDER SECTIONS TWENTY-EIGHT HUNDRED
 EIGHT AND THIRTY-SIX HUNDRED TWELVE OF THE PUBLIC HEALTH LAW AND SECTION
 THREE HUNDRED SIXTY-SEVEN-Q OF THIS TITLE, AS APPLICABLE, AS TO  HOW  IT
 APPLIED  THE AMOUNTS PAID IN COMPLIANCE WITH THIS SUBDIVISION TO SUPPORT
 THE RECRUITMENT, HIRING, TRAINING AND RETENTION OF A QUALIFIED WORKFORCE
 CAPABLE OF PROVIDING QUALITY CARE  AND  CONSISTENT  WITH  SECTION  THREE
 HUNDRED SIXTY-FIVE-A OF THIS TITLE.
   §  4. Subparagraph (ii) of paragraph (a) and paragraph (g) of subdivi-
 sion 7 and subdivision 8 of section 4403-f of  the  public  health  law,
 subparagraph  (ii)  of  paragraph  (a)  of  subdivision  7 as amended by
 section 43 of part C of chapter 60 of the laws of 2014, paragraph (g) of
 subdivision 7 as amended by section 41-b of part H of chapter 59 of  the
 laws  of  2011,  subparagraph (iii) of paragraph (g) of subdivision 7 as
 amended by section 54 of part A of chapter 56 of the laws  of  2013  and
 subdivision  8  as  amended by section 21 of part B of chapter 59 of the
 laws of 2016, are amended to read as follows:
   (ii) Notwithstanding any inconsistent provision of the social services
 law to the contrary, the commissioner  shall,  pursuant  to  regulation,
 determine  whether  and the extent to which the applicable provisions of
 the social services law or regulations relating to approvals and author-
 izations of, and utilization limitations on, health and long  term  care
 services reimbursed pursuant to title XIX of the federal social security
 act,  including, but not limited to, fiscal assessment requirements, are
 inconsistent with the flexibility necessary for the  efficient  adminis-
 tration  of  managed  long  term  care  plans and such regulations shall
 provide that such provisions shall not be  applicable  to  enrollees  or
 managed  long  term  care  plans,  provided that such determinations are
 consistent with applicable federal law and regulation,  and  subject  to
 the  provisions  of  [subdivision] SUBDIVISIONS eight AND TEN of section
 three hundred sixty-five-a AND PARAGRAPH (C) OF SUBDIVISION EIGHTEEN  OF
 SECTION THREE HUNDRED SIXTY-FOUR-J of the social services law.
   (g)  (i)  Managed  long  term care plans and demonstrations may enroll
 eligible persons in the plan or demonstration upon the completion  of  a
 comprehensive  assessment [that shall include, but not be limited to, an
 evaluation of the medical,  social  and  environmental  needs]  of  each
 prospective  enrollee  in  such  program  CONSISTENT  WITH SECTION THREE
 HUNDRED SIXTY-FIVE-A OF THE SOCIAL SERVICES LAW.  This assessment  shall
 also  serve  as the basis for the development and provision of an appro-
 priate plan of care for the enrollee. Upon approval of  federal  waivers
 pursuant  to  paragraph  (b)  of  this subdivision which require medical
 assistance  recipients  who  require  community-based  long  term   care
 services  to  enroll in a plan, and upon approval of the commissioner, a
 plan may enroll an applicant who is currently receiving home and  commu-
 nity-based  services  and  complete  the comprehensive assessment within
 thirty days of enrollment provided that  the  plan  continues  to  cover
 transitional care until such time as the assessment is completed.
   (ii)  The  assessment  shall  be  completed by a representative of the
 managed long term care plan or demonstration, in consultation  with  the
 prospective  enrollee's  health  care  practitioner  as  necessary.  The

 A. 3007--A                         87
 
 commissioner shall prescribe the forms on which the assessment shall  be
 made.
   (iii)  The  enrollment  application  shall be submitted by the managed
 long term care plan or demonstration to the  entity  designated  by  the
 department  prior to the commencement of services under the managed long
 term care plan or demonstration. Enrollments  conducted  by  a  plan  or
 demonstration  shall be subject to review and audit by the department or
 a contractor selected pursuant to paragraph (d) of this subdivision.
   (iv) Continued enrollment in a managed long term care plan  or  demon-
 stration  paid  for by government funds shall be based upon a comprehen-
 sive assessment [of the medical, social and environmental needs] of  the
 recipient  of  the services CONSISTENT WITH SECTION THREE HUNDRED SIXTY-
 FIVE-A OF THIS SOCIAL SERVICES LAW.  Such assessment shall be  performed
 at least every six months by the managed long term care plan serving the
 enrollee.  The  commissioner  shall  prescribe  the  forms  on which the
 assessment will be made.
   8. Payment rates for managed long term care  plan  enrollees  eligible
 for  medical  assistance. The commissioner shall establish payment rates
 for services provided to enrollees  eligible  under  title  XIX  of  the
 federal  social  security  act.  Such  payment rates shall be subject to
 approval by the director of the division of the budget and shall reflect
 savings to both state and local governments when compared to costs which
 would be incurred by such program if enrollees were to receive  compara-
 ble health and long term care services on a fee-for-service basis in the
 geographic  region  in  which such services are proposed to be provided.
 Payment rates shall be risk-adjusted to take into account the character-
 istics of enrollees, or proposed enrollees, including, but  not  limited
 to:    frailty,  disability  level,  health  and functional status, age,
 gender, the nature of services provided to  such  enrollees,  and  other
 factors  as  determined  by the commissioner. The risk adjusted premiums
 may also be combined with  disincentives  or  requirements  designed  to
 mitigate  any incentives to obtain higher payment categories. In setting
 such payment rates, the commissioner shall consider costs borne  by  the
 managed  care  program to ensure actuarially sound and adequate rates of
 payment to ensure quality of care [shall comply] AND THE  COSTS  ASSOCI-
 ATED WITH COMPLIANCE with all applicable laws and regulations, state and
 federal, including [regulations as to], BUT NOT LIMITED TO, THOSE RELAT-
 ING TO WAGES, LABOR AND actuarial soundness [for medicaid managed care].
   §  5.  Subparagraph  (i)  of paragraph (g) of subdivision 7 of section
 4403-f of the public health law, as added by section 65-c of part  A  of
 chapter  57  of  the  laws  of  2006 and such paragraph as relettered by
 section 20 of part C of chapter 58 of the laws of 2007,  is  amended  to
 read as follows:
   (i)  Managed long term care plans and demonstrations may enroll eligi-
 ble persons in the plan  or  demonstration  upon  the  completion  of  a
 comprehensive  assessment [that shall include, but not be limited to, an
 evaluation of the medical,  social  and  environmental  needs]  of  each
 prospective  enrollee  in  such  program  CONSISTENT  WITH SECTION THREE
 HUNDRED SIXTY-FIVE-A OF THE SOCIAL SERVICES LAW. This  assessment  shall
 also  serve  as the basis for the development and provision of an appro-
 priate plan of care for the prospective enrollee.
   § 6. Section 364-j of the social services law is amended by  adding  a
 new subdivision 33 to read as follows:
   33.  FOR SERVICES UNDER THIS TITLE PROVIDED BY RESIDENTIAL HEALTH CARE
 FACILITIES UNDER ARTICLE TWENTY-EIGHT OF  THE  PUBLIC  HEALTH  LAW,  THE
 COMMISSIONER  SHALL  DIRECT  MANAGED  CARE  ORGANIZATIONS LICENSED UNDER

 A. 3007--A                         88
 
 ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW, ARTICLE FORTY-THREE OF  THE
 INSURANCE LAW, AND THIS SECTION, TO CONTINUE TO REIMBURSE AT A BENCHMARK
 RATE  WHICH  IS  TO  BE  THE FEE-FOR-SERVICE RATE CALCULATED PURSUANT TO
 SECTION  TWENTY-EIGHT HUNDRED EIGHT OF THE PUBLIC HEALTH LAW. THE BENCH-
 MARK FEE-FOR-SERVICE RATE SHALL CONTINUE TO BE PAID BY SUCH MANAGED CARE
 ORGANIZATIONS FOR ALL SERVICES PROVIDED BY RESIDENTIAL HEALTHCARE FACIL-
 ITIES FROM THE EFFECTIVE DATE OF THIS SUBDIVISION AT LEAST UNTIL  DECEM-
 BER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO.
   §  7.  Subdivision  10  of  section  3614 of the public health law, as
 amended by section 5 of part C of chapter 109 of the laws of 2006, para-
 graph (a) as amended by section 57 of part A of chapter 56 of  the  laws
 of 2013, is amended to read as follows:
   10.  (a)  Such  adjustments  to  rates  of payments shall be allocated
 proportionally based on each certified home  health  agency,  long  term
 home  health  care  program,  AIDS  home care and hospice program's home
 health aide or other direct care services total annual hours of  service
 provided  to  medicaid  patients, as reported in each such agency's most
 recently available cost report as submitted to the department or for the
 purpose of the managed long term care program a suitable proxy developed
 by the department in consultation with the interested parties.  Payments
 made pursuant to this section shall not be subject to subsequent adjust-
 ment  or  reconciliation;  provided  that  such  adjustments to rates of
 payments to certified home  health  agencies  shall  only  be  for  that
 portion of services provided to children under eighteen years of age and
 for services provided to a special needs population of medically complex
 and  fragile  children,  adolescents and young disabled adults by a CHHA
 operating under a pilot program approved by the department.
   (b) Programs which have their rates adjusted pursuant to this subdivi-
 sion shall use such funds solely for the purposes of recruitment, train-
 ing and retention of non-supervisory home care services workers or other
 personnel with direct patient care responsibility.  Such  purpose  shall
 include  the recruitment, training and retention of non-supervisory home
 care services workers or any worker with direct patient  care  responsi-
 bility  employed  in licensed home care services agencies under contract
 with such agencies. Such agencies are prohibited from  using  such  fund
 for  any  other  purpose. For purposes of the long term home health care
 program, such payment shall be treated as supplemental payments and  not
 effect  any  current  cost  cap requirement. FOR PURPOSES OF THE MANAGED
 LONG TERM CARE PROGRAM, PLANS  SHALL  DISTRIBUTE  SUCH  FUNDS  IN  THEIR
 ENTIRETY  USING A REASONABLE METHODOLOGY. SUCH PAYMENTS SHALL BE SUPPLE-
 MENTAL TO REIMBURSEMENT RATES, AND PLANS SHALL PROVIDE WRITTEN NOTIFICA-
 TION TO EACH CONTRACTED AGENCY INDICATING THE AMOUNT OF FUNDS  DISBURSED
 FOR THE PURPOSE OF RECRUITMENT, TRAINING AND RETENTION OF NON-SUPERVISO-
 RY  HOME CARE SERVICES WORKERS OR ANY PERSONNEL WITH DIRECT PATIENT CARE
 RESPONSIBILITY. Each such agency shall submit, at a time and in a manner
 determined by the commissioner, a written certification  attesting  that
 such  funds will be used solely for the purpose of recruitment, training
 and retention of non-supervisory home health aides or any personnel with
 direct patient care responsibility. WHEN SUBMITTING ATTESTATIONS TO  THE
 DEPARTMENT,  MANAGED  LONG TERM CARE PLANS SHALL INCLUDE THE METHODOLOGY
 UTILIZED IN THE DISBURSEMENT OF FUNDS. The commissioner is authorized to
 audit each such agency or program to ensure compliance with the  written
 certification  required  by  this subdivision and shall recoup any funds
 determined to have been used for purposes  other  than  recruitment  and
 retention  of  non-supervisory home health aides or other personnel with

 A. 3007--A                         89
 
 direct patient care responsibility. Such recoupment shall be in addition
 to any other penalties provided by law.
   (c)  In  the  case  of  services provided by such agencies or programs
 through contracts  with  licensed  home  care  services  agencies,  rate
 increases  received by such agencies or programs pursuant to this subdi-
 vision shall be reflected, consistent with the purposes of this subdivi-
 sion, in either the fees paid or benefits or other  supports,  including
 training,  provided  to  non-supervisory  home health aides or any other
 personnel with direct patient care  responsibility  of  such  contracted
 licensed  home  care  services agencies and such fees, benefits or other
 supports shall be proportionate to the  contracted  volume  of  services
 attributable  to each contracted agency. Such agencies or programs shall
 submit to providers with  which  they  contract  written  certifications
 attesting  that  such  funds  will  be  used  solely for the purposes of
 recruitment, training and retention of non-supervisory home health aides
 or other personnel with direct patient  care  responsibility  and  shall
 maintain in their files expenditure plans specifying how such funds will
 be  used for such purposes. The commissioner is authorized to audit such
 agencies or programs to ensure compliance with such  certifications  and
 expenditure  plans  and  shall  recoup any funds determined to have been
 used for purposes other than those set forth in this  subdivision.  Such
 recoupment shall be in addition to any other penalties provided by law.
   (d)  Funds under this subdivision are not intended to supplant support
 provided by local government.
   (E) THE DEPARTMENT SHALL PROVIDE A REPORT TO THE CHAIRS OF THE  SENATE
 FINANCE  COMMITTEE, ASSEMBLY WAYS AND MEANS COMMITTEE, AND SENATE HEALTH
 AND ASSEMBLY HEALTH COMMITTEES. SUCH REPORT SHALL  BE  SUBMITTED  ON  OR
 BEFORE  JANUARY  FIRST,  TWO  THOUSAND  EIGHTEEN  AND  SHALL INCLUDE THE
 DISTRIBUTION OF MONIES BY PLAN AND PROVIDER OF THE FUNDS  SET  FORTH  IN
 THIS SUBDIVISION.
   § 8. Section 3614-c of the public health law, as amended by chapter 56
 of the laws of 2016, subparagraph (iv) of paragraph (a) of subdivision 3
 as amended by section 1 and subparagraph (iv) of paragraph (b) of subdi-
 vision  3 as amended by section 2 of part E of chapter 73 of the laws of
 2016, is amended to read as follows:
   § 3614-c. Home care worker wage parity. 1. As used  in  this  section,
 the following terms shall have the following meaning:
   (a)  "Living  wage  law"  means  any law enacted by Nassau, Suffolk or
 Westchester county or a city with a population of one  million  or  more
 which  establishes  a minimum wage for some or all employees who perform
 work on contracts with such county or city.
   (b) "Total compensation" means all wages and other direct compensation
 paid to or provided on behalf of the employee including, but not limited
 to, wages, health, education or pension benefits, supplements in lieu of
 benefits and compensated time off,  except  that  it  does  not  include
 employer  taxes  or employer portion of payments for statutory benefits,
 including but not limited to FICA,  disability  insurance,  unemployment
 insurance and workers' compensation.
   (c)  "Prevailing  rate of total compensation" means the average hourly
 amount of total compensation paid to all  home  care  aides  covered  by
 whatever  collectively bargained agreement covers the greatest number of
 home care aides in a city with a population of one million or more.  For
 purposes  of  this  definition, any set of collectively bargained agree-
 ments in such city with substantially  the  same  terms  and  conditions
 relating  to  total compensation shall be considered as a single collec-
 tively bargained agreement.

 A. 3007--A                         90
 
   (d) "Home care aide" means a home health  aide,  personal  care  aide,
 home attendant, PERSONAL ASSISTANT PERFORMING CONSUMER DIRECTED PERSONAL
 ASSISTANCE  SERVICES  PURSUANT  TO SECTION THREE HUNDRED SIXTY-FIVE-F OF
 THE SOCIAL SERVICES LAW, or other licensed or  unlicensed  person  whose
 primary responsibility includes the provision of in-home assistance with
 activities  of  daily living, instrumental activities of daily living or
 health-related tasks; provided, however, that home care  aide  does  not
 include  any  individual  (i) working on a casual basis, or (ii) (EXCEPT
 FOR A PERSON EMPLOYED UNDER THE CONSUMER DIRECTED PERSONAL CARE  PROGRAM
 UNDER SECTION THREE HUNDRED SIXTY-FIVE-F OF THE SOCIAL SERVICES LAW) who
 is  a relative through blood, marriage or adoption of: (1) the employer;
 or (2) the person for whom the worker is delivering  services,  under  a
 program funded or administered by federal, state or local government.
   (e)  "Managed  care plan" means any managed care program, organization
 or demonstration covering personal care or home  health  aide  services,
 and which receives premiums funded, in whole or in part, by the New York
 state medical assistance program, including but not limited to all Medi-
 caid  managed care, Medicaid managed long term care, Medicaid advantage,
 and Medicaid advantage plus plans and all programs of all-inclusive care
 for the elderly.
   (f) "Episode of care" means any service unit reimbursed, in  whole  or
 in  part,  by  the  New  York  state medical assistance program, whether
 through direct reimbursement or covered by a premium payment, and  which
 covers,  in  whole or in part, any service provided by a home care aide,
 including but not limited to all service units defined as visits, hours,
 days, months or episodes.
   (g) "Cash portion of the minimum rate of home care  [aid]  AIDE  total
 compensation"  means  the minimum amount of home care aide total compen-
 sation that may be paid in cash wages, as determined by  the  department
 in consultation with the department of labor.
   (h)  "Benefit  portion  of  the  minimum  rate of home care aide total
 compensation" means the portion of home  care  aide  total  compensation
 that  may be paid in cash or health, education or pension benefits, wage
 differentials, supplements in lieu of benefits and compensated time off,
 as determined by the department in consultation with the  department  of
 labor.  Cash  wages  paid  pursuant to increases in the state or federal
 minimum wage cannot be used to satisfy the benefit portion of the  mini-
 mum rate of home care aide total compensation.
   2.  Notwithstanding  any  inconsistent provision of law, rule or regu-
 lation, no payments by government agencies shall be  made  to  certified
 home  health agencies, long term home health care programs [or], managed
 care plans, OR THE CONSUMER DIRECTED PERSONAL CARE PROGRAM UNDER SECTION
 THREE HUNDRED SIXTY-FIVE-F OF THE SOCIAL SERVICES LAW, for  any  episode
 of  care  furnished,  in  whole or in part, by any home care aide who is
 compensated at amounts less than the applicable  minimum  rate  of  home
 care aide total compensation established pursuant to this section.
   3. (a) The minimum rate of home care aide total compensation in a city
 with a population of one million or more shall be:
   (i)  for  the period March first, two thousand twelve through February
 twenty-eighth, two  thousand  thirteen,  ninety  percent  of  the  total
 compensation mandated by the living wage law of such city;
   (ii)  for the period March first, two thousand thirteen through Febru-
 ary twenty-eighth, two thousand fourteen,  ninety-five  percent  of  the
 total compensation mandated by the living wage law of such city;
   (iii)  for the period March first, two thousand fourteen through March
 thirty-first two thousand sixteen, no less than the prevailing  rate  of

 A. 3007--A                         91
 
 total  compensation  as  of  January  first, two thousand eleven, or the
 total compensation mandated by the living wage law of such city,  which-
 ever is greater;
   (iv)  for  all  periods on or after April first, two thousand sixteen,
 the cash portion of the minimum rate of home  care  aide  total  compen-
 sation shall be ten dollars or the minimum wage as laid out in paragraph
 (a)  of  subdivision  one  of section six hundred fifty-two of the labor
 law, whichever is higher. The benefit portion of  the  minimum  rate  of
 home care aide total compensation shall be four dollars and nine cents.
   (b) The minimum rate of home care aide total compensation in the coun-
 ties of Nassau, Suffolk and Westchester shall be:
   (i) for the period March first, two thousand thirteen through February
 twenty-eighth,  two  thousand  fourteen,  ninety  percent  of  the total
 compensation mandated by the living wage law as set on March first,  two
 thousand thirteen of a city with a population of a million or more;
   (ii)  for the period March first, two thousand fourteen through Febru-
 ary twenty-eighth, two thousand  fifteen,  ninety-five  percent  of  the
 total  compensation  mandated  by  the  living  wage law as set on March
 first, two thousand fourteen of a city with a population of a million or
 more;
   (iii) for the period March first, two thousand fifteen, through Febru-
 ary twenty-eighth, two thousand sixteen,  one  hundred  percent  of  the
 total  compensation  mandated  by  the  living  wage law as set on March
 first, two thousand fifteen of a city with a population of a million  or
 more;
   (iv)  for  all  periods on or after March first, two thousand sixteen,
 the cash portion of the minimum rate of home  care  aide  total  compen-
 sation shall be ten dollars or the minimum wage as laid out in paragraph
 (b)  of  subdivision  one  of section six hundred fifty-two of the labor
 law, whichever is higher. The benefit portion of  the  minimum  rate  of
 home  care aide total compensation shall be three dollars and twenty-two
 cents.
   4. The terms of this section shall apply equally to services  provided
 by  home  care aides who work on episodes of care as direct employees of
 certified home health agencies, long term home health care programs,  or
 managed care plans, or as employees of licensed home care services agen-
 cies,  limited  licensed  home  care  services agencies, OR THE CONSUMER
 DIRECTED PERSONAL CARE PROGRAM UNDER SECTION THREE HUNDRED  SIXTY-FIVE-F
 OF THE SOCIAL SERVICES LAW, or under any other arrangement.
   5.  No payments by government agencies shall be made to certified home
 health agencies, long term home health care programs, [or] managed  care
 plans,  OR  THE  CONSUMER  DIRECTED  PERSONAL CARE PROGRAM UNDER SECTION
 THREE HUNDRED SIXTY-FIVE-F OF THE SOCIAL SERVICES LAW, for  any  episode
 of  care without the certified home health agency, long term home health
 care program, [or] managed care plan OR THE CONSUMER  DIRECTED  PERSONAL
 CARE PROGRAM having delivered prior written certification to the commis-
 sioner,  on  forms  prepared  by the department in consultation with the
 department of labor, that all services provided under  each  episode  of
 care are in full compliance with the terms of this section and any regu-
 lations promulgated pursuant to this section.
   6.  If  a  certified  home health agency or long term home health care
 program elects to provide home care aide services through contracts with
 licensed home care services agencies or  through  other  third  parties,
 provided  that  the episode of care on which the home care aide works is
 covered under the terms of this section, the certified home health agen-
 cy, long term home health care program, or managed care plan must obtain

 A. 3007--A                         92
 
 a written certification from the licensed home care services  agency  or
 other  third  party, on forms prepared by the department in consultation
 with the department of labor, which attests to the  licensed  home  care
 services  agency's  or  other third party's compliance with the terms of
 this section. Such certifications shall also obligate the certified home
 health agency, long term home health care program, or managed care  plan
 to  obtain,  on no less than a quarterly basis, all information from the
 licensed home care services agency or other third parties  necessary  to
 verify  compliance  with the terms of this section.  Such certifications
 and the information exchanged pursuant to them shall be retained by  all
 certified  home health agencies, long term home health care programs, or
 managed care plans, and all licensed home  care  services  agencies,  or
 other  third  parties  for  a period of no less than ten years, and made
 available to the department upon request.
   7. The commissioner shall distribute  to  all  certified  home  health
 agencies, long term home health care programs, [and] managed care plans,
 AND FISCAL INTERMEDIARIES IN THE CONSUMER DIRECTED PERSONAL CARE PROGRAM
 UNDER  SECTION  THREE  HUNDRED  SIXTY-FIVE-F OF THE SOCIAL SERVICES LAW,
 official notice of the minimum rates of home care aide  compensation  at
 least  one hundred twenty days prior to the effective date of each mini-
 mum rate for each social services district covered by the terms of  this
 section.
   8.  The  commissioner is authorized to promulgate regulations, and may
 promulgate emergency regulations, to implement the  provisions  of  this
 section.
   9.  Nothing  in  this section should be construed as applicable to any
 service provided by certified  home  health  agencies,  long  term  home
 health  care  programs,  [or]  managed  care plans, OR CONSUMER DIRECTED
 PERSONAL CARE PROGRAM UNDER SECTION THREE HUNDRED  SIXTY-FIVE-F  OF  THE
 SOCIAL  SERVICES LAW except for all episodes of care reimbursed in whole
 or in part by the New York Medicaid program.
   10. No certified home health agency, managed care plan [or], long term
 home health  care  program,  OR  FISCAL  INTERMEDIARY  IN  THE  CONSUMER
 DIRECTED  PERSONAL CARE PROGRAM UNDER SECTION THREE HUNDRED SIXTY-FIVE-F
 OF THE SOCIAL SERVICES LAW shall be liable for  recoupment  of  payments
 for  services  provided  through a licensed home care services agency or
 other third party with which the certified home health agency, long term
 home health care program, or managed care plan has  a  contract  because
 the  licensed  agency  or  other  third  party failed to comply with the
 provisions of this section if the certified  home  health  agency,  long
 term  home health care program, [or] managed care plan, OR FISCAL INTER-
 MEDIARY has reasonably and in good faith  collected  certifications  and
 all  information  required pursuant to subdivisions five and six of this
 section.
   § 9. This act shall take effect on the first of January after it shall
 have become a law, provided that prior to that date, the commissioner of
 health shall make regulations and take other actions  reasonably  neces-
 sary to implement this act on that date, and provided further that:
   a.  sections  three  and  four  of this act shall take effect April 1,
 2018;
   b. the amendments to section 364-j of the social services law made  by
 sections  three  and six of this act shall not affect the repeal of such
 section and shall be deemed repealed therewith;
   c. the amendments to section 4403-f of the public health law  made  by
 section four of this act shall not affect the repeal of such section and
 shall be deemed repealed therewith;

 A. 3007--A                         93

   d.  the amendments to subparagraph (i) of paragraph (g) of subdivision
 7 of section 4403-f of the public health law made  by  section  four  of
 this  act shall not affect the expiration and reversion of such subpara-
 graph, pursuant to subdivision (i) of section 111 of part H  of  chapter
 59  of  the laws of 2011, as amended, when upon such date the provisions
 of section five of this act shall take effect; and
   e. any entity operating as a fiscal intermediary  prior  to  this  act
 becoming  a  law may continue to do so for one year after this act takes
 effect, and may continue to do so after that time  only  upon  obtaining
 certification under this act.
 
                                  PART X
 
   Section  1.  Section  364-j  of  the social services law is amended by
 adding a new subdivision 33 to read as follows:
   33. (A) THIRTY DAYS PRIOR TO IMPLEMENTING OR ADJUSTING A RATE,  PREMI-
 UM,  COMPONENT  OF  PREMIUM, ADD-ON PAYMENT, QUALITY POOL, OR OTHER RATE
 COMPONENT RELATED TO A MANAGED CARE PROVIDER AS DEFINED IN THIS SECTION,
 THE COMMISSIONER OF HEALTH SHALL PROVIDE WRITTEN NOTICE TO THE CHAIRS OF
 THE SENATE FINANCE COMMITTEE, THE SENATE HEALTH COMMITTEE, THE  ASSEMBLY
 WAYS  AND  MEANS  COMMITTEE,  AND  THE  ASSEMBLY  HEALTH COMMITTEE, WITH
 REGARDS TO SUCH ACTIONS.
   (B) SUCH NOTICE SHALL INCLUDE, BUT  NOT  BE  LIMITED  TO,  A  DETAILED
 DESCRIPTION  OF ALL COMPONENTS INCLUDED IN THE ACTION, THE FISCAL IMPACT
 OF THE ACTION, THE POLICY RATIONALE FOR  IMPLEMENTING  THE  ACTION,  THE
 SPECIFIC SERVICE SECTORS THAT WOULD BE IMPACTED BY THE ACTION, THE METH-
 ODOLOGY  USED  TO  DETERMINE  THE  COMPONENTS  OF  SUCH ACTION, THE PLAN
 SPECIFIC IMPACTS OF THE ACTION, THE PROVIDER  SPECIFIC  IMPACTS  OF  THE
 ACTION,  ANY  SPECIFIC  PROJECT  DESCRIPTIONS OR REQUIREMENTS RELATED TO
 SUCH ACTION, THE MULTI-YEAR IMPACTS OF THE ACTION, AND THE  AVAILABILITY
 OF FEDERAL MATCHING FUNDS.
   (C)  THE COMMISSIONER OF HEALTH SHALL PROVIDE QUARTERLY REPORTS TO THE
 CHAIRS ON THE PREMIUMS FOR A MANAGED CARE PROVIDER AS DEFINED  IN  PARA-
 GRAPH (B) OF SUBDIVISION ONE OF THIS SECTION, INCLUDING AN ITEMIZED LIST
 OF  ALL RATES, PREMIUMS, COMPONENT OF PREMIUMS, ADD-ON PAYMENTS, QUALITY
 POOLS, OR OTHER RATE COMPONENTS FOR THE PREVIOUS  QUARTER,  INCLUDING  A
 DESCRIPTION OF ANY MODIFICATIONS IMPLEMENTED WITHIN SUCH PERIOD.
   § 2. This act shall take effect immediately.
 
                                  PART Y
 
   Section 1. Notwithstanding any other provision of law to the contrary,
 any  state  agency  with  25 percent or more of their workforce accruing
 overtime in a calendar year, and absent an emergency requiring a  tempo-
 rary increase in overtime hours, shall maintain all full time equivalent
 positions  from  the  previous  year  and in the event of any vacancy or
 vacancies such positions shall be filled as they become available. State
 agencies shall report the total number of agency workers and  the  total
 number  of workers accruing overtime from the previous calendar year, to
 the legislature and the director of the budget by  January  15  of  each
 year. In addition, any agency exceeding the overtime threshold as estab-
 lished  herein  shall report on the number of full time equivalent posi-
 tions that have been filled in accordance  with  this  section  and  all
 other  efforts  made  to reduce overtime to beneath the threshold stated
 herein. Each agency shall further report  on  the  number  of  temporary
 workers and per diem workers in positions in such agency and the specif-

 A. 3007--A                         94
 
 ic  number  of  hours worked by each temporary and per diem worker. Such
 report shall include the length of time such temporary  workers  or  per
 diem workers have been employed in each agency.
   § 2. This act shall take effect immediately.
 
                                  PART Z
 
   Section  1.  1.  In  the  event that the commissioner of the office of
 mental health shall order the transfer  of  inpatient  services  from  a
 state  operated  facility  to  a  facility licensed by article 28 of the
 public health law, such article 28 facility shall:
   (a) Demonstrate the ability to seek and increase  payment  from  third
 party payors including commercial health insurance;
   (b) Maintain inpatient capacity; and
   (c)  Provide  a  clinically appropriate level of care for each patient
 admitted, and effectively link each patient to  appropriate  after  care
 services.
   2.  In  the event that the facility which has accepted the transfer of
 inpatient services is no longer able to meet the criteria set  forth  in
 subdivision  one  of  this  section,  the  office of mental health shall
 resume the administration of such services.
   3. Any savings related to the transfer  of  state  operated  inpatient
 services  from  the office of mental health as set forth in this section
 shall be reinvested and disbursed in accordance with section 97-dddd  of
 the state finance law.
   4.  In  the event that inpatient services are reduced and such service
 capacity is subsequently eliminated, any savings related  thereto  shall
 be  reinvested  and  disbursed in accordance with section 97-dddd of the
 state finance law.
   5. There shall be no reduction in any full time  equivalent  positions
 due  to  the  transfer  of  inpatient  services from an office of mental
 health state operated facility to a facility licensed by article  28  of
 the  public  health  law. Any employees transferred shall be transferred
 pursuant to section 70 of the civil service law, without  further  exam-
 ination  or qualification to the same or similar titles and shall remain
 in the same collective bargaining units and shall retain  their  respec-
 tive  civil service classifications, status and rights pursuant to their
 collective bargaining units and collective bargaining agreements.
   § 2. This act shall take effect immediately.
 
                                  PART AA
 
   Section 1. Section 364-j of the social  services  law  is  amended  by
 adding a new subdivision 34 to read as follows:
   34. ENHANCED SAFETY NET HOSPITAL PROGRAM. (A) FOR THE PURPOSES OF THIS
 SUBDIVISION,  "ENHANCED  SAFETY NET HOSPITAL" MEANS A HOSPITAL WHICH, IN
 ANY OF THE PREVIOUS THREE CALENDAR YEARS, HAS MET THE  FOLLOWING  CRITE-
 RIA:
   (I)(A)  NOT  LESS THAN FIFTY PERCENT OF THE PATIENTS IT TREATS RECEIVE
 MEDICAID OR ARE MEDICALLY UNINSURED;
   (B) NOT LESS THAN  FORTY  PERCENT  OF  ITS  INPATIENT  DISCHARGES  ARE
 COVERED BY MEDICAID;
   (C) TWENTY-FIVE PERCENT OR LESS OF ITS DISCHARGED PATIENTS ARE COMMER-
 CIALLY INSURED;
   (D)  NOT  LESS THAN THREE PERCENT OF THE PATIENTS IT PROVIDES SERVICES
 TO ARE ATTRIBUTED TO THE CARE OF UNINSURED PATIENTS; AND

 A. 3007--A                         95
 
   (E) PROVIDES CARE TO UNINSURED PATIENTS IN ITS EMERGENCY ROOM,  HOSPI-
 TAL  BASED  CLINICS AND COMMUNITY BASED CLINICS, INCLUDING THE PROVISION
 OF IMPORTANT COMMUNITY SERVICES, SUCH AS DENTAL CARE AND PRENATAL CARE;
   (II)  IS  A PUBLIC HOSPITAL OPERATED BY A COUNTY, MUNICIPALITY, PUBLIC
 BENEFIT CORPORATION, OR THE STATE UNIVERSITY OF NEW YORK; OR
   (III) IS FEDERALLY DESIGNATED AS A CRITICAL ACCESS OR  SOLE  COMMUNITY
 HOSPITAL.
   (B)  THE  COMMISSIONER SHALL ESTABLISH AN ENHANCED SAFETY NET HOSPITAL
 PROGRAM (REFERRED TO IN THIS SUBDIVISION AS "THE  PROGRAM")  TO  PROVIDE
 FOR  ADDITIONAL ANNUAL MEDICAL ASSISTANCE PAYMENTS UNDER THIS SECTION TO
 ENHANCED SAFETY NET HOSPITALS FOR THE PURPOSES OF ENSURING THE CONTINUED
 AVAILABILITY OF SERVICES BY PROVIDING ADDITIONAL SUPPORT FOR  CRITICALLY
 NEEDED  HEALTH CARE SERVICES AND TO ENSURE THE CONTINUED MAINTENANCE AND
 OPERATION OF SUCH HOSPITALS, TO REFLECT THE INCREASED  COSTS  ASSOCIATED
 WITH  BEING  AN  ENHANCED SAFETY NET HOSPITAL. THE PROGRAM SHALL PROVIDE
 FOR INCREASED PAYMENTS BY MANAGED CARE PROVIDERS TO  SUCH  HOSPITALS  IN
 ADDITION TO WHAT THE MANAGED CARE PROVIDERS WOULD ORDINARILY PAY TO SUCH
 HOSPITALS,  AND  INCREASED  PREMIUM  PAYMENTS  BY THE MEDICAL ASSISTANCE
 PROGRAM TO THE MANAGED CARE  PROVIDERS  TO  ACCOMMODATE  SUCH  INCREASED
 PAYMENTS TO HOSPITALS.
   (C)  PAYMENTS  BY  MANAGED  CARE  PROVIDERS TO SUCH HOSPITALS SHALL BE
 PROPORTIONAL TO EACH SUCH HOSPITAL'S NUMBER OF  DISCHARGES  OF  PATIENTS
 WHO  ARE  ENROLLED  IN  MEDICAL ASSISTANCE UNDER THIS TITLE OR ARE UNIN-
 SURED.
   (D) TOTAL PAYMENTS BY THE MEDICAL ASSISTANCE PROGRAM TO  MANAGED  CARE
 PROVIDERS  UNDER  THE PROGRAM SHALL BE AS APPROPRIATED. THE COMMISSIONER
 SHALL DEVELOP A FORMULA FOR SUCH PAYMENTS CONSIDERING THE AMOUNT  APPRO-
 PRIATED,  EACH  SUCH HOSPITAL'S NUMBER OF DISCHARGES OF PATIENTS WHO ARE
 ENROLLED IN MEDICAL ASSISTANCE UNDER THIS TITLE OR  ARE  UNINSURED,  AND
 THE  AMOUNT ORDINARILY PAID BY THE MEDICAL ASSISTANCE PROGRAM OTHER THAN
 UNDER THIS SECTION FOR EACH SUCH HOSPITAL'S DISCHARGES.
   (E) PAYMENT  OF  THE  NON-FEDERAL  SHARE  OF  THE  MEDICAL  ASSISTANCE
 PAYMENTS  MADE  PURSUANT TO THIS SUBDIVISION SHALL BE THE RESPONSIBILITY
 OF THE STATE AND SHALL NOT INCLUDE A LOCAL SHARE.
   (F) PAYMENTS UNDER THIS SUBDIVISION SHALL BE CONSISTENT  WITH  FEDERAL
 REGULATIONS  AND SHALL NOT BE AT A LEVEL THAT WOULD JEOPARDIZE OR DIMIN-
 ISH FEDERAL FINANCIAL PARTICIPATION, AND SHALL NOT SUPPLANT THE  USE  OF
 OTHER FUNDS FOR ENHANCED SAFETY NET HOSPITALS.
   (G)  FOR  PAYMENTS UNDER THIS SUBDIVISION, THE COMMISSIONER MAY ESTAB-
 LISH REASONABLE TERMS AND CONDITIONS, CONSISTENT WITH THIS  SUBDIVISION,
 TO ENSURE CONTINUED PROGRAMS BY ENHANCED SAFETY NET HOSPITALS FOR HEALTH
 CARE DELIVERY SYSTEM REFORM.
   §  2.  Notwithstanding  any  provision of law to the contrary, for the
 period April 1, 2017 to March 31, 2018, the commissioner of health shall
 not take any action with the purpose of  reducing  payment  for  general
 hospital  emergency  services  visits  provided to patients eligible for
 medical assistance pursuant to title  eleven  of  article  five  of  the
 social  services  law, including such patients enrolled in organizations
 operating in accordance with the provisions of article forty-four of the
 public health law or in health maintenance organizations  organized  and
 operating in accordance with article forty-three of the insurance law.
   §  3.  This act shall take effect April 1, 2017 and shall be deemed to
 have been in full force and effect on and  after  such  date;  provided,
 however, that the amendments to section 364-j of the social services law
 made  by  section  one  of  this act shall not affect the repeal of such
 section and shall be deemed repealed therewith.

 A. 3007--A                         96
 
                                  PART BB
 
   Section  1. Section 4 of chapter 495 of the laws of 2004, amending the
 insurance law and the public health law relating to the New  York  state
 health  insurance  continuation  assistance  demonstration  project,  as
 amended by section 1 of part AA of chapter 54 of the laws  of  2016,  is
 amended to read as follows:
   §  4.  This  act  shall take effect on the sixtieth day after it shall
 have become a law; provided, however, that  this  act  shall  remain  in
 effect  until  July 1, [2017] 2018 when upon such date the provisions of
 this act shall expire and be deemed repealed; provided, further, that  a
 displaced  worker shall be eligible for continuation assistance retroac-
 tive to July 1, 2004.
   § 2. This act shall take effect immediately.
   § 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.
   §  3.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Parts A through BB of this act shall be
 as specifically set forth in the last section of such Parts.